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Cardiff Business Club Event review: Chris Good, UK & Ireland President of Estée Lauder

Chris Good (CG) was interviewed for and on behalf of Cardiff Business Club by Paul MacKenzie-Cummins (PMC), managing director at Clearly PR & Marketing Communications.

PMC: You have been with the business for almost two decades having spent many of those years managing various territories, where do you see the greatest growth opportunities for the company over the next few years?

 CG: The emerging markets are very high growth within the cosmetics industry. Russia and India are particularly strong right now, with China, Middle East, Africa and Central Europe also continuing to see significant growth.

PMC: What is accounting for this growth in demand?

 CG: The awareness of cosmetics is increasing which in turn drives consumption. We operate in the luxury sector but while there is an increase in demand in these emerging markets, we are still recording strong growth in mature markets too. For instance in the UK we have recorded double-digit growth for the last three consecutive years.

 Sometimes it is about mindset and the way in which you tackle a market. It is tempting to think that because you are operating in a mature market [UK & Ireland] then your growth horizon is rather limited. But that is not the case – we have learnt how to spot the opportunities in the market and go for them.

PMC: Are London, Paris, Milan and New York still as influential as they have traditionally been?

 CG: That’s an excellent question. We have seen a shift. If you take a look at where much of the innovation in our industry is coming from now, it is the likes of Korea and California who are leading the way.

PMC: The UK is the second biggest market for the company after the US, do you see this changing post-Brexit?

 CG: It won’t change in the short term but it will ultimately – not because of Brexit, rather it is China who will take the mantle from the UK; there are, after all, 1.2 billion people in China so it is inevitable. 

PMC: Consumers are increasingly purchasing goods online, how has this impacted on the business?

 CG: There has been massive growth in our online business; it is quite simply huge for us. This has given us a very different orientation to our business in terms of us no longer having just the one channel experience for our consumers.

 So when someone enters one of our stores we need to ensure we provide added value to their experience of engaging with us – it is all about experiential shopping. But we also need to maximise the user experience online too, which we do by offering additional services such as personalised engraving.

 We have also seen another positive to our online offering – the influence it is having on male consumers. When we do work with the leading men’s lifestyle websites we see an immediate uplift in business – they feel more comfortable shopping for cosmetics online.

PMC: Estée Lauder has a training academy, how important is it for a business to develop its talent base?

 CG: All of our staff across each brand will come to the training academy in London when they join the company. But its role has taken on an even greater importance in recent years precisely because of what we have just talked about – the rise of online and the need for an even greater consumer experience at point of sale.

 Indeed, the role of our face-to-face staff has not diminished, rather it has elevated them as brand ambassadors not just in the stores themselves but also on social media; some of our MAC make-up artists have significant followings on Instagram for example – they are bordering on being celebrities in their own right.

PMC: Sticking with online, the rise of millennials and the selfie generation has seen people become a social media sensation overnight with consumer experiences played out on YouTube, Snapchat and others. Do you see this as a good or bad thing?

 CG: Online reviews are incredibly important to us. We have community managers for each of our brands and they can interact with consumers in real time whenever they raise questions or concerns with one of our products.

 In doing so we’re creating a live dialogue with consumers and we can engage with them to provide them with any information or support they need. A lot of the time people are simply seeking education – help in solving common problems.

PMC: You have an enviable position with a global leading brand, but you are also operating in one of the most competitive marketplaces. How does the business remain competitive and a market leader?

 CG: You need to continue innovating, to keep fresh and absolutely consumer obsessed. The consumer is changing dramatically – we’re not just talking about millennials but also what we call “ageless consumers”, those with the highest disposable income. We ensure we stay close to the consumers.

 We look at our portfolio of brands to ensure that we are continually offering what that market needs, as the number of recent acquisitions we have made shows. In other words, it’s about having the right product, in the right channels for the right consumer.

PMC: You have held senior positions for a number of years, what would you say are the greatest qualities needed for a leader to be successful?

 CG: Most business leaders will have their own personal philosophy, as for myself I would like to think that someone’s personality, charisma and drive combined with the ability to express themselves in their own way are crucial. These are the factors that enable people to lead successful teams and drive the business forward.

 It is important to build on an individual’s strengths and at Estée Lauder we focus a lot on this rather than seeking to highlight perceived weaknesses and where improvements can be made – that can be too demoralising.

 The key to management is not necessarily to be liked by everyone in your team, but to be respected, to be decent, to be fair and to be transparent in all your communications.

PMC: We have already talked about the company’s training academy to develop new starters for the business, how do you support the career development of existing staff?

 CG: The company has a strong tradition of developing managers from within the organisation itself. Many of the company’s current senior management team have risen from the shop floor and through the proverbial ranks.

 That is very much part of the culture that was instilled in the company when it was first founded and one that will continue. There are opportunities to start and build a long-term career with the company across a multitude of different brands.

PMC: What would you say has been your biggest career success to date?

 CG: I would have to say my two most recent positions. The first one was taking Russia from being a fledgling emerging market to the powerhouse it is today for the company. And my current role – coming into a mature market and driving double-digit growth that outpaced the average growth rates for market.

PMC: Finally, what would be your top tips for all aspiring managers?

 CG: Never overestimate someone because of his or her position – judge all those around you on face value and not on their job title; never assume anything. And just be yourself – good managers are those who can articulate well and don’t say whatever they think other people want to hear.