L’Oréal is strengthening its historic position as Travel Retail’s market leader(1) thanks to a portfolio of powerful brands and its well-balanced geographic locations
Vincent Boinay
Managing Director Travel Retail
A high-potential channel
Amid a complex international context, Travel Retail(2) has moved up a gear and increased its market shares thanks to the remarkable performance of L’Oréal Luxe with its designer and alternative brands, the opening of URBAN DECAY counters, the roll-out of dermacenters, and the rise in prominence of L’ORÉAL PARIS and luxury hair brand KÉRASTASE. This “sixth continent” is a strategic channel for the development and visibility of the group’s brands.
Dermacenters attract travellers
For over a year now, passengers have been able to discover the VICHY and LA ROCHE-POSAY brands at dermacenters set up in airports—a move that has significantly increased visibility of these two star brands of the Active Cosmetics Division. Dermacenters provide consumers with a unique set of services, including a consultation, skin diagnosis and personalised advice. Since the end of 2014, 19 dermacenters have been opened in the most strategic Travel Retail locations in Asia, Latin America and Northern Europe. Given the positive results obtained, the ambition is to step up their roll-out.
See also:
A dynamic distribution strategy
A bright future for Travel Retail in the Middle East and the Mediterranean
Since 2014, Dubai airport has been the leading airport worldwide in terms of the footfall of international passengers(6). The expected rise in Middle Eastern air traffic will be bolstered by the construction or renovation of several airport hubs in Qatar, Dubai, Abu Dhabi and Istanbul, scheduled for completion by 2018 and slated to welcome hundreds of millions of passengers 10 years from now. As part of this dynamic trend, L’Oréal Luxe opened a 180-square metre pop-up store in the new Doha airport in Qatar. For three months, five of the group’s perfume brands provided customers with an exclusive experience in a unique, dedicated space.
The success of designer brands
The group’s designer brands, which are very attractive for global shoppers, recorded good results in 2015. Fragrances—Black Opium by YVES SAINT LAURENT and Sì and Acqua di Giò Profumo by GIORGIO ARMANI—and make-up spearheaded this strong performance. Catwalks, window displays and special events have helped to build up the reputation of these strategic brands worldwide.
(1) Source: Generation data, market share value 2014.
(2) Sales made in areas reserved for travellers and duty-free shops.
(3) Source: Generation data, market share value 2014.
(4) Source: International Air Transport Association.
(5) L’Oréal internal estimate.
(6) Source: Air4casts.com.