Estée Lauder Maintains its Purchasing Policy

The growth of companies can occur in two ways: organically, that is, thanks to the launch of new products and brands controlled 100% by corporations, or thanks to purchases. The acquisition of other companies in the sector – in addition to cost savings, brand positioning and the pursuit of control of other business niches – aims to change the profile of the company. In this way, when the entity has a non-comparable profile, the presentation of results to analysts is usually easier – just like explaining the increase in debt.

At this point is Estee Lauder with a purchase more, those who love their successful CEO, Fabrizio Freda – the man who turns everything he touches into gold. The object of desire was the cosmetic firm Becca, especially well positioned in the United States, thanks to its sales agreements with Sephora and an aggressive online campaign. Its growth strategy, mainly online and thanks to deals with YouTubers that have millions of followers, has been a success. Although the price of the operation has not revealed, what is known is that Becca will maintain its current line of makeup «based on an extensive palette of colors» with their current prices. That is, it will continue to belong to the premium-luxury market.

According to Freda himself, «a great deal because Becca has demonstrated his ability to create a brand with online positioning from the outset.» Something that is invaluable, considering, for example, that it has more than a million followers on Instagram. It all started in 2010 when Estée Lauder bought Smashbox Beauty Cosmetics. Years later, in 2014, the company began a real race for the acquisition of brands to position itself worldwide in all social strata.

Up to four companies incorporated their portfolio in the second quarter of last year, which led to a significant rebound in their accounts in 2015: Editions de Parfums Frederic Malle (luxury perfumes), Glamglow (cosmetics), Le Labo (fragrances) and Rodin Olio (skin care).