Estee Lauder’s Q2 FY 2017 Earnings Preview
Fragrance Segment Is Growing Well
Digital Drives
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In Q1 FY2017, Estee Lauder’s sales through e-commerce and m-commerce continued to show healthy growth. M-commerce contributed to over 40% of online sales in the quarter. The company’s sales from mobile devices rose by 23% y-o-y in Q1 FY2017. Estee Lauder has launched almost 100 new sites over the recent past especially for its international buyers.
Currently, Estee Lauder is trying to boost its sales by offering digital services through offline channels as well. Focusing on the younger customers’ tendencies to switch from their emails to other modes of communication such as text messages, the company is testing the concept of sending texts to consumers whose profiles are already present in the brand’s ecommerce website. Instead of going to an actual store or an ecommerce website and comparing a host of products, the consumer gets the option of directly buying Estee Lauder’s product simply through a text message. This simplicity might inspire the consumer to forego the comparison part and hence lessens the chances of them selecting a product from another company.
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Have more questions about Estee Lauder? See the links below.
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- What Is Estee Lauder’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Estee Lauder’s Revenue And EBITDA Composition Changed Over 2012-2016E?
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- Estee Lauder Q3 FY16 Pre-Earnings Report
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