Estee Lauder's Plan to Compete With Korean Skincare Competitor

Estee Lauder reported flat revenue for the first quarter of 2015, which ended September 30, with net sales coming in at $2.63 billion relative to last year's $2.68 billion. Foreseeing a number of challenges in the coming months, the company also cut its guidance for the full fiscal year. At this point, Estee Lauder expects net sales to grow 2 to 3 percent in 2015, versus its original forecast of 3 to 4 percent.

Estee Lauder's skincare business, in particular, is struggling the most at the moment, with net sales dropping 7 percent in the quarter. Fashionista reports, CEO, Fabrizio Freda, acknowledged that his team needs to increase innovation in that area. It's not just about serums and moisturizers any more, but also about facial oils and masks.

"We have been seeing this coming for a long time," says Freda. "The way to compete with Korea, (Estee Lauder's biggest competitor) is to embrace [these trends] and to bring them around the world. Our brands -- Clinique, namely -- has been one of the first to bring BB creams and CC trends to the U.S., which was actually a Korean trend."

As Freda points out, MAC Cosmetics has been borrowing looks from Korean pop culture and the Estee Lauder brand itself is growing in Korea as it looks to cater more to that market. After four years without making any purchases, Estee Lauder snapped up both Le Labo and Rodin Olio Lusso in October, so acquiring a Korean brand could very well be in the cards. According to Freda, both of those recent acquisitions are targeted toward Estee's "ultra-prestige consumer, which is core to [its] strategy."

Watch Estee Lauder's Pure Color Envy lipstick commercial below!

Check out more MStars Fashion/Beauty news below!

Michael Kors Will Not Offer Discounts During Holiday Season

GAP Extends Its 'Dress Normal' Holiday Campaign With Help From Sofia Coppola [VIDEOS]

Michael Kors Debuts A Very Fashionable New Line Of Tech Accessories