Travel Retail

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Overview

Travel Retail

The Joys of Beauty While Traveling

Travel Retail, one of our highest growth channels, covers the world of duty-free environments including airports, airlines, cruises, downtown locations and border shops. More than 1 billion international travelers pass through airports each year, and that number is expected to grow 5% annually, according to industry projections.

As the global leader in prestige makeup and skin care in Travel Retail, we are expanding into new airports, increasing the number of brands, products and services we offer to travelers and converting more travelers into buyers.

By studying global travel patterns, we are able to frequently interact with our consumers in their native language and appeal to them with products they find especially desirable. We have strategies focused on consumers who purchase in this channel, in stores at their travel destinations or when they return to their home market. In addition, we have identified opportunities to expand our online portfolio around the world, resulting in growth in this channel.

Emerging Markets

We are particularly focused on travel corridors that are frequented by consumers from key emerging markets. We recognize that many consumers from emerging markets are introduced to our brands while traveling or abroad. Travel Retail continues to be an important cornerstone of our strategy to reach these consumers, particularly as destinations and traffic patterns shift.

We are continuously developing services to pamper travelers who are pressed for time. For example, Estée Lauder introduced Three-Minute Beauty including the popular Fatigue Fighter, which teaches travelers four simple steps for brightening the eye area. Similarly, La Mer’s Arrive Hydrated skin care regimen suggests specific La Mer products for use while preboarding, as well as for a pampering pick-me-up during flights.

Q&A with Olivier Bottrie, President, Travel Retail Worldwide

How has the Travel Retail channel changed during your tenure?

The big game-changer has been the surge of mainland Chinese travelers. Their appetite to learn about and visit the world and their willingness to shop when they travel have provided the industry with a fantastic opportunity.

What are the driving forces impacting the changes in Travel Retail?

Travel Retail is a volatile channel. Anything that affects travel impacts us immediately. The growing middle class in many emerging markets provides the channel with continuous traffic growth. We need to optimize the business potential they represent and make the channel a relevant place for them to buy their beauty products now and in the future.

To what do you attribute the Company's leadership position in the Travel Retail channel?

The Estée Lauder Companies has a fantastic brand portfolio. The reputation of our team is excellent in the industry, which cites our integrity, fairness and professionalism. We want to lead as much in business performance as in shaping the future of the industry. Thought leadership is a key component of our strategy.

Can you share a significant accomplishment (personal or professional) achieved in your current role?

In the aftermath of the 2010 earthquake that struck Haiti, I co-founded Hand in Hand for Haiti, a 501(c)(3) public charity established to fund and run a new school of excellence in the city of Saint-Marc. The school, which opened in October 2011, provides free trilingual education (French, English, Creole) to several hundred children from diverse economic and social backgrounds. The school includes a clinic, a library, a music building, a sports complex and a building dedicated to computers. It plays an active role in the community's economic, cultural, social and educational development.

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The Estée Lauder Companies' Travel Retail

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