Top 5 Companies Owned by Estée Lauder (EL)

Estée Lauder Companies Inc. (EL) has been at the forefront of health, beauty, and wellness for more than 50 years. Analysts at Ernst & Young released the 2019 edition report on the luxury and cosmetics sector, the most recent year available, indicating that Estée Lauder’s sales growth was ranked fourth on a global list of highest sales growth among cosmetic companies from 2014 through 2017.

The company’s success is due largely to a strong and efficient business model and focuses on long-term growth. Estée Lauder has also placed a growing emphasis on cultivating relationships and sales in emerging markets. The company designs strategic marketing campaigns to boost sales in emerging market economies, targeting affluent populations in such markets. Key emerging countries where the majority of the company’s focus lies include Mexico, Russia, and China.

Estée Lauder has a massive portfolio of brands and a variety of companies and subsidiaries under its ownership. All of these companies are responsible for boosting Estée Lauder’s profit, and they add diversity and overall value to the company’s securities.

Clinique

Clinique is one of Estée Lauder’s most successful and profitable subsidiaries. The company was founded in 1968 and offered the first-ever brand of upscale cosmetics created by a dermatologist. Its goal was to offer consumers high-quality beauty with health and wellness in mind.

Clinique has developed an approach to cosmetics that is customized for various types of skin and features, and innovative products that make it a leader among global skin care authorities.

Clinique products are sold in more than 100 countries and generate millions of dollars in revenue each year for its parent company.

Bobbi Brown Cosmetics

Bobbi Brown Cosmetics, another subsidiary of Estée Lauder, is an exclusively priced line of beauty products developed by Bobbi Brown, a world-renowned makeup artist. Estée Lauder acquired Bobbi Brown Cosmetics in 1995, just four years after its founding in 1991.

Since then, the line of products has boomed in popularity. Bobbi Brown products can be found in over 50 countries and territories at specially selected retailers. The goal of this line, according to Bobbi Brown, was to offer prestigious beauty products to clients around the world. The price of these cosmetics makes them available to a very specific clientele.

La Mer

La Mer joined Estée Lauder in 1995 and, since then, has become one of Estée Lauder’s most coveted and profitable skin care brands in the world. Miracle broth, the key component of the brand’s star product—Crème de La Mer—was first discovered by Dr. Max Huber, an aerospace physicist, after a healing request from a lab accident in the 1950s.

MAC Cosmetics

Known around the world for its professional quality of cosmetic products, MAC Cosmetics—branded as M•A•C—was developed in Canada in 1984. Estée Lauder’s acquisition of the company in 1994 was a strategic move to add a line of makeup products that would be suitable for makeup artists as well as standard clients.

Makeup artists endorsed the company’s products through word of mouth, sharing the line with clients, photographers, and models, and M•A•C has become one of the most popular and well-known professional makeup brands available. The company’s products are now sold in more than 120 countries around the world. M•A•C added to Estée Lauder’s bottom line and has expanded the parent company’s social and consumer network.

Tom Ford

Tom Ford was developed, in concert with Estée Lauder experts, by Tom Ford, a leading beauty and fashion designer and expert. Ford’s line includes a collection of fragrances and cosmetics, all designed to complement the vision of his fashion line. The line emphasizes craftsmanship, modernity, and quality. The product prices in this line make it another exclusive brand sold to a highbrow clientele.

The Bottom Line

Estée Lauder has a large portfolio of brands, companies, and subsidiaries under its ownership. All not only boost Estée Lauder’s profit but also add diversity and overall value to the company’s securities.