The 6 th Continent: L’OrÉal Shows Us A Glittering
Future Of Travel Retail
3 Characteristics Of ‘Human’ Brand
L’Oréal paved the way when they announced they
were creating a new Travel Retail Division to target the
‘6th continent’ of consumers, estimated at 4.8 million
people, who want to spend on luxury goods, accessories
and experiences when they travel. This is a dynamic and
consistently high-growth sector, set to rocket with the
development of new travel retail space around the globe.
L’Oréal are now poised to be at the epicentre of this growth.
Today, they lead with a business combining with travel
specific products, retail brands like Kiehls and product
brands such as Lancôme. L’Oréal have appointed an
equally dynamic leader to spearhead this division, Barbara
Lavernos, previously Managing Director of L’Oréal Luxe.
Barbara is driven by passion, imagination and valuable
partnerships; we look forward to see what the next few
years bring.
Brands are increasingly trying to display their real side by
acting like people.
In 2014, it’s all about the humanisation for brands.
Reaching out and touching consumers’ hearts and minds
is the way to connect with people. Here are three essential
characteristics that brands need to have in the ‘Human To
Human Era’ and how this manifests itself in the realisation of
products:
M.A.C is a shining example of an authentic, genuine brand.
It grew through authentic and credible endorsements from
beauty professionals, and it’s brand values are “attitudinally
hip” and “for all skin colours”. This DNA is perfectly expressed
in their collaboration with Rihanna who embodies all those
values. Her RiRi Hearts collection is in a cool shade of
peach, with an hip-yet-girly graphic design. A graphic R sits
alongside a ‘handwritten’ note from Rihanna.
The size of the travel retail space - The industry has grown
to cater to today’s 1 billion annual travellers, with these
numbers predicted to double over the next 20 years.
Analysts and retail journalists always label travel retail as
dynamic due to its high and consistent growth in the face
of a challenging global economy and rising fuel prices.
Beauty and cosmetics leads the way, accounting for over
28% of market share.
Kiehl’s has been enjoying record-breaking performance
- According to Duty Free Magazine, Kiehl’s have been a
‘trailblazing force’ in travel retail. The brand, started in 1851
has brought a slice of New York to airports and train stations
around the world. Their ability to create compact but highimpact concept stores that still manage to be authentic to
their apothecary heritage has proved a successful strategy.
They are in the top three beauty brands in travel retail,
despite having carefully limited distribution outlets.
Express who they are: Creating a product experience that
truly reflects the product DNA is at the heart of humanising
brands. Brazilian cachaça (distilled spirit produced in Brazil
from fresh sugar cane juice and is often associated with
rum and the popular cocktail, the Caipirinha) spirit maker
Yaguara wanted to reframe how Brazilians view a premium
cachaça, and to embody Brazil’s culture, heart and soul.
They collaborated with world-renowned stained glass artist
Brian Clarke to create a wave-like design of blue and clear
glass that changes hue with the light. Its design is more than
a simple wave but an icon and symbol that captures the
spirit, sensuality and rhythm of Brazil. This work of art brings
global attention to this Brazilian National Spirit. The bottle’s
form is familiar but its radical exterior exemplifies the elixir
within.
Participate in the community: Last year Evian realised people
were moving away to rival premium water brands like Fiji
and San Pellegrino. Direct consumer feedback showed
that part of the reason they were losing market share was
because people were proud to display their competitor’s
bottles. As part of the brands evolution it created a sleek
new product, the first re-launch of packaging for fourteen
years. The new bottle has been rolled out in the US, with
a global rollout in progress. The bottle is label –less with a
simplified reduction of the logo printed directly onto the
plastic.
The last few years has seen a reality check in the evolution
of brands moving away from being corporate behemoths,
into people-led ‘club’s, this shows there is real opportunity
for a new generation of brand-fan relationships.
L’Oréal has long dominated the beauty brands - Since the
opening of the first duty free shop at Shannon airport in
Ireland in 1947, the travel industry has enjoyed year on year
growth, and L’Oréal has led the way for beauty brands in
this $15.8 billion travel retail business.
From the 1980s L’Oréal developed products that were
especially created for this distribution channel. They created
gift purchases such as boxes with miniatures and safety
compliant make up products that are staples on board and
in airports. Korean Airlines entrusted their first A380 on-board
shop to L’Oréal Luxe, who designed a space recreating the
atmosphere of a luxury boutique in the constraints of an
Airbus cabin.
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GLOBAL INFLUENCER
What does the future hold? Many analysts and industry
watchers predict this is a smart move and we agree. L’Oréal
will benefit from opening up their stable of product brands
to develop on this distribut