The Estée Lauder Companies strengthens its One ELC model to drive efficiency, innovation, and global growth.
The Estée Lauder Companies has taken a major step forward by fully putting its “One ELC” operating model into action. This new system is designed to help the company work faster, stay more organized, and grow more efficiently over time. At the same time, the company has reached an important milestone in its Profit Recovery and Growth Plan, which focuses on improving performance and long-term results.
The leadership team believes this new structure will make the company more flexible and better prepared for changes in the global market. By bringing teams and systems together under one model, the company aims to remove inefficiencies and improve execution. This shift also supports its broader goal of delivering steady and profitable growth in the years ahead.
Leadership Vision for Growth and Efficiency
Chief Executive Officer Stéphane de La Faverie has highlighted the importance of this transformation. He explained that the One ELC model allows the company to operate in a more connected and scalable way. According to him, this will help improve speed, decision-making, and overall performance across the business.
He also pointed out that the company is seeing progress in its financial recovery plan. With stronger results in the first half of fiscal 2026, the company has been able to increase spending on customer-focused initiatives. These efforts are aimed at rebuilding sales momentum while maintaining strict cost control across operations.
Building a New Operating Foundation
The One ELC model is built on three main pillars that guide how the company operates. The first is One Team, which was introduced in mid-2025 to simplify the organization. It reduces layers of management and encourages faster decisions by giving teams clearer responsibilities.
The second pillar is One Culture, launched in early 2026. This focuses on how employees work together daily, encouraging accountability, creativity, and quick thinking. The third pillar is One Operating Ecosystem, which connects systems, data, and partners to ensure consistent execution across all regions and brands.
Partnership with WPP
A key part of this transformation is the appointment of WPP as the company’s first global media partner. This marks a shift from separate regional media strategies to a single, unified global approach. The goal is to improve how marketing campaigns are planned, executed, and measured.
By working with WPP, the company aims to make better use of data and technology. This partnership will allow for more precise targeting, faster campaign execution, and improved results. It also supports the company’s efforts to build a more modern and connected marketing system.
Moving Toward a Data-Driven Media System
The new global media model focuses heavily on data and artificial intelligence. Instead of managing campaigns separately in different regions, the company will now use a connected system that works across markets. This approach helps ensure consistency while also improving efficiency.
Aude Gandon, Chief Digital and Marketing Officer, explained that beauty consumers now discover products across many platforms. To keep up, the company is building a system that combines brand storytelling with performance marketing. This allows campaigns to deliver measurable results while still maintaining creativity.
Creating a Connected Ecosystem with Partners
Along with WPP, the company is working with other major partners to modernize its operations. Accenture is helping improve shared services through a new Enterprise Business Services model. This will standardize processes and make operations more efficient across departments.
At the same time, Shopify is powering the company’s direct-to-consumer online experience. Early results from the launch of TOM FORD BEAUTY in the United States show improvements in sales and customer engagement. The company plans to expand this system further, aiming to cover half of its direct-to-consumer business by the end of 2026.
Improving Data and Customer Insights
One of the biggest goals of this transformation is to create a unified data system. In the past, data was spread across different platforms and regions, making it harder to get a complete view of customers. The new approach brings everything together into a single system.
This unified data structure will allow the company to understand customer behavior in real time. It will also help improve marketing decisions and create more personalized experiences. Over time, this is expected to strengthen customer relationships and drive higher sales across all brands.
Progress on the Profit Recovery Plan
The company’s Profit Recovery and Growth Plan has reached an important stage. Since expanding the program in 2025, the company has taken steps to reduce costs and improve efficiency. These actions are already showing results, with approved initiatives expected to deliver savings at the higher end of the target range.
The company estimates total savings between $800 million and $1 billion. Some of these savings are being reinvested into customer-focused activities, helping to support growth. At the same time, restructuring costs are expected to fall within the projected range, showing disciplined financial management.
Looking Ahead to 2027
The company expects most of the benefits from its recovery plan to be realized by fiscal 2027. By that time, the restructuring program should be largely complete, and the company aims to operate with a stronger and more efficient cost structure. This will support long-term profitability and stability.
Management remains confident that the combination of cost control and strategic investment will deliver sustainable growth. By focusing on both efficiency and innovation, the company is positioning itself for continued success in a competitive global market.
A Strong Portfolio of Global Brands
The Estée Lauder Companies continues to operate as one of the leading beauty companies in the world. Its products are sold in around 150 countries and include a wide range of well-known brands. These include Clinique, MAC, La Mer, and Bobbi Brown.
This diverse brand portfolio allows the company to serve different customer segments across skincare, makeup, fragrance, and hair care. Combined with its new operating model, this strong brand base provides a solid foundation for future growth.
Final Thoughts
The full rollout of the One Estée Lauder Companies operating model marks a turning point for the company. By simplifying its structure, strengthening partnerships, and investing in data and technology, it is building a more modern and efficient organization. These changes are designed to help the company respond quickly to market trends and customer needs.
While challenges remain, the progress made so far shows a clear direction. With strong leadership, strategic partnerships, and a focus on long-term growth, the company appears well-positioned to move forward with confidence.
About The Author
