Estée Lauder needs to make better use of social media if it is to put pressure on L’Oréal and increase skin care penetration, analysts have said. Estée Lauder currently has an 8% share of the global skin care market, while rival L'Oréal has almost 15% share. Despite Estée Lauder's positioning as a premium brand, it generates only a slightly higher profit margin to its rival.
A new report from industry analyst Trefis claims that a greater market share would “have a significant impact on Estée Lauder’s profitability". The report also suggested that "inorganic growth may be the right strategy” to achieving this. That means more acquisitions, particularly with the lure of Asian markets, where sales declined in the last financial year for Estée Lauder.
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