Market Trends and Brand Positioning-Market Trends and Brand Positioning

In its fiscal year 2024 financial report, Estée Lauder explained the performance decline by stating: "This was due to the continued weakness in the overall high-end beauty product market in China, and the challenges faced by the travel retail industry in Asia also put pressure on sales."

Regarding Estée Lauder's performance in the Chinese market, some analysts pointed out that the brand's overall positioning as high-end contradicts the current consumer trends. 

Moreover, Estée Lauder's China team has limited autonomy within the group, requiring multiple layers of approval, which has caused the company to miss out on several industry opportunities.

Due to the existence of a dual-channel system (for example, in China, the regular retail channel is managed by the China region, while the duty-free channel is controlled by the group), in recent years, the high inventory levels in the duty-free channel have spilled over into e-commerce and even the gray market.