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Estee Lauder Powers Brand with Celebrity

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The cosmetics giant The Estee Lauder Companies Inc.’s (EL - Free Report) subsidiary, Osiao brand, has launched a new skincare product in China and has partnered with award-winning actress and singer Miriam Yeung to promote it.

Ms. Young will endorse the brand in the October issue of beauty magazines. The commercials will feature the new product along with her personal favorites — the Inner Radiance Concentrate and Inner Radiance Beauty Tablets.

Osiao was launched in Hong Kong, China in 2012 to address the skincare needs of Chinese women. Developed in Shanghai and manufactured in Japan, Osiao caters to the tastes of consumers in Asia. Moreover, it is made with popular Chinese herbs, like ginseng, which makes the brand popular in China. Osiao claims to give skincare solutions according to each individual’s need.

The new products, aided by aggressive marketing, are expected to boost EL’s earnings in the coming quarter. In the recently concluded fourth-quarter fiscal 2014, sales in Asia Pacific region improved 5% to $435.7 million, mainly owing to the increased demand for skincare products in China and Thailand.

Estee Lauder always keeps in mind the local needs when designing its products which is one of the reasons behind the brands’ popularity in their widely spread market. Estee Lauder Revitalizing Supreme, developed specifically for European women, is the most popular premium moisturizer in Europe, the Middle East & Africa (EEMA) market.

Advanced Night Repair in Europe, Clinique's Chubby Stick in EEMA, fragrance for the Middle East, are other example of popular locally-relevant products of the company. The company also developed relevant shade assortments in makeup for diverse geographies and ethnicities and promoted them through local campaigns such as Shades of Africa and Shades of Arabia from Clinique.

Other Stocks to Consider

Currently, EL carries a Zacks Rank #4 (Sell). Other diversified retailers worth considering include Nu Skin Enterprises Inc. (NSU - Free Report) , The Female Health Co. and Shiseido Company Ltd . While Nu Skin carries a Zacks Rank #1 (Strong Buy), Female Health Company and Shiseido Company hold a Zacks Rank #2 (Buy).

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