Estée Lauder might acquire Tom Ford and this is what it could mean
Estée Lauder might acquire Tom Ford and this is what it could mean
Words Jana Lee
Tom Ford’s journey from being nearly squabble under Gucci to being one of the most prestigious fashion companies in the world is nothing short of remarkable. Being one of the most elegant and prominent designers of our generation, Tom Ford is the embodiment of what success looks like, defining excellence in every accessory by providing an excellent shopping experience. Estée Lauder on the other hand has been keeping up its consistent work for years, making it one of the most popular brands in the world with its perfumes, makeup and skin care line being extremely popular over the stretch of the globe. The iconic beauty brand’s expansion is just exemplary seeing how it transformed and how today they possess a wide network of beauty items such as their exquisite lipsticks combined with their glamorous double wear foundations and anti-aging creams. The question arises as to why we are talking about two gigantic brands simultaneously.
The 2005 deal: The first action
2005 was the first time these two giants teamed up. Of course, they weren’t as successful back in the day as they are now especially seeing how Tom Ford was still in its early revamp stages, coming onto the stage as a new brand and that is where Estée Lauder sensed the opportunity to combine with something that is new yet has a powerful and an extravagant tone to it. Already acquiring a reputation for revitalizing Gucci from being a failure to producing some luxury wear that revolutionized fashion back in, Estée Lauder did not hesitate at all making the step that was necessary and teamed up with Tom Ford in order to create the most delicate and scent intense perfumes the world had ever witnessed. The first collection was named “Tom Ford for Estée Lauder” consisting of vigorous fragrances and beauty products. Ford expressed at the time that Estée Lauder would help his brand with its uniqueness in order to expand their perfumes and scents while Estée Lauder on the other hand would be subject to maximum benefits as well, making good use of Tom Ford’s cachet and incomparable marketing strategies.
Estée Lauder acquiring Tom Ford is HUGE news:
Over the past few weeks reports have been dazzling around suggesting a huge possibility that could affect the glance of the fashion world with rumors circulating that Estée Lauder could in fact, finally, buy and acquire the very fascinating Tom Ford. The reports have been suggesting that the ongoing talks seem to lead to a 3 billion for Estée Lauder to pave their way into Tom Ford’s luxurious bags, perfumes, and cosmetics! No wonder the media had figured out about Tom Ford lurking around the investment bank of Goldman Sachs to form a conclusive valuation of his 2005 brand, something he built from scratch to establish one of the most formidable and elegant brands in the world today. In all honesty, this would have not been hard to foresee seeing the consistent dialogue between the two brands, each motivating and inspiring the other to create a world full of positive energy, beauty, and elegance.
This is not only revolutionary for Estée Lauder in creating a sort of dominant semi monopoly but on the commercial aspect, they have been looking to sort their financial position out especially since post-Covid after witnessing a 26% decline in its value of shares in 2022.
If this goes through then the impact on the stylistic world of fashion cannot be understated. First and foremost we need to understand that Estée Lauder is a brand known best for skin care products and fragrances, as now it is looking to add a luxury brand to its Arsenal which is of course a display of adventurous expansion seeing that Tom Ford is one of the best you can find! As per Fabrizio Freda, the current CEO of the very ambiguous Estée Lauder, the idea is to help existing brands grow further under strong acquisitions by overall strengthening the values together to form a glorious company focused on what they referred to as prestige beauty. Estée Lauder is curious to acquire the ever-popular menswear and exciting apparel as well as handbags combined with its exquisite fragrances and cosmetics. Although Estée Lauder is already one of the leading brands when it comes to cosmetics, having Tom Ford under their banner will only make them strong as well as minimize competition, working towards the utmost reinforcements by producing the most astounding quality of products. This new metaverse is just the start of something new in our world of glamour and more will soon follow, it can lead up to more expensive shopping however brands such as Estée Lauder have consistently proven their consistency in ensuring the satisfaction of their customers.
The concerning factor, which is also one of the negatives of this deal is how Estée Lauder will cope with the aspects that do not contain the expertise, taking the example of Tom Ford’s lavish clothing of apparel and other accessories which is something not entirely adjoining with the mandate of Estée Lauder and its history seeing that it is best known for cosmetics and fragrances. Therefore, this hints that Estée Lauder would have to quickly find a luxury partner to boost and maintain Ford’s reputation as the most gallivanting fashion wear in the country. As mentioned, this is just the beginning but a huge step that could impact the world of charm in either a positive sense or a negative, we will surely know with time and Estée Lauder’s approach!