BW Confidential - Issue #4 - October/December 2010 - (Page 62)

Travel retail Retail strategies Attention seekers Beauty brands and retailers are pushing harder to grab passengers’ attention, who, having been thin on the ground in 2009, have come back in increasing numbers this year by Kevin Rozario T hroughout the downturn brands had to battle to maintain their travel-retail market shares and keep volumes up. Much of this fight has taken place in-store where promotions still hold sway. Once, the continuous fragrance launch cycle had been enough to attract spending, but companies have been forced to step up events to entice travelers who are no longer satisfied simply by newness. Fragrances have remained the focus for promotions, despite skincare’s recent growth (see page 60). “Almost half of fragrances sold are for gifting,” says L’Oréal luxury products marketing director for travel retail Olivier Teboul, “and when passengers have less money, they buy fewer gifts. Fragrance is a very discretionary category.” But even with gifting on the wane, opportunities remain. In a flat market it is still possible to leverage specific elements of a passenger profile to lift sales. For example, at Amsterdam Schiphol, airport beauty concessionaire Kappé International and L’Oréal Paris took advantage of the FIFA World Cup (see box) to boost men’s products in a short, but successful campaign. “Brands’ promotions standards have been very high quality with clear offers and themes,” says Kappé president Jacques Parson. The pull of events In some cases, brands have also stepped up their efforts to offer more unique events. For example, Spanish beauty group Puig created the world’s first cross-category Paco Rabanne pop-up shop at London Heathrow in association with retailer WDF this summer. The shop featured gold-plated walls and an exclusive public display of original Paco Rabanne dresses. The store was also used for two weeks for the global exclusive 62 s Puig has pushed the envelope on in-store events: the Paco Rabanne cross-category pop-up shop at Heathrow launch of Paco Rabanne’s new fragrance Lady Million, the counterpart to the successful 1 Million men’s scent. Meanwhile, in August in its home territory, Spanish retailer Aldeasa used Palma de Mallorca, Malaga and Barcelona airports for a onemonth worldwide exclusive launch of Carolina Herrera’s new 212 VIP fragrance, giving passengers a taste of New York celebrity glamour with a concept called the Paparazzi Booth. Houses with the imagination to make bold statements like these are likely to steal market share—and retailers are looking for such activities. In Asia, the main duty-free beauty operator at Hong Kong International airport, Nuance Watson (HK), is a case in point. “We worked with brands to host mega events with on-site demonstrations, such as a Lancôme personalized make-up and skincare event and a Clarins Body Lift event,” says marketing manager Clare Kwok. October-December 2010 - N°4 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #4 - October/December 2010

- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- BPI president Rémy Gomez
Insight: fragrance
- Category overview
- Retailing
- Industry viewpoint
- New opportunities
- Launch roundup
- Airport Spas
- Spa case studies
- New store concepts
Travel retail
- Market overview
- Retail strategies
- Interview: World Duty Free & Aldeasa
Show preview
- TFWA World Exhibition
- Six up-and-coming beauty brands
Market watch: India
- Country overview
- Industry roundtable
- Retailing analysis
- Sector outlook
- Sustainability
Last word
- Mintel head beauty consultant Nica Lewis

BW Confidential - Issue #4 - October/December 2010