#218 Outliers: Estée Lauder — A Success Story

The Knowledge Project with Shane Parrish

Farnam Street

Business, Investing, Entrepreneurship

4.7 • 2.9K Ratings

🗓️ 11 March 2025

⏱️ 80 minutes

🔗️ Recording | iTunes | RSS

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Summary

Most people hear "Estée Lauder" and think of cosmetics—lipstick, perfume, face cream. But the real story isn’t just about makeup—it’s about a woman being an unstoppable force. Estée Lauder didn’t just build a beauty brand; she rewrote the rules of an industry. She turned rejection into fuel, defied industry gatekeepers, and transformed a homemade face cream into a multi-billion-dollar global powerhouse. When department stores refused to stock her products, she created a demand they couldn’t ignore. When experts said women wouldn’t spend $115 on face cream, she proved them wrong. When competitors copied her formulas, she didn’t fight them—she outmaneuvered them. Her real genius wasn’t in chemistry, but in understanding human psychology, persistence, and the power of storytelling. This is a story for anyone who's ever been told "no," felt underestimated, or wanted to build something that lasts. Learn how thinking differently can transform an industry. This week I've made my reflections available to everyone—you'll hear them at the end of the episode. If you want to hear my thoughts and reflections at the end of every episode, join our membership: ⁠⁠⁠⁠⁠⁠⁠fs.blog/membership⁠⁠ and get your own private feed. This episode is for informational purposes only and is based on Estée Lauder’s incredible 1985 autobiography Estée: A Success Story. Newsletter - The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at fs.blog/newsletter Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I remember the woman at the Florence Morris Beauty Salon where I had my first cosmetics concession.
0:07.8	She was thoughtless and cruel and will always remain that way in my mind.
0:12.7	Maybe she was a catalyst for good in the end. Maybe I wouldn't have become Estee Lauder if it hadn't been for her.
0:19.8	At that moment, she was cast in my memory to last there forever.
0:24.2	I despised her.
0:25.9	Simply thinking about that incident brings back a twinge of pain.
0:30.8	She was having her hair combed and she was lovely.
0:33.7	I was very young and vulnerable, and I loved beauty.
0:41.1	I felt like I wanted to make contact with her in some small way.
0:45.1	What a beautiful blouse you're wearing, I complimented her.
0:47.0	It's just so elegant.
0:49.5	Do you mind if I ask where you bought it?
0:50.9	She smiled.
0:53.8	What difference could it possibly make, she answered, looking straight into my eyes.
0:56.0	You could never afford it.
0:58.0	I walked away, heart pounding, face burning.
1:02.0	Never.
1:03.0	Never will anyone say that to me again, I promised myself.
1:06.0	Someday I will have whatever I want.
1:08.0	Jewels, exquisite art, gracious homes, everything.
1:13.7	That's a passage from Esté Lauder's 1985 autobiography, Esté, A Success Story.
1:19.6	Music Welcome to the Knowledge Project podcast. I'm your host, Shane Parrish.
	...

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