Estee Lauder Inc.
) is geared to bolster its presence in Africa, as per media
reporter Reuters. The NY-based cosmetics retail giant will
introduce its high-end brands in the sub-Saharan continent to tap
the growing middle class of the region.
Estee Lauder has identified several key markets in the region
and is eyeing markets with biggest growth potential. Locations
like Lagos, Abuja and Port Harcourt in Nigeria, as well as the
capitals of Ghana, Kenya, Tanzania, Mozambique and Angola are of
great importance in Estee Lauder's list of potential
Estee Lauder has plans to introduce Clinique brand in Nigeria
by 2013 and later in Mozambique. It is set to strengthen its
position in the sub-Saharan continent with several launches in
the pipeline, reports Reuters.
After gaining huge popularity following its launch in Lagos in
2012, Estee Lauder is set to introduce the MAC makeup brand to
newer markets in the region and open additional stores in the
Lagos region as well. With its broad range of fragrances, MAC
will set its footprint in Cote d'Ivoire and open stores in
Botswana and Zambia.
However,Estee Lauder has been witnessing soft sales in the
U.S. and European markets due to the ongoing macroeconomic
challenges. In its last earnings release, sales in the U.S. and
European region inched up only 1% and 3%, respectively.
Moreover, the company is losing its market share to less pricy
brands offered by the likes of other cosmetics producers like
Avon Products Inc
) and consumer products giant
Procter & Gamble Company
We believe that Estee Lauder, which is scheduled to release
its fourth-quarter and fiscal 2013 earnings on Aug 15, will be
able to gain market share with the introduction of these high-end
brands in the emerging markets. The company holds a Zacks Ran #3
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