The Estee Lauder Companies Inc. 2008 Annual Report
[Intro]
[Chairman's Message]
[Chief Executive's Review]
[Fiscal 2008 Highlights]
[Multi-National Expansion]
[Multi-Channel Distribution]
[Multi-Brand Leadership]
[Portfolio of Brands]
[Board of Directors]
[Executive Officers]
[Financial Section]
[Stockholder Information]
[Environmental Profile]
[Form 10K]
Eyes by Design on HSN photo pull quote
Eyes by Design on HSN.
DIRECT RESPONSE TV
Beauty is one of the most popular categories on direct response TV. In the past year, more than $560 million in cosmetics and toiletries has been sold through direct response TV in the United States. Direct response TV is also a global phenomenon. For instance, QVC operates direct response TV channels in the United Kingdom, Germany and Japan, and will soon be in China. The opportunity to have a stronger presence in this channel was a big reason behind our July 2007 acquisition of Ojon, a brand that markets its naturally-derived, wildcrafted hair and skin care products primarily through direct response TV.

Our BeautyBank team launched Eyes by Design, a line of eye makeup products developed for exclusive distribution on the direct response TV channel known as HSN, which reaches 90 million homes in the United States. Eyes by Design is also our Company's first beauty collection created exclusively for television retail and the first prestige brand to be 100 percent focused on the eyes, the feature most women say is their number one beauty challenge.

Our other successful ventures on direct response TV include Clinique's February 2008 debut on QVC, which was the largest two-hour beauty launch in the channel's history. Other sell-out programs included Bobbi Brown's debut on QVC, Origins' launch of its A Perfect World collection on a Korean home shopping channel and Ojon's first foray onto QVC in Germany.

FREESTANDING STORES
Collectively, The Estée Lauder Companies and its brands operate 577 single-brand freestanding stores, occupying prime real estate in major downtown shopping districts and prestigious malls worldwide. Our stores enrich the retail experience for our brands, showcasing the full range of each collection, complete with highly trained consultants who enhance the brand image through individualized customer service.

Globally, the majority of our freestanding stores are for the M·A·C, Origins and Aveda brands. Across the pond, Jo Malone has a highly visible presence in the United Kingdom and has recently opened freestanding stores in Paris, Milan and Istanbul. Bobbi Brown has opened five freestanding stores branded "The Studio" in the Asia/Pacific region and two in the United States, providing an intimate shopping experience and personalized services.