Estée Lauder to LVMH? Seems they’re interested

[FiveoaksBouquet]

According to this article in the New York Post, a billionaire investor is wheeling and dealing to get more profit out of Estée Lauder and potential sale to LVMH is one possibility. Big fish eat little fish and bigger fish eat big fish…

https://nypost.com/2023/05/07/nelson-peltz-exploring-possible-estee-lauder-shakeup-sources/

 

[JoM68]

I know these companies have to make profits but the likes of Peltz seems not to give a thought to the quality of what is being produced, whether that be Disney or Estee Lauder, but purely about how much money these changes can make him. At what point do you figure you have enough money and just enjoy it without potentially ruining another brand in the pursuit of more?

 

[Varanis Ridari]

At what point is this a monopoly?

 

[JoM68]

At what point is this a monopoly?

Very good point. It's all too depressing.

 

[slpfrsly]

I know these companies have to make profits but the likes of Peltz seems not to give a thought to the quality of what is being produced, whether that be Disney or Estee Lauder, but purely about how much money these changes can make him. At what point do you figure you have enough money and just enjoy it without potentially ruining another brand in the pursuit of more?

This has been the way for over a century now. Money is power. There's never enough, and even when you have it, you're only a few steps away from losing it. Hence you have targeted discrimination towards potential rivals for power within America itself for things like access to education. Ultimately, you can't take much of the historical 'quality' of a company with you if/when a nation or economy collapses, but you can take the value of your assets.

 

[dealt7faux]

It's history repeating itself.
Sooner or later someone will come along and teach Arnault, Peltz and others a lesson. And, it will happen when they least expect it.
There is always someone new waiting in the wings.

 

[hednic]

Not surprised by this news.

 

[FiveoaksBouquet]

Not surprised by this news.

I’m not surprised either. Lauder’s shares have gone down and they are not in a position of strength. Their marketing is terrible. They have been shifting to online sales without offering anything new to younger internet generations while removing products from stores and alienating longtime customers. As a result, a person such as myself, who would gladly be buying Lauder perfumes if they were readily available, is left swinging in the breeze.

Leonard Lauder, it says, does not want to sell, but others in the company could be ripe for a buyout if they feel it will be financially advantageous for them. Not to say being owned by LVMH would necessarily help their marketing. Guerlain’s marketing is virtually nil IMO.

 

[Pippin06]

Thank goodness I have some good bottles of aramis.

 

[12catcrazy]

What is so weird about this is how EL has been buying up every indie cosmetic company in sight. Bobbi Brown - owned by Lauder. MAC - owned by Lauder, Tom Ford - owned by Lauder and I could go on. Basically, in the US, if it isn't owned by L'Oreal or P & G, it's owned by Lauder.

The sad thing is that EL has made some really wonderful fragrances and even sadder is that they have been a very large employer on Long Island (where I live). Guys like the billionaire don't give a rat's ass about how many people they throw out of work when companies are sold, bought and broken apart.

 

[PStoller]

At what point do you figure you have enough money and just enjoy it without potentially ruining another brand in the pursuit of more?

This question applies to personal wealth as well as corporate. I know some unhappy wealthy people whose vocabularies don’t contain the word, “enough.”

 

[enframing]

It'd be sad if this happened. Lauder has made great fragrances and skincare for a long time.

 

[saminlondon]

I wonder what this would mean for Frederic Malle?

(As if I didn't already know the answer.)

 

[mrcologneguy]

Corporate buy outs typically involve the buyer paying too much. The new owners try to cover their costs by cheapening the product, often while raising prices. Consumers figure it quickly, and flee. Eventually the formerly strong brand is a shadow of its former self.

LVMH has a fairly strong record of bucking this trend. If they do buy Estée Lauder, here’s to hoping they don’t wreck it.

 

[GWM]

I wonder what this would mean for Frederic Malle?

(As if I didn't already know the answer.)

There's already been a big shift at Malle. Synthetic Jungle (I enjoy), Rose & Cuir, and Uncut Gem aren't anything like Iris Poudre, Une Fluer de Cassie, or Portrait of a Lady. That's okay though, it's been a long time since Malle first came around.

 

[RPLens]

This is a global trend.
The big guys are consolidating.

It can even be seen in politics with the Covid-19 response - all countries followed the same policies.
Worldwide.

Next one is food.

 

[FiveoaksBouquet]

This is a global trend.
The big guys are consolidating.

It can even be seen in politics with the Covid-19 response - all countries followed the same policies.
Worldwide.

Next one is food.

And food already has a big head start!