BEAUTY GIANTS: SHISEIDO TRAVEL RETAIL
digital marketing campaigns and offering a variety of shopping services, such as pre-order and click- and-collect. I would say there is certainly
still a lot of potential for us to grow our online offering, especially with retailers that are still developing their e-commerce capabilities. We are committed to working with them to make our products accessible to travelling consumers in a safe and seamless manner as much as possible.
Shiseido makes use of iPads stationed at makeup consultation tables to give makeup tutorials and artistry tips.
would you say Shiseido is in when it comes to its product availability online (in duty free & travel retail) and the availability of pre-order, click and collect etc? Since Shiseido Travel Retail’s inception, we have been working steadily to strengthen our digitalisation capabilities and this has laid a solid foundation for developing our e-commerce and omni-channel marketing plans. We have achieved positive results with retail partners that are strong in the e-commerce space, and we are collaborating closely with them to drive online traffic and sales through targeted
“Looking to the future, downtown duty free and offshore duty free at Hainan in particular will become even more important to our business as we seek to further collaborate with our China business arm in our journey towards recovery.”
Philippe Lesné, Shiseido Travel Retail
54 TRBUSINESS
While China was severely impacted by Covid-19 in the early stages of the global pandemic, we understand that the travel retail business – at least downtown – is recovering. Has this been Shiseido’s experience thus far? We believe the company’s duty free performance in China and South Korea was encouraging in the second quarter of this year… Together with what has been observed across the travel retail industry, the sharp drop in Chinese travellers worldwide has had a significant impact on our performance, but at the same time, they are also a key driver for recovery in the channel. While trading conditions were
challenging, Shiseido Travel Retail’s performance in the Asia Pacific region in the second quarter of 2020 was encouraging, with consumer purchases growing in the low double-digits versus -20% globally. This is largely due to the strong demand from returning domestic travellers in China and South Korea in downtown duty free shops and the Chinese demand for prestige skincare brands.
As you mentioned, Shiseido was able to stage a couple of high- profile promotions recently (Nars In Hainan being a good example). Can you tell us how difficult these were to stage and how your expectations had to be altered in the current context? Our top priority is to ensure a safe shopping environment for our brand consultants and consumers. To comply with safety regulations, we shifted away from our usual
large-scale consumer events and adjusted our marketing strategies, directing our efforts towards digital campaigns that drove awareness as well as online-to-offline traffic to the pop-up, and ultimately resulting in conversion. Playing a key role in maximising
footfall to the physical outpost were KOLs (key opinion leaders) who amplified the event and connected with our target audience through a range of social platforms, as well as programmatic advertisements on key social and travel-related platforms. We also leveraged insights drawn from our consumer & market intelligence team to create captivating campaigns that were specially designed to appeal to the Chinese consumer. Despite the challenging conditions,
the Nars icons and Shiseido Alive with Zero-Gravity Beauty animations were a great success thanks to close collaboration with our retail partner China Duty Free Group, who gave us the opportunity to showcase our brands during this period.
As you alluded to earlier, I imagine the allowance increase on Hainan Island introduced on 1 July has positively impacted Shiseido’s TR business. Can you comment on this? In general, Hainan Island will play a key role in the recovery in the short term and the allowance increase is expected to accelerate this. Already, we have experienced success with our Nars Icons animation in June, where the extensive media and marketing campaign resulted in a combined online reach of 35.9 million potential shoppers and helped the brand outperform its sales targets by +26%. These engagement efforts
underpin our consumer-centric marketing strategy, which sees us following our key Chinese consumers and serving their needs wherever they are travelling and shopping. Looking to the future, downtown duty free and offshore duty free at Hainan in particular will become even more important to our business as we seek to further collaborate with our China business arm in our journey towards recovery. «
OCTOBER 2020
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