Introduction: As travel retail shifts from a transactional space to a powerful discovery platform, Coty is redefining how beauty engages the travelling consumer.
Senior Vice President Global Travel Retail Mette Engell touches on recent cross-category launches and geographical expansion, as well as outlining how innovation, retailtainment and collaboration will drive the next wave of growth.
For Coty Senior Vice President Global Travel Retail Mette Engell, her return to travel retail comes at a “pivotal moment”. She views the channel as far more than a point-of-sale, but a stage for discovery where brands can inspire travellers, spark emotion and build deeper connections throughout the journey.
“I’m incredibly excited and happy to be back in travel retail, especially at such a pivotal moment,” Engell says. “I see this channel as a true discovery platform – a place where we can surprise and delight travellers.
“When I look at all the opportunities, it boils down to fulfilling travellers’ desire for discovery, surprise and self-expression and making the channel far more exciting than it has been in the past.
“We do that through not just the quality of our products but also everything that surrounds them: retailtainment, avant-premières, AI-driven digital interactions and, of course, driving meaningful engagement with consumers.
“Our job is to ensure travellers come into travel retail thinking, ‘What’s new here? What can I discover?’ That sense of excitement is what drives me.”
Tapping into treatonomics
The concept of travel retail as a discovery channel was first championed internally by Coty CEO Sue Y. Nabi, who described the channel as “a destination to discover newness” during the company’s recent earnings call.
She also coined the term ‘treatonomics’ to capture the growing appetite for fragrance across all price points, from mass to prestige.
It’s a sentiment Engell echoes and builds upon. She says: “Fragrance is a great example of treatonomics in action. It’s the fastest-growing category post-COVID both in travel retail and domestic markets, and we’ve seen a shift in how consumers use it. In the past, fragrance was about status; now it’s about self-indulgence, self-expression and pleasure.
“Coty is uniquely positioned here – fragrance is our territory and is a big part of our overall business. We offer products across the entire price spectrum, from US$5 to US$500, and with a wide variety of scent profiles to suit regional preferences.”
A key focus in treatonomics is capturing the attention of younger consumers, particularly Gen Alpha. Coty’s entry into the body category with Calvin Klein Body Mist is emblematic of this approach.
Engell explains: “We’ve recently entered the body mist category with Calvin Klein Body Mist. The body category is a US$7 billion segment with huge potential. When we launched in June, there was some initial concern about cannibalising existing fragrance sales or lowering basket size.
“However, we saw no cannibalisation and in fact witnessed strong engagement from Gen Alpha consumers and a high rate of multiple purchases.
“What’s really interesting is how Gen Alpha use these products. They use body mists in a more playful and experimental way, layering them with traditional fragrances or body lotions. It’s a very different usage dynamic from the past.”
Engell believes the category can also be a powerful recruitment driver. Coty sees an opportunity to lead and shape the emerging body mist category itself – turning it into a destination rather than a sub-segment.
“Body mist is a way to engage a consumer group that might not otherwise look at the brand,” Engell explains. “Calvin Klein is a great example – it’s a huge brand with a strong heritage since the 1980s, but the body mist allows us to speak directly to younger consumers and bring them into the franchise.
“We also see body mist as an opportunity to become category captain, not just within one brand but across our portfolio. We’re developing cross-brand solutions so that body mist becomes a category destination in itself rather than scattered by brand. There’s much more to come here.”
Coty is also innovating with formats and exclusives, such as an exciting “cross-category” solution coming soon.
Experience and cross-category synergies
While traffic has returned strongly to the channel, conversion remains an industry-wide challenge. For Engell, the answer lies in exclusivity, retailtainment and creative engagement that stops travellers in their tracks.
“It is all about discovery and exclusivity,” she says. “Our avant-première launches have been hugely successful: Burberry Goddess three years ago, Gucci Flora Gorgeous Orchid last year, and BOSS Bottled Beyond this year. The latter performed exceptionally well across all regions – even in markets where BOSS hasn’t historically been strong, like Asia and the USA, generating incredible results.
“Travellers love seeing products that are available only in travel retail – it drives engagement. Then we build on that with retailtainment and interaction. Stopping the traveller is the first step, and our beauty advisors play a key role in converting that engagement into sales.
“For example, with BOSS Bottled Beyond we gave away a fragranced bracelet to encourage people to return after trying it, and a lot of them came back to buy the scent. We also use digital tools such as selfie walls and Snapchat lenses to boost interaction.
