Niche Beauty
Travel retailers weigh on the niche beauty opportunity (II)
Do you see this sector evolving further and which sub-categories within niche beauty carry most appeal to your consumer audience?
Amael Blain (DFS Group): We believe that niche beauty brands will continue to appeal to a broader group of consumers and have already seen the artisanal fragrance category growing significantly since the opening of international borders. Aside from the expansion of our customers’ beauty repertoire, they are also broadening into additional beauty categories such as haircare, wellness and clean beauty.
DFS sees a broadening of the beauty business to encompass artisanal fragrances and other sub-categories
Sharon Beecham (Dubai Duty Free) : In 2022, our exclusive perfume collection sales grew by +27% compared to 2019, with a market share of 16.3% of the total perfume category. Most well-known brands have launched exclusive lines within their assortments. This allows them to cater to the luxury segment while maintaining the mainstream range. The perfumes with higher perfume oil concentrations, such as elixirs, extraits, and attars, have been launched as an expansion to the regular range for customers who are looking for longevity and premiumness. We have noticed that many brands added the large sizes of 150 ml and 200 ml at higher prices. This increases the basket value and enhances our premium offer.
Extending the range with hair and body mists, scented candles, soaps, and home diffusers would complete the ‘Maison’ concept and generate incremental sales as well.
Maison Christian Dior at Dubai Duty Free: A big success story since the Concourse B store opened in 2019
Emilie Kotnarovsky (Dufry) : Yes, most definitely – and for the reasons outlined above. In terms of sub-categories within niche beauty which carry most appeal for our customers, it’s very much skincare that leads the way with wellness/clean and natural ingredients, followed by colour cosmetics with make-up artists or celebrity brands, and then fragrances driven by high-end collections and exceptional creations.
We have defined a strong strategy to address these segments and new sub-categories by introducing new brands and implementing innovative, highly digitalised in-store concepts, including smart tools such as Virtual Try On for cosmetics, or Fragrance Finder solutions that are aligned with the different niche beauty brands’ very consumer-centric strategies. In addition, Dufry continues to develop its digitalisation in collaboration with our long-standing partners and niche brands through CRM digital programmes designed to elevate the customer experience, maximise pre-travel interaction and meet the ongoing evolution of consumer trends.
In terms of execution at store level, we adapt our model and approach to the new consumer reality through the implementation of specialty store concepts, which are highly focused on a specific category or theme. We have also introduced disruptive concepts within our main stores, regrouping brands of a specific segment in the same place for example.
Beauty is a powerhouse of the Dufry business in Brazil (Brasilia Airport pictured)
Britta Hoffmann (Gebr. Heinemann) : Niche is a sector that is growing at a faster pace than others – and we believe the niche trend will continue. As mentioned above, niche fragrances are booming, largely reflecting consumers’ desire for unique and exclusive products that stand out from the rest. They are also increasingly asking for offers like these in other categories.
For example, we see growing demand for premium skin care products, such as Dr. Barbara Sturm and Augustinus Bader, but also for high-end lines from well-known brands, such as fragrance collections from Gucci Alchemist’s Garden or Guerlain L’Art & La Matière.
Late last year, Guerlain partnered with Unifree and Gebr. Heinemann to unveil the ‘Hive of Wonders’ pop-up campaign at Istanbul Airport. The striking animations highlight Guerlain’s L’Art & La Matière and Aqua Allegoria fragrance lines, alongside its Abeille Royale skincare collection and holiday makeup collection.
Séverine Patureau (Extime Duty Free) : At Paris Airport and since the pandemic, niche beauty has continued to grow, mainly in perfumes. As per detailed previously, innovation, free expression and emotions are essentials, but the French savoir-faire is definitely a must-have for our passengers too. Therefore, the growth of the category is reinforced by the success of the haute parfumerie collections of the major maisons de mode like Dior Collection Privée, Chanel Les Exclusifs and Hermès Hermessences.
A view of the magnificent beauty zone at Paris Charles de Gaulle T1
Anne Marie Brett (Aer Rianta International) : From a category perspective we are seeing lifestyle brands, and in particular home fragrance, having a big moment. People are continuing to stay in and entertain at home and therefore products such as candles and diffusers are proving to be a fantastic gifting option for our passengers.
As a buying team we strive to have the best edit for our customer in each individual location, and that means a focus on local brands to create a bespoke offering within the category. It allows us to create our signature sense of place, it offers customers a unique shopping experience in our stores and we’re also passionate about supporting local entrepreneurs and brands.
For example, in our Montreal and Quebec stores we range Lise Watier, a local makeup brand, while in Ireland we have introduced local skincare brands such as Pestle and Mortar and Skin Ingredients along with lifestyle brands such as La Bougie. The fast growing domestic make-up brand Aimee Connolly will also join us this summer.
Leading on beauty at The Loop walk-through store at Dublin Airport T2
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The Moodie Davitt eZine
Issue 323 | 5 May 2023
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