THE BEAUTY REPORT: MOVERS & SHAKERS P&C +8.4% growth bucks modest global trend
Beauty is fronting the renaissance in global travel retail and duty free sales and continues to act as a useful barometer in anticipating future consumer trends, as Luke Barras-Hill reports.
Anti-ageing appeal Laboratoires Filorga, founded in 1978 by French aesthetic doctor Michel Tordjman who pioneered the anti-ageing technique New Cellular Treatment Factor (NCTF), says overall company growth of over +40% year-on-year in the last few years is predicted to continue. With a specialist focus on
medicosmetics, the brand started in travel retail last year with Lagardère Travel Retail at Paris Charles de Gaulle and Orly airports – having now entered Nice Airport. In April, it listed with Air France
Above: Mumbai Duty Free’s departure store at Chhatrapati Shivaji T2 is experiencing a growing demand for personalised fragrances.
Below: SLA Paris is aiming to make a splash in travel retail with its new self-service unit/ How To makeup palette.
C
urrency volatilities, a decline in Russian demand, terrorist atrocities in Europe, and the
recent plummet in South Korean tax free sales due to THAAD have taken their toll on global duty and travel retail in the past few years. In 2015, global sales contracted by
-2.3% to $62.1bn – the first decline in six years. At the time, beauty was hallmarked as the only growth category at +2.3% to $19.5bn, according to Generation Research figures. Despite the marginal rise, it set its stall out at almost double the value of its nearest competitor in wine and spirits. Now, it seems that the total market
is showing green shoots of recovery, recording a rise in sales of +2.5% to reach $63.6bn in 2016, according to
the latest preliminary figures from Generation. Unlike 2015, beauty was not the sole category to post growth. However, at +8.4% to $21.43bn,
the P&C segment once again aroused excitement among its counterparts. Globally, P&C outperformed
growth in wines & spirits (+3.5%), fashion & accessories (+1.5%) and tobacco (+0.5%), while other categories posted declines. In Asia Pacific, the beauty segment
grew by an impressive +20% and continues to pay dividends for a number of brands. A new disruptor to the travel retail
category, SLA Paris tells TRBusiness. it has its sights set on penetrating new points of sale in the channel across four or five countries in the coming months, according to Olivia Voisin, International Sales Director. A new merchandising self-service
“We’ve seen huge growth in makeup in the last year, especially for the lip category.”
Kimberly Chow, Product Manager, Travel Retail Asia Pacific, Clarins Group
56 TRBUSINESS
unit for duty free is designed to capture sales, supported by key SKUs Lip Crush and How To Palette. Positioned at the high-end, products such as lipstick retail between $18 to $20, with skincare and makeup items at approximately $35. “We are not a brand like Chanel
or L’Oréal, so we need to catch the customers attention to try something new, by the packaging, furniture and visuals,” comments Voisin.
and in May it captured listings on Air China, China Southern, China Eastern and Hainan Airlines, according to Jean-Michel Bostroem, Travel Retail Director. Downtown, it also now has a presence in Hong Kong at DFS T Galleria Chinachem and at Hysan Place shopping mall, with its smoothing radiance Meso- Mask a bestseller in China.
Makeup boom continues Meanwhile, French luxury cosmetics company Clarins Group is also placing a strong emphasis on its anti-ageing segment, but makeup is where it is seeing new growth. “We’ve seen huge growth in
makeup in the last year, especially for the lip category, and we recently launched in Singapore and Hong Kong local markets. We are not in travel retail yet, but we are looking into it,” said Kimberly Chow, Product Manager, Clarins Group. Singapore, Hong Kong, Japan
and Korea are the target markets for travel retail expansion and while skincare remains the dominant category, an uplift of around +20% year-on-year in makeup in the region is a target to work towards, explains Chow. More generally, Chow admits that
the current tension in South Korea over the US’s stationing of its THAAD anti-missile system has affected the business. Like many companies,
JUNE 2017
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