BW Confidential highlights the news, talking points and trends from the TFWA Asia Pacific Exhibition & Conference, which took place in Singapore from May 12-15
The key talking point among exhibitors and visitors at this year’s TFWA Asia Pacific Exhibition & Conference in Singapore was how difficult the travel-retail business has become in the region. While passenger traffic has rebounded, there is a major issue with conversion.
Fewer passengers are stepping into duty free stores, and even fewer than that are buying. This means that brands and retailers are having to do much more, in terms of events, animations and product exclusives to appeal to those in the airport. In addition, many companies are still reeling from the crackdown on daigou trade, and ensuing contraction of business at Korean and Hainan retailers.
In terms of the show numbers, there were a total of 216 companies on 205 stands, and beauty was the largest category represented, with 31% of exhibitors. There were many new exhibitors in the beauty category this year. Also much in evidence was the strong representation of fragrance companies from the Middle East, including Ajmal, Al Haramain, Arabian Oud, Sterling Parfums and Lattafa – a reflection of the growth of the Middle Eastern fragrance category and its expansion internationally. There was also a sprinkling of new local brands from the region that exhibited at the event this year.
As for visitor numbers, The TFWA said that 3,039 visitors attended the show this year, slightly down from 2024. The association added that 16 of the top 20 global retailers, including China Duty Free, Avolta and Heinemann, as well as most of the top Asian airports, including Tokyo Haneda, Delhi Indira Ghandi, Singapore Changi and Hong Kong International Airport attended the event.
Key talking points from the show
- Poor conversion rates and the difficulty of getting passengers in the stores and buying. Brands and retailers are looking to do more to lure customers, but new and sometimes costly initiatives are also taking their toll on the bottom line.
- Trump tariffs and US-China trade war. The uncertainty unleashed by Trump’s tariffs are bad for business, executives said, and are seeing many companies freeze investment or plans until there is more clarity around the issue.
- Continued China slump. Continued morose consumer sentiment among the Chinese is putting a brake on purchases; once the channel’s big spenders, the Chinese are now among the most frugal.
- Discounting in China’s domestic market. Discounting in China’s domestic market continues to be fierce, meaning the price incentive that travel retail once offered for Chinese consumers has disappeared. In addition, deep discounts risk eroding the brand equity that many are now seeking to invest in and build in the travel retail channel in a bid to appeal to passengers.
- The shrinking travel retail market. In line with the crackdown on the daigou trade and declining Chinese spend, a large portion of the market in the region has effectively disappeared. Few are optimistic that the channel in Asia Pacific will go back to the size it was any time soon. The market has become smaller, and increasingly companies are reducing their teams in line with that.
- The fate of Korean retailers. Korea’s travel retailers continue to bleed red ink, largely due to the repercussions of the daigou crackdown. While industry players talk of the need to a return to retail for real travelers (rather than traders) in Korea, the stores continue to suffer. The question is how retailers will emerge from the crisis.
- How to capture Gen Z. This generation is becoming a major traveling group, but getting them off their phones and into stores is a challenge, and their conversion rate and average spend is significantly lower than older generations. There is much talk about offering this cohort better experiences in-store that grab attention and entertain (and that can be easily shared on social media) rather than centering purely on a transaction.
- Shifting passenger habits. Exhibitors underlined that passengers continue to move away from purchasing products and more towards spending on holiday experiences. In addition, there are several shifts in terms of choice of destination. Increasingly, passengers (and especially Chinese passengers) are shunning the major hubs, and looking to secondary cities or off-the-beaten track destinations.
- India. India’s international travelers are set to reach 100 million by 2028, and the country continues to expand its airport infrastructure. The country’s growing middle class is seen as a key opportunity for the channel.
News from the show
L’Oréal shares vision of ‘shop-tainment’
L’Oréal’s 510m2 booth at the show focused on bringing what it calls shop-tainment and new experiences to travel retail and was presented as a statement about the group’s commitment to the travel-retail channel, according to Jesus Abia, Managing Director of L’Oréal Travel Retail Asia Pacific.
