L'Oreal is the leader in the beauty category in the travel retail market. The travel retail market is continuously growing due to increasing air traffic. L'Oreal's strengths include its brand image and existing distribution channels, while weaknesses include being perceived for an older demographic and relying heavily on third party retailers. Recommendations to capitalize on opportunities in the growing market include improving the in-store experience, designing new store concepts, and partnering with airlines to offer duty-free shopping on flights. The goal is to transform shopping into a memorable experience for travelers.

1. Travel Retail
The Lancômmers
Aidana aitzhanova | Arthur Bellanger | Christina Chen
Nov 25, 2014

2. AGENDA
Current market situation
Travel retail market situation
Current trend
Consumers
Future trend
Competition
SWOT
Recommendations

3. L’Oreal is the leader in Beauty
Western Europe 35.1%
North America 25.1%
Asia, Pacific 25.1%
CURRENT MARKET SITUATION
SKINCARE | HAIRCARE | MAKE-UP are the leaders
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4. Market Situation: Travel Retail
Air traffic is continuously growing
by 5% on average per year
Over 6 billion international
flights in 2013
L’Oreal is LEADER in
BEAUTY category of the TRAVEL Retail
Airports
57%
Downtown
Duty Free
Shops
33%
Airlines
6%
Cruises
4%
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5. Global shopper glō-bəl shä-pər
noun
1. Fashion addict consumers from emerging countries.
2. Middle class that travel outside their country.
3. Shops everywhere.
4. Internet addicts; device equipped.
5. Impulsive purchase at airports.
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6. Technology savvy
Most traffic: Istanbul, Doha (Qatar), Kuala Lumpur (Malaysia), Dubai
Great way to expose brand to more consumers
Consumers have to be exposed to the shops to get to their gates
CURRENT TRENDS
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7. 2. BROWSE
1. GIFT
3. PRICES
Why do they go
to duty free?
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8. FUTURE TREND / AEROMALL
Duty free stores in planes
Retail experience on the plane
Travellers get a chance to try out the
products while they are on the plane
Location services on mobile phones could soon
be helping to synchronize the likes of airport,
shopping, taxi and restaurant offerings.
(Lancôme partners with major airline
companies: KLM, British Airways, etc.)
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9. COMPETITION
Luxury Mass
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10. POSITIONING
Price
Perceived
Luxury
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11.
SSTRENGTHS
WWEAKNESSES
OOPPORTUNITIES
TTHREATS
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12.
STRENGTHS
WWEAKNESSES
OOPPORTUNITIES
TTHREATS
Access to L’Oreal resources
Brand image
Digital marketing leader
Existing distribution channels
Natural Ingredients/Sustainability
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13.
SSTRENGTHS
WEAKNESSES
OOPPORTUNITIES
TTHREATS
The brand may be perceived for
an older demographics
No diversification in shopping
experience at POS
Heavily dependent on 3rd party retailers
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14.
SSTRENGTHS
WWEAKNESSES
OPPORTUNITIES
TTHREATS
Impulsive purchase
Increasing trend for gift shopping at
airports
Increasingly large middle class
Technological savvy global Shoppers
Long waiting time for flight
MARKET
ENVIRONMENT
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15.
SSTRENGTHS
WWEAKNESSES
OOPPORTUNITIES
THREATS
Fierce competitors
Counterfeits goods
Information overload
Overwhelming environment
Low switching costs
Low loyalty
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16. IN-AIRPORT RETAIL PLAN
3 alternatives
Improving existing
in-store experience
Redesign store
concept & offerings
Special & unique
new experience
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17. #1Offer Hand + Face massage
Turned out successful in Beijing
40% of all massages resulted in sale
Increase product awareness
Minimal cost
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18. MARKET
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19. #2New store design
Inspired from Beijing 2014 "Maison Lancôme” - clear success
Lancôme Wonderland 3D experience on some occasions
Skincare analysis machine
Massages
Only in very large, key airports
(where people spend long hours)
Paris|Beijing|Doha
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20. #3Stand-alone store:
unlabeled polished black
box with rose symbol
Atmosphere of travel retail = weakness
Separates Lancôme from the rest of the
airport. Allow all senses to experience the
Lancôme Magic.
Inside: renewed classic store
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21. ON-BOARD PLAN
3 Suggestions
First class
& Business Economy
On-board
duty free
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22. #1Sample package on the plane
for first & business class
Affluent women: purchase product afterwards
Affluent men: bring it to their wife / daughter
creating potential customer
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23. Lottery to win travel-kit
10% of economy passengers win a free kit that is
brought to their seat during the flight.
Seasonal: During holidays on planes going to Paris.
#2
Result: New reach | Potential for viral marketing
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24. #3On-Board duty free
Replicate the A-380 of Korean Air
L'Oreal on-board shop
Partner up with:
Singapore Airlines (19 operating, 5 awaiting delivery)
Air France (10 operating, 2 awaiting delivery)
Emirates (53 operating, 87 awaiting delivery)
Thai Airways International (6 operating)
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25. Separate consumers from the overwhelming
airport atmosphere into the Lancôme world.
Transform the purchase into an experience
rather than a meaningless action.
Accompany the consumer from
start to end of their journey.
KEY TAKEAWAYS

26. Travel Retail
The Lancômmers