Estee Lauder launches new brand on TV
television retail in an attempt to achieve growth through
alternative distribution channels.
The brand will be launched by Estee Lauder subsidiary BeautyBank in July 2008 and will be sold exclusively on IAC-owned HSN and HSN.com. Unconventional channels Estee Lauder described BeautyBank as the entrepreneurial arm of the group with a history of pursuing sales growth through unconventional channels since its launch in 2004. "The primary mission of BeautyBank is to seek out and create original brands and business opportunities in alternative channels," said BeautyBank president Jane Hudis. BeautyBank began selling its products in Kohl's department stores and has since launched an exclusive fragrance in Coach freestanding stores but this is its first foray into television retail. Estee Lauder described the deal as the first of its kind between a prestige beauty company and a television retailer. HSN sells top brands through its shopping network and website and beauty is one of its fastest growing segments. Hudis added: "We have watched the amazing transformation of HSN under Mindy Grossman's leadership and feel she has created a vibrant, dynamic network, with a loyal and expanding consumer base, ideal as the launching pad of our new brand." Television shopping Many cosmetics manufacturers have used television shopping channels to great effect in recent years to reach new customers and increase their sales figures. Bare Escentuals has grown from strength to strength in recent years on the back of the high sales of its mineral-based cosmetics on the QVC shopping channel. Mindy Grossman, CEO of IAC Retailing, said "Beauty is the most demonstrable category in our business and because of that, lends itself particularly well to our array of multichannel assets, including TV, online, podcasts and assorted multimedia."
