Industry Insights

On-Line is Hot Hot Hot!!!

On December 11, 2015, William Lauder, Executive Chairman of Estée Lauder, spoke on CNBC (view here). It was an interesting interview. He’s very in touch with Consumer Products and Retail … and the economy and consumer!

 

He mentioned a number of interesting points…I’ll bullet a few points at the end of this blog…. BUT he made one point that was interesting AND very much in line with what we’re all hearing this holiday season (for example, see my blog on CyberMonday). “On-Line is Hot Hot Hot!”

Mr. Lauder mentioned that in 1995, Department Stores made up 95% – 100% of their sales. Today he said the internet counts for 10% – 12% of sales, and their own retail stores are “substantial.” He said that the future of retail is NOT Big Box Stores stuffed with Merchandise…but rather more of a “showrooming system” where consumers can check out merchandise and order on a tablet like device, and have it dropped of at home at some convenient time. While he did admit that there was a weather effect of poor holiday sales, he also felt that the strength of internet was driving a rebalancing of Holiday Sales. [In a funny exchange, he credited Al Gore to creating the internet, to which Joe Kernen (the host of Squawk Box) said Al didn’t invent the internet…but he did invent climate change. Maybe you had to be there, but I thought it was really funny…].

Other interesting points that William Lauder made:

  • Only 30% of their sales are in North America. Holiday sales here are weak, but other regions are good.
  • UK sales are good. European (excluding Paris) sales are good.
  • China’s sales have slowed from strong double-digit growth to strong single-digit growth, but it’s still robust!
  • People remember QUALITY longer than they remember PRICE.
  • On-Line channel has had 10-12 years of strong double-digit growth.

Always interesting to hear the thoughts of a leader in business! What are your thoughts on the economy and business? Where are you shopping this holiday season???

 

 

The postings on this site are my own and don’t necessarily represent IBM’s positions, strategies or opinions.

 

Read my blogs on LinkedIn at https://www.linkedin.com/today/author/6343514

OR visit me at https://www.linkedin.com/in/michaeltdobbs

More stories

Build your own wonder

Wonder-ing out of the uncanny valley The “uncanny valley” is a phrase used to describe machines or systems that at the same time appear close to human, but elect a sense of revulsion rather than wonder.  Creepy is another word that gets used.  It is an old idea (first used by a Japanese roboticist working […]

Continue reading

More wonders

In my last post (“A time of wonders“) I finished on the idea that “machines like HAL or Her are referred to as super-intelligent or as strong artificial intelligence…and that most experts agree that we are probably 60 years away from being able to create systems like that, but there are many wonders available to […]

Continue reading

A time of wonders

Wonders indeed.  Last year a man’s life was saved in Missouri when his Tesla car drove him to hospital on autopilot. It seems that every day we read headlines like that one: you could call it a time of wonders, and all of them seem to be the result of artificial intelligence or AI. It […]

Continue reading