L’Oréal Travel Retail says that make-up will continue to be the fastest growing segment in the beauty category in duty free and travel retail in next half decade due to demand from a selfie-obsessed Millennial generation, and from emerging markets.
Speaking at the TFWA Cannes show last month, Stefania Fabiano, LTR Consumer Product Division General Manager, said the make-up category was a bright star in the beauty firmament. “Make-up will remain the fastest growing category in travel retail in the coming five years and acceleration in this category will come from new consumers,” she noted.
With the ‘selfie generation’ of Millennials now a big part of the DF&TR passenger profile, the idea of looking good in front of the camera at all times also gives make-up a huge leg up. Fabiano says that this generation also loves to experiment and try new products, which makes make-up their ideal category. “They are also ultra-connected and they love tutorials so they are becoming more expert as make-up users,” she added.
The plus side for beauty players with make-up portfolios is that penetration of this segment in Asia, and China especially, is still underdeveloped compared to other regions – but it is growing fast.
“Face products are still leading the market but the huge phenomenon across Asia is lipsticks,” said Fabiano who pointed out that, for the emerging middle classes, lipsticks also represent an accessible sub-segment of make-up.
L’Oréal has a portfolio that spans all price points: from couture brands such as YSL and Giorgio Armani; luxury brands like Shu Uemura, Lancôme or Helena Rubinstein; to professional brands such as Urban Decay or the new Nyx line; and more competitively-priced lines L’Oréal Paris and Maybelline, and Essie in nailcare.
From a retailer perspective, L’Oréal believes that colour is key. “Colour drives shop penetration, creates impact and is playful. It is also often an impulse buy,” Fabiano said. She argued that colour products should therefore be at the centre of any retail design to act as a penetration driver – with fewer brands but a kaleidoscope of shades.