Global beauty giant Estée Lauder Companies – whose brands include Clinique, Bobbi Brown, Tom Ford Beauty, Too Faced and Jo Malone – has developed an AI tool to identify trends and drive marketing innovation as part of a major turnaround strategy.
The company will now use AI to marry trends with its existing products and innovation to more quickly respond to market demand to drive increased consumer recruitment and loyalty and optimised promotions.
The data-driven approach takes the company’s 200 million-plus customer profiles – built over several years – and merges them with AI functionality to better target new consumers through product assortment, distribution, and media.
The company is also reducing its discounting as part of the benefits. With increased focus on new consumer acquisition, Estée Lauder maintasins it has been able to deliver on marketing activations with more efficient spend and accelerated effectiveness through strategic pricing strategies.
President and CEO Fabrizio Freda said: “Around the world, we are building growth momentum with social commerce, driving new consumer acquisition by engaging consumers where they’re spending their time, leveraging a content-focused approach with live streaming and short-form videos, and activating full funnel integration of social media and commerce.”
As a result of these efforts, Freda expects Estée Lauder to continue seeing lowered expenses into fiscal year 2025.
The company predicts the profit recovery plan to drive up to $1.4bn of incremental operating profit over the next two years, with efficiencies across the supply chain, marketing, and integrated business planning.
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