ASIA PACIFIC. Forget SARS – Asia travel retail is back on track. That’s the message from the L’Oréal group, which has seen its business in the region recover and in some cases even surpass last year’s results within the past month or so.
The group has been focusing on its Biotherm, Shu Uemura and Helena Rubinstein brands in particular. “Despite the problems with SARS, we have continued to install and renovate shops,” L’Oréal Produits de Luxe International marketing director travel retail worldwide Jean-Michel Bostroem (pictured) told The Moodie Report. “For example, in July we opened a new Biotherm boutique in Singapore Changi airport terminal two.
“In Asia, we finished 2002 with five doors for Biotherm and now we have 12. [Key openings include] Changi T2, DFS Galleria Scottswalk, Bangkok, Taiwan T2 and Kuala Lumpur. Next up is Shanghai, Beijing, Narita and Taiwan, not forgetting the renovation at Hong Kong International”¦We plan to have 20 points of sale by 2004.”
Inflight amenity kits are proving to be a useful way to raise Biotherm’s profile in the region. “We are doing good business with Biotherm-branded kits onboard Cathay Pacific,” Bostroem revealed. “These feature a selection of products, for men and women, in generous travel sizes”¦It’s a great way for the brand to be discovered by consumers.”
Meanwhile, Helena Rubinstein and Shu Uemura are both advancing steadily. “For Rubinstein, we are approaching 30 points of sale in travel retail worldwide, including a new counter in Tokyo Narita airport T1, and openings at Okinawa, Kansai South, downtown Bangkok, Guam and Taiwan T2,” Bostroem commented. “On Shu Uemura, we plan to have 12 points of sale by the end of the year. We are on the verge of opening DFS Sun Plaza in downtown Hong Kong. It’s a good location in-store; very prominent from the street which is great for visibility and brand image.”
Bostroem added: “We are in the process of fine-tuning the Shu Uemura model. It’s a big line, so we are streamlining the skus. It is best known for its make-up, but the skincare too is doing really well in certain locations; obviously in Asia the whitening line is important. And up to 15% of sales in travel retail are accounted for by brushes, which is meaningful business.”
Overall, the group is positive about prospects for the fourth quarter. “I think that by September we will be back to normal,” predicted Bostroem. “Most of the business has already bounced back, which is very encouraging. [During my recent trip to the region] I could practically see day-by-day how things were improving. South Korea in particular had not just recovered, but was booming. And in Guam/Saipan, Lancôme is about 12% up over last year. I believe that – barring any more disasters – the whole area will be experiencing positive growth by the end of the year.”
L’Oréal’s comprehensive second-half launch schedule should provide a further welcome boost. Lancôme pour Homme and Attraction (pictured), Emporio Armani Night and Amor Amor from Cacharel are just a few of the key product introductions which will make their presence felt throughout this autumn/winter season.
