THE BEAUTY REPORT: TOP 5 RETAILERS
Perfume & Cosmetics sales grow 8.4% to $21.43bn in 2016
Exclusives, airport ‘firsts’ and totally new brands are what these top 5 retailers have become known for, but as hard-fought concessions shift between competitors, the 2015/2016 ranking is likely to look quite different in 2017. Charlotte Turner reports.
June 2017 20
YEARS 1997-2017
A
s was revealed by TFWA President Erik Juul-Mortensen at the
association’s recent Asia Pacific Exhibition & Conference, the ‘fragrances and cosmetics’ category once again drove growth for the global duty free & travel retail industry in 2016, with sales growth of over 8%; outpacing every other category. Sales in 2016, according to
Generation Research reached $21.43bn in 2016, which represented a rise of +8.4% year-on-year, while the second-best performing category of wine & spirits managed to grow sales by 3.5% to $10.5bn. The performance of the P&C
category – and indeed the whole industry – improved significantly in 2016 after a rather disastrous 2015. However, P&C still faired the best in 2015, and was the only category to register any growth at all, albeit it marginal of +2.5% to a total sales figure of $19.76bn As explored in last month’s ‘Beauty
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DFS Group opened its first Beauty T Galleria concept in 2015. Also inside
No1 for fragrances & cosmetics sales, this category registered almost $3bn in sales last year and currently accounts for 50% of its total revenue. “South Korean cosmetics sales
in Asia Pacific’ report, this region is outperforming all others when it comes to P&C sales, which are particularly strong in South Korea; the world’s biggest DF&TR market. It is a known fact that for the vast
majority of cross-category retailers operating here perfume & cosmetics represents the largest percentage of their revenue. For Lotte Duty Free, which ranks
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were higher than imported perfume & cosmetics last year, but from June/ July international brands such as Estée Lauder, Lancôme, Dior and YSL sales were bigger than Korean brands,” Kim Te Ho, Managing Director of Lotte Duty Free’s Merchandising Strategy Division, exclusively told TRBusiness.
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1
www.trbusiness.com/subscriptions
Imported cosmetics growth “YSL was especially strong with Chinese customers. South Korean perfume & cosmetics sales were growing, but imported cosmetics brands growth was more rapid. Now our sales of South Korean and imported brands are almost equal.” In second place for perfume &
Prada takes over Heathrow T5’s World Duty Free stores.
JUNE 2017
cosmetics sales, Dufry grew its beauty business significantly when it acquired World Duty Free in 2015; a retailer which scores many exclusive launches or market firsts with world- renowned beauty powerhouses, such as Chanel, Dior and Estée Lauder, among others.
2 3
4 5
2 Lotte Group 1
5
Dufry Gebr.
Heinemann
4 DFS Group 6
Shilla Duty Free
P&C
category share of
total market
Global P&C sales
Total market
Source: Generation Research and TRBusiness figures from 2015. 1
Data provided by Generation Research. 2 19.76 62.0
3.50 2.20
31.9%
Ranking in Beauty1
Global ranking2
TALLINK’S MAGNUS SKJÖRSHAMMER | TFWA ASPAC REVIEW | SKYSERVICE FORUM | FTE & BARTA PREVIEW | ADVANTAGE INTERNATIONAL | L’ORÉAL | ESTÉE LAUDER | COTY | P&G | LVMH | CHANEL | M1ND-SET | PVM | MARS | RICOLA | HARIBO | FERRERO | NOW & THEN
The ‘fragrances and cosmetics’ category once again drove growth for the global duty free & travel retail industry in 2016, with sales growth of over 8%, outpacing every other category.
TRBusiness
TOP 5 RETAILERS IN BEAUTY (2015) Retailer
DF&TR sales total from all regions2 ($bn)
4.20 6.20 3.10
Data taken from
TRBusiness Global Operators Report published in 2016 using 2015 figures.
TRBUSINESS 39
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