Estée Lauder Companies announced that its annual revenue was up 5 per cent from 2016 with the gain being attributed to e-commerce growth alongside its acquisition of Millennial-favourite cosmetic brands Becca Cosmetics and Too Faced.
Online, sales of beauty products were up 33 per cent, however, the biggest profit growth is being traced back to the ELC purchase of Becca Cosmetics and Too Faced in the latter part of 2016. Both brands are social media powerhouses, as they boast a combined following of 11 million on Instagram alone.
Speaking about the aquisition of both Millennial favourites, Estée Lauder Companies online president Dennis McEniry explained to Business of Fashion: “Millennials are spending more money on beauty products than any other demographic. They are buying more beauty products per person than any other age bracket. They are more experimental and they are very, very quick to react to new trends. Social media is the place where they discover what’s next.”
“Too Faced more than doubled in sales last year over the 12 month period,” McEniry continued. “These brands are performing well with strong product launches — and they’re performing well in social media. They’re really attracting to consumer trends, really focused on makeup category and connecting to trends.”
