Glossier Eyes IPO as Estée Lauder Teams with Amazon

Glossier Eyes IPO as Estée Lauder Teams with Amazon

The Beauty Sector Continues to See Major Growth as Estée Lauder Partners with Amazon for a Clinique Launch and Glossier Shares Potential IPO Plans

In a significant shift for a major player in the beauty industry’s approach to retail, Estée Lauder is set to partner with Amazon. Clinique, a brand under Estée Lauder’s umbrella, is set to make its debut in the U.S. Amazon Premium Beauty store on Wednesday, marking a departure from the company’s previous stance of avoiding retail partnerships with Amazon.

“We are thrilled to be strategically expanding our consumer reach in the U.S.,” said Fabrizio Freda, president and chief executive officer of Estée Lauder Cos. “Starting with Clinique today, a select few brands within our portfolio will open dedicated storefronts in Amazon’s fast-growing Premium Beauty destination over the coming months.”

Clinique’s foray into Amazon comes alongside the launch of a Skin Analysis tool on its Amazon storefront, offering an interactive questionnaire to tailor skin care regimens for consumers. Michelle Freyre, global brand president at Clinique, emphasized the opportunities presented by Amazon’s expansive customer base, which exceeds 100 million unique beauty shoppers.

This move aligns with broader industry trends as brands increasingly recognize Amazon as a vital platform for reaching consumers. Clinique joins a roster of beauty brands, including Lancôme, Youth to the People, and IT Cosmetics, that have embraced Amazon as a retail partner.

Meanwhile, the makeup industry is witnessing a surge in merger and acquisition activity, with speculation turning into reality. A multitude of makeup brands, buoyed by a post-pandemic rebound, are exploring exit options, signaling a vibrant market landscape.

Glossier, Merit Beauty, and Jane Iredale are among the brands reportedly considering various options, including initial public offerings and potential sales. Glossier, in particular, is viewed as a potential IPO candidate given its substantial size and investor profile.

The makeup sector’s resurgence is evident in its outpacing of other beauty categories in growth, according to data from Circana. With makeup sales rising by 15 percent, brands like Rare Beauty, Merit, and Kosas are capturing the attention of younger consumers and attracting interest from both investors and strategic buyers alike.