At a cocktail event at the group’s booth, Abia said: “We are extremely committed and invested in bringing new, innovative ideas and working with all of you to re-shape this industry, and this is much needed, because the market has radically changed. There has been a regional shift, a category shift, a channel shift, and most importantly the travelers have completely shifted. We have more Gen Z, more millennials, more emerging markets that are coming, but one thing common with all the new travelers is that 40% of them are looking for immersive experiences when they travel. This is something that we see as a massive opportunity for the travel retail business.”
He added: “We’re in a moment of transformation, but at the same time, we want to keep our mission. And what is our mission? First, we are a brand show window for the group. In many of the local markets, there is a move to online, but our point of differentiation in travel retail is offline and we need to be very proud of that.The second point is we are a recruitment channel, and the third is we need to bring growth to the company. This market has been suffering. It was very difficult in 2023 and also in 2024. I believe 2025 is the year of stabilization, and 2026 is the year to come back.”
Exciting airports
The group describes its new vision of travel retail as shop-tainment, which it says is about making airports and travel retail stores a place of excitement. To do so, the stakeholder ecosystem needs to be re-invented and move towards a pentarchy, model which involves a multi-partner strategy (retailers, airports, brands, media, technology companies etc) at all stages of the traveler journey – pre-trip, in-trip and post-trip.
“We cannot work in silos anymore, we cannot do this transformation alone and this is a key message. We want to create a seamless omnichannel consumer journey, leveraging the data of the ecosystem to make sure we create value for travelers and for all of us.”
One example of this pentarchy model is the YSL Beauty Light Club in Changi Airport, Singapore, whereby L’Oréal collaborated with retailer Shilla, Changi Airport, Singapore Airlines, tech company Meta and ride hailing company Grab.
L’Oréal’s booth featured a string of shop-tainment concepts, which it says go beyond traditional retail. These included quick-fix beauty services and Skin Mist Pods, offering a mist treatment using steam technology that can be customized by climate and skin type to suit the travel destination.
Another is the facial cocoon, an area for a 10-minute Lancôme Longevity skin repair facial featuring the Lancôme Absolute Cryo Sculptor.
Other features included a space that offers consumers fragrance-inspired cocktails based on scents from brands like YSL, Armani, Prada, Valentino, and Aesop, a personalized fragrance coaster souvenir featuring a local destination visual, and music via a ‘silent disco’, thanks to individual headsets.
Also on show was a men’s area offering haircuts, shaves, and facial pampering with L’Oréal Men Expert products, alongside bespoke cocktails and hair styling.
Shop-tainment concepts
Shiseido looks beyond key hubs, reveals five trends for 2025
Shiseido Vice President Travel Retail Japan Tatsuya Nagai highlighted Japan’s record-breaking tourist numbers of 36 million last year. However, he also drew attention to a key change in the market, where consumers are now no longer just visiting the big hubs of Tokyo, Osaka or Kyoto. Instead, increasingly travelers are looking to secondary cities, such as Kyushu, Shikoku or Hokkaido. This is one reason that Shiseido recently renovated its counter in Fukuoka airport. “It is very different from before Covid. Also, people who go to Tokyo and Osaka tend to go to department stores in these cities. However, those who travel to local areas don’t go to department stores, but to the airport to purchase our products and experience our brand. That’s why travel retail is very important and why we have immersive retail experiences at the airport and also train our beauty personnel very well so consumers have the same level of service as at local Japan department stores,” comments Nagai.
Shiseido added that while the Chinese are still the biggest nationality for the company’s travel retail business in Japan, it is now attracting more diverse range of consumers, especially from Southeast Asia, Taiwan, Hong Kong, India and the Middle East. Prior to Covid, the Chinese represented more than 90% of the company’s consumers in Japan, a figure has dropped to around 60%.
Shiseido Vice President, Commercial and Business Development, Travel Retail Asia Pacific Fran Law also gave the example of Thailand as now having a more mixed passenger profile. “In Thailand, we observe a lot of different international travelers, from the Middle East and Europe. Our retailers’ feedback there is that they want to shift to focusing more on international travelers, and also give priority to their Thai local travelers. In airports at weekends, they are targeting local Thai travelers, with activities or special privileges for them to serve them better.”
