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Clarins Group is closely monitoring the reduction in Chinese PAX to South Korea and assessing where future demand may come from. Koreans, Chow says, are seeking greater innovation when it comes to product selection, whereas Chinese consumers are seeking value-for-money offers in light of the recent depreciation of the RMB. Globally, makeup is set to remain the fastest-growing
category within beauty in the next five years in travel retail, due in part to acceleration in experimentation and tutorials, according to Counter Intelligence Retail’s (CiR) latest State of the Nation 2017 report.
Market acclimatisation Consolidation of the global beauty category is a mainstay that duty free and travel retail must contend with. Chow says Clarins is responding to the challenge, be it strategic, technological, volume-focused or logistical. She evaluates that the primary reason for increased
merger or acquisition play comes down to companies being keen to grow their respective market shares, as opposed to a response to address potential logistical or product lifecycle challenges. As noted, most global duty free and travel retail
categories have returned to growth, but just how long beauty can protect its dominant position solely on the basis of increasing global PAX remains to be seen. For now, declines in other core categories offer an
opportunity to increase floor space for high-profile promotions in store, according to CiR. The downtown and border markets, it notes, are also
ripe to capture footfall and conversion, as millennials continue to emerge as a key enabler for sales.
The art of layering In fragrances and cosmetics, the art of layering – where consumers employ multiple scents to create olfactory experiences suited to their moods – miniature and one- shot bottles, exclusive and private blends, and sense of place fragrances are all elements driving innovation in the category, CiR’s report continues. In turn, a renewed focus on CSR, natural ingredients and the integration of apps and social media platforms are among a raft of trends influencing the cosmetics segment. India’s Mumbai Duty Free at Chhatrapati Shivaji International Airport posted healthy growth of +8%
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