As the largest generation ever, millennials’ spending will reach $2.5 trillion (€2.2tn) according to a study from Meredith Corporation, driven by the generation’s relationship with social media (80% use a smartphone), who they identify as celebrity role models (Ellen Degeneres and Michelle Obama), and their optimism about the future (75% think they will be happier in 2020).
In a generation obsessed with selfies, there is also a desire to look beautiful (73% in the study think it is important) and it is clear that this gives beauty players a big opportunity.
“The focus on millennial is a very important focus,” says Estée Lauder President and CEO, Freda, in a conference call.
“Obviously, we have brands in our portfolio which are already very strong on millennials like MAC and are market leaders in many of these areas with many of the makeup categories with millennials in North America and around the world.”
Throw in Kors, Smashbox, or some of the newly acquired brands like GlamGlow and the global firm has a number of brands which are even more focused on millennials.
“We are very focused on millennial in the next years,” continues Freda. “And we are seeing initial very encouraging results. And we have a strong starting point from some of our brands like MAC.”
Clinique and Lauder focus
Fabrizio says that there are plans in the pipeline for innovation for each one of these brands, but that the two brands that the company is trying to accelerate in terms of penetration with millennials are Lauder and Clinique.
“Clinique is historically very strong with millennial at the entry price of prestige,” he says.
“[The brand] is doing a lot of new efforts to revamp this ability to attract and engage millennials, particularly in the area of social media and specific product launches at the entry price point of prestige and particularly at the entry price point of make-up where the brand has opportunity with millennials.”
When it comes to Lauder, teaming up with new models, like Kendall Jenner last year, has a lot of attractiveness with millennials, and is a good way for the cosmetics brand to build on her already huge following.