BW Confidential - Issue #5 - March/April 2011 - (Page 48)

Travel retail Market analysis Gear shift for the Americas The regional split that took place after the 2008 downturn is still evident, even though growth is resuming across the continent by Kevin Rozario he pace of development in the Americas travel-retail business differs depending on the market but, in general, Latin America has been proving to be a runaway success, while conditions in North America are still challenging. The most recent figures from Swedish travel-retail analyst Generation Research point to the Americas as having seen the best growth in overall travel retail—at just over of 18%—of any region, apart from Asia Pacific in the 11 months to November 2010. The global perfumes & cosmetics category was estimated to be 15% ahead during the same period. But within the Americas, growth is fragmented, which will encourage beauty houses to invest more tactically in 2011. Travel retailers in the US were not keen to discuss their performance or market conditions, but it is a different story in Latin American countries. 48 T Asutil, the Latin American duty-free association, reported at the end of last year that its members’ duty-free stores across “ We are being more cautious in 2011. For us the key factor is the strength of the Latin currencies Essence president Jean-Jacques Bona 12 countries had seen growth in the previous 12 months soar above 30%, with Brazilian ” consumers the main driver. Indeed, beauty sales in Latin markets have been helped by the numbers of traveling Brazilians who have a big appetite for beauty products. At operator Brightstar, which has duty-free stores in Paraguay, beauty is the biggest category. Vice president Barbara Kern says: “Businessmen often come in with a list of beauty products to buy. This happens because of the huge difference between duty-free prices and Brazilian local market prices, due to high taxes.” Brightstar’s top performers are currently Calvin Klein, Carolina Herrera, Dolce & Gabbana, Gucci, Victoria’s Secret and celebrity brands; it is also seeing growth in nailcare brands. However, Tax Free World Association ceo Alain Maingreaud says that as well as Brazil’s importance to the channel, Chile, Peru and Uruguay must also be counted as key emerging markets. March-April 2011 - N°5 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #5 - March/April 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Digital digest
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Marionnaud CEO William Koeberlé
Insight: Make-up
- Category overview
- The latest trends
- Retailing strategy
Wellness
- Retail Sales
- Spa case studies
Retail
- New store concepts
Travel retail
- Market analysis: Americas
- Interview: Dufry's José Carlos Rosa
Radar
- Six up-and-coming beauty brands
Market watch: Brazil
- Country overview
- Industry roundtable
- Prestige retailing
Packaging
- Trends in secondary pack
Last word
- The Doneger's Group's Jamie Ross

BW Confidential - Issue #5 - March/April 2011