Worldwide advances
Travel Retail: L'Oréal’s 6th continent
"In a highly volatile global market, L’Oréal Travel Retail had a good year and strengthened its leadership in the distribution channel(1). Digital technology is transforming and galvanising Travel Retail, particularly where Millennials(2) are concerned. The channel is also becoming more accessible thanks to the development of low-cost airlines, and is growing to handle the surge of new middle class consumers – especially Chinese customers , whose numbers are slated to double by 2023(3)."
No.1 - L'Oréal is the leader in Travel Retail(1)
Make-up leads the way
In 2016, make-up was Travel Retail’s most dynamic category. All the L’Oréal brands contributed to growth, particularly in Asia, where Yves Saint Laurent and Giorgio Armani met with remarkable success, and in the lip segment worldwide, where Lancôme et Shu Uemura spearheaded sales. L'Oréal Paris continued to expand, underpinned by exclusive offers such as Looks-on-the-Go travel sets. The brand also opened new airport counters, including one at Paris Charles de Gaulle.
48 Travel Retail points of sale for Urban Decay at end-2016
Market share gains for fragrances
In a lacklustre Travel Retail market worldwide, L’Oréal continued to strengthen its positions with high-end fragrances such as La Vie Est Belle by Lancôme, Black Opium by Yves Saint Laurent, and Sì and Code Homme by Giorgio Armani. The new Yves Saint Laurent fragrance, Mon Paris, was featured in a global launch complete with special events. The perfume helped to boost sales of women’s fragrances, particularly in Europe, and has been very successful with Asian consumers.
180 million Chinese global shoppers in 2023(3)
Digital technology drives success in Asia
The travel market is taking full advantage of the possibilities offered by digital technologies. New purchasing methods, which allow consumers to reserve or pay online before they leave for the airport, are boosting sales. This trend is particularly strong in Asia, where distributors’ online shops have become important platforms for L’Oréal’s brands in this channel. As a result, sales doubled in 2016, significantly expanding a channel that is strategically important for the group.
A closer look at men’s cosmetics
Skincare remains an important category for L’Oréal in the Travel Retail channel, particularly in the high-potential men’s cosmetics segment. To celebrate David Beckham’s new role as the spokesman for Biotherm Homme, the brand hosted several special events, setting up barbershops in airports in Barcelona, London and Copenhagen. L’Oréal Men Expert also proved successful with its Male Grooming Club, opened in Singapore’s Changi Airport.
23 L'Oréal brands in the Travel Retail channel
Dermocosmetics and luxury haircare in the spotlight
La Roche-Posay and Vichy continued to expand in Travel Retail, underpinned by nine new dermacenters, dedicated exclusively to skincare. At Oslo and Copenhagen airports, the two flagship Active Cosmetics Division brands ran a "Healthy Skin under the Sun" campaign, complete with diagnostics and personalised advice. Meanwhile, luxury haircare leader(3) Kérastase has opened 15 salons in prestigious locations since 2014—showcases for sharing its expertise and full range of products with travellers.
See also
(1) Source: Generation 2015 data and internal estimates.
(2) Generation born between 1980 and 2000.
(3) Source: Paxmart, 2016.