For the year, our skin care volume was up 2% on a local currency basis. But reported sales were down 3%, due mainly to the high concentration of our skin care business in Asia, where the economy remained difficult. However, new products, such as Estée Lauder's Uncircle and Diminish, Clinique's All About Eyes and Moisture In-Control, and Origins' Salt Rub, were very successful. The international introduction of Estée Lauder's Nutritious Bio-Protein Moisture Complex and the continued success of Estée Lauder's DayWear also helped the category. Our leading technologies, strong brand names and diverse international distribution allow us to look beyond short-term uncertainty towards long-term growth.
GROWING INTEREST IN TECHNOLOGY Some of our most successful products appealed to consumers' growing interest in technological advances in skin care. Estée Lauder's Uncircle, an eye care creme with an exclusive marine ingredient that dramatically decreases the appearance of dark circles, was very well received in the U.S., Europe and Asia. Diminish Retinol Treatment - a long-lasting skin care formula - became Estée Lauder's top-selling skin care product in the U.S. Diminish is being introduced internationally in the current year. Clinique's All About Eyes, an oil-free eye creme that targets puffiness, and Weather Everything, a lightweight creme that provides multifaceted protection against the environment, sold very well. Also enthusiastically welcomed by consumers was Lab Series Lift Off! Power Wash, a liquid face cleanser that moisturizes and conditions the skin.
SCIENTIFIC STUDY AND DAYWEAR Estée Lauder launched a reformulated version of DayWear Protective Anti-Oxidant Creme SPF 15, which contains an exclusive blend of anti-oxidant ingredients based on a milestone study released during the year. The study proved that applying blended anti-oxidant vitamins and minerals directly to the skin significantly reduces environmentally triggered damage which can cause skin to look older. Estée Lauder underwrote the research study, known as SU.VI.MAX (Supplementation, Vitamin and Mineral and Anti-oxidant trial), with a French research team of dermatologists and scientists.
ORIGINS SKIN CARE SUCCESS Origins' skin care business was very strong during the year, with both new and well-known products performing well. Salt Rub, originally developed for use by aestheticians at the Origins Feel-Good Spa in New York City, and introduced this year, has become the brand's number-one-selling product. Called a "spa in a jar," Salt Rub was a perfect fit with the growing demand for at-home spa treatments. Other skin care products from Origins which continue to attract growing numbers of consumers include Starting Over, a special blend of alpha-hydroxy fruit acids; Eye Doctor, an eye creme containing cucumber, rosemary, ginseng, and green tea extract; and Peace of Mind, a mind-clearing formula for relief from pressures of the day.
| Clinique is sold in more than 9,000 doors in over 80 countries around
the world. Its famous 3-Step System of cleansing, exfoliating and moisturizing is the basis of Clinique skin care. The three products used in the System are Clinique Facial Soap, Clarifying Lotion and Dramatically Different Moisturizing Lotion. One bottle of Dramatically Different Moisturizing Lotion is sold somewhere in the world every five seconds. |
CRÈME DE LA MER EXPANSION Crème de la Mer, our exclusive hand-filled moisturizing creme, which was invented by NASA physicist Max Huber in 1965, continued to attract a cult following of prestige cosmetics consumers. In response to the enduring success of "Crème," we introduced a line of Crème de la Mer cleansing products - including The Cleansing Lotion, The Cleansing Gel, The Tonic and The Oil-Absorbing Tonic, all based on the brand's unique formula of sea kelp and other skin care nutrients.
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