Business Wars Estée Lauder vs L'Oréal | Face to Face | 4
Feb 15, 2021
Leonard Lauder, the former CEO of Estée Lauder Companies, shares pivotal insights from the 1979 beauty industry landscape. He discusses the launch of Prescriptives, which emphasized inclusivity in makeup. The podcast delves into L'Oréal's aggressive push into the U.S. market with Lancôme, and the fierce competition that ensued. Lauder reveals his bold advertising strategies, especially during financial crisis challenges. The tension between tradition and modernity in marketing further colors this riveting tale of rivalry and resilience in the luxury beauty sector.
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L'Oréal's Lancôme Strategy
- L'Oréal, primarily known for hair products, aimed to conquer the luxury makeup market with Lancôme.
- They planned a rebranding, using advertising, despite the founder's opposition.
Estée Lauder vs. Lancôme: The Arms Race
- An arms race ensued between Estée Lauder and Lancôme, mirroring each other's tactics.
- Both brands employed celebrity endorsements and promotional offers, intensifying the competition.
Lancôme's Aggressive Tactics
- Leonard Lauder worried about Lancôme's aggressive tactics, including positioning their counters next to Clinique.
- Lauder also expressed concern over Prescriptives' over-distribution and high sales associate turnover.