Timeless Treasure: Aveda Corporation
Aveda Corporation was born in 1978 from a homemade clove shampoo made by successful cosmetologist Horst Rechelbacher. Horst spent six months in India studying the use of plants and herbs for the purposes of promoting good health and increased lifespan. Thus Aveda products incorparated all that he learned. In the early 1980’s Horst began marketing his shampoos and conditioners to hair salons where he earned great success. He eventually began a distribution system for his products in which distributers sold Aveda exclusively in their stores.
Aveda’s body care products were set apart from the others because they employed the use of aromatherapy and because they were all natural. Horst was always opposed to the use of synthetics, petroleum bases and animal testing. The Aveda Corporation expanded its business by introducing Aveda Esthetique in the 90’s. The Esthetique consisted of over 75 original fragrances that could be used to custom scent already existing Aveda products.
Over time, more and more big name cosmetic companies began marketing natural product lines. Because those companies offered their products to a larger population of vendors, they had more earning potential. It appeared that the Aveda Corporation may have restricted its profits by having a collection of too many different products. As part of its committment to protecting the environment, the company owned a collection of salons, esthetiques and even environmentally friendly clothing lines.
In 1996, Horst decided to take a step back from the everyday hustle and bustle of his growing company. By 1997, the company had been sold to Estee Lauder where, as chairman of the Estee Lauder business unit, he was able to continue to develop products. Today, the company remains profitable and has experienced an increase in growth as Estee Lauder has marketing reach overseas.