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L'Oreal to create travel retail group
November 27th, 2013
PARIS – L'Oreal Group is forming a travel retail business unit to address the travel beauty care segment.
The company said the new Group Travel Retail Division will include the L'Oreal Luxe brands as well as brands from the other divisions, including Active Cosmetics, Professional Products, Consumer Products and The Body Shop.
Travel retail encompasses products sold in the travel distribution channel, including airports, airlines, ferries, cruises, downtown duty-free shops and other venues. L'Oreal noted that a rising number of travelers are seeking a full selection of beauty products in such outlets.
Citing data from Panel Generation, L'Oreal reported that the 2012 global travel retail market (including all sectors) grew 9.4% year over year to $55.8 billion, and the sector is expected to nearly double over the next 10 years to more than $100 billion. L'Oreal said its travel retail market share was 21.6% last year.
The move is part of L'Oreal's universalization strategy, in which it aims to win over a billion new consumers by meeting the diverse beauty needs of men and women around the world.
"Travel retail is a key channel for winning over 1 billion new consumers. This market, present around the world, could be considered as a 'sixth continent,' " stated Jean-Paul Agon, chairman and chief executive officer of L'Oreal Group. "L'Oreal already has extensive expertise and strong relationships with client retailers and has high ambition for the future of the channel."
Plans call for Barbara Lavernos, managing director of L'Oreal Group Travel Retail, to head the Group Travel Retail Division worldwide. She will report to Nicolas Hieronimus, president of Selective Divisions. The new division will be based in the Paris suburb of Levallois.
"The creation of the new Group Travel Retail division demonstrates our confidence in the huge potential of this channel," Hieronimus commented. " From now on, all of the group's major brands will have the opportunity to develop on this 'sixth continent.' "