Aidana aitzhanova | Arthur Bellanger | Christina Chen
Nov 25, 2014
Current market situation
Travel retail market situation
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
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
Global shopper glō-bəl shä-pər
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.
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
Why do they go
to duty free?
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.)
Access to L’Oreal resources
Digital marketing leader
Existing distribution channels
The brand may be perceived for
an older demographics
No diversiﬁcation in shopping
experience at POS
Heavily dependent on 3rd party retailers
Increasing trend for gift shopping at
Increasingly large middle class
Technological savvy global Shoppers
Long waiting time for ﬂight
#2New store design
Inspired from Beijing 2014 "Maison Lancôme” - clear success
Lancôme Wonderland 3D experience on some occasions
Skincare analysis machine
Only in very large, key airports
(where people spend long hours)
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
Inside: renewed classic store
& Business Economy
#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
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.
Result: New reach | Potential for viral marketing
#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)
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.