Work-from-home, makeup-free habits, and mask-wearing caused a dramatic decrease in cosmetic companies' sales.
However, not every Company suffered a downfall.
- Some companies were able to shift from producing makeup to hand sanitizer and other essential tools that helped people survive during the pandemic.
- Others were able to use their digital abilities to create distribution channels and e-commerce sites that increased their sales.
The best companies did both. They shifted their production and adopted digital strategies that helped them dominate the market. One of these companies is Estée Lauder. Their management team executed these strategies and became the world's third-largest maker of cosmetics and fragrances, ranked by Beauty Packaging magazine.
One of the company owners is Leonard Alan Lauder. According to Forbes, his net worth exceeds $21.9 billion, making him the richest person in the Fashion and Retail industry in the United States and the 5th richest person in New York.
Who is Leonard Alan Lauder?
Leonard Alan Lauder is an American billionaire, philanthropist, art collector, and the owner of 81 million shares of Estée Lauder. Leonard Lauder was born in New York in 1933. After acquiring his bachelor's degree from the University of Pennsylvania's Wharton School and his business degree from Columbia University, he served in the U.S. Navy.
Leonard A. Lauder joined the Company in 1958 as a teenager and continues to stay involved in the business to this date. Throughout his career, he focused on creative sales and marketing programs. Leonard's obsession with innovation led him to create the first R&D laboratory and bring in professional management to help make a better company.
He quickly became the President of the Company in 1972 and the Chief Executive Officer in 1982, where he served until 1999.
Leonard Lauder's biggest accomplishments
- He guided the Company to launch many powerful brands such as Origins, Lab Series, Clinique, etc.
- The Company's revenue exceeded $1 billion in 1989.
- The Company went public in 1996.
Although Estée Lauder is a public company, the Lauder family still owns a considerable chunk. Today, as Chairman Emeritus, he is viewed as the "Chief Teaching Officer," leading brand equity seminars and educational programs for the Company.
Leonard Lauder, the heir to his mother Estée Lauder's massive cosmetics fortune, donated his stunning Cubist collection to New York's Metropolitan Museum of Art. Forbes estimates the value of this collection to be $1.1 billion.
The story behind the brand
"I never dreamed about success. I worked for it." —Estée Lauder.
When your company founder says the above statement, you know your Company is destined to succeed. So let's learn more about this wonderful woman who believed every woman could be beautiful.
Leonard's mother, Josephine Esther Mentzer, founded Estée Lauder in 1946. However, few people knew her real name becuase her father called her Estée. In addition, her exact date of birth is unknown, so many people asked her about her date of birth, and she responded by saying the following:
"You ask my age? I tell you, it simply doesn't matter. Glow, after all - not a number - was the real essence of beauty."
Estée wanted to become an actress becuase she believed that actresses were the embodiment of beauty. However, she married Joseph Lauter in 1930 and had her first child, Leonard. At the time, she realized that acting didn't satisfy her like skincare solutions.
She famously said, "I wanted to see my name in lights, but I was willing to settle for my name on a jar."
Estée founded Estée Lauder Cosmetics in 1946.
Estée and her husband changed their last name from Joseph Lauter to Lauder. Then, Estée started mixing and selling skincare and makeup in different beauty salons.
When the demand for her products grew, she and her husband created Estée Lauder Cosmetics in 1946. Their first major order came from Saks Fifth Avenue for $800, and they never looked back.
Her two sons, Leonard and Ronald, helped grow the Company.
Leonard and his brother, Ronald, contributed to the Company's growth and expanded from a mom-and-pop operation to becoming one of the most notable names in the beauty industry.
It is still managed by Leonard's son, William P. Lauder, who continues to focus on his grandmother's values.
- It operates in 150 countries and has 1,600 freestanding stores.
- It employs 60,000 people, and 82 % of them are female.
- It owns 25 brands, and its revenue exceeds $16 billion annually.
You can check on the stock value here.
The family supports Donald Trump.
The relationship between the Lauder and Trump families is well-established. For example, when Ronald Lauder donated a lot of money to President Donald Trump, he made many people mad, but the family continued to support Donald Trump.
I have known Donald Trump for over 50 years, dating back to his time as a student at the University of Pennsylvania. And I now have had the privilege of working with him on some of the most complex diplomatic challenges imaginable. - Ronald Lauder
If you had the family money, what causes would you support?