Post on 19-Jul-2015
Agenda
Beauty market
Travel retail market Current experience
Consumer types
Future vision
Lancome Positioning
Digital strategy
Existing point of sales
Consumers
Competitors
SWOT
Beauty Market
Market size
In 2013, revenues amounted to $204.61 billion.¹
Market growth
Market Characteristics
Mature market
High market segmentation
High R&D2
Consumer urbanization
Increased spending propensity
Travel Retail Market
Market size In 2013, around $60 billion3
Market growth Estimated to double by 20254
Beauty sector 30% of the travel retail market5
L’Oreal
Market leader (21.3% market
share)6
Present Experience
Democratization of traveling
Luxury dominance
Sophisticated CRM
Customer is first and foremost a
traveler
Fast paced environment
Limited infrastructural capacity
Online shop and pick up option
Travelers: different needs than regular shoppers
Potential stress factor, time pressure
Different needs based on cultural background
Different needs based on traveling purpose
Traveling Impact
Gift Purchasers
mostly planned purchases
look for: discounts, sets and
special editions
attracted by beautiful packaging
and design
Layover shoppers
seek entertainment, more
time to spend shopping
impulsive shopper
leftover currency spending
Expert shoppers
smart, calculated decisions
limited budget
prefer products that are only
available abroad
price-conscious
Business Travelers
efficient shopper, stress averse
brand-loyal customer
also shopping upon request
limited time
Luxury Seekers
1) luxury as a norm
no budget limit
exclusive and rare products
2) breaking out of routine
indulging themselves
somewhat price conscious
The Future of Travel Retail
Opportunities Threats
Ads via augmented reality
Better utilization of
customers’ data
Near Field Communication
Travel review websites
Cluster – less ad space
Increased competition in
luxury segment
Positioning and Image
luxurious French-elegance
happiness
beauty
feminine
confident
accomplished
iconic
intelligent
Consumers
20+ Loyal customers
Attracted by fragrance
Adventurous
Undecided
25+ Classical
Elegant
Quality-seeker
30+ Loyal customers
Product-driven
Perfect fit
Digital Strategy
PUSH (promoting, informing & teaching)
PULL (feedback request & call to action)
Integrating social media platforms: Lancome Digital Chase
The Absolue world
Skincare analysis machine
Celebrating key cultural events
Existing Points of Sales
Merchandising
Travel friendly products and packaging
Merchandising POS elements, planograms, and staging
Gift sets, miniature coffrets, duos, trios, samples
Target
30+
Career women,
Beauty-concerned
Preserving young look
All ages
Well aware of the
brand's spirit
25+ Puberty and up
Product
Skin care, make up,
fragrance
Good quality
Make-up, fragrance,
and skin care
Focus: vibrant skin
Skin care
Common natural
ingredient (Pitera)
Dermatologist
recommended skin
care and make-up
products
Image
Healthy skin and eternal
beauty
Elegance, romantic
Unique,
Both goal-conscious
and free-spirited
Luxurious beauty
Pure skin, young look
Eternal, natural
beauty
Quality above all for all
products
Price ++ +++ ++ +
Parent Co. Estee Lauder Bourjois P&G Estee Lauder
• French brand with tradition
• Reputation of high quality
• Make up and skincare teaching
sessions (Lisa Eldridge, blog)
• Products for all skin colours
• Considerable brand value7
• Strong market growth, especially in
Africa, Middle East, and Asia Pacific
• Unclear positioning (age group and
price range)
• Similar core message with other
French luxury beauty brands
• Less attractive for under 30 years
old
• Emerging middle class
• Cruise, in flight, hotels and
downtown shops yet unexplored
• Digital opportunities
• Technology for better in-store
experience
• Customers tend to look for
information in advance
• Competitors present and entering
the travel retail market
• Low switching costs
• Trend for natural product
preference8
• Consumers’ preference for local
beauty products
• Limited airport infrastructure
• Possibility of declining demand for
luxury in developed countries
References
1) http://www.wwd.com/beauty-industry-news/beauty-features/the-2013-beauty-inc-top-100-7824155
2) http://www.cosmeticsdesign-europe.com/Business-Financial/Euromonitor-P-G-no-match-for-L-Oreal-as-R-D-is-diluted
3) http://www.trefis.com/stock/lrlcy/articles/269024/travel-retail-the-future-of-luxury-cosmetics/2014-12-11
4) http://www.trefis.com/stock/lrlcy/articles/269024/travel-retail-the-future-of-luxury-cosmetics/2014-12-11
5) http://www.trefis.com/stock/lrlcy/articles/269024/travel-retail-the-future-of-luxury-cosmetics/2014-12-11
6)http://www.trefis.com/stock/lrlcy/articles/269024/travel-retail-the-future-of-luxury-cosmetics/2014-12-11
7)http://www.forbes.com/companies/lancome/
8)http://www.gcimagazine.com/marketstrends/segments/natural/Preferences-for-OrganicNatural-in-Beauty-and-Personal-Care-See-Growth-Space-261828421.html