Estée Lauder Acquires Deciem, parent company of The Ordinary. Estée Lauder initially invested in Deciem in 2017 and planned to become the majority stake owner by 2017. However, Estée Lauder recently purchased the remaining interest for roughly $860 million.
The Ordinary, also known as The Abnormal Beauty Company, is a Canadian-based brand that offers a wide range of skincare products. The Ordinary has made a successful foray into the direct-to-consumer online market. This move can bolster Estée Lauder's online sales and lead to improved e-commerce capabilities, as well as lower distribution costs.
The Ordinary has established strong brand loyalty over time. This benefits Estée Lauder in cultivating brand loyalty among its new consumers. Consumers who trust The Ordinary may be more likely to try out other Estee Lauder products or products within its affiliated companies.
Beauty Retailer Acquisitions
Estee Lauder Acquired Deciem, Parent Company of The Ordinary
Trend Themes
1. Direct-to-consumer Beauty - The adoption of direct-to-consumer (DTC) models by beauty brands like The Ordinary underscores a shift toward streamlined, customer-focused online sales channels.
2. Digital Brand Loyalty - With Estée Lauder's acquisition of The Ordinary, there is an emphasis on leveraging digital platforms to strengthen and expand brand loyalty among a wider consumer base.
3. Skincare E-commerce Expansion - The acquisition highlights the growing significance of e-commerce in the skincare industry, indicating increased investment in online sales and digital marketing strategies.
Industry Implications
1. Beauty Retail - Beauty retail is seeing transformative mergers and acquisitions, enabling companies like Estée Lauder to diversify their product portfolios and enhance market share.
2. E-commerce - The e-commerce industry is becoming increasingly intertwined with traditional beauty retailers, facilitating broader market access and reduced distribution costs.
3. Skincare - The skincare industry is experiencing rapid growth driven by digital natives and discerning consumers, prompting brands to innovate in product development and direct marketing.