Last Updated: Jan. 16, 1:07pm ET
Estee Lauder continues to struggle to forecast demand for its products in China as the market shifts to an online model, according to supply chain planning leader Frank Maassen, speaking at the 2024 National Retail Federation event in New York City.
The beauty company is navigating a slower Chinese economy and varying consumer spending habits post-Covid, Maassen noted.
Estee Lauder is transitioning from a sell-in to a sell-through strategy, focusing on anticipating a rebound in Chinese consumer spending to streamline planning. This shift has resulted in:
- Substantial top and bottom line improvements
- Enhanced fill rates
- A notable inventory reduction in Western markets
- A 66% increase in forecast accuracy for North America last month
Shares dropped 3.5% to $130.14.