L’Oreal: The Rising Trends In The Travel Retail Business And Its Implications
In a recent travel retail related conference and exhibition held at Cannes, L’Oreal’s Travel Retail Chief spoke about the changing trends in the travel retail business. According to Vincent Boinay, L’Oreal Travel Retail CEO, the travel retail scenario is currently not solely dominated by premium brands such as Lancôme, Estée Lauder, Chanel, and Dior. Along with that, the clientele demographic is also changing with the advent of millennial customers, and shoppers from emerging economies such as China and Brazil. This implies that the travel retail portfolio should be expanded to cater to the varying needs of the new customers.
He also mentioned that a lot of people try new products at travel retail and later become loyal to those brands. It gives the company an opportunity to gain a wider base of customers by displaying a diverse variety of products which they might buy for the first time and then continue using in the future as well. Travel retail demand seems to be unscathed by the current market volatility as people are ready to try out new things during their travel journeys.
L’Oreal’s Consumer Product Division General Manager Stefania Fabiano mentioned that makeup might be the primary segment to drive the travel retail sales for the next five years. Along with the obsession with selfies comes the demand for makeup to instantly look beautiful in photos. In fact, according to Estee Lauder’s Annual Report, currently over 90 million selfies are being posted every day across the globe. Along with the demand to look good at all times, the millennial consumers are also digitally connected and have a keen interest in makeup tutorials. Hence, as L’Oreal continues capitalizing on all these trends, we can expect the biggest player in the global beauty market to keep growing and that growth will be reflected in its travel retail segment, as well.
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