Globally, international department stores are rising in importance, as affluent consumers breathe new life into the great urban shopping districts. We are increasing the presence of our brands in these stores.

TRAVEL RETAIL
Our travel retail business has been on a dramatic upswing, as we keep pace with today's global business and leisure travelers. The cosmetics and fragrance categories account for an impressive $10 billion, or almost one-third of all travel retail sales. As more airlines introduce onboard wireless Internet access, we expect to see even more demand for our products among "globally mobile" travelers.

All of our brands combined hold the number two position in the global travel retail channel, and we are aggressively increasing our airport presence around the world. In total, our brands invested in promotions in major travel locations last year, including Heathrow's new state-of-the-art Terminal 5, Seoul Incheon, as well as Hong Kong, Shanghai, Frankfurt, Milan, New York, Los Angeles, Brisbane, Paris, Oslo, Copenhagen, Tel Aviv and Buenos Aires.

New products created specifically for the travel retail channel contributed to our growth. Responding to the unique needs of jet setters, Estée Lauder introduced Super Flight Creme, a set of exclusive continuous hydration products that relieve the visible signs of stress on the face and eye areas due to air travel. An Estée Lauder travel exclusive fragrance, Bali Dream, entices traveling shoppers with exotic tropical scents.