Five trends
Shiseido revealed five key trends it sees in the market for 2025. The first of these trends is longevity or what the group calls enduring beauty. The company says that this means that consumers will look to invest in skin health that lasts a lifetime rather than quick fixes, and will see a move from anti-aging to pro-aging and being proactive to slow the aging process.
The second trend is personalization and precision skincare, which aims to deliver maximum efficacy with minimum effort; it also involves using data and AI analytics to optimize skincare, as well as formulas that adapt to the condition of the skin.
Shiseido calls its third trend scented wellness, and it is centered on functional fragrance and fragrance for inducing wellbeing.
The fourth trend, dubbed Next Gen Cities and specifically for travel retail, encompasses over-tourism, Gen Z’s search for alternative destinations and emerging hubs, sense of place and beauty designed with travel in mind.
The last trend focuses on smart services, which means offering tech-enhanced services at the point of sale, including the group’s Skin Visualizer tool, which measures the skin’s vitality and can be used without having to remove make-up. Linked to this trend is a pilot program initiated in Japan, whereby certain sales staff become influencers.
Moroccanoil sees success with new fragrance
Moroccanoil says its new fragrance L’Originale Eau de Parfum has seen strong growth since it launched in February, and that the scent has had a halo effect on the rest of the brand’s ranges.
In travel retail, the launch also benefited from major point-of-sale animations, such as those the brand carried out with Avolta in March in Madrid, Barcelona, London and Milan. “The fragrance has seen a very strong start and has proved our ability to bring something to the industry, in terms of animation, eventing and retail-tainment. It’s not only about good products with good quality and value for money, but it’s also about excitement, and this is what we wanted to bring to the industry. I think we proved that, and we have proven our commitment to being a multi-category brand,” commented Moroccanoil Vice President Global Travel Retail- Direct Premium Retail Europe Sebastien Levi.
Since the beginning of the year, the brand has also gained larger spaces in top airports. It is gearing up for new spaces in Santiago de Chile Airport with Avolta, in Lima Airport with Lagardère and in Miami Airport with DFA. “We are getting much bigger spaces, where we’re going to have the opportunity to really display who we are as a brand, not only in haircare, but as a multi-category brand. This is the flagship approach that we really want to push in some major airports in the world,” Levi explained.
A key milestone for the brand was also its introduction at retailer Dubai Duty Free, which the company says will pave the way for more openings in the Middle East.
On the product front, in haircare, the company showcased its High Shine Gloss Mask, an at-home treatment mask for the hair that takes its inspiration from salon gloss services. It features a delivery system of microencapsulated argan oil that penetrates the hair to repair the hair and enhance shine. At the end of 2025, the brand will launch the Moroccanoil Treatment Mist in an ultra-light, dry oil spray format. The product claims to be suitable for all hair types.
L’Occitane en Provence looks to brand elevation
The L’Occitane en Provence brand is gearing up for its 50th anniversary in 2026. “We are at the beginning of the rebirth for L’Occitane en Provence and are working on the elevation of the brand, not only in terms of products, but in communication and retail concepts,” comments L’Occitane Marketing Director Global Travel Retail Mona L’Hostis. Part of this elevation strategy is a revamp of its fragrance collections, which have been re-designed and relaunched to bring consistency and modernity to its range. The company showcased the Fleurs de Cerisier line at its booth.
In addition, L’Occitane is focusing on new ways to increase conversion, through in-store activations, pre-trip, in-trip and post-trip targeting, and services. It is also working closer with local markets to make sure the offer for consumers is aligned and consistent across domestic and travel retail.
Nirvana Brands highlights Sarah Jessica Parker and Rolling Stones fragrances
Fragrance company Nirvana Brands showcased its new collection from the Sarah Jessica Parker brand, which it acquired in 2023. With the new line, called the SJP Collection, the company intends to cement Sarah Jessica Parker’s appeal among a new generation of consumers and elevate the brand.
