CEO of Estee Lauder Group: 75% of marketing expenses go to digital channels

Estee Lauder Group's digital marketing expenditure accounts for 75% of the total marketing expenditure, including social media marketing and opinion leader marketing. Estee Lauder Cos., the US cosmetics giant, recently released key financial data for fiscal year 2018/2019. Thanks to the strong performance of high-end skin care brands in the Asia-Pacific region, the annual sales of Estee Lauder Cos increased by 9% to $148.6 billion in fiscal year 2018/2019.

In the Asia-Pacific region, the Chinese market is the most eye-catching, all categories and sales channels have achieved double-digit growth, has replaced the United States as one of the fastest-growing markets, all thanks to Estee Lauder Group's huge investment in China's digital marketing and online channels.

According to the records of telephone conference of Est e e Lauder Group's earnings report, the group's digital marketing expenditure accounts for 75% of the total marketing expenditure worldwide, including social media marketing and opinion leader marketing. These marketing activities have achieved tremendous success in Asia, especially in China, which has made Este Lauder brand continuous. Three years ranked Gartner L2 in the top three of "China Digital IQ List of Beauty Brands", ranked as the highest grade - Genius. Fabrizio Freda, chief executive of Estee Lauder Group, said in a conference call:"As far as the Chinese market is concerned, with the promotion of digital marketing, all brands of Estee Lauder Group have achieved double-digit growth, and both online and offline channels have achieved double-digit strong growth." At the same time, Estee Lauder Group has also achieved success in opening up online e-commerce channels. Estee Lauder uses big data to provide customized information for different consumers. Brand official websites, retail websites and third-party websites have visited more than 1 billion times, and online sales have achieved double-digit growth. In order to further expand its business, Estee Lauder Group also opened the flagship stores of Tom Ford and Jo Malone London under Alibaba Group, and achieved excellent sales results.

In addition, Estee Lauder Group also launched a pre-sale business to enable users to get their hands on new products at the first time on the release day. At present, the pre-sale business is mainly aimed at Asian users, and will be landed in other countries and regions around the world in the future.

Fabrizio Freda said in a conference call: "China's market sales growth is strong, which I expected, because China has a huge consumption capacity, the proportion of the middle class is rising, young consumers are also increasing, our sales outlets have been located in 121 cities in China, online sales. Tianmao sells to 650 cities, so even if the consumption level of some cities is not high enough, consumers can buy our products.