BEAUTY REPORT : LEADING BEAUTY SUPPLIERS
Perfume and cosmetics forges ahead in global DF&TR business
The DF&TR beauty segment continues to enjoy a strong performance, with suppliers pulling out all the stops to launch new products while remaining innovative and ensuring they are working hard to boost their in-store visibility and sales. Andrew Pentol reports.
L
ast year in Cannes, TFWA President Erik Juul-Mortensen offered a glowing assessment
of the DF&TR beauty category. Presenting a number of key
Generation Research figures to demonstrate individual category performance, it was clear once again that the fragrance and cosmetics side had turned in a stellar performance, with year-on-year growth of +9.2%. In terms of sales by channel,
the strongest performer was ‘other shops’, which grew by 7.3%. However, the key driver of growth was perfume and cosmetics sales in Asia Pacific downtown shops, where Shiseido and LVMH brands for example are strongly represented. Perfume and cosmetics was also
seemingly the driver of encouraging industry momentum in the first quarter of 2017 – sales were up +11.7% compared to the same period in 2016. When it came to sales channels
in Q1 2017, perfume and cosmetics drove a +2.2% rise in airport sales. More recent Generation figures
presented by Juul-Mortensen during last month’s TFWA Asia Pacific Singapore conference highlight further the importance of the DF&TR beauty segment. Preliminary duty and tax free
sales figures by category indicate perfume and cosmetics generated sales of $14bn in Asia Pacific in 2017, a +19.9% increase compared to the previous year. The importance of the beauty
sector in DF&TR is there for all to see, with retailers and suppliers working closer than ever on listings, brand activations and merchandising. Long-serving L’Oréal Travel Retail
Managing Director Vincent Boinay, has often referred to DF&TR as the ‘sixth continent’ of L’Oréal and it is easy to see why. He tells TRBusiness:
JUNE 2018 “This shows the commitment of
L’Oréal to travel retail. “We are probably the number one
beauty company in the world with an established travel retail unit within the group. “
Pop-up power L’Oréal Travel Retail has certainly been busy executing some key activations this year. These include the yacht club animation concept at Singapore Changi with The Shilla Duty Free and the Giorgio Armani travelling pop-up stores at Hong Kong and Paris Charles de Gaulle International Airports. Speaking to TRBusiness during the
launch of the Armani pop-up in Paris earlier this year, Boinay emphasised the power of the pop-up concept in general. “It can be extremely powerful for
several reasons. First is image and ability to meet what we call very qualified customers in a terminal. “Second, is the experience
brought to customers and the interaction with them. “Thirdly, you can bring new
elements into this kind of pop-up such as the Instagram wall and other digital features.” Meanwhile, LVMH has been
collaborating with Asia Pacific retailers on activations and innovations across its Guerlain, Givenchy and Make Up For Ever brand to name but a few. LVMH Travel Retail Director Asia
Pacific Andre Marzloff comments: “Strong growth drivers include
Guerlain and one of their innovations this year is the Rouge lipstick, which has a customisable case.” Guerlain is also capitalising on
the return to growth of the skincare category, according to Marzloff. “The brand has made really interesting activations with Sunrise
“Strong growth drivers include Guerlain and one of their innovations this year is the Rouge lipstick, which has a customisable case.”
Andre Marzloff, Travel Retail Director Asia Pacific, LVMH
LVMH brand Givenchy has strong visibility downtown with the likes of King Power International in Bangkok.
Duty Free in China, which include a pop-up store and some digital activities with games,” he explains. L’Oreal and LVMH aside, Shiseido
had an eventful May. It hosted the airport-first, travel retail exclusive pre-launch of the phase two Shiseido Ultimune Power Infusing Concentrate serum at Singapore Changi Airport’s T1 Transit Departure Hall. In addition, it also unveiled the first products from its travel retail exclusive #NARSissist Jetsetter SS18 range. The main beauty suppliers
seem to be doing all they can to ensure the category remains the strongest DF&TR performer, and the segment continues to drive industry momentum. «
TRBUSINESS 31
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