1. Travel Retail –Lancôme
Poonam Tripathi
Team Gloss

2. Changing Market
Global Travellers
Increase in
buying capacity
Women as shoppers &
Influence by Opinion leaders
Travel retail
Rise in Air Travel
+20% increase in
Chinese global shoppers Leisure shopping & Tax free

3. History of Lancome 1990-venture to Asian
Market. Face lift of
Brand.Tresor
1960-1970
Lancome sold to Loreal
1950-1960 Launch of Magie
and Tresor Fragrance
1942 Lancome
School was
founded
1936
Lancome was
found by
Armand
Petitjean

4. Travel Retail
Current market size 2.4 billion .10 year projected growth 100 billion

5. Market
Air Traffic is growing -5%
6 billion international flight -
2013
Market expect to grow at 10%
Beauty Segment 30% total
turn over
7.4% growth in 2013
L'Oreal is market leader
20% Market share
Travel Retail contribute to
-maximise exposure of
traveller
-Increase customer loyalty
-Recruit new customer
Travel Retail consumers
-Global Shoppers
-Best Place to showcase
brand
-Utilising the time at
Airports
-Airports as big shopping
malls
-Increase in Buying
Capacity
Travel Retail

6. Market
Duty Free Shops at
 Dubai
 London
 Hong Kong
 Paris
 Singapore
 Istanbul
 Doha
 Frankfurt
 Seoul
 Bangkok
 Beijing

7. Market
Duty Free Shops at
 Dubai
 London
 Hong Kong
 Paris
 Singapore
 Istanbul
 Doha
 Frankfurt
 Seoul
 Bangkok
 Beijing
Passenger Traffic
Total passengers enplaned and deplaned, passengers in transit counted
once
Rank City (Airport) Passengers 2013
1 ATLANTA GA, US (ATL) 944,31,224
2 BEIJING, CN (PEK) 837,12,355
3 LONDON, GB (LHR) 723,68,061
4 TOKYO, JP (HND) 689,06,509
5 CHICAGO IL, US (ORD) 667,77,161
6 LOS ANGELES CA, US (LAX) 666,67,619
7 DUBAI, AE (DXB) 664,31,533
8 PARIS, FR (CDG) 620,52,917
9 DALLAS/FORT WORTH TX, US (DFW) 604,70,507
10 JAKARTA, ID (CGK) 601,37,347
11 HONG KONG, HK (HKG) 595,88,081
12 FRANKFURT, DE (FRA) 580,36,948
13 SINGAPORE, SG (SIN) 537,26,087
14 AMSTERDAM, NL (AMS) 525,69,200
15 DENVER CO, US (DEN) 525,56,359
16 GUANGZHOU, CN (CAN) 524,50,262
17 BANGKOK, TH (BKK) 513,63,451
18 ISTANBUL, TR (IST) 513,04,654
19 NEW YORK NY, US (JFK) 504,23,765
20 KUALA LUMPUR, MY (KUL) 474,98,127

8.  Airports are transiting from transit venues to luxury shopping hubs, duty free shops have become now new
concept stores offering actual shopping experiences with wide variety of choices and offers.
 Airport like Hong Kong or Seoul are up to 70% of revenues are of non aeronautical nature.
 The highest contributor in travel retail are Chinese travellers followed by US & German Travellers.
 According to Nielson report 90% of Chinese travellers buy luxury goods just before they travel.
 L'Oreal & Estee Lauder are the close competitors who enjoy the maximum market share.
 Celebration of festival at Airports ,border shops ,Down town according to respective nationality
Market

10. Lancome Brand
Lancome Symbols
Lotus - Skin Care
Cherub Make up
Rose Fragrance
Lancome Products
Heritage Products
Iconic Products
Lipstick-Lip over
Lancome Products
Skin Care- Visionnaire,
Génifique, Absolue,
Rénergie, Blanc expert,
UV Expert
Lancome Products
make-up Hypnôse star,
Hypnôse Doll Eyes,
Hypnôse, L’Absolu Rouge,
Rouge in Love, Teint
Miracle, Teint Idole Ultra
24h;Lancome Products
fragrance:La vie est
belle, Trésor, Ô, Hypnôse.
The Women TG : Women
40 yrs and Young women
Multiplying Products
based upon Seasoned
and markets trends
specific launches.
New products rollouts
based upon skin tones,
which account for
various demographical
Air travellers .
Brand value $6.3 B
Source-forbes

11. Competition
Source-Promise consulting –French women Survey -2013

12. Competition
Source-L2 intelligence report ,2014
Perception of Scarcity, Principle creating a niche market for Lancome product along with its competition. Playing the
same game. Jan 2014 189 products vs 41 products in April 2014 is creating a scarcity gap and hence buyers perceive it
as a fast moving products and hence is always in high demand and sold on premium.

