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s Travel-retail operators are looking to create more distinctive beauty stores, such as DFS T Galleria Beauty (left) and Aelia’s next- generation stores at Warsaw (right) and Auckland agency Horizon Consumer Science Ian Cesa 43 beauty brands from P&G. Unilever has also generation Aelia Duty Free stores at locations remarks: “Expect Russian spend to decline been acquisitive, adding skincare brands Murad, such as Warsaw and Auckland airports. The dramatically [in 2015]. We are already seeing it Dermalogica and REN to its portfolio this year. concept is built on four pillars: store architecture in airports where Russians are a signifcant force. As travel retailers and suppliers move to and display, local products, the art of the gift and But Asian travelers are still on a quest for the increase their size and boost their market share, here and nowhere else—how the store n n n miracle cure, so don’t expect their spending to producing a distinctive beauty offer is more slow down.” vital than ever and new concepts are being Indeed, the growth of Chinese travelers and introduced as a result. The launch of the new Duty free and travel-retail sales by region 2014 Asian shoppers is still driving skincare and standalone T Galleria Beauty by DFS concept, Region Sales % change cosmetics sales. Shoppers from China spent for example, demonstrates the importance of $bn 2014/2013 18% more on tax-free shopping in 2014 year- beauty to the travel retailer. It aims to create Asia Pacifc 23.56 +5.5 on-year, spending on average €736, according an immersive experience for travelers, while Europe 20.65 +2.5 to tax refund specialist Global Blue. China and providing them with a personal touch. Russia remain the most lucrative countries At the 18,000ft (1,672m ) space in the Hysan Americas 11.63 +4.2 2 2 of origin for global shoppers, with China Place shopping mall in Hong Kong, consumers Middle East 5.88 +5.8 accounting for 30% of all tax-free spending, are encouraged to sample, mix and match Africa 0.86 +4.4 followed by Russia at 14%, the US at 4%, products from a wide selection of brands in one World 62.57 +4.3 Indonesia at 3% and Japan with 2%. place at the interactive Beauty Station. T Galleria Beauty by DFS will also exclusively introduce Source: Generation Research Sweden (www.generation.se) Consolidation & differentiation popular trendy cosmetics brands Nudestix, Iope Consolidation is pushing the need to produce and Cargo Cosmetics in Hong Kong. The store Duty free and travel-retail sales by category 2014 a particularly unique offer in the channel. M&A stocks 100 labels across new and expanded Category Sales % change is a key trend among both travel retailers and product categories, as well as a trend area $bn 2014/2013 brands, with Dufry Group’s hold at the top featuring popular Korean brands. Fragrances & cosmetics 17.96 +4.1 strengthening after the acquisition of World Duty This is the second T Galleria Beauty by DFS Wines & spirits 10.36 +5.0 Free (WDF) this year. Dufry began integrating to open, as a 11,133ft (1,032m ) space was 2 2 WDF in August, while the integration of its other introduced to the Macau Galaxy in June. It Fashion & accessories 9.35 +6.8 blockbuster acquisition Nuance is scheduled for presents a selection of 22 beauty brands. Tobacco goods 7.98 +1.6 completion in December. Consumers can access the company’s Beauty Watches, jewelery 6.43 +3.5 Meanwhile, Lagardère Travel Retail snapped Concierge service at the store, as well as tailored & fne writing up North American airport retailer Paradies for services including make-up consultations and Electronics, gifts 5.48 +3.1 $530m in August to create the second-largest skin analysis. The new concept also features the & other player in North America, according to the group. company’s rewards scheme, Loyal T by DFS. Confectionery 5.02 +5.7 The momentum continued within the supplier Fellow travel retailer LS Travel Retail has also & fne food arena when Coty revealed that it would acquire revamped its offer, continuing to roll out its next Source: Generation Research Sweden (www.generation.se) November-December 2015 - N°24 - BW Confidential 93