Interview
The Rise of Dermocosmetics
L’Oréal Travel Retail Dermatological Beauty & Professional Products Divisions General Manager Anne-Laure Lecerf talks about the key drivers to La Roche-Posay’s – and the wider dermocosmetics category’s – meteoric rise in travel retail. She also underlines the brand’s commitment to offering ‘life-changing’ dermatological solutions to travellers everywhere.
L’Oréal Groupe’s first-half results, published last month, reveal encouraging momentum in Dermatological Beauty, with the division growing +29% and La Roche-Posay leading the charge.
That performance is reflected by the worldwide dermocosmetics market, which grew +9% in 2022, representing triple the growth of the skincare market.
According to Lecerf, the rise of the dermocosmetics category can be attributed to two key factors. She says: “First, the dermocosmetics market answers specific consumer needs, which will only expand. Consumers today are looking for not only beauty, but health within beauty.
“Today, there are 2 billion people who are suffering from some form of skin pathology. This population is increasing due to the various aggressors that are getting more and more prominent in our daily lives such as UV rays, pollution, stress and lack of sleep. Dermocosmetics can provide targeted, effective solutions to numerous skin issues as they use active ingredients and are backed by scientific research and clinical studies.
“Second, dermocosmetics products are prescribed by medical professionals such as dermatologists and other healthcare professionals. There has been a real acceleration in the dermocosmetics market since the COVID-19 crisis, as the trust in the endorsement of medical professionals has clearly risen.”
“All the brands in our Dermatological Beauty division are growing in travel retail” – Anne Laure Lecerf
Dermatological Beauty is the highest growing division within L'Oréal Groupe
In a move that affirms the growing importance of dermocosmetics, last year L’Oréal Groupe renamed its ‘Active Cosmetics’ Division to ‘Dermatological Beauty’. The change underlines the division’s link to dermatologists, paediatricians and pharmacists, highlighting the medical efficacy of the brands. The rebrand resonates particularly strongly for La Roche-Posay, which is the number one dermatologist-recommended brand globally.
This growth, says Lecerf, is reflected in the travel retail channel too. “The brands in our Dermatological Beauty division are all growing in travel retail. At a division level, we grew seven times faster than the travel retail skincare market in 2022 and have been growing six times faster this year.”
La Roche-Posay grew +22% in the second quarter of 2023
La Roche-Posay leads the way
While all of the division’s global brands grew by double digits, La Roche-Posay grew by +22% in Q2 of 2023. The brand, which was the division’s top growth driver, maintained strong momentum driven by Effaclar, Cicaplast and its breakthrough suncare innovation Anthelios UVMune 400.
In travel retail, La Roche-Posay is present in 120 airport and downtown duty free stores across 43 countries, offering a range of dermatologically tested skincare and suncare solutions that cater to every skin type.
As travellers in the post-pandemic landscape search for brands that offer efficacy, value and sustainability, La Roche-Posay plays a special role as both recruitment and growth driver in travel retail. In 2022, 42% of La Roche-Posay customers in travel retail were new to duty free, while 44% were new to the brand.
Lecerf says: “La Roche-Posay is the number one skincare brand prescribed by dermatologists worldwide, and the sixth biggest skincare brand in the total global skincare market. It grew two-and-a-half times faster than the growth of the wider dermocosmetics market, outpacing the market in almost all continents.”
Innovative products and professional services are the two key drivers of this acceleration, says Lecerf: “As a brand, we are dedicated to providing truly innovative products to travellers. Whether it’s UVMune 400 – our best-in-class sunscreen with exclusive long UVA filters that we launched in 2022, or our Cicaplast Baume B5+ – a true repair hero for all types of skin irritation and powered by microbiome science.
“These innovative ‘life-changing’ products are backed by concrete scientific studies on patients with different skin types and thus are recommended by medical professionals.
“It’s equally important to note that we provide a range of professional services to travellers across various touchpoints. Dermatologists and pharmacists feature throughout our permanent spaces all year long and play an important role in our animations too. They offer consultation and provide personalised skincare recommendations based on travellers’ skin issues.”
Dr Chen Juan teaches Hainan travellers how to best protect their skin against the sun
Purposeful pop-ups
Big beauty blockbuster pop-ups have become part and parcel of the travel retail landscape, particularly for L’Oréal Groupe. However, La Roche-Posay believes that pop-ups can be a tool for public health and should serve a dual function and offer both entertainment and education.
“Pop-ups are becoming indispensable for brands as these drive both engagement and recruitment. La Roche-Posay is no exception, but we do it always with our own twist that anchors the experience in our medical roots,” Lecerf explains.
“In July last year, at our ‘Anthelios Solar Lab’ pop-up in Haitang Bay, we invited local Chinese dermatologist Dr Chen Juan to host a sun-protection masterclass and present La Roche-Posay Scientific Director/Dermatologist Dr Delphine Kerob on the LED screen at the entrance.
“The two doctors gave shoppers at the cdf Mall a masterclass on photoprotection and highlighted the science behind the brand’s suncare products. The Derm Conference reinforced our credibility and appeal to travellers in Hainan. Thanks to this pop-up format and great collaboration with China Duty Free Group, 3,600 visitors visited the pop-up and learned all about solar science from La Roche-Posay.”
Looking ahead
All this bodes well for a brand enjoying such strong momentum in travel retail and beyond, but what is next for La Roche-Posay? According to Lecerf, it’s all about integrating beauty technology and tapping into the potential of under-developed skincare sub-categories. “First, we want to build the repair category – it is a true growth driver and already has proven success among Asian consumers thanks to Cicaplast.
“Second, we are developing the anti-acne category as acne is the number one skin issue around the world. La Roche-Posay is quite well-known for having a good anti-acne offer and is one of the only brands that have these products in travel retail. I believe this will help recruit new consumers to the channel.
“Third, we are focused on growing suncare,” she adds. “This category is particularly relevant in the channel given that we cater to leisure travellers. La Roche-Posay has the medical expertise in this category with UVMune 400 leading our offer.”
“I believe that professional services are our true point of differentiation,” she adds. “This is why, by the end of this year, we will be piloting a new skin diagnosis tool powered by L’Oréal’s in-house AI technology at key travel retail locations such as Paris Charles de Gaulle Airport and São Paolo Airport. In China, which is our biggest market, we also plan to roll out a skin diagnosis tool which will be built into WeChat,” she adds.
“We will also continue to upgrade our retail spaces with the latest visuals with a special focus on our signature blue cross. The new look will highlight our premiumness, medical anchorage and expertise to both consumers and retailers. As the brand is performing with stellar growth, we also aim to expand its geographic footprint. Our latest openings include new spaces in key Japanese airports – so watch this space.”
With dermocosmetics on the rise and La Roche-Posay leading the way, Lecerf believes that good, collaborative Trinity partnerships will help the brand unlock its true potential in the channel. She says: “La Roche-Posay has a true leadership position in the skincare market worldwide, and its performance in travel retail is undeniably outstanding, in terms of both sales and recruitment rate.
“To address this huge consumer appetite, we need a partner that can offer great location and space, so that the brand’s innovative products, authentic partnership with doctors and commitment to social and environmental causes can be even better leveraged in the channel.”
Spotlight Series - September 2023