HMY > Travel Retail: Big Business For Cosmetic Brands

Travel Retail: Big Business For Cosmetic Brands

Travel retail is booming.  Over the last few years, the increasing number of travelers and the expansion of international economies have been driving its growth.  Analyzing this situation more closely, we see that brands in the Health and Beauty industry have the most success in travel retail. It’s estimated that by 2020 travel retail on a global scale will be worth over 80 billion dollars, and a third of this will be attributed to the H&B industry.

What Travel Retail Strategies Do H&B Brands Currently Follow?

Consumers are paying attention to these types of brands and products, and this is making these brands increasingly invest more resources in boosting their presence and sales at airports.

Here, brands pay attention to the characteristics of these shoppers. They are people who have a limited time to make purchases, and who are also in a relaxed state of mind, as they are about to take a trip.

But the psychological motivation among travel retail shoppers is also encouraged by the traditional image of airport stores, and that’s one in which products can be purchased at a better price, due to the nature of Duty Free shops.

Given this situation, companies that have traditionally been present in these areas have a unique opportunity to attract more customers, and that’s why they have focused on the creation and design of stores that have nothing to envy about establishments in urban shopping districts.

This not only includes the set up and layout of the furniture and displays, but also the aim to offer travelers a distinctive experience.  In fact, airports like Heathrow are already starting to introduce personal shoppers, which adds to this distinctive experience, making these stores different to what they were before, just a temporary place of transit.

Why Does The Beauty Industry Do So Well in Travel Retail? 

Beauty and personal hygiene brands and products have traditionally been the major players at airport shops.  Some of these brands and products are luxurious and exclusive in nature, which in these spaces, are perceived as accessible when compared to other sales channels. In fact, it’s estimated that the revenues of luxury brands in travel retail account for up to 5% of the total among all sales.

To this we can also add that with the recent evolution of inexpensive airlines and the arrival of vacation rental platforms, the public that accesses airport shops is broader, and this, instead of hurting exclusive retail, has opened up opportunities to attract new customers, who otherwise wouldn’t access these stores in other environments. 

Additionally, H&B products are simple to transport and easy to take on a plane, where the space and conditions limit the size of the products that can be carried onboard. These brands can also easily promote exclusive products, in which the shopper’s desire for them is increased because they perceive them as a unique opportunity in situations where they are more likely to shop.

The Future of the H&B Industry in Travel Retail

Travel retail forecasts for personal hygiene and beauty products are very favorable.  But this too will go through a process of continual evolution towards new proposals:

For instance, adapting products to the airport’s location or to customers that pass through them; including new features like the personal shopper, or the possibility of collecting purchased items at one’s final destination; the introduction of digital elements at stores or online catalogues that encourage purchases, etc. These are just some of the trends that we are starting to get a glimpse of, and that will determine the success of these brands over the coming years.

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