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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.ยน
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
Present Experience Democratization of traveling Luxury dominance
Estimated to double by 20254 Sophisticated CRM
Beauty sector
Customer is first and foremost a
30% of the travel retail market5
traveler
L’Oreal
Fast paced environment
Market leader (21.3% market
Limited infrastructural capacity
share)6
Online shop and pick up option
Traveling Impact Travelers: different needs than regular shoppers
Potential stress factor, time pressure Different needs based on cultural background Different needs based on traveling purpose
Customers at the airport
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
Cluster – less ad space
Better utilization of
Increased competition in
customers’ data
luxury segment
Near Field Communication
Travel review websites
Positioning and Image French-elegance
luxurious happiness
beauty feminine iconic
intelligent
confident
accomplished
Consumers
20+
25+
Loyal customers
Classical
Attracted by fragrance
Elegant
Adventurous
Quality-seeker
Undecided
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
Existing Points of Sales The Absolue world Skincare analysis machine Celebrating key cultural events
Merchandising Travel friendly products and packaging Merchandising POS elements, planograms, and staging Gift sets, miniature coffrets, duos, trios, samples
Competitors
30+
Target
Career women, Beauty-concerned Preserving young look
Product
Well aware of the
25+
Puberty and up
Skin care
Dermatologist
brand's spirit
Skin care, make up,
Make-up, fragrance,
fragrance
and skin care
Common natural
Good quality
Focus: vibrant skin
ingredient (Pitera)
Healthy skin and eternal
Image
All ages
beauty Elegance, romantic
Unique, Both goal-conscious and free-spirited Luxurious beauty
recommended skin care and make-up
Pure skin, young look Eternal, natural beauty
products
Quality above all for all products
Price
++
+++
++
+
Parent Co.
Estee Lauder
Bourjois
P&G
Estee Lauder
Competition for Fragrance Luxury brands Personalities D&G Gucci Dior Calvin Klein Chanel
Competition for MakeUp Dior MAC Chanel Estee Lauder Clinique Shiseido Guerlain
Competition for Skin Care Estee Lauder Clinique SK-ll Chanel Shiseido L’Occitane
• 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
Thank you.
References 1) http://www.wwd.com/beauty-industrynews/beauty-features/the-2013-beauty-inc-top-1007824155 2) http://www.cosmeticsdesign-europe.com/BusinessFinancial/Euromonitor-P-G-no-match-for-L-Oreal-asR-D-is-diluted 3) http://www.trefis.com/stock/lrlcy/articles/269024/tra vel-retail-the-future-of-luxury-cosmetics/2014-12-11 4) http://www.trefis.com/stock/lrlcy/articles/269024/tr avel-retail-the-future-of-luxury-cosmetics/2014-12-11 5) http://www.trefis.com/stock/lrlcy/articles/269024/tr avel-retail-the-future-of-luxury-cosmetics/2014-12-11
6)http://www.trefis.com/stock/lrlcy/articles/26 9024/travel-retail-the-future-of-luxurycosmetics/2014-12-11 7)http://www.forbes.com/companies/lancome/ 8)http://www.gcimagazine.com/marketstrend s/segments/natural/Preferences-forOrganicNatural-in-Beauty-and-Personal-CareSee-Growth-Space-261828421.html