Estee Lauder Teams With Tom Ford On Signature Product Line Recently glamour vendor Estee Lauder announced its lineup with fashion designer Tom Ford. The partnership will create a Tom Ford-branded beauty and fragrance line, to be sold exclusively at Estee Lauder counters. Estee Lauder stated that the agreement is a very significant one. It said this would be the first time it has partnered with an external fashion designer. Ford is a former designer for Gucci Group. Critics notice that Tom Ford is a fashion industry icon in the same way that Estee Lauder is a beauty industry icon.
It's a perfect match of luxury, style and beauty. It is also a bold move by The Estee Lauder Companies to bolster its flagship brand, which has suffered from sluggish sales in recent years. New lines marketed by makeup artists have hurt the brand's cosmetic sales. And the brand's skincare business has been hit hard by high-profile dermatologist brands. In the first phase, Ford will create a Tom Ford for Estee Lauder line.
A limited collection will be available for the 2005 holiday season, with a more extensive one due to debut in spring 2006. For the second phase, Ford will commence a separate, stand-alone Tom Ford beauty brand to create and market fragrance and other related products. These products will begin to launch in Fall 2006. Industry critics agree that the partnership will allow Ford to take advantage of Estee Lauder's expertise in the fragrance business, with its high costs and loyal customer base. Estee Lauder will benefit from Ford's cachet, fame and provocative marketing sensibility. These article talks about one of the topics we discussed in class.
It is about a strategic partnership between two great companies: Estee Lauder and just newly created Tom Ford Co. Meaningful partnerships are the foundation for success. A partnership is what enables companies to make continuous improvements. By sharing with others, corporation can direct resources and capabilities to projects that are considered most significant. In today's new world, the competitive pressure has been intensifying, it is becoming harder to achieve control and stay on top, and, thus, participant in one market may establish alliances in another. In the new economy, strategic alliances enable business to gain competitive advantage through access to a partner's resources, including markets, technologies, capital and people.
Like in Estee Lauder example, teaming up with other adds complementary resources and capabilities enabling participants to grow and expand more quickly and efficiently. SOURCE: WALL STREET JOURNAL, APRIL 15, 2005.