Visual Merchandising as a Strategic Lever in the Luxury Beauty Industry: The Case of Estée Lauder

This thesis analyzes the strategic role of visual merchandising in the luxury beauty industry, using Estée Lauder brand in the Italian market as a case study. The objective is to demonstrate that visual merchandising is neither an incidental cost nor a purely aesthetic activity, but rather a strategic investment with a direct impact on brand awareness, customer experience, and customer loyalty. The first section provides the theoretical foundations of the discipline, defined in terms of its attractive, informative, and persuasive functions. The objectives of visual merchandising are organized into four interconnected categories: commercial, communicative, experiential, and relational. The technical elements: layout, lighting, colors, window displays, product placement, and signage are also analyzed in terms of their ability to influence perceptions and purchasing behavior. In today’s competitive landscape, with a global beauty market projected to reach $441 billion by 2024 and increasingly informed consumers, visual merchandising serves as the convergence point between visual storytelling, perceived value, and omnichannel consistency. The second part applies this framework to Estée Lauder Companies, with a focus on the italian subsidiary. The analysis is based on direct experience gained during an internship, which provided an inside look at the operational functioning of the brand’s visual merchandising. A significant example is the launch of the new Double Wear in February 2026: the dedicated visual elements contributed to a 30% growth during the two-month launch period. The MUR (Make-Up Redesign) 2025–2027 project is also examined; it covered 81% of the distribution network and accounted for 62% of the brand’s total CAPEX, a figure that attests to the strategic importance attributed to this discipline. In conclusion, the Estée Lauder case demonstrates how visual merchandising, when managed with a strategic vision, constitutes a genuine competitive advantage.