woensdag 31 juli 2013

Luxury cosmetics demand in Africa

Estee Lauder (>> Estee Lauder Companies Inc) plans to expand its presence in sub-Saharan Africa by rolling out its $1 billion brands, Clinique and MAC, to tap into strong demand for luxury cosmetics among the region's middle class, a company executive said on Wednesday.

"The potential of Africa, we believe, is extremely positive and we wouldn't be entering unless we believe that there was long term sustainable growth," she said.
"Our target consumer is the emerging middle class, the established middle class and that affluent African consumer who's probably extremely well traveled and very brand savvy."
However, the main hurdle to the company's growth in Africa is the lack of retail infrastructure outside South Africa.
"We would probably be going a lot faster if there was the availability of retail space," Fox said. "The concept of department stores doesn't really exist outside of South Africa. I think there are great opportunities for retailers and for mall developers in sub-Saharan Africa. Brands want to be there."

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