With M.A.C., Estée Lauder Enters Emerging Markets

When Estée Lauder opened a store selling M.A.C. makeup in Lagos, Nigeria, in February, it didn’t have much company. While the country is Africa’s largest oil producer, 68 percent of Nigerians live on $1.25 or less a day, according to the World Bank. Yet going where rivals aren’t is standard operating procedure for the 29-year-old cosmetics line. M.A.C. has long courted various ethnic groups, including black Americans, and Estée Lauder sees the brand as the key to unlocking growth in emerging markets.

M.A.C. is already the best-selling high-end makeup in Brazil, India, South Africa, and Turkey, according to the company. The brand’s tony stores are a revelation in nations such as Nigeria, where Western-style retailers are so scarce that wealthy shoppers must go abroad to purchase many upmarket brands. Once M.A.C. has a foothold in a market, Estée Lauder sends in its other brands, such as Clinique and Aveda. “The biggest play for the corporation, period, in terms of market development today, is the M.A.C. brand,” says Group President John Demsey. “It is the singular biggest source of growth for the company.”