“During the BOSS Bottled Beyond pre-launch, travellers were queuing to take photos with the giant BB logo. These experiences capture attention and open the door to conversion.”
Importantly Coty is also increasingly leveraging cross-category partnerships beyond beauty to deepen storytelling and enhance the traveller experience – from fashion houses to food & beverage brands.
Engell comments: “Cross-category activations are hugely valuable because they enrich the storytelling and deepen engagement. We’ve done this with Hugo Boss, Marc Jacobs and Burberry, where we brought fashion elements into our fragrance activations. Our recent Burberry Basecamp activation at Singapore Changi Airport in partnership with The Shilla Duty Free is an excellent example of this.
“We’re also exploring crossovers with F&B. For example, with Burberry in Shanghai, we offered a tea inspired by one of the fragrance’s key ingredients, connecting the scent to a sensory experience. What matters when conceiving these types of campaigns is how closely these collaborations align with the brand’s DNA.”
As competition for traveller attention intensifies, Coty is doubling down on the elements that transform browsing into buying. Experience, engagement and innovation sit at the heart of its strategy to convert footfall into sales.
“Elevating experiences is our number one priority,” Engell says. “We know we have outstanding fragrances from our expanding collections, such as Atelier des Fleurs, Hugo Boss Collection and Gucci Alchemist’s Garden. We also have more to come as we are getting ready to launch Jil Sander and have recently signed Etro and Marni and so we see ourselves as experts in fragrance collections.
“Of course, we have our icons, such as Gucci, Hugo Boss, Burberry, Calvin Klein and Chloé, and even more accessible segments such as David Beckham and Adidas. But to drive conversion, retailtainment and engagement are essential.
“We need to keep surprising and delighting passengers through experiences because this is what keeps them coming back to our channel.”
Regional momentum and white-space potential
Asia Pacific continues to be a strategic channel for Coty, with fragrance leading the charge and new white-space markets presenting significant opportunities.
Engell says: “We’re very pleased with our momentum in APAC. Fragrance is a strong growth driver there, and it’s our core strength. Last calendar year, we grew +26% in APAC compared to a market growth of +4%, so we’re gaining market share. We’re rolling out collections and other launches across the entire price ladder.
“Historically we’ve not been a big skincare player and so we’ve not been as heavily exposed to the challenges related to Daigou and other issues facing that category in China,” she adds.
“China remains subdued, but we’re seeing strong performance in Japan – boosted by inbound tourism and the weak yen – as well as in Korea and Thailand. So we are seeing momentum from across the entire region.
“There’s also huge potential in white-space markets like India, where fragrance culture is evolving and growing rapidly, and in regions like Brazil and Africa. In those areas we’re looking at how we can adapt our activations and retailtainment to better suit regional preferences.”
Lancaster and Coty’s skincare push
While fragrance remains the cornerstone, Coty is steadily building its presence in skincare, led by its Lancaster brand and anchored in decades of sun protection expertise.
“We’ve invested heavily in R&D to ensure very high efficacy in our products,” Engell notes. “Our focus has been Lancaster, particularly its Sun Beauty line, which has long held a strong position in Europe. We’ve now expanded it into APAC and the Americas, where we’re seeing excellent results.
“Sun protection is increasingly front-of-mind for consumers, especially with global warming. Asia has always been highly sophisticated in this area, but demand is rising elsewhere too.
“We’re bridging from suncare into skincare with our Sun Perfect line. We’ve launched skincare in APAC and opened around ten doors in Europe and the Americas, with promising results, including strong reception in Argentina. Skincare takes time to build, but we have a solid foundation with suncare and will continue to grow from there.”
Looking ahead: Innovation, experience and new categories
As Coty Travel Retail enters a new era of discovery and engagement, Engell is focused on innovating across categories, price points and geographies – with retailtainment and experience as the cornerstone of her approach.
“There’s significant room to grow in mature fragrance markets, especially through our fragrance collection business and across all price tiers – even down to US$5-US$10 products, which are highly relevant in many regions,” she explains.
“New categories such as body mists offer a fresh dimension for consumer engagement, and we’ll continue to innovate there. Geographically, APAC is a huge opportunity, and markets like India, Africa and Latin America are especially exciting.
“Ultimately, retailtainment and the ability to surprise and delight travellers are key to our success. I’m very optimistic – there’s an exciting future ahead for travel retail.” ✈
