Estée Lauder Companies

Estée Lauder Companies, Inc. is one of the world's leading manufacturers and marketers of skin care, cosmetics, perfume and hair care products.

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History

The company began in 1946, when Joseph Lauder and wife Estée Lauder began producing cosmetics in New York City, New York. At first, they only had four products: super rich all purpose cream, creme pack, cleansing oil and skin lotion. Two years later, they established their first department store account with Saks Fifth Avenue in New York.

Over the next fifteen years, they expanded the range and continued to sell their products in the United States. In 1960, the company went international. Its first international account was in the London department store Harrods. The following year, it opened an office in Hong Kong.

In 1964, they started Aramis Inc., which produced fragrances and grooming products for men. In 1967, Estée Lauder was rewarded for her efforts by being named one of ten Outstanding Women in Business in the United States by business and financial editors. This was followed by a Spirit of Achievement Award from Albert Einstein College of Medicine at Yeshiva University in 1968. In that year, the company expanded again, opening Clinique Laboratories, Inc. Clinique was the first dermatologist guided, allergy tested, fragrance free cosmetic brand created by Estée Lauder.

Estée Lauder became the first women's cosmetic company to introduce a second line for men when, in 1976, they began a separate line of skin supplies. named "Lab Series". In 1981, the company achieved another breakthrough when their products became available in the Soviet Union.

Estée Lauder now sells its products in department stores across the world, as well as having a chain of freestanding retail outlets. It employs over 20,000 people, and in 2003, its sales topped $5 billion. In February 2004, the company's teen-oriented jane business was sold; in April 2006, the professional-quality Stila brand, which Estée Lauder purchased in 1999, was sold.

The company has been known for its sometimes iconic spokesmodels, sometimes referred to simply as 'faces'. Past 'faces' for Estée Lauder include Karen Graham, Willow Bay and Paulina Porizkova. Currently, the public spokesmodels for Estée Lauder are Carolyn Murphy, Liya Kebede, Gwyneth Paltrow and Elizabeth Hurley.

Operations

Corporate governance

Current members of the board of directors of Estée Lauder Companies Inc. are: Charlene Barshefsky, Rose Bravo, Lynn de Rothschild, Mellody Hobson, Irvine Hockaday, Aerin Lauder, Leonard Lauder, Ronald Lauder, William P. Lauder, Richard Parsons, Marshall Rose, and Barry Sternlicht.

Management

The company is still controlled by the Lauder family, which controls about 70% of voting shares, and Estée's grandson Leonard Lauder chairs the board of directors. William P. Lauder is CEO. Dan Brestle is president. Fabrizio Freda will become president and chief operating officer in March 2008.^[1]

Breast cancer activist

The Estée Lauder Companies’ annual Breast Cancer Awareness Campaign involves all of the 18 brands that make up The Estée Lauder Companies. They collectively represent The Breast Cancer Research Foundation’s first and largest corporate supporter. Estée's daughter-in-law was the creator of BCRF's signature pink ribbon.

Over $10 million has been raised for The Breast Cancer Research Foundation since 1993. Another $1 million was raised from their retail partners since July 2002.^[2]

Brands

Estée Lauder brands include:

• American Beauty
• Aramis
• Aveda
• Bobbi Brown
• Bumble and bumble
• Clinique
• Coach
• Daisy Fuentes
• Darphin
• Donald Trump The Fragrance
• Donna Karan
• Estée Lauder
• Flirt!
• Good Skin
• Grassroots
• Jane (cosmetics)
• Jo Malone
• Kate Spade
• Lab Series (a male skin care brand which is a spin-off from Aramis)
• La Mer
• Kiton
• MAC Cosmetics
• Michael Kors
• Missoni
• Ojon
• Origins
• Prescriptives
• Sean John
• Stila
• Tommy Hilfiger
• Tom Ford Beauty

Controversies

Boycott

 Since at least February, 2001, Estée Lauder and its brands have been the target of a boycott campaign. The boycott has been led by pro-Palestinian actvists who have targeted the corporation because of the pro-Israel activities of Ronald Lauder.^[3][4] In June 2003, the San Francisco-based Queers Undermining Israeli Terrorism (QUIT) took up the boycott with their "Estee Slaughter" campaign.^[5] The boycott has generated an anti-boycott campaign by supporters of Israel.^[6]

Sandra Bernhard

Estée Lauder's boutique brand, M.A.C, aired an internet commercial starring M.A.C spokesperson Sandra Bernhard. Ms. Bernhard referred to theoretical individuals unlike herself (who presumably did not use the product) as "...little freaked out, intimidated, frightened, right-wing Republican thin-lipped bitch" in this now infamous internet ad. Many Estee Lauder brand customers contacted the company to complain, asking that be removed and a public apology made. The company apologized for the ad, and the video was removed from the official site, although it is still available on YouTube.

References

1. ^ Women's Wear Daily, 9 November 2007
2. ^ Estée Lauder Companies Update
3. ^ Boycott Israel Campaign. Retrieved on 2006-08-06.
4. ^ American Muslims for Jerusalem have called for a boycott of Estee Lauder products. Snopes. Retrieved on 2006-08-06.
5. ^ Queers Undermining Israeli Terrorism. Retrieved on 2006-08-06.
6. ^ Armchair Activist: Buy Estee Lauder Products (May 11, 2001). Archived from the original on 2002-06-07. Retrieved on 2006-08-06.

Coordinates: 40°45′49″N, 73°58′22″W