Global Influencer #1 | Page 22

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. 22 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