John Demsey, executive group president, The Estée Lauder Companies, stepped in to replace Leonard A. Lauder at The Fragrance Foundation’s first annual Masterclass event on October 5. Lauder, chairman emeritus of The Estée Lauder Companies, had been confined to bed per doctor’s orders due to back problems. The evening was designed to pay tribute to 10 “Notables,” young up-and-comers in the industry who have the potential to play leading roles in the future of fragrance. The event was held at the French Institute Alliance Française, and sponsored by Givaudan and Hearst Magazines.

In her introduction to the evening, Elizabeth Musmanno, president of The Fragrance Foundation, told the crowd that Lauder had shown his business acumen just in giving her his regrets for having to cancel. He called, rather than texted or emailed, she said, as there’s “nothing like the human voice,” and had thoughtfully arranged for the ideal substitute to deliver his speech, titled “Things I Didn’t Learn in Business School.”

According to Musmanno, Lauder had expressed that he and Demsey think alike, having worked together for 25 years. “His words are our thoughts,” Lauder told her.

Demsey, who oversees all of fragrance for The Estée Lauder Companies—and is a Fragrance Foundation Hall of Fame honoree—has played a leading role in the company’s fragrance acquisitions, including most recently, By Kilian, Editions de Parfums Frédéric Malle, Rodin Olio Lusso and Le Labo.

In an hour-long presentation, Demsey shared with the many fragrance executives present in the audience, highlights of his 37-year career in the beauty industry, as well as lessons learned along the way from the Lauder family, especially from Leonard Lauder.

Demsey got his first whiff of an exciting possible career in fragrance and beauty while growing up in Cleveland, OH. He was seemingly surrounded by Estée Lauder products as both his mother and grandmother were partial to the brand. He remembers that the first fragrance he purchased was Aramis. “From a very young age,” Demsey recalled, “I was touched by the aura of Lauder.” When a distant cousin created Jovan Musk, he saw the financial possibilities that the industry held.

However, Demsey’s road to success was not a smooth one. Following his graduation from Stanford, a stint in Paris and a degree from NYU, he found himself alone in 1970s New York—and job hopping. Through a friend of a friend, he landed in the executive training program at Macy’s, where he handled Anais, Anais, only to fail miserably. He was transferred to clothing and assigned to Jordache jeans. Eventually his determination for entering the perfume sphere landed him a job at Bloomingdale’s 59th Street where he was charged with handling the spritzers for Giorgio Beverly Hills and other brands.

Introductions

It was at Bloomingdale’s where Demsey had his first experience with Mrs. Estée Lauder and her son Leonard—when the beauty icon showed up to do makeovers at counter.

It was also the era of “fragrance blockbusters,” said Demsey, and his path in that area was being established. After years of “grunt” jobs, he joined The Estée Lauder Companies (ELC) in 1991, and has never looked back. He learned much about the industry from Estée and Leonard, including that she didn’t trust men in brown suits—which he found out at an initial meeting with her—because that’s what her competitor Charles Revson wore. So Demsey quickly bought some blue suits to get back in her favor.

In ’98, Demsey said, “Destiny tapped me on the shoulder,” when he was asked if he wanted to run MAC. So he left fragrance behind for a time, but says he put all the experience he had gained in the category to good use in Cosmetics.

He returned to the fragrance arena in 2007 when ELC leaders were brainstorming about jumpstarting the category. He said he looked around the room and suddenly an idea clicked when he saw Aerin Lauder. He likened this experience to others he’s had, saying: “Whenever you’re looking for the path to launch the future, the answer is in the room.” The Aerin brand was just what they needed to move forward.

Ten years ago, Demsey brought in Tom Ford, when he was “planting seeds,” trying to revitalize the fragrance business. The designer’s Black Orchid fragrance created the notion of a private blend, with better ingredients and a more high-end positioning. Demsey said they discovered that the more they stretched the olfactive nature, along with commercialized ingredients such as oud and neroli, the better the result with consumers. This success was followed with the acquisition of Jo Malone and, more recently, the four niche fragrances By Kilian, Editions de Parfums Frédéric Malle, Rodin Olio Lusso and Le Labo.

Demsey spoke about the return to artisanal fragrances after so many years of launching “blockbusters” and flankers. “I like to think that what is happening today is healthy,” he said. We need to get away from everyone doing the same thing.” Going forward, he stressed the need to create a concept, “to tell a distinctive story.” He added: “Artisanal fragrance lets you push the boundaries. Niche is the new scale, the new normal.”

Leonard’s Lessons

Demsey then touched on a number of lessons that Leonard Lauder has imparted upon him and others in the company. Demsey referred to Lauder as “Chief Teaching Officer” at ELC, because there’s nothing he likes better.

• Brands are successful due to creativity. (With ELC, GWP was an out-of-the-box concept that put the company on the map.)


• Experience is everything. (Demsey said he learned even from his menial experiences at the start of his career.)


• Listen to your mother. (Leonard had told Estée that there was an opportunity to make money in nail polish, but she didn’t want to immediately go head to head with Revson, so she kept it low-profile at first.)


• Learn from David & Goliath. Focus your efforts on an area you can win. (Leonard started the Origins brand in Denmark.)


• Leonard started his own competition in 1968 when he created Clinique.


• Fantasize about success and have a vision. Project yourself into a successful situation.


• And a message passed down by the venerable Estée Lauder herself: “Perfection is the only way to do business.”