L’Oreal’s travel unit annual results

Global beauty player L’Oréal’s travel retail business has enjoyed a strong financial year in 2016, according to its annual report, and describes itself as the number one leader in travel retail.

Vincent Boinay, Managing Director L’Oréal Travel Retail, noted that despite a ‘highly volatile’ global market, it enjoyed a good year, particularly thanks to investment in distribution channels.

“L’Oréal Travel Retail had a good year and strengthened its leadership in the distribution channel," he confirmed. “Digital technology is transforming and galvanising Travel Retail, particularly where Millennials are concerned.

“The channel is also becoming more accessible thanks to the development of low-cost airlines, and is growing to handle the surge of new middle class consumers – especially Chinese customers , whose numbers are slated to double by 2023.”

Make up: up front

The company states that make up was its most dynamic 2016 category, with all L’Oréal’s brands contributing to this growth.

This was seen particularly in Asia, where Yves Saint Laurent and Giorgio Armani proving particularly popular.

The lip segment is enjoying strong success on a worldwide scale, with Lancome and Shu Uemura spearheading those sales.

Fragrance helps market share gains

The company notes that although the travel retail market has been ‘lacklustre’ worldwide, L’Oréal was able to strengthen its positions with high-end fragrance.

Perfume helped to boost sales of women’s fragrances, particularly in Europe, and has been very successful with Asian consumers,” it noted of the new Yves Saint Laurent fragrance, Mon Paris, which had a global launch.

Men’s grooming, dermocosmetics and luxury hair care were all other segments that L’Oréal picked out as supporting its performance in travel retail across 2016. Its report overview can be accessed here.