Estee Lauder establishes Turkey affiliate
giant Estee Lauder says it is to establish an affiliate company in
Istanbul, Turkey, with more than 300 employees and talk of further
growth to come.
The company has appointed Ahmet Ramiz as general manager of the affiliate. He was the general manager of Vepa Velar, which prior to the establishment of the new Turkey division, was the exclusive distributor for The Estee Lauder Companies' brands in the country.
Ramiz said that the two companies had had good business links for 18 years, which had led to a successful foundations for the company in the market.
Developing markets such as Turkey are proving increasingly alluring for global cosmetics players eager to break into markets that hold growth potential in an effort to counteract limited growth opportunities in the mainstay European and North American market.
US market analysts Kline Company has successively singled out Turkey as being one of the key global developing markets for cosmetic and toiletry markets, citing double digit growth rates in recent years and forecasting strong growth for the future.
Estee Lauder's global operations have been hit by significant restructuring charges currently being implemented in an effort to re-focus the company.
In May the company reported that its third quarter net earnings dropped 44 per cent to reach $59.5m, compared to a year earlier, when earnings stood at $106.2m.
The company said that the figure had been impacted by a $3.7m charge relating to the sale of its Stila business as well as heavy restructuring charges.
Meanwhile the company's net sales continue to pick up, rising 3.5 per cent to reach $1.578bn. The company reported a particularly strong increase in sales for its hair care division, which rose 19.3 per cent to reach $80.3m due to good Aveda and Bumble and bumble sales.
Given these figures the company has affirmed its believed that full year sales would increase by 3 per cent, with the Asia/Pacific and European markets expected to lead the way.
