Estee Lauder opens intelligent logistics center in Shanghai

​An aerial view of the Estee Lauder’s supply chain intelligent operations center in Shanghai. [Photo/Shanghai Observer]

Beauty brand Estee Lauder launched its China supply chain intelligent operations center, the China Fulfillment Center, in Shanghai's Xinzhuang Industrial Park on March 26.

Spanning a construction area of nearly 130,000 square meters, the center is equipped with automated distribution systems that support round-the-clock unmanned operations, with a peak daily processing capacity exceeding 400,000 orders.

To enhance logistics efficiency, the center has introduced an innovative "dual-warehouse" model, integrating bonded and non-bonded warehouse operations.

As an industry pioneer, the facility enables deep integration of order fulfillment and distribution within a highly automated system, accelerating the delivery of novel products to Chinese consumers.

By leveraging AI technologies, the center has significantly improved delivery speeds, with the coverage of next-day delivery expected to nearly double compared to the 2021 level.

Stephane de La Faverie, president and chief executive officer of Estee Lauder, noted that as China’s beauty market and consumer demand continue to expand, accelerating innovation is essential to unlocking new opportunities in a changing environment.

He added that with consumers at the heart of its core strategy, the company aims to deliver more efficient and reliable services.

In recent years, the global beauty market has undergone structural adjustments and experienced slower growth, while the Chinese market has become one of the key engines driving Estee Lauder’s renewed momentum.

According to the company, sales in the Chinese mainland in the second quarter of fiscal year 2026 rose 13 percent year-on-year, marking the second consecutive quarter of double-digit growth.