BW Confidential - Issue #9 - March/April 2012 - (Page 68)

Travel retail credit: istock Too good to last? T Americas regional overview Travel retail in Latin America is seeing good growth, especially in the beauty category. But will boom times in the region last? by Kevin Rozario ravel and sales data emerging from Latin America are seductive to duty-free executives. According to the World Tourism Organization (UNWTO), in 2011 international tourist arrivals in South America were up 10% for the second consecutive year, easily out-performing Central America and the Caribbean (both +4%), and North America (+3%). Driving the growth has been intra-regional travel by Brazilians who, like the Chinese, are regarded as a nation that travels to shop (see article p.70). Nationals from these two markets lead the rankings for increased spending: China (+38%) and Brazil (+32%). Miami-based Essence Corp, which acts as the regional sales and marketing office of Clarins Group and also has Burberry, Elizabeth Arden, and BPI’s brands in its portfolio, has seen broad-based sales development. Antoine Bona, head of Americas travel retail says that Chile, Argentina, Brazil, Uruguay, and Paraguay showed the strongest growth in 2011. In terms of nationalities, apart from the 68 seemingly ubiquitous Brazilians, Bona says: “Eastern Europeans, Chinese, and Russians are also strong, and in order to target them we “ We have begun to talk more directly to the consumer. We are also increasing our investment in inflight-media, as a majority of sales in Brazil take place on arrival The border locations of Uruguay-Brazil, Paraguay-Brazil and Argentina-Brazil have also been cited as strong. Dutch group Colorful Licenses, which represents the Oilily brand in the duty-free beauty business, travel retail manager Daniel Strobino says: “In Latin America the key domestic markets for us are Mexico, Colombia and Brazil.” Majors drive growth This is all good news for perfumes and cosmetics companies, given that beauty is the biggest category for the duty-free channel in this region. In beauty, it is the major brands from multi-national groups that are driving growth. At World Duty Free Group, which operates at nine airport or port locations in five countries, the most important of which is Mexico, a beauty spokesperson says: “All our Latin American markets have performed well for us. In terms of brands, Paco Rabanne, Giorgio Armani, Lancôme, Estée Lauder, and Marc March-April 2012 - N°9 - BW Confidential L’Oréal luxury goods travel retail Americas Biotherm, YSL & Kiehl’s division manager Gabriella Rodriguez make sure our marketing strategies are in line with those in their local markets.” ”

Table of Contents for the Digital Edition of BW Confidential - Issue #9 - March/April 2012

Cover
Comment
Update - Brand & retail news recap
- Companies on the move
Take note - Market facts, figures & trends
Best of BW - Highlights from our e-publication
Launches - The latest in fragrance, skincare & make-up
Interview - HSN gm of beauty & merchandising strategy Betsy Olum
Insight: Make-up - Category overview
- Nails
- Retailing
- The latest trends
Wellness - Online marketing
- Spa case studies
Retail - Pos technologies
- Store concepts
Digital - Social media strategies
Market watch: Brazil fragrance - Country overview
- Fragrance industry roundtable
- Prestige fragrance retailing
Strategy spotlight - Case studies to inspire
Travel retail - Americas regional overview
- Brazilian travelers
- Interview: Nuance Group North America...... Andrew Rattner
Radar - Six up-and-coming beauty brands
Packaging - Electronics in beauty packs
- Latest innovations
Last word - Crépuscule ceo Christophe Lerouge & creative director Olivier Boré

BW Confidential - Issue #9 - March/April 2012