We live in an era of truly incredible wealth and vast inequality between the richest billionaires and every day middle-class people. The 50-richest families in the world have a combined net worth of $1.2 trillion. Among these families, the Lauder family stands out as the fifth-wealthiest in the U.S., boasting a net worth of $40 billion, up from $24.3 billion just two years ago. Estee Lauder, a name synonymous with beauty, began her family business in 1947 with a modest order of $800 worth of skincare products from Saks Fifth Avenue.
Today, the Estee Lauder Companies Inc. encompasses 31 distinct makeup brands, including powerhouse names like Clinique, MAC, La Mer, and Bobbie Brown, generating an impressive $14.3 billion in revenue. However, the beauty industry faced challenges in 2020, as sales dipped due to stay-at-home orders and mask mandates amidst the coronavirus pandemic. This raises an interesting question: how will the Lauder family fortune evolve in the coming year?
The roots of the Lauder family fortune can be traced back to a remarkable woman named Estée Lauder. Born Josephine Esther Mentzer in Queens, New York, in 1908, her journey is a testament to ambition and resilience. Her parents, Jewish immigrants from Hungary and Czechoslovakia, owned a hardware store where the family lived above. Despite her humble beginnings, Estée aspired to be fully American, often feeling embarrassed by her parents' accents and traditions.
| Personal Details | Bio Data |
|---|---|
| Name | Estée Lauder |
| Birth Date | July 1, 1908 |
| Birth Place | Queens, New York, USA |
| Occupation | Businesswoman, Founder of Estée Lauder Companies |
| Net Worth | Approximately $40 billion (family net worth) |
| Death Date | April 24, 2004 |
As a child, Estée was captivated by skincare. Her uncle John, a chemist, introduced her to the world of beauty products, igniting her passion for creating face creams. She would even bring his products to school, performing makeovers on her classmates. With dreams of becoming a glamorous skincare specialist, she married Joseph Lauter, a successful textile salesman, and they eventually changed their last name to Lauder.
In the years that followed, Estée's determination led her to develop and promote her uncle's face creams tirelessly. She gave free demonstrations anywhere she could, from hotels to subway stations, realizing the importance of social connections in the beauty industry. Unfortunately, her commitment to her career strained her marriage, resulting in a divorce in 1939.
After moving to Miami, Estée sold her face creams to wealthy vacationers, even engaging in affairs with influential men to boost her business. However, she soon realized that this was not fulfilling, and her longing for her ex-husband led to their remarriage in 1942, agreeing to work together to make her cosmetics company thrive.
In 1944, Estée and Joseph opened their first retail store in New York City, and by 1946, Estee Lauder Inc. was officially formed. Estée's products quickly gained popularity, especially after a large order from Saks Fifth Avenue sold out in just two days. This success fueled her belief that she could compete with the cosmetics giants of the time.
Throughout the 1950s and beyond, Estée Lauder expanded her product line, introduced new fragrances, and successfully built her brand into a global empire. Today, her legacy lives on through her family, especially her granddaughter Aerin Lauder, who continues to uphold the values and vision Estée instilled in the company.
Estee Lauder built her global cosmetics empire on the motto, "There are no homely women, only careless women." Her ambition and focus not only transformed the cosmetics industry but also ensured that her heirs could enjoy the life she had always dreamed of.
