Novel coronavirus pneumonia,
announced a two-year restructuring plan to address the huge changes in distribution patterns and consumer behavior after the outbreak of the new crown pneumonia outbreak, while disclosing its earnings. Estee Lauder announced a two-year restructuring plan. The restructuring plan includes: adjusting the company’s distribution network; closing some independent stores and canceling some department store counters; strengthening digital investment and actively transforming into online sales. The plan will begin in the first quarter of fiscal year 2021 and be completed by the end of fiscal year 2023. This will eventually result in the closure of up to 15% of individual stores and the loss of jobs of approximately 1500-2000 point of sale staff and related support staff. < / P > < p > the group estimates that the total cost associated with the restructuring plan is about $400 million to $500 million, including staff related costs, contract termination, asset write off and other costs of implementing these initiatives, and that once fully implemented, the restructuring plan will generate annual pre tax benefits of $300 million to $400 million. On July 30, L’Oreal Group released the first half year financial report of 2020, which showed that the sales performance of the group in the past five years had declined for the first time. In the first half of this year, L’Oreal’s total sales volume was 13.07 billion euro (about 108.5 billion yuan), a year-on-year decrease of 11.7%; and its net profit was 1.82 billion euro (about 15.1 billion yuan), a year-on-year decrease of 21.8%. < / P > < p > for Estee Lauder, Asia Pacific sales increased by 15% to $4.2 billion, surpassing Estee Lauder’s core business in the Americas. Sales in the Americas fell 20% to $3.8 billion. In the second quarter of this year, L’Oreal’s sales fell by only 3.9%, which was the region with the lowest proportion of decline in the same period, thanks to the Asia Pacific market’s first recovery from the epidemic. Estee Lauder’s restructuring stressed that investment in online business increased by 64.6% in the first half of the year, which objectively indicates that accelerating the development of e-commerce channels is the key to driving sales.
due to the novel coronavirus pneumonia outbreak in the world, the department store and beauty shop’s suspension business directly led to consumers’ online shopping and promoted the growth of online business. Online sales will also become an important direction of major brand reform and development after the outbreak.