A true pioneer in this distribution circuit, L’Oréal was present in 1947 in the first duty-free shop in Shannon. From the 1980s, L’Oréal Luxe enriched its product offering by developing lines that were specifically and exclusively designed for this distribution mode. Already, this adaptation of the product offering was characterised by the development of specific packaging formats, compatible with the safety standards in effect at the time and the nomadic style of these travel purchases, in particular with smaller containers as well as offers directed toward gift purchases - such as boxes of miniature perfumes or make-up palettes that have become staple products on the circuit.
The L’Oréal Group is an historic leader in Travel Retail, and its expertise is still recognised today, as is clearly demonstrated by the trust that Korean Airlines placed in L’Oréal with the creation of its first SkyShop on board its A380 aircraft. The airline called on the Asian “Travel Retail” division of L'Oréal Luxe to design a space that recreates the atmosphere of a luxury boutique, taking into account the technical constraints of an Airbus cabin.
Far from representing an accessory distribution circuit, Travel Retail is becoming an established key element in L’Oréal's commercial dynamism. In 2012, Travel Retail presents double digit growth.
Sales in Travel Retail take place mainly in airport boutiques, for over 60%, followed by sales in downtown boutiques, on board planes, ferries and cruise ships1.
With nearly 4,8 billion passengers in 2011, air traffic continues to grow toward an estimated 11.4 billion passengers by 20302. A rise that L’Oréal Luxe anticipated with close to 3,000 employees in the field (including beauty advisers dedicated to the group brands) based in 171 countries.
The L’Oréal Group is well positioned to reinforce its leadership, with a portfolio of brands that are perfectly adapted to this circuit, with expertise on the profiles of travellers who are "beauty buyers" and with a capacity to adapt its offering, its services, its product assortments and promotional events to each point of sale, to give these Global Shoppers a customised experience that takes their specificities into account.
1 Generation 2011
2 ETRC ACI Report, January 2013
Did you know?
1/ The two biggest Giorgio Armani Cosmetics boutiques in the world (by sales) are both located in the Dubai Airport. This airport has long since established its image around shopping, luxury shopping in particular. In these boutiques, the "Privée" collection, the most exclusive Giorgio Armani perfume line, achieved record sales with, on average, nearly 30 perfumes sold each day (at an average price of €180).
2/ The Japanese are the number one buyers of beauty products in the Honolulu Hawaii airport. In total, they represent nearly 60% of the international passengers of this airport1. Consequently, the Group's beauty advisers are trained to provide a Japanese-style service, which includes the ability to speak Japanese.
1 source Paxsmart 2012
3/ Chinese travellers devote more than 80% of their budget to shopping (in Travel Retail or at the place of destination). This average budget is estimated at €14,5001.
1 source Global Blue survey 2012