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· Posted on
February 21, 2024

Estee Lauder snaps up Tom Ford for $2.8 billion USD... so excuse us while we prep the new Flux perfume

Designer Tom Ford created his own brand in 2005 and now Estee Lauder agreed to acquire his whole company.

What's the key learning?

  • Estee Lauder has agreed to acquire his whole company "Tom Ford" for $2.8 billion USD.
  • Estee Lauder is most keen on the Tom Ford beauty business which includes fragrances, cosmetics and skincare, because perfumes have become a priority for Estee Lauder since the pandemic.
  • Despite the pandemic, the premium fragrance industry saw a huge bump - Tom Ford's revenue jumped by nearly 25 per cent.

👉 Background: Tom Ford is a designer who made his name as the creative director of all things Gucci in the 90’s. And during that time, the business grew in value by nearly 15x.

👉 What happened: In 2005, he went off and created his own brand with the original name “Tom Ford”. And now, Estee Lauder has agreed to acquire his whole company for $2.8 billion USD.

👉 What else: The interesting part is they’re most keen on the Tom Ford Beauty business…which includes fragrances, cosmetics and skincare, because perfumes have become a priority for Estee Lauder since the pandemic.

What's the key learning?

💡Perfume is becoming a new cash-cow for the luxury market. They are sticky, high margin …and the appeal is not season specific.

💡And despite the pandemic, the premium fragrance industry saw a huge bump. Tom Ford saw its revenue jump by nearly 25 per cent.

💡So Estee Lauder is hoping Tom Ford perfumes become a lifetime-long-love for its customers.

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