The account, worth US$75 million in Asia-Pacific, will cover Estée Lauder’s full product range, including Clinique, Aramis and Origins, as well as the eponymous brand.
Four agencies are thought to be in contention, among them WPP’s GroupM and Omnicom’s OMD, which handles the account in Australia and Japan, the company’s largest Asian market. The business is currently divided by country, with Carat in charge of China. Insiders say the review will reduce Estée Lauder’s media agency roster to one or possibly two global agencies of record, to be split geographically.
Four agencies are thought to be in contention, among them WPP’s GroupM and Omnicom’s OMD, which handles the account in Australia and Japan, the company’s largest Asian market. The business is currently divided by country, with Carat in charge of China. Insiders say the review will reduce Estée Lauder’s media agency roster to one or possibly two global agencies of record, to be split geographically.
Asia-Pacific media agency bosses have flown to Estée Lauder’s headquarters in New York, where presentations are being made. A result is not expected until the end of Q1 this year.
The US-based beauty conglomerate reported US$7 billion in net sales for year ending June 2007, an increase of seven per cent. But the company has been struggling in its home market, where growth last year dropped. Growth has been faster in Asia, particularly for its skincare products. Operating income in Asia-Pacific grew by 33 per cent in 2007 to $93 million.
Every market in the region, except for Thailand, posted sales increases last year. Estée Lauder’s fastest-growing Asian markets are China, Hong Kong, Korea, Australia and Singapore.
