In 1946, American businesswoman Estée Lauder, together with her husband, founded her eponymous cosmetics company. Lauder was as innovative in her marketing strategies as she was in her cosmetic products. She remains the only woman on Time magazine’s list of the 20 most influential business geniuses of the 20th century. Learn more about the entrepreneur who revolutionized the cosmetics industry at queens1.one.
Early Life
Official records state that businesswoman Estée Lauder, born Josephine Esther Mentzer, was born on July 1, 1908, in the Corona neighborhood of Queens. However, some speculate she was born two years earlier. Estée came from a family of Jewish immigrants—her mother was Hungarian, and her father was Czech.
She attended Newtown High School, and her interest in the beauty industry emerged at a young age. Estée would enthusiastically brush her mother’s long hair and apply creams to her face. She learned the art of sales by decorating her father’s shop windows, where she discovered that sales success depended on the seller’s confidence in their product. This principle would become foundational in her journey in the cosmetics business.
In 1930, she married Joseph H. Lauter (later Lauder), a businessman in the garment industry. Three years later, they welcomed their first son, Leonard. Determined to succeed in cosmetics, Estée didn’t let motherhood slow her down. In 1939, the couple divorced but reconciled three years later. In 1944, they had their second son, Ronald. Estée later admitted regretting their divorce, initially feeling that early marriage had taken her life from her. However, she soon realized she had “the kindest husband in the world.”
It All Started with a Cream
Estée’s uncle, a chemist, taught her how to make her own creams. One day, while getting her hair done, the salon owner noticed Estée’s radiant skin. When she learned that Estée had created the skincare product herself, she organized a demonstration for her clients. One of Estée’s marketing strategies was to give away free samples. She introduced the now-common tester system, so customers could try a product before buying. Within a month, Estée Lauder products were available in most New York salons, where she personally offered her creams for clients to try.
Official Establishment
Estée and Joseph worked tirelessly in their lab, sometimes even through the night. Demand was so high that shelves were emptied quickly. After years of selling independently, the Lauders officially established their beauty company in 1946. Estée led marketing efforts, while Joseph handled finances.
Initially, they offered only a few products, made in the kitchen of a former restaurant. Besides skincare, they also developed makeup, including a groundbreaking flesh-toned face powder (previously only available in white or pink), turquoise eyeshadow, and vibrant red lipstick.
The cosmetic packaging was meticulously designed in an elegant turquoise hue with a minimalist design, fitting seamlessly with luxurious bathrooms. Lauder products were distributed through major department store chains. Observing customer behavior, Estée noticed that shoppers paid the most attention to displays positioned to the left of the entrance, so she strategically placed her products there.
In 1947, Estée secured her first department store order for $800, and her products sold out in just two days. She also pioneered the practice of offering a free gift with each purchase, a marketing move that significantly boosted customer numbers.
Within weeks, Estée Lauder products were on the shelves of all major New York stores. By the 1950s, they were sold in major cities across the U.S. In 1953, she launched Youth Dew, a body oil that quickly became a consumer favorite.
Over the next decade, the business expanded internationally, winning over even the more reserved European markets by championing progressive values like feminism, high fashion, and environmentalism, which were gaining momentum at the time.
In 1992, the Estée Lauder company emphasized women’s health by establishing a breast cancer awareness foundation, thanks to Estée’s daughter-in-law. They raised awareness about early diagnosis and created the now-iconic pink ribbon symbol. By the 1990s, the ribbon was sold in every Estée Lauder store.
Subsidiary Brands
In 1964, Estée Lauder Cosmetics Inc. launched Aramis, a brand of men’s fragrances developed by perfumer Bernard Chant. Aramis was the first prestigious men’s fragrance sold in department stores, embodying timeless masculinity and sophistication.
In 1968, Estée’s daughter-in-law, Evelyn Lauder, founded Clinique, which offers skincare, cosmetics, toiletries, and fragrances. In 2008, Clinique partnered with Botox manufacturer Allergan to launch Clinique Medical, a line sold exclusively in doctor’s offices to address issues like redness, skin tightness, burning, and irritation.
As of 2024, Estée Lauder Cosmetics Inc. is the world’s second-largest cosmetics company, after L’Oréal Group. It owns iconic brands such as MAC Cosmetics, La Mer, Jo Malone London, and Tom Ford Beauty.
In 1973, Estée stepped down as president of the company but remained chair of the board, passing leadership to her son Leonard. In 1983, Estée suffered the tragic loss of her husband, Joseph. She honored him by establishing the Institute of Management and International Studies at the University of Pennsylvania. Later in life, Estée devoted much of her time to philanthropy. She passed away in 2004 at age 95 in her Manhattan home.
Secrets of Success
With great ambition, hard work, and resilience, Estée Lauder became one of the world’s wealthiest self-made women. Some of her key success principles include:
- Right Location: Choosing locations to sell her products contributed to the company’s success. Initially, Estée limited sales to specialty cosmetics stores and beauty salons.
- Positive Attitude in Business Communication: Estée valued positive communication with business partners, believing it essential to business success. She was a part of elite social circles and maintained good relationships with influential people, including former U.S. First Lady Nancy Reagan and members of the royal family.
- Competitor Awareness: Estée never copied her competitors but instead used unique approaches.
- Divide and Conquer: Estée skillfully applied this principle by engaging women as sales distributors and fostering friendships with influential figures who promoted her products.
- Ability to Say “No”: She trusted her instincts and set boundaries when needed.
- Persistence: When a Saks Fifth Avenue manager refused to carry Estée Lauder products due to perceived lack of demand, Estée took action by distributing 80 gift sets at a charity luncheon. This drew attention from clients, and within a week, her products were sold at Saks Fifth Avenue.