BEAUTY: COTY INC
covering the entire brand portfolio of the company. So we are already contributing to those efficiencies. Having said that, we have initiated a very strong logistics’ partnership with our key retailers in order to drive much more effectiveness in the way we are planning, ordering and invoicing. We believe we can improve here
and bring mutual savings into the travel retail industry by focusing even more on driving more efficiency. It is not house cleaning, but much
more a case of partnering a lot more with retailers – and some of them are very advanced in that. It is a hidden part of the business, but it is so important for all of us.
Coty obviously owned a huge number of major beauty brands long before this P&G merger. Do you believe there could be more development potential for dedicated skincare products in duty free and travel retail under the umbrella of this newly- enlarged company? We are obviously looking at all opportunities and skincare is very important. We already have very strong regional positions. Lancaster is a leading Sun care
brand, and we are growing constantly in Asia with philosophy. Of course, we are looking at all opportunities, specifically in regions where skincare is important, like it is in Asia.
Do you think the ongoing strong performance of P&C should be sending any messages to airports and retailers in particular? As mentioned earlier, when we have a 16% average conversion rate observed in some market, I think we cannot be satisfied with 2% growth. If we can partner with the retailers
and grow this penetration from 16% to 17% – which is only one point of conversion rate – this would generate a 6% growth in the overall beauty market. And if you add a 5% passenger growth, this would mean that travel retail could go back to its famous double-digit growth. This is where we are putting in a lot
of energy. I think we were spending too much time on other things than to partner on the conversion rate.
MAY 2017
So we initiated with some key retailers strong strategies to raise their ability to grow the conversion rate in their stores and we started that at the end of 2016. We are aiming at implementing joint strategies by the second half of 2017. What will be very interesting
is that the result of the strategy will not be Coty sales, but the conversion rate of the store and this is a completely different way of approaching the business. This is what we want to do with
some of our key partners. I also think it is the key topic for travel retail.
Looking forward what are Coty’s three biggest priorities over the next year in the duty free and travel retail marketplace? The first is clearly the conversion rate. The second is to convert the shopping moment into a very unique experience. When you look at the studies
published on this topic, travellers spend only three minutes on average in the shops compared with the 14 minutes spent on average in Sephora for example. What can we all do together to
make sure our travellers stop and really live, breathe and enjoy more time in our travel retail shops? We are working on several disruptive in-store approaches and digital engagement tools. We are also trying to build new
strategies in the gate waiting area, to try to bring people back into shopping while still waiting at the gate. The third priority is to strengthen even further the efficiency of our beauty advisors (BAs). They are our ambassadors in
front of the consumers every day and their professionalism and dedication is key for us. Therefore, we have built a
specific training programme and our objective is to have what we call platinum-trained BAs in all key airports. This programme covers two main aspects, including knowledge of the product and the brands, but also proven successful selling techniques and culture awareness.
If you had three wishes for what you would like to achieve in duty
Gucci is just one of the many premium fragrance brands to join Coty’s portfolio from P&G.
TRAVEL RETAIL BUSINESS 145
A wall of philosophy skincare products at Perth Airport.
“.We are also trying to build new strategies in the gate waiting area, to try to bring people back into shopping while still waiting at the gate”
Philippe Margueritte, Coty
free and travel retail in 2017, what would they be? The first one would to be recognised as the industry leader in fragrances, not because of our market share, but because we are able to bring novelty and a disruptive in store approach. Secondly, it is clearly the digital
transformation within Coty, bringing improved services to our key partners. The third is about our people. We want to continue to attract the most talented leaders into travel retail and work with people who are passionate about beauty and travel retail. «
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