BW Confidential - Issue #13 - March/April 2013 - (Page 80)

Packaging credit: istock Designs for travel retail Packs on the go Packagers begin to do more to cater to brands’ increased focus on the travel-retail channel by Alex Wynne T ravel retail now accounts for around 16% of sales for prestige fragrance brands, and between 10 and 12% in make-up and skincare, according to Paris-based JMG Research managing director Jérôme Goldberg. “Travel retail is one of brands’ biggest growth drivers and they are now doing their utmost to communicate in this channel,” he comments. Brands’ focus on the segment and their rush to offer travel-retail exclusive products means packagers have to be increasingly on the ball by offering innovative products that allow their clients to differentiate their offer. In addition, all this needs to be done at a lower cost and at a faster pace than in local markets, according to suppliers. “[Travel retail] is a market that requires us to be very reactive because orders often require a shorter time-to-market than traditional packaging developments,” Topline Products marketing and communication manager Sophie Gaspin comments. “We have to propose new innovations, whether in terms of products, decoration or accessorization, and be able to treat both primary and secondary packaging. Travel-retail remains the shop 80 window for prestigious brands, but their cost imperatives are much stricter,” she adds. SGD Group international marketing director perfumery and cosmetics Valérie Jacob agrees: “The most important thing is to generate “ One of the things our customers ask for in limited-edition, travel-retail products is decoration techniques ” SGD Group international marketing director perfumery and cosmetics Valérie Jacob lots of new products, with a very short timeto-market, yet at an affordable cost. One of our answers is to have a wide range of stock items.” She adds: “The expectation of the brands is ‘differentiation’ and our challenge is to offer multiple decoration solutions and personalization, while maintaining the brand’s spirit. One of the things we offer most, and that our customers ask for in limited-edition, travelretail products, is decoration techniques.” Differentiation and exclusivity Design differentiation is just one part of the equation, however. Europe is still the leading market for beauty in travel-retail, although analysts predict that it will be overtaken by Asia in the next few years. Since intra-European duty free was abolished in 1999, brands have increasingly been trying to factor out the price comparison that was, in the past, the main driver for travel-retail purchasing. Offering decorative or limited-edition products that are not available on the local market is one solution, but it mainly attracts already captive beauty consumers looking for something they can’t get elsewhere. Other consumers, meanwhile, are still focused on price and value, and this is where exclusive sets come into play. “The content is different, and therefore the price of the set cannot be directly compared,” March-April 2013 - N°13 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #13 - March/April 2013

Cover
Comment
Contents
Update
- Brand & retail news recap
- 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 Natura Cosméticos evp José Vicente Marino
Insight: Make-up
- Category overview
- The latest trends
- Social media
- Retail viewpoint
- Retail case studies
- Increasing usage
Retail
- European perfumeries
- Store concepts
Digital Mobile strategies and brand case studies
Strategy spotlight Trends to inspire
Market watch: US
- Country overview
- Department stores
- Specialty stores
- Industry viewpoint
Emerging markets Company profile: Jequiti
Radar A profile of six up-and-coming beauty brands
Travel retail: Brazilian travelers
- Overview
- Passenger profiles
Packaging Designs for travel retail
Last word The Beauty Company’s Alisa Marie Beyer on new ways to converse with consumers

BW Confidential - Issue #13 - March/April 2013

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