The goal is to win over a billion new consumers with a universalization strategy, according to the company.
Travel retail, which represents all products sold in the travel distribution channel—airports, airlines, ferries, cruises, downtown duty-free shops—plays an essential role in this strategy as it is a dynamic market, according to L’Oréal. The democratization of travel, especially in emerging countries, has lead to an increased number of travellers and thus consumers who today are searching in this channel for a full selection of products that correspond to their beauty aspirations, whatever their nationalities, beauty rituals or purchasing power.
"Travel Retail is a key channel for winning over one billion new consumers. This market, present around the world, could be considered as a “sixth continent,” said Jean-Paul Agon, chairman and CEO of L’Oréal Group. “L’Oréal already has extensive expertise and strong relationships with client-retailers, and has high ambition for the future of the channel.”
Barbara Lavernos, managing director of L’Oréal Group Travel Retail, will head the Group Travel Retail Division Worldwide, and will report to Nicolas Hieronimus, president of Selective Divisions.
“The creation of the new Group Travel Retail division demonstrates our confidence in the huge potential of this channel. From now on, all of the Group's major brands will have the opportunity to develop on this ‘sixth continent,” noted Hieronimus.
A pioneer in the travel retail market since the 1960s, L’Oréal Luxe is today the world leader in the sector. The Consumer Products Division has also taken an important position thanks to L’Oréal Paris, the world’s number one beauty brand.
The Division will be based in the Paris suburb of Levallois.
The 2012 global travel retail market (includes all sectors) was valued at $55.8 billion (up 9.4% vs 2011), and the market should double over the next 10 years, noted the cosmetic company. L’Oréal said its travel retail market share was 21.6% in 2012.