New York beauty house Kiehl’s has emphasised the importance of pop-ups in terms of its overall duty free and travel retail strategy.

Earlier this month, TRBusiness joined representatives from Kiehl’s, Changi Airport Group (CAG) Shilla Duty Free (Shilla) and members of the trade media for the launch of the brand’s latest Chinese New Year pop-up at Singapore Changi Airport Terminal 3.

The lavish launch event was the second time the three companies have collaborated to create a Lunar New pop-up following a similar activation in 2019.

Other pop-ups and activations were executed across Asia Pacific in 2019 including the 360-degree activation in downtown Seoul. TRBusiness was present for the official launch of the ‘Make it merrier with Kiehl’s’ holiday pop-up at Shinsegae Duty Free’s flagship Myeongdong store in Sogong-ro, Jung-gu in December.

This publication was also represented in South Korea for the conclusion of the Kiehl’s ‘love adventure tour’ around Asia Pacific. The L’Oréal-owned skincare brand launched its ‘Kiehl’s Loves Korea’ campaign in the Star Lounge of the Lotte Hotel Duty Free downtown mall in Seoul’s Jung-gu district. The stars of the show were the five interactive instagrammable pop-up displays which helped promote the ‘Kiehl’s Loves Korea’ travel retail exclusive set.

CELEBRITY APPEARANCE

Speaking to TRBusiness at the recent Singapore Changi Chinese New Year pop-up launch, which featured a guest appearance from Chinese actor, singer and model Dylan Wang Hedi, Petrina Kho, General Manager, Kiehl’s Travel Retail Asia Pacific said: “There is a big emphasis on pop-ups for Kiehl’s. I see them as a way of connecting with travelling consumers.”

She added: “There are more and more Chinese people travelling for the first time, so perhaps they are discovering Kiehl’s stores or products for the first time as well. This is why pop-ups are so important in terms of recruiting new users. They introduce the brand and are almost like a first hand-shake.”

Pop-ups must go hand-hand with digital activations in order to engage consumers. Digital is important before, after and during travel, according to Kho who remarked: “We have incorporated many digital elements in the Changi pop-up as Chinese and global shoppers are digitally savvy.”

Executing the Chinese New Year pop-up at Singapore Changi for a second successive year in partnership with Shilla and CAG was a no brainer. “It was a huge success. What our travellers liked the most was that it was very customised.

“The fact it was a Chinese New Year limited edition obviously made it Asia relevant. It also had elements of Singapore with the Merlion statue which created a strong sense of place,” she acknowledged.

Pressed by TRBusiness on the brand’s decision to partner with Shilla and CAG for a second time, Kho remarked: “Shilla has been a fantastic partner for many years, not just with Kiehl’s but for L’Oréal Group in general. More importantly, however, we wanted to ensure we played in Singapore as Southeast Asia is a very important source of growth.

“Also, Chinese New Year celebrations in this part of the world are special. Many people travel to Singapore for a holiday or to see family so Changi Airport was the perfect choice.”

The importance of Kiehl’s customer representatives must not be underestimated in terms of ensuring new users visiting the pop-up learn about the brand. “The customer representatives play an important role in that they give skincare consultations to new users.”

A range of Kiehl’s best-sellers are available in this year’s Changi Lunar New Year pop-up including the Ultra Facial Cream, Avocado Eye Cream and Calendula Herbal Extract Alcohol-Free Toner. All feature a limited edition Lunar New Year design created by Australian illustrator Eirian Chapman.

Kho said: “The products in the pop-up are hero items which have been with us for many years. There are no new launches or anything like that. It is basically our top-three products which our consumers have loved for generations. The Chinese New Year animation elevates them to the next level.”

Offering hero products in the pop-up makes it easy for shoppers to find what they are looking for. “Global shoppers are obviously a big part of our customer base and are always looking for hero products when travelling. We are, therefore, using our best-sellers to ensure we recruit new users and cater to our loyal ones.”

STAYING AHEAD OF THE GAME

Last year, Kiehl’s finished ahead of the category in DF&TR. Outlining the company’s vision for 2020, Kho said the aim was to be where its new and loyal customers are. “We need to be consistently engaged in terms of evolving shopper insights. I will encourage my team to keep studying to ensure we are in touch with our consumers.”

Digital is also a key focus and the brand knows it must up its game in terms of ‘being digital’ with consumers. “We want to ensure we keep challenging ourselves to ensure we are connected with our consumers pre-journey, during the journey and post journey.”

In terms of trends, premiumisaion is driving the DF&TR skincare category, hence the recent growth experienced by Kiehl’s. The democratisation of travellers is also driving the segment. Kho expained: “When you look at the number of passport holders in China it is only single digit. If you consider the population of China versus the percentage of passport holders, you can imagine how many people will travel in 10 years time.

“We are merely scratching the surface in terms of travel. The ease of travel with budget airlines makes it so easy. Another big trend is digitalisation. More and more brands are taking that on board.”

The evolving nature of the DF&TR industry represents a significant challenge, making it all the more important for company’s such as Kiehl’s to stay connected with the needs and want of consumers. “Flooding consumers with irrelevant skus, for example, is not productive for retailers or brands. It is about remaining focused on what is important for the consumer whenever they travel.”

Another challenge is the unpredictable geopolitical situation worldwide. “Whether it is the Daigou phenomenon or ongoing protests in Hong Kong, it is important to keep an eye on geopolitics.”

Sustainability is also at the heart of most things Kiehl’s does in DF&TR. In addition to its PUR project forestry donation, Kiehl’s and Lotte Duty Free partnered with Ecopoeace Asia for the final stop of the Kiehl’s Love campaign in Seoul towards the end of last year.

With every purchase of Ultra Facial Cream 125ml, Kiehl’s and Lotte Foundation jointly revealed they would donate $1 to Ecopeace Asia to plant trees. The aim was to reduce micro dust and air pollution and create a cleaner and greener Korea.

For this particular pop-up at Singapore Changi, all plastic trays have been removed from Kiehl’s travel retail exclusive sets. Kho commented: “Travel retail plays an important part in raising awareness on sustainability. Our industry is causing carbon emission. Each time we fly our carbon footprint increases.

“We play an important part in raising awareness for travellers around the world on how important it is to reduce carbon emissions. For us, we must walk the talk when it comes to sustainability. It is not just about partnerships with NGOs. It is about the things we do and how we operate ourselves.”

Meanwhile, Helena Rubinstein, which Kho describes as a ‘secret weapon’ for the L’Oréal Group experienced an excellent 2019 in terms of Asia Pacific travel retail growth. Kho, who overseas the Asia Pacific DF&TR operations of Kiehl’s Helena Rubinstein and Urban Decay told TRBusiness: “The skincare market has experienced significant acceleration and Helena Rubinstein is taking full advantage and been growing ahead of the market. With our positioning as a premium skincare brand, the brand has been particularly popular with Chinese travellers.”

Looking ahead to 2020, she added: “We will ride on the premium skincare momentum. Together with Helena Rubinstein’s unique history, scientific legitimacy and exceptional formulas, the opportunity is there to realise the full potential of Chinese travellers. We will continue to focus on engaging our travelling consumers digitally, expanding distribution on and offline and delighting our consumers with uber luxe skincare experiences.”