Estee Lauder Pushing to Smaller Chinese Cities


Estee Lauder has begun its push to reach smaller Chinese cities, despite the softening economy. The company is continuing its investment in the Chinese market, as China sales grew 8% in the last quarter, lower than the highs the company reached at 20%.

Estee Lauder is increasing distribution within the country, with a particular investment online, as historic gains came primarily from e-commerce and mobile commerce. Further, Fabrizio Freda, company CEO, claimed that Estee Lauder will be planning to invest in freestanding stores, particularly with entry-level brands like MAC, in areas where department are scarce or nonexistent.

Luckily for the company, Estee Lauder has a good business relationship with Alibaba Group Holding's Tmall platform, which Freda said has been a good business builder due to the company controlling the image, equity and execution of the brand. Tmall has partnerships with many different retailers, running their online stores.

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