Travel retail sales boost profit for L\'Oréal
Retail division accounted for 17% of sales boosted by growth from Asia
The duty free or travel retail sector of L'Oréal's luxury division cosmetics operation has risen to account for 17% of sales or €940m in 2012. The President of L'Oréal Luxe, Nicolas Hieronimus, says the potential of the sector is immense not least because some 75% of duty free consumers make their purchases in this way on a regular basis.
Aviation traffic with Asia is estimated to have risen by about 30% between 2007 and last year with 2012 total duty free sales of all kinds up 16% at almost $49bn. Cosmetics and perfumes accounted for about a third of this total.
L'Oréal says it is currently adapting its offers to match information gathered on its consumers. Barbara Lavernos, head of the group's travel retail sector, says this information is being gathered terminal by terminal rather than airport by airport. The group targets Asian customers at LA, for example, rather than Americans.
Lancôme remains ahead in sales terms but in 2012 the strongest duty free growth came from Kiehl's, up 20%.