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August 18, 2024 • 58min
#361 Estée Lauder
Founders
This episode explores the life and business philosophy of Estée Lauder, founder of the eponymous cosmetics empire. Drawing from Lauder's autobiography "Estée: A Success Story", the host David Senra analyzes how Lauder built a multi-billion dollar company from humble beginnings as a single counter in a beauty salon. The episode examines Lauder's obsession with beauty, her innovative sales and marketing techniques, and the key principles that guided her as she grew her business over several decades.
#361 Estée Lauder
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Key Takeaways
- Obsession and persistence were key to Estée Lauder's success. She was obsessed with beauty from a young age and persisted in building her business for decades despite setbacks.
- Customer loyalty was paramount. Lauder focused on building deep relationships with customers and giving away free samples to create loyal fans.
- She was relentlessly resourceful in promoting her brand, traveling constantly to open new counters and build relationships with beauty editors and store buyers.
- Making it a family business was crucial. Involving her husband and sons allowed Lauder to dedicate herself fully to the company while maintaining family relationships.
- She pioneered innovative sales techniques like "gift with purchase" and giving away free samples to get customers to try products.
- Lauder focused on building the business around timeless human desires for beauty and self-improvement.
- She had incredible sales skills and instincts about human nature and consumer psychology.
- Visualizing success and then working tirelessly to achieve it was a key part of her approach.
Introduction
This episode explores the life and business philosophy of Estée Lauder, founder of the eponymous cosmetics empire. Drawing from Lauder's autobiography "Estée: A Success Story", the host David Senra analyzes how Lauder built a multi-billion dollar company from humble beginnings as a single counter in a beauty salon. The episode examines Lauder's obsession with beauty, her innovative sales and marketing techniques, and the key principles that guided her as she grew her business over several decades.
Topics Discussed
Early Life and Obsession with Beauty (8:01)
- Estée Lauder was obsessed with beauty from a very young age
- She would practice beauty treatments on family members as a child
- "A few years later, I want to paint a picture of the young girl I was, a girl caught up, mesmerized by pretty things and pretty people."
- This early passion was crucial to her later success in the beauty industry
Learning the Beauty Business from Her Uncle (14:02)
- Lauder's uncle John was a skin specialist who taught her how to make beauty creams
- She helped him produce creams in a makeshift lab in their home
- This early experience gave her valuable knowledge about cosmetic formulation
- "Uncle John had worlds to teach me. We constructed a laboratory of sorts in the tiny stable behind the house."
Starting Her Business (22:02)
- Lauder got her start with a small counter in a beauty salon
- She invested all her savings to start producing her own line of products
- Pioneered the "gift with purchase" sales technique to get customers to try products
- Focused intensely on building customer loyalty through personal relationships and free samples
Expanding into Department Stores (30:03)
- Lauder set her sights on getting into Saks Fifth Avenue
- Used word-of-mouth marketing to generate demand before approaching buyers
- Sent announcements to her existing customers when Saks started carrying her line
- Sold out of $800 worth of product in just two days at Saks
Relentless Promotion and Resourcefulness (38:04)
- Traveled constantly to personally open new counters in stores across the country
- Would give free makeovers to women she met while traveling to create new customers
- Built relationships with beauty editors to get press coverage
- Focused on making allies of store buyers and salespeople
- "I used every second to make friends and to spread word about our products."
Innovative Product Development (44:05)
- Created Youth Dew bath oil to get women to buy fragrance for themselves, not just as gifts
- This became a $150 million product line by 1984
- Always looked for ways to expand the market for beauty products
Making it a Family Business (46:05)
- Involved her husband and sons in the business from an early stage
- Sent her son Leonard business correspondence while he was in college to keep him involved
- This allowed Lauder to dedicate herself fully to the business while maintaining family relationships
International Expansion (48:05)
- Focused on getting into Harrods in London as an entry point to the European market
- Used press coverage and persistence to eventually secure counter space
- Expanded into Canada by offering products on consignment to overcome buyer resistance
Sales Philosophy (52:05)
- "I've never worked a day in my life without selling. If I believe in something, I sell it, and I sell it hard."
- Believed that selling yourself and your passion for the product was key
- Focused on building an authentic brand true to her own style and vision
Business Philosophy and Advice (54:06)
- Visualize success vividly in your mind to help achieve it
- Work tirelessly to make your vision a reality
- Stay focused on your core business and don't get distracted
- Build a network through social connections related to your business
- "Living the American dream has been intense, difficult work, but I couldn't have hoped for a more satisfying life."
Conclusion
Estée Lauder built a multi-billion dollar cosmetics empire through a combination of passion, persistence, and innovative business practices. Her obsession with beauty from a young age gave her deep product knowledge and conviction. Lauder's relentless focus on building customer loyalty through personal relationships and free samples helped grow her brand. She was incredibly resourceful in promoting her products, constantly traveling to open new counters and build press relationships. Making the business a family affair allowed Lauder to dedicate herself fully while maintaining important relationships. Her sales instincts and understanding of consumer psychology led to innovations like "gift with purchase." Throughout her career, Lauder visualized success and then worked tirelessly to achieve it, never losing focus on her core beauty business. Her story demonstrates how passion, persistence and innovative thinking can build a business empire from humble beginnings.