Reference News Network, November 26 report - According to the website of the UK's Financial Times on November 23, the new CEO of Estee Lauder, Stuart Stockdale, said that as part of a new strategy for conducting business in China, the group will increase its investment in the Chinese market.

Stockdale emphasized that the Chinese market is still "strategically significant" for Estee Lauder.

He said: "China will have a large number of new consumers entering the middle class... The so-called 'next China' is actually still China."

This US-listed company heavily relies on Chinese consumers, but under the backdrop of slowing consumer spending in China, this reliance has had a negative impact on its operations.

Stockdale said: "The biggest lesson for us is that we must diversify. For a long time, the Chinese market has brought us great benefits, and we have been the market leader for many years, but over-reliance is a risk. The lesson is that a global company cannot rely on just one region."

Estee Lauder also owns well-known brands such as M.A.C., Clinique, and Tom Ford. In the company's $14.3 billion revenue last year, nearly one-fifth came from the Chinese market.

Over the past year, Estee Lauder has launched several initiatives in the Chinese market, including introducing the skincare brand Origins to China, opening a concept flagship store for its hair care brand Aveda in Shanghai, and adding multiple stores for the fragrance brand Le Labo.

The company's adjusted operating profit fell by 28% year-on-year last year, marking the third consecutive year of declining operating profits. Financial pressure forced the company to cut dividends last year.

However, there are currently signs of improvement in the company's operations. As of October this year, organic net sales in the first quarter of fiscal year 2026 increased by 3% compared to the previous year, a significant rebound from the 13% decline in the fourth quarter of the previous fiscal year.

Stockdale admitted that the company currently needs "some short-term results" to demonstrate to employees that "our brand strength has not been damaged."

The recovery in sales was mainly driven by the fragrance business, with sales of fragrance brands such as Le Labo and Tom Ford achieving double-digit growth in the previous quarter.

Owen Langborg, an analyst at HSBC in Hong Kong, said: "After months of low investor interest in Estee Lauder, the market has hit rock bottom and rebounded, and this time the rebound is more credible." This year, Estee Lauder's stock has risen more than 21%, and the company's current market value is about $3.24 billion. (Translated by Wang Dongdong)

A photo taken at the Consumer Goods Exhibition Area of the China International Import Expo on November 6 showing Estee Lauder's White Gold Black Diamond Anti-Aging Oil. This product was launched in China for the first time. (Xinhua News Agency)

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