Estée Lauder's William Lauder: 'The Consumer Still Wants and Needs to Be Touched'

To William Lauder, any talk about consumers centers on the word "she." About 95% of the customers of Estée Lauder -- the cosmetics and beauty products giant founded by, and named after, Lauder's grandmother, are women.
"In my world, women are the dominant decision makers for what we do every day," Lauder said during a recent Wharton Leadership Lecture.
When Estée Lauder and husband Joseph founded the company in 1946, it grew through the power of touch -- Estee's ability to reach across the counter and, with a dab of lotion or the swipe of a lipstick, connect with the customer. Today, the women served by the company live in 140 different countries. From an initial four products, Estée Lauder has expanded into more than 25 brands, including Clinique, Origins, MAC and Bobbi Brown. The company reported $7.8 billion in sales in 2010, a 6% increase from 2009.
The business has remained family owned and several of Estée Lauder's children and grandchildren now hold leadership roles. William Lauder served as CEO of Estée Lauder from 2004 until 2009, when, in a relative first for the company, the reins were passed to a non-family member, former Procter & Gamble executive Fabrizio Freda. Lauder remains executive chairman.

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