What Might Be The Reasons For Estee Lauder’s Decision To Discontinue Its Millennial Focused Estee Edit Brand?

Estee Lauder has recently decided to discontinue its Estee Edit brand after only one year of launching it. According to the company, the Estee Edit collection for Sephora was created to attract millennial customers. However, the core Estee Lauder brand also continued in the same endeavor along with Estee Edit. Since the latter has already been successful in luring a satisfactory portion of the millennials to the company’s products, the company has decided that a separate brand is no longer required in North America. However, the company’s partnership will continue with Sephora and it will sell other brands through the beauty chain. Though this has been the company’s reasoning there can be other reasons for discontinuing Estee Edit.

• The first thought that comes to mind is that maybe, the brand has not been doing too well. Beauty experts expected the Estee Edit brand to generate around $60 million in revenues in the first year itself. There might be a possibility that the brand’s performance fell significantly short of the expectation.
• We should also remember that Estee Lauder has been on a shopping spree for millennial focused brands. Last year, it acquired Too Faced and Becca. This year, it recently invested in skincare brand, Deciem. Maybe the company realized that brands with an existing hold over millennials are a better choice to capture this segment of beauty users than developing a new brand from scratch.
• Estee Lauder has been viewed so far as a brand that mainly catered to older beauty users. Estee Edit got an image makeover from other Estee Lauder’s products in order to connect with the younger beauty customers. This might have backfired for two reasons: 1. The products do not give a sense of connection to the original Estee Lauder brand and, 2. Millennial customers might have been more comfortable buying brands which were already focused towards them, rather than trying out an ‘experimental and new’ brand from the house of Estee Lauder.

Some of the Estee Edit products will be available in stores till the end of this year after which they will be discontinued. The premium beauty company will rather focus on its new acquisitions that are already promising better days for the company with their impressive sales growth that might increase further along with their geographical expansion.

Editor’s Note: We care deeply about your inputs, and want to ensure our content is increasingly more useful to you. Please let us know what/why you liked or disliked in this article, and importantly, alternative analyses you want to see. Drop us a line at content@trefis.com

Notes:

See More at Trefis | View Interactive Institutional Research (Powered by Trefis)

Get Trefis Technology