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News Stories Wednesday, February 7, 2007   
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Estee Lauder strikes alliance with NBC Universal

The Estee Lauder Cos., which holds the majority interest in Gloss.com, is using new content partnerships with other media companies to drive more web sales.

The Estee Lauder Cos., manufacturer and direct marketer of Aramis, Clinique and other brands, recently developed an alliance with NBC Universal and The Knot Inc., No. 343 in the Internet Retailer Top 500 Guide to Retail Web Sites. NBC Universal acquired iVillage.com, an online women’s community, in May. Now iVillage.com, NBC Universal and Estee Lauder have a content and web site agreement where by Estee Lauder links its various e-commerce sites directly to iVillage.com.

The companies partnered to create weekly beauty segments for an interactive television show known as iVillage Live. “We linked our brand e-commerce sites to the program’s website and consumers can buy products in real-time while watching television,” Estee Lauder president and CEO William P. Lauder told Wall St. analysts on the company’s recent Q2 earnings call.

Estee Lauder, No. 199 in the Internet Retailer Top 500 Guide to Retail Web Sites, has a similar agreement with wedding content provider and online retailer The Knot Inc. to market Beautiful Love, a new fragrance collection.

In addition to Gloss, which Estee Lauder runs in combination with Chanel and Clarins, also is developing a web strategy of launching more microsites in conjunction with new product rollouts. In the second quarter, the company developed a microsite for its Barbie Makeup Collection, a new line of cosmetics affiliated with its MAC brand.

“We had committed to reaching a wide cross section of consumers whatever their reading, surfing and shopping habits, and increasingly they are shopping online,” Lauder told analysts. “E-commerce sales from our brand and retailer sites rose by double digits in the quarter, so we are considering promotions other than free shipping to keep the channel fresh and drive new and repeat business.”

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