Estée Lauder, the company responsible for brands such as Clinique, Aramis, Prescriptives and Origins, is challenging the status quo of the traditional department store cosmetic shopping experience. In business for more than six decades, the cosmetic giant recognizes the need to adapt in order to reach more consumers – especially in light of the economy and a trend toward less pricey purchasing. In particular, they are taking steps to attract potential customers who may otherwise avoid the high-pressure, high-perceived cost of mall cosmetic counters.
One practice the company has incorporated for some brands and locations – that was considered an industry no-no in previous years – is displaying prices on inventory. This allowed a shift from consumers avoiding the brand to realizing they could actually afford it. And in the process, the shame factor of having to ask a price was removed. With a customer warming up to a product based on its affordability, sales associates have a greater opportunity to then step in and aid the shopper to get the full value of what’s being offered.
Getting in touch with consumers and their varying shopping preferences has been at the core of the company’s adaptations. For instance, one of Bloomingdale’s New York locations offers three methods to shop Clinique: computer analysis, interactive consultant or a quick counter for those who know what they want and prefer to restock without trying new things (this can account for nearly half of all cosmetic sales).
The makeup giant sees great opportunity in the skin care arena, and is looking to develop products to surprise consumers. Part of the success will hinge on creating an aesthetically pleasing environment that encourages splurging as the appropriate response to the surprises.
Although it’s unlikely that rampant excessive spending on luxury items will take off again soon, Lauder officials are optimistic about the longevity of their products. Their three-fold strategy persists: a pleasant experience, attention to value, and quality. Now they just need to continue to balance those non-negotiables with the implementation of change – helping old and new customers to envision the evolving Lauder lines as an ongoing part of their lives.
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Source:
The Wall Street Journal: Sales Makeover for Lauder: Show Prices, Offer Options
