L’Oréal celebrates travel retail leadership boost in 2016
- March 20 2017 02:52 PM
L'Oréal, the number one beauty group in travel retail, had a good year in 2016 and strengthened its leadership in the channel.
Commenting on the French company’s 2016 annual report, Vincent Boinay, Managing Director L’Oréal Travel Retail, said: "In a highly volatile global market, L’Oréal Travel Retail had a good year and strengthened its leadership in the distribution channel. Digital technology is transforming and galvanizing travel retail, particularly where millennials are concerned.
“The channel is also becoming more accessible thanks to the development of low-cost airlines, and is growing to handle the surge of new middle class consumers – especially Chinese customers, whose numbers are slated to double by 2023."
In 2016, make-up was travel retail’s most dynamic category. All the L’Oréal brands contributed to growth, particularly in Asia, where Yves Saint Laurent and Giorgio Armani met with “remarkable success”, the company said, and in the lip segment worldwide, where Lancôme et Shu Uemura spearheaded sales.
L'Oréal Paris continued to expand, underpinned by exclusive offers such as Looks-on-the-Go travel sets. The brand also opened new airport counters, including one at Paris Charles de Gaulle.
The company noted that at the end of 2016, Urban Decay had 48 travel retail points of sale.
L'Oréal made market share gains for fragrances last year. In a lacklustre travel retail market worldwide, L’Oréal continued to strengthen its position with high-end fragrances such as La Vie Est Belle by Lancôme, Black Opium by Yves Saint Laurent, and Sì and Code Homme by Giorgio Armani.
The new Yves Saint Laurent fragrance, Mon Paris, was featured in a global launch complete with special events. The perfume helped to boost sales of women’s fragrances, particularly in Europe, and has been very successful with Asian consumers.
Turning to digital technologies, the company said new purchasing methods, which allow consumers to reserve or pay online before they leave for the airport, were boosting sales.
“This trend is particularly strong in Asia, where distributors’ online shops have become important platforms for L’Oréal’s brands in this channel. As a result, sales doubled in 2016, significantly expanding a channel that is strategically important for the group,” it said.
Skincare remains an important category for L’Oréal in the travel retail channel, particularly in the high-potential men’s cosmetics segment. To celebrate David Beckham’s new role as the spokesman for Biotherm Homme, the brand hosted several events, setting up barbershops in airports in Barcelona, London and Copenhagen.
L’Oréal Men Expert also proved successful with its Male Grooming Club, opened in Singapore Changi Airport.
Skincare brands La Roche-Posay and Vichy continued to expand in travel retail, underpinned by nine new dermacenters, dedicated exclusively to skincare.
At Oslo and Copenhagen airports, the two flagship Active Cosmetics Division brands ran a Healthy Skin under the Sun campaign, complete with diagnostics and personalized advice.
Meanwhile, luxury haircare leader Kérastase has opened 15 salons in prestigious locations since 2014 to showcase its full range of products with travelers.