Es­tee Lauder buys Too Faced

The Myanmar Times - - Business -

US cos­met­ics maker Es­tee Lauder snapped up the beauty prod­ucts brand Too Faced, beloved by the younger de­mo­graphic, for US$1.45 bil­lion in its big­gest ac­qui­si­tion to date.

The deal aims to “strengthen the com­pany’s lead­er­ship po­si­tion in the fast-grow­ing pres­tige make-up cat­e­gory glob­ally, in­crease the com­pany’s con­sumer reach in the spe­cialty-multi channel, and win with mil­len­ni­als - all in strong align­ment with the com­pany’s strat­egy”, Es­tee Lauder said in a state­ment.

The com­pany, which has catered heav­ily to older women, was im­pressed with the brand loy­alty Too Faced has gen­er­ated, and was will­ing to pay the price to lock in its growth strat­egy.

Like many younger women, fast­grow­ing Too Faced is ex­tremely ac­tive on so­cial me­dia.

It uses edgy names for prod­ucts, such as “bet­ter than sex” mas­cara, and quirky pack­ag­ing. It has a mas­sive fol­low­ing on In­sta­gram, and of­fers makeup tu­to­ri­als on YouTube.

Too Faced has had sales of $279 mil­lion this year, up 70 per­cent in one year.

Other big play­ers in the cos­met­ics mar­ket have been rolling out sim­i­lar strate­gies. Among them, France’s L’Oreal has been pick­ing up hot brands such as Ur­ban De­cay, NYX and IT Cos­met­ics.

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