The collection comprises three fragrances in brightly colored teardrop-shaped bottles topped with a magnetic cap. They are: Rhapsody in Blue, Divine Light and Smitten in Pink. The collection is currently rolling out in the US and Europe and is priced in the €70 range. The company says it has aggressive plans for the Sarah Jessica Parker brand and is looking to double its size in three-to-five years.
Nirvana Brands also presented its first collection for the Rolling Stones. Called Subversive Scents by The Rolling Stones, the collection comprises five unisex fragrances, with each developed to reflect a different moment in The Rolling Stone’s history or a song, album or tour. Wild Horses was created by IFF perfumer Michelle DeFina; Sticky Fingers and Satisfaction were both composed by Takasago perfumer Marine Ipert; Urban Jungle was created by Takasago perfumer Catherine Selig and Paint It Black is by Takasago perfumer Linda Chinery. The scents use headspace fragrance technology to create olfactive notes such as salty tears, worn leather and tobacco. The bottle design features a turn-and-spray cap mechanism and the band’s tongue and lips logo, originally created by John Pasche in 1970. The fragrances retail at £99 ($132) for 100ml.
Liht Organics showcases make-up
Singapore-based Liht Organics showcased its range of organic make-up, which sports the tagline ‘Safe Enough to Eat’. The brand, which stands for Living in Her Time, was created by Nerissa Polke in 2019 following her battle with adult acne.
Polke claims that chemicals in everyday beauty products were contributing to her skin issues and set out to create alternative products. The brand’s products focus on the face, eyes and lips, are said to have up to 90% USDA-certified organic ingredients and be gluten-free, cruelty-free, vegan, and free from synthetic chemicals, fragrances, and nanoparticles.
For example, its Youth Elixir Liquid Foundation formula claims to replace chemicals such as mineral oil used in conventional and non-organic makeup with plant extracts, such as rosemary, thyme and oregano, which are said to be are rich in anti-inflammatory, antibacterial and antioxidant properties.
Polke says that Liht Organics has a strong base in Singapore and in the Middle East, (it is sold in Dubai, Abu Dhabi, Qatar and Saudi Arabia), and is now eyeing travel retail. A range of travel-retail exclusive products are in the pipeline. This was the brand’s first time at the TFWA Asia Pacific show.
Noble Panacea to make travel retail push
Skincare brand Noble Panacea is looking to make a push in the travel retail channel. The brand, which launched in 2019, is currently sold mainly in department stores, as well as DTC and on several airlines. Its travel retail business in Asia is being managed by Tina Priscilla Tam.
The brand currently has five collections of skincare, and its products use what it calls Organic Super Molecular Vessel (OSMV) technology created by its founder and Nobel Laureate Fraser Stoddart. The brand claims that this technology delivers active ingredients precisely and directly into skin cells, which improves ingredients’ potency tenfold.
The products come in individual mono-doses to protect the freshness of the formula. The mono-dose packaging can be sent back to the brand for recycling.
“Customers already have their routine. We’re not going to disrupt that, but we do have a few really good doorways into the brand, with the mask, the peel and now, the eye lift, which are part of the Exceptional Collection. These products are amazing as first tries and usually trigger the discovery of the rest of the brand,” comments Noble Panacea’s Serge Acker.
Lattafa makes splash with king-sized stand
Dubai-based fragrance company Lattafa had a large booth at the show and was exhibiting at the event for the first time. The company presented a string of new fragrances, with many showcased in their own small rooms with elaborate decor reflecting the products’ concept. These included Eclaire, Give Me Gourmand, which come in cupcake-shaped bottles, and Atheeri. The gourmand theme was much in evidence at the booth with cupcake and candy giveaways.
The popular Yara fragrance was also on display at the front of the stand. A company representative said that the brand’s Yara scent continues to be a top seller on TikTok Shop in the US. The brand has been trending on TikTok and other social-media platforms for some time.
The opening conference
Interviews from the show
Arabian Oud General Manager Ralph Bou Nader.