L’Oréal’s renewed focus on travel retail: digital and ‘retailtainment’ focus

By Lucy Whitehouse contact

- Last updated on GMT

L’Oréal’s renewed focus on travel retail: digital and ‘retailtainment’ focus

Related tags: Retailing

The global beauty player has described travel retail as its ‘sixth continent’.

Turning 40 last year, L’Oréal’s travel retail business says it is now driven by millennials and Chinese consumers, with its strategy based on developing its digital and retail offering.

“While Travel Retail is already making a serious contribution to the Group’s development, the market still has lots of upside through Chinese clients and millennials,”explains the company in a recent post on its website​, noting that the number of Chinese consumers is set to double by 2023 to around 180 million globally.

On top of this, thanks to the rising popularity of low cost flights and the increasing capabilities of digital, the company says its travel retail business will be better placed to appeal to millennials.

Catering to the new approaches used by this customer base will entail adjustments based around digital technologies,​” it explains.

“To give an example, L’Oréal, in partnership with duty free retailers has already set up click and collect systems that enable travelers to reserve products, pay for them online and then pick them up at the airport.

“This type of approach is especially appreciated in Asia, where retailers’ e-commerce websites offer significant sources of sales for Group brands.​”

‘Retailtainment’

Consumer-centred distribution, premium offers, exclusive gifts and expert consultations are all part of the rising appeal of travel retail, suggests L’Oréal.

The company says greater interactivity at the point of sale will allow it to offer these elements in more engaging formats to its consumers.

Another new facet is the introduction of a retailtainment strategy geared to transform point of sales into great spaces to hang out in.

“In airports nowadays it’s not unusual to see women getting their make-up done, popping into a lip bar, or having a consult with a specialist who can perform a skin analysis using sensors linked straight to the customer’s phone. “Nine new airport derma-centers have opened their doors this year​.”

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