Warc, 2 August 2013
LAGOS: Estée Lauder, the cosmetics group, is ramping up its
activity in Africa, with a city-centric approach driving the firm's strategy in
the region.
The company plans to roll out Clinique, which generates more
than $1bn in global sales and is its second-largest global brand, in Nigeria
this year, with Mozambique the next market scheduled for launch thereafter.
MAC, the makeup line, was also introduced in Lagos, Nigeria,
in early 2013, after Estée Lauder was "inundated" with appeals from
shoppers, according to Sue Fox, the organisation's managing director,
sub-Saharan Africa.
"There's massive interest from the consumers there in
international brands," she told Reuters. "We're very excited about
the potential of MAC in Nigeria. That's led us to pursue a strategy with MAC
that will ensure that we're able to bring the brand to consumers in other
markets."
MAC is the organisation's third-largest brand, and should
enter three or four further countries this year and next, having opened partner
stores in Botswana and Zambia.
Fragrances constitute Estée Lauder's leading category in
Africa, and it is soon to add Côte d'Ivoire to the list of local countries
selling these products.
"The potential of Africa, we believe, is extremely
positive, and we wouldn't be entering unless we believe that there was long
term sustainable growth," said Fox.
"Our target consumer is the emerging middle class, the
established middle class and that affluent African consumer who's probably
extremely well-travelled and very brand-savvy."
She also warned that sub-Saharan Africa is a "long-term
build", as the promise of a young population, urbanisation and GDP growth
are currently offset by a lack of appropriate retail options.
"We would probably be going a lot faster if there was
the availability of retail space," Fox revealed. "The concept of
department stores doesn't really exist outside of South Africa. I think there
are great opportunities for retailers and for mall developers in sub-Saharan
Africa. Brands want to be there."
Going forward, Estée Lauder will take a city-centric
approach, with the capitals of Angola, Ghana, Kenya, Mozambique, Nigeria and
Tanzania topping the list of possible targets.
Data sourced from Reuters/Business of Fashion; additional
content by Warc staff
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