Estée Lauder Targets Younger Consumers in New Digital Push

Estée Lauder is reportedly embarking on a new online retail push to reinvigorate slumping sales.

That’s according to a report Wednesday (July 16) by The Wall Street Journal (WSJ), which includes an interview with the beauty brand’s new CEO, Stéphane de La Faverie.

He said the future of that industry lies in a “merger of the digital and the physical world,” with artificial intelligence (AI) changing how people shop for cosmetics.

According to the report, Estée Lauder has tapped a senior executive from Nestlé to help oversee its digital efforts, naming Aude Gandon its first chief digital and marketing officer.

Her purview includes both eCommerce and store design, de La Faverie told the WSJ.

“I don’t see where we sell to be either within four walls or a digital platform,” he said. “The reality is consumers may discover a brand or product on social media or in a store. There’s so many entry points. How do you make sure that you retain them through the journey?”

The CEO said AI will change how many shoppers mix and match. For example, if someone liked a red lipstick, AI could help suggest complementary products. The company is also tapping into consumer data and online chatter to capitalize on trends, with the goal of holding onto existing customers while attracting newer, younger shoppers.

“Younger consumers are the ones that are driving the trends today,” said de La Faverie. “They’re the ones that are influencing the older generations.”

Those younger consumers, PYMNTS wrote earlier this week, embrace a “digital-first, instant-everything” mindset.

“They’re digital-first, and they also have a philosophy of ‘Let’s do something now, or let’s not do it.’ There’s not a case for ‘later.’ The time is ‘now’ to transact,” Elena Casal, chief client officer at The Clearing House, said in an interview with PYMNTS.

These shoppers also have a deep-seated desire for trust when they shop online, per additional PYMNTS research from the report “The Online Features Driving Consumers to Shop With Brands, Retailers or Marketplaces,” a collaboration with Adobe.

According to the report, 43% of Gen Z consumers said they prefer purchasing directly from brands, significantly higher than older generations.

“Trust is a primary driver in their shopping decisions, with 15% of these consumers identifying it as the main reason for choosing brand websites over third-party options,” PYMNTS wrote.