Niche Beauty
The niche beauty opportunity – view from the retailer community
Niche beauty brands are creating an ever-growing impact in the travel retail channel, especially as Millennial and Gen Z consumers generate increasing influence in the market and as key social values such as sustainability escalate in importance. We present a special report on this high-growth sector, beginning with the all-important retailer view. Here and in the pages that follow, senior executives from DFS Group, Dubai Duty Free, Dufry, Extime Duty Free, Gebr. Heinemann and Aer Rianta International weigh in on the role and importance of niche beauty and fragrance brands, as the once fledgling sub-category builds momentum with travelling consumers. By Hannah Tan-Gillies.
How do you view the opportunity to build niche beauty brands as a part of your offer and what dynamics are driving this?
DFS Group Senior Vice President | Global Merchandising Amael Blain: We know that Chinese consumers have expanded their beauty repertoire and are not just looking for the same traditional brands. They are now looking for more niche and lesser-known beauty brands, which is why DFS has been and will continue to adapt our beauty stores and offer to satisfy these discerning beauty customers. As an increasing number of consumers become more selective with their beauty products, we are committed to bringing even more relevant brands, products and ranges into our assortments and stores.
Amael Blain: Selective approach
A haven for newness and innovation: T Galleria Beauty by DFS, Galaxy Macau
Sharon Beecham: Elevating the image
Dubai Duty Free Senior Vice President Purchasing Sharon Beecham: Since there is a growing demand for premium products being sold across a number of categories, we try to expand the exclusive offers and enhance the shopping environment where these products are being sold in Dubai Duty Free. When we refer to niche beauty, normally it is premium perfumery that represents a major part of it.
These perfumes have higher price tags due to limited production, and customers are usually aware of this. Many aspire to own these products. To a certain extent, growing disposable incomes allow customers to pay extra and buy something they consider special.
The customer who buys niche perfumery is normally looking for uniqueness, scent complexity, longevity, quality ingredients, brand differentiation and personalised service. Niche perfumes are perceived as creative artworks and masterpieces, often with limited availability.
These perfumes are normally available only in selected doors globally. Therefore, offering a certain collection or brand reflects the status of the shop where it is being sold. We aim to be that selected door where this product is exclusively sold as it elevates Dubai Duty Free's image.
Dubai Duty Free: Beauty is the leading category by sales value, with niche beauty a fast-growing element
Dufry Global Brand Manager Luxury Emilie Kotnarovsky: Perfumes & cosmetics continues to be a prevalent category in travel retail thanks to the wealth of exclusive products, novelties, limited editions and unique promotions that are continually being introduced.
As part of this, we are seeing a strong level of interest from customers – especially the Gen Z demographic – for more niche, indie brands and digitalisation. Many brands are linked to high profile influencers who have a strong social media presence that connects directly with younger consumers.
However, niche brands also have a wider demographic appeal as well, as they tend to embrace ethical and sustainable USPs, thereby offering consumers a choice of products that have more environmentally friendly packaging, are refillable, sustainably sourced, cruelty free, or incorporate natural ingredients. These are all important areas of interest for our customers and also for Dufry, as a responsible global travel experience business.
To best serve our customers, we have adapted our beauty strategy by identifying and introducing more than 40 new brands to fit with customer preferences that have drastically evolved overall. We will continue our innovation journey in 2023 with the aim of proposing the most desirable and appealing brand portfolio to our customers and making travellers happier.
Emilie Kotnarovsky: Wide brand appeal includes embracing ethical and sustainable USPs
Britta Hoffmann: Building spectacular assortments
Gebr. Heinemann Director of Purchasing Perfume & Cosmetics Britta Hoffman: We want to provide consumers with exclusive products that are unique and difficult to find. There is an increasing request for this type of products not only in the perfume & cosmetics category. Niche fragrances are booming, offering scents that are exhilarating and one of a kind. We see that niche fragrance brands are in high demand and growing strongly across all our channels.
Heinemann will continue to expand the niche beauty subcategory as it differentiates travel retail’s offering from domestic and online competition and is in line with our value proposition to provide travellers with a spectacular assortment. In order to achieve our goal, we need the support of the industry to create exciting activations and unforgettable experiences for our travellers.
Chloé Atelier Des Fleurs catchs the eye with Gebr. Heinemann at Copenhagen Airport
Extime Duty Free Marketing Director Séverine Patureau: Innovation is the natural driver of beauty. It has always been essential to us to dedicate spaces for this purpose, but today, innovation is at the core of the mission and values of Extime. The airport is an extra-time place, where our passengers expect to find extraordinary products. Our selection, by its variety and innovation, enhances the Ultimate Paris Shopping experience that we want to create for our passengers.
For several years, we have been developing a concept named ‘Parfums d’Alcôves’, intended to incubate niche perfumery brands. This has been a tremendous success over the years, at Terminal 2E Hall K and 2E Hall L, Terminal AC, and more recently at Terminal 1. This is how we have introduced such inspiring brands as Diptyque, Fragonard, Penhaligon’s and Acqua di Parma. More recently, we have introduced the brand Maison Francis Kurkdjian, and there is no doubt that our Middle Eastern, American and even French customers will enjoy the expression and emotions that the brand brings to our perfume section.
Building on this success, we are currently working on a thematic skincare concept dedicated to clean beauty in order to bring out innovative brands such as Clé de Peau Beauté, Augustinus Bader and the unmissable Egyptian Magic cream.
Séverine Patureau: A drive to incubate niche brands
Niche beauty brands play an increasingly prominent role at Extime Duty Free Paris
Anne Marie Brett: Limited distribution helps build broad interest in niche brands
ARI Global Buying Manager Beauty Anne Marie Brett: As a business we always challenge ourselves to bring new-to-market brands to our stores – not just from a travel retail perspective but also for the domestic market. Two great examples of this in our Dublin location have been Le Labo, which was the first brand we worked with this strategy on, and more recently Charlotte Tilbury in makeup – both of which were EMEA firsts. The response to these brand introductions has been phenomenal so far, and we continue this first-to-market strategy across the skincare and makeup categories.
The fact that niche brands tend to have limited distribution in many markets creates a point of interest for our passengers. We’ve seen great success recently with the introduction of brands such as Creed, Diptyque, Memo and Penhaligons across several locations.
Anne Marie Brett (centre) joins ARI senior colleagues to mark the opening of Charlotte Tilbury at The Loop, Dublin Airport, including Chief Commercial Officer and Deputy CEO Anthony Kenny (left) and Global Head of Beauty Deirdre Devaney (second right)
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The Moodie Davitt eZine Issue 323 | 5 May 2023
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