BEAUTY TOPS RESULTS IN 2006
By Generation Research, 30 July 2007
The Travel Retail Perfumery Report (TRPR) was launched in 1994. Today, companies representing well over 90% of global duty free and travel retail beauty sales are included in the results with detailed performance analyses.
The results for 2006 have just (July 2007) been released online to TRPR subscribers.
Duty free and travel retail beauty (fragrances and cosmetics) sales are here defined to exclude diplomatic and military sales as well as some sales in low-tax territories (Samnaun, Livigno, etc).
In 2006 the beauty category yet again reaffirmed its status as the powerhouse segment of the travel retail business driving its sales up by +13.0% to US$ 8,328 million (equivalent to +13.8% at constant currencies) and a 29.5% share of all duty free and travel retail goods sold.
Here follows an excerpt of the 2007 TRPReport with some key numbers.
The Markets
Europe dominates the global travel retail perfumery market with a share of 46.2% (down from 47.4% in 2005. The second most important market is Asia Pacific with a 26.8% market share (26.6% in 2005). The Americas’ market share nudged up from 20.3% in 2005 to 20.5% in 2006. Sales in Africa & Middle surged by +28.5% resulting in that this region’s market share jumped from 5.7% in 2005 to 6.5% in 2006.
In 2006 the various markets evolved as follows:
|
Change %
Statistical in US$ |
Change %
Real in LCU |
| Africa & Middle East |
+28.5% |
+28.5% |
| Asia Pacific |
+13.9% |
+10.6% |
| The Americas |
+13.9% |
+13.9% |
| Europe |
+10.2% |
+9.4% |
|
| Total |
+13.0% |
+13.8% |
In 2006 South Korea, with beauty sales worth US$ 810.3 million, overtook the UK (US$ 782.9 million) as the world’s No. 1 country in terms of duty free and travel retail beauty sales. Beauty sales in the Middle East surged +36.1% resulting in that this territory advanced to the No. 4th rank in 2006 from No. 7 in 2005.
The Product Categories
40.8% of global duty free and travel retail beauty sales are represented by cosmetics. This is above the importance of Women’s Fragrances with a share of 37.8%. The share of Men’s Fragrances comes to 19.8% and that of Fragrance Coffrets 1.6%.
In 2006 the sales of the various categories evolved as:
|
Change %
Statistical in US$ |
Change %
Real in LCU |
| Skin Care |
+21.5%% |
+22.4% |
| Women’s Fragrances |
+11.6% |
+12.4% |
| Men’s Fragrances |
+10.1% |
+10.9% |
| Make-up |
+9.7% |
+10.5% |
| Fragrance Coffrets |
+0.2% |
+0.9% |
|
| Total |
+13.0% |
+13.8% |
The Channels
Well over 2/3 (70.2%) of global duty free and travel retail beauty sales are made at airports. Other Shops / Downtown shops make up a further 11.8%. Inflight sales represent 10.2% whilst Ferries at 4.4% and Border Shops / Free Zones at 3.3% make up the rest.
In 2006 the various channels performed as:
|
Change %
Statistical in US$ |
Change %
Real in LCU |
| Airlines |
+15.1% |
+15.9% |
| Airports |
+13.1% |
+13.9% |
| Other shops / Downtown shops |
+12.6% |
+13.4% |
| Border shops / Free zone |
+12.5% |
+13.3% |
| Ferries |
+8.1% |
+8.8% |
|
| Total |
+13.0% |
+13.8% |
Companies and Brands
The world’s Top 5 companies – L’Oréal, LVMH, Estée Lauder Companies, Procter & Gamble and Chanel – represent together more than 2/3 (67.0%) of global sales.
The Top 12 Brands in global duty free and travel retail beauty trade in 2006 remain the same as in 2005 despite some varying performances. They are:
- Lancôme
- Chanel
- Dior
- Estée Lauder
- Clinique
- Giorgio Armani
- Calvin Klein
- YSL
- Clarins
- Ralph Lauren
- Guerlain
- Givenchy
Further information on the TRPReport may be obtained from:
Generation Group
Phone: +46 660 10320
Email:
trpr@generation.se