Estée Lauder’s Radical Digital Overhaul: Can AI and Amazon Save the Beauty Giant?

In 2025, Estée Lauder, long considered a laggard in digital adoption, has launched a sweeping transformation under its new CEO Stéphane de La Faverie. Faced with a prolonged sales slump, especially in North America and China, and a changing beauty industry where digital and physical touchpoints increasingly merge, de La Faverie introduced a bold vision called “Beauty Reimagined.” This strategy pivots the 80-year-old prestige beauty company toward becoming more agile, consumer-centric, and digitally empowered. Key hires, such as Nestlé’s Aude Gandon as the company’s first Chief Digital and Marketing Officer, signal a full commitment to modernize operations and leverage AI, data analytics, and omnichannel retailing. Estée Lauder is now investing in high-ROI digital platforms, including Amazon, TikTok Shop, and Shopee, while also retooling its supply chain, marketing model, and brand innovation framework to match consumer preferences across price tiers and geographies. Here’s a closer look at what is driving this transformation and how it is expected to reshape the company’s future.