Estee Lauder Sees Growth Potential in The African Middle Class Demand For Cosmetics

High-end makeup manufacturer, Estee Lauder is bent on tapping into the sub-Saharan African middle class market by launching its second biggest brand, Clinique, to meet up with the strong demands of the luxury cosmetics product on the continent.

Estee Lauder first entered the African market in 1978 when it launched its product in South Africa. It has since launched its product, MAC, in Africa’s most populous nation, Nigeria and other potential African market.

Estee Lauder launched MAC makeup in Nigeria’s largest city Lagos in February 2013 and it plans to open another store there within weeks.

The Cosmetics company is focusing on African cities with the biggest growth potential and it has identified key locations such as Lagos, Abuja and Port Harcourt in Nigeria, as well as the capitals of Ghana, Kenya, Tanzania, Mozambique and Angola. It also has the intention of entering Cote d’Ivoire for the first time with fragrances.

Speaking with Reuters in an interview, Estee Lauder’s Managing Director for sub-Saharan Africa, Sue Fox, said the company plans to roll out Clinique, its second biggest brand with over $1 billion sales in Nigeria this year and in Mozambique in the near future.

“There’s massive interest from the consumers there in international brands,” Fox said.

Fox said Estee Lauder sees sub-Saharan Africa as “a long-term build,” with its youthful population, brisk economic growth and urbanization.

“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.”

Fox however said the main hurdle in expanding into other African countries aside South Africa is the lack of retail infrastructure.