13. Consumers

14. Shopper Profile & Reasons for Buying
Lancome Consumers or Shoppers –
 Travellers-Air , Cruise Down Town or Border Shops
 First Timers, Leisure trips, Business and Educational travellers
 Females
 Medium to high income groups
 Love with French products
 Asian –Chineese,Korean,Japanese etc. travellers
 Techno savvy
 Window shoppers
 Customers looking for gifts & buying for friends & Family.
Reasons for Buying
 Brand Loyalist
 Gifting-Family,friends,referal
 Impulsive buyer
 Status Quo
 Referred by Opinion leader
 Celebrity endorsement
 Followers Effect
 Advantage of range of product at different location
 utilise the gift voucher or points from the miles,pay back points

15. Lancome Digital strategy
 Lancome Live chat feature is very popular as we can see the
ROPO effect (Research online purchase offline)
 Lancome strategy to have bloggers and V-loggers (Lancome’s
alliance with Michelle Phan –top viewed beauty tutorials on
you tube as well as Lancome repost of fan’s content on his own
channel are adding a clear digital staregy to drive traffic to its
store.

16. Lancome Digital strategy
Lancome allowing its digital users to e-gift customisable cosmetics
It helps in driving traffic & unique visitors to its e-commerce site
Lancome has 6 million+ fan following on Facebook world wide which itself is a key driver on the digital front

17. SWOT Analysis
S
Strength
 Highly Reputed product
 Strong Brand Recall Value
 Market Leader
 Soothing and eye catching branding and
visual
 Strong foothold in Ecommerce & Digital
Media
 Celebrity Endorsement
Weakness
 Target group 35+ years, inexperience in
age group of 18-30
 Limitation in Product Range
 Brand perceived as Women centric Men’s
product not given utmost impotance
despite men are frequent travellers
Opportunity
 Chinese & Indian Student traveller
highest spenders in US & EU Market
 Techno savvy youth can be reached with
low budget digital campaign
 Focus on Men Product
 Mobile wallet share & electronic buying
on increase
 Beauty industry in Travel retail is growing
Threat
 Intense competition
 Growth in other airport vis a vis Lancome
existing retail
 Short span of shopping time or Low transit
time
 Budget or low cost airline shifing to new
airport(youth using low budget airlines but
with high wallet share & experimental)

18. Opportunities for Lancome

19. Opportunities for Lancome

20. Current Retail Strategy
 Data sampling & collection activity (Online & Offline Registrations)
 Branding in Hop in and hop off buses –Mainly Tourist ,Brand recall value
 Branding at departure after security check-in ,near duty free shops, arrivals after the immigration or Passport control for maximum eye balls .
 In flight magazine double spacing for maximum attention. May be on the front or the back cover of the magazine. during the peak season with
sampling
 Alliances with Miles card or signature cards ,amex cards
 Email -direct mailers.
 pushing the brand ad with free wi-fi at airport.
 mobile app
 google adsense,key word marketing
 Promotional push messages with local telco player for localisation approach.

 Branding at downtown stores
 A tailor made experience, customised by nationality, adapted by assortment ,multilingual material ,celebrations ,events
 Adapted products assortment, Multilingual material,

21. Current Retail Strategy

22. Current Retail Strategy

23. Current Retail Strategy

24. Current Retail Strategy

25. Current Retail Strategy

26. Current Display of Retail stores & Merchandising
Podium
Perfumery Show window
Head of Gondola
Display Trays

27. Current Display of Retail stores & Merchandising
Stocker Unit
Free Access Perfumery
Show Window Instut

28. Lancome Growth and way forward
Retail strategy
•New pop up stores as well as existing stores brand experience enhancements with new out of box marketing
promotions strategy
•Targeting Teenagers as well as male segments can drive enormous growth and brand push
•Targeting family package solutions can bring new revenues as well as top brand recall
•New digital campaigns and touch points including free sampling at the boarding points as well as landing and take
off locations
•Creating new kiosk at the domestic airports can enhance additional footfalls in the international routes.
•The strategy to have a niche brand player with solutions for female life stages-Youth to elderly to be more focussed
upon.
•Travel ties up with Online e ticketing sites and new alliance with airlines which have the highest passengers traffic
should be planned