The Estée Lauder Companies (ELC) is planning to grow sales in China with a series of initiatives designed to extend the company’s reach, according to a report compiled by the Trefis Team for Forbes.
Lauder will diversify its portfolio with the introduction of further brands, as well as increase penetration beyond the major cities, opening branded stores where distribution options are limited. The company currently operates freestanding stores for MAC and Jo Malone in the region, but is planning to add further brands going forward.
ELC is also gearing up for an online push, connecting freestanding stores to its online portals to create an omni-channel experience for consumers. With 70 percent of its sales growth in China originating from the e-commerce channel in Q3 2016, and KPMG estimating that 50 percent of China’s domestic luxury consumption will be generated online by 2020, any investment looks to be sound.