Our new Op-Ed series* features the views of Vincent McDermott, Founder and Director of Dublin-based TR Partners, a new enterprise formed last October.
The course of the world has changed due to the coronavirus pandemic. Industry has been affected in a way that was not even imaginable only six months ago.
The beauty industry has also spun on its heels, as import and export have been challenged. Moreover, with little to do and nowhere to go, people have changed their overall shopping behaviour and how they interact with brands, at home.
Cosmetics have taken a hit, specifically lip and eye, while wellbeing categories such as skincare and health have seen a significant increase in sales. Although category trends such as these might change over the short term, the new brands that are emerging are here to stay.
Consumers are approaching test and learn through online content and are being supported by innovators such as Huda Beauty, when it comes to the products they try and buy.
In travel retail, while the industry has slowed down, it is important to understand these changes in trend and the new brands that are emerging as a direct result.
Indie brands have started to gather a lot of momentum and there have been some major acquisitions. Large companies are looking to get closer to customer segments that are not being served through their existing portfolio of brands, in an industry that is changing ever so quickly.
There has been a lot of conversation in travel retail circles on how to consolidate categories and to minimise impact on balance sheets. However it is important not to forget the customer along with what have they been shopping for over these past few months.
[Click on the icon to listen to Vincent McDermott talk to Martin Moodie in our recent In Crisis – Travel Retail Voices podcast series]
According to Generation Research, the beauty category in travel retail accounts for 40% of the total industry’s sales or US$30 billion. Even with a full return to business, there is no guarantee that this will be replicated. The offer in stores needs to evolve just as much as the customer has over these past few months and beyond.
“Change is the law of life and those who look only to the past or present are certain to miss the future.” — John F. Kennedy
*Footnote: Would you like to contribute to Moodie Davitt Op-Ed? Send your pitch to Martin@MoodieDavittReport.com
