Boston, MA 04/08/2014 (wallstreetpr) – Hi end beauty products Manufacturer Estee Lauder Companies Inc. (NYSE:EL) reported a 5.2% increase in sales from USD 9.7 billion to USD 10.2 billion in financial year 2013. The company sells its products approximately 30,000 points of presence including high end departmental stores, marquee retailers, specialty salons and spas. In addition to the aforementioned the company also uses the duty-free, travel and online sales.
Travelers help Estee
The company has clocked approximately USD 1.2 billion in sales from its travel retail division. The enhancement could be attributed to increased global passenger traffic. The company has clocked an impressive 15% growth in this segment for fiscal 2013. The major driver of growth was from the sale of skin care products, which alone contributed close to 11.4% of the travel retail business for Estée Lauder.
This expansion in travel retail could be attributed to a combination of rising disposable income in the Asia Pacific region, strategic positioning of retail outlets and also the aspirational quality that Estee Lauder Companies Inc. (NYSE:EL) has built over time. The enhancement of the global traveler from this region i.e. who travels around the globe for business as well as recreational purpose has enhanced the appeal of the brand in this region.
Estee Lauder Companies Inc. (NYSE:EL) was quick to catch on this trend and has made investments by opening 1,600 travel retail outlets worldwide, out of which the lion’s share is occupied by stores situated in travel corridors popular with Asian customers. The compay has also signaled that it is looking to further expand its presence in the region.
India-China to be major drivers for Estee’s growth
As per an Airbus Industry estimate domestic travel within China and India would increase annually by 7% and 10% respectively all the way up to 2032. The Chinese and Indians would also be expected to make their strong presence felt in international travel corridors including Intra Asia, the Middle East, Americas and Western Europe. These areas are expected to further propel growth for the company.