Dive Brief:
- The Estée Lauder Companies has appointed WPP its first global media partner as the beauty and cosmetics giant shifts from a decentralized regional media structure to a global system backed by data and artificial intelligence, according to a press release.
- WPP Media is tasked with supporting ELC’s media effectiveness and ability to generate consumer demand. The appointment follows WPP enacting its own strategic overhaul.
- ELC is entering the next stage of its One ELC model, which integrates teams, culture and operating ecosystems across the organization, as well as a Beauty Reimagined initiative launched last year to make room for more consumer-facing investments.
Dive Insight:
ELC, the marketer of brands including Clinique, La Mer, MAC Cosmetics and the eponymous Estée Lauder label, is unifying its media execution strategy with the appointment of WPP as its first global media partner. The move is another step forward for One ELC, which is intended to help the company move faster and drive growth following a sales slump. One ELC is focused on three core pillars: streamlining teams, culture and operating ecosystems.
“With the appointment of WPP as our first-ever global media partner, our One ELC operating model is now fully established,” said Stéphane de La Faverie, president and CEO of ELC, in a statement. “Together with our execution progress, we are confident that we are on a trajectory to deliver sustainable, profitable long-term growth.”
The appointment of WPP sees ELC shifting from a fragmented regional media structure to a global system that is designed for greater speed and scale. The effort is key to the One Operating Ecosystem portion of the One ELC model, which has been developed over the past year and focuses on bringing together shared platforms, data and strategic partners.
Other partners under the One ELC model include the consultancy Accenture, which is driving standardization and scalability across ELC’s core functions as part of its Enterprise Business Services Model. In addition, the beauty marketer has partnered with Shopify to power its global direct-to-consumer omnichannel experiences. Initial implementation of the Shopify partnership with Tom Ford Beauty’s U.S. web experience improved sales, conversions and average order value performance, per the release.
Other aspects of ELC’s simplification plan include the One Team and One Culture initiatives. The One Team portion of the strategy was deployed last July to simplify the organization with fewer layers. The One Culture aspect, which is grounded in accountability and entrepreneurial thinking across its teams, was implemented in February.
Working with WPP at the same time advances ELC’s Beauty Reimagined initiative that seeks to make the company more consumer-centric through digital transformation. Following the announcement of Beauty Reimagined last year, ELC teamed with Adobe to refine the launch of its digital marketing campaigns through generative AI.
ELC reported a net sales decrease of 8% for its full fiscal 2025 year, with CEO de La Faverie emphasizing a focus on Beauty Reimagined as the company seeks to return to growth. ELC reported a net sales increase of 6% to $4.2 billion for the fiscal Q2 period ended Dec. 31.
WPP in a recent trading update detailed a strategic overhaul that will see it transform from a holding company into a single company. The Elevate28 plan, which follows a year of revenue declines and account losses, including several large media accounts, will reorganize WPP’s network into four operating units anchored in four regions, all of which will be supported by WPP Open.
