New York, December 4, 2025 – In a bid to enhance its market share and boost sales, the Estée Lauder Companies are looking to expand their brand portfolio and cater to a younger demographic on a global scale. During a keynote address at the Reuters NEXT conference in New York, CEO Stéphane de La Faverie highlighted the company’s strategy that involves a strong focus on "local relevance" and a targeted approach to meet diverse consumer needs across various cultures.
Targeting the Emerging Middle Class
La Faverie, who took the helm of the company earlier in the year, expressed optimism about the potential of the global middle class, which he identified as a crucial market segment leading up to 2030. He emphasized the importance of adapting products to different cultural contexts, stating, “Estée Lauder, Clinique, Mac – their logo is the same everywhere but how we activate in Europe, China, India, is different.” He pointed to the brand's strategic investments in up-and-coming beauty brands in China, Mexico, and India as part of this localization strategy.
The company's pivot towards targeting a younger consumer base is being underscored by the success of its skincare brand, The Ordinary, which has resonated particularly well with Generation Z, thanks to affordable pricing that ranges from $9 to $34. However, the company continues to maintain its luxury credentials with its higher-end fragrances, such as those from Tom Ford, which can start at $255 for a mere 30-milliliter bottle.
Focus on Rebalancing Growth
While expanding into emerging markets is critical, La Faverie insisted that this growth will not come at the expense of established markets like China. The Chinese market, although recently facing challenges with decreased consumer spending, remains a priority for the company. La Faverie noted the need for balance: “We are not abandoning China,” he stated, underscoring the complexity of the current consumer behavior in that market.
Despite these challenges, the company has seen a notable recovery in its stock prices — rising nearly 37% since La Faverie’s appointment — attributed to the turnaround strategies being implemented.
Holiday Shopping Season and Consumer Resilience
As the U.S. holidays approach, La Faverie reported that consumer spending remains resilient, even during the key holiday shopping season, which he has aptly dubbed "the Super Bowl of beauty." This period starts with Diwali in India and spans various celebrations globally, showing a shift in shopping habits that are increasingly inclusive of diverse cultural observations.
Tom Ford Brand Growth
During the conference, La Faverie also shed light on the strong performance of the Tom Ford brand, which Estée Lauder acquired in 2023 as part of its largest deal to date. He pointed out the brand's ongoing growth in regions like Europe and Asia, particularly through its perfume and makeup lines, which have helped cement Estée Lauder's reputation in the luxury beauty market.
In conclusion, as Estée Lauder Companies drives forward with its global strategy, the combination of localized marketing, a focus on younger consumers, and a strong handle on luxury and emerging market needs appears to position the company for sustained growth in the ever-evolving cosmetics landscape.
For more detailed updates on Estée Lauder’s business strategies and products, check out the full coverage at Reuters.
Reporting by Arriana McLymore, Jessica DiNapoli, and Susan Heavey in New York; Additional reporting by Neil Kanatt in Bengaluru.