In this guest column, Shiseido Travel Retail Vice-President of Marketing and Innovation Elisabeth Jouguelet discusses the changing tides of consumer engagement in travel retail and the steps that the beauty house is taking to stay relevant to the consumer.
Globalisation and digitalisation have had a major influence on consumer behaviour; placing consumers in the driver’s seat when it comes to what, when and how they purchase. This has real implications for how brand owners like Shiseido Travel Retail need to adapt marketing strategies in order to stay relevant and build meaningful relationships with consumers. Marketing is more than just selling a product – it is selling innovation and inspiration; it is responding to a need state, and aligning brand values with individual values. It is about creating an emotional connection with consumers and creating social advocacy for a brand in a way that really speaks to consumers.
So, how do we do this in travel retail? As a start, we have to truly listen to our consumers, put them at the centre of our strategies and meet them at every stage of their journey.
The diversity of the travel retail consumer is where data analytics can really play a key role in helping companies to stay ahead of the game. As consumers become more demanding, well-informed, digital-savvy and, importantly, more conscious of the way that they are consuming products and services, it is important to be responsive to their changing needs and desires. Insights driven by data is the foundation of our strategy at Shiseido Travel Retail. Our dedicated Consumer & Market Intelligence (CMI) team truly puts global shoppers at the heart of our business, enabling us to devise strategies to engage and connect at every consumer touchpoint, whether it is through tangibles such as our products, or more intangible forms such as platforms and values.
“The incredible physical stores and pop-ups we see appearing across the world of travel retail play a vital role in our digitalised world.”
Platforms: Blending online and offline
Providing consumers with an omnichannel experience has become the standard way of engagement as more companies blend digital and physical experiences in a seamlessly-connected, phygital ecosystem. It goes without saying that digital and ecommerce platforms are the new norm in today’s shopping environment and often the first touch-point for today’s hyperconnected shoppers. The benefits are clear – convenience, accessibility and an expansive product range – and it is encouraging to see digital picking up in travel retail.
Still, a true phygital experience cannot be achieved without the offline – the incredible physical stores and pop-ups we see appearing across the world of travel retail play a vital role in our digitalised world. They allow us to offer something that cannot be replicated online: expert advice from consultants, product quality assurance, personalised service and a better brand experience. What has stayed constant over time is that consumers still want an immersive and personalised experience, but the change is that the online and offline experiences need to merge and complement each other.
Physical spaces, when combined with digital technologies, can provide an innovative medium for brands to live their stories instead of simply telling them. This is embodied by the Shiseido Forest Valley and Sense art installation at Jewel Changi Airport, where consumers are actively and fully immersed in the brand experience through their senses. Similarly, retailers that can successfully merge digital with accurate data will be able to bring to life stories that can speak to each consumer.
Products: Natural Beauty
Through our research, we have found that natural products are in. Makeup, the fastest-growing category in beauty, is now seeing a slowdown in sales as consumers embrace their natural beauty and seek to futureproof their skin with premium skincare. We are addressing this global consumer trend with our diverse portfolio: our skincare brands offer long-term solutions to slow down the ageing of the skin, while some makeup brands in our repertoire focus on a natural look.
Skincare brands such as Shiseido, Clé de Peau Beauté and Elixir emphasise the importance of a strong and healthy skin base that keeps the user looking good decades down the road. We have also taken steps to connect with our target audience better. Clé de Peau Beauté has engaged Felicity Jones and Zhang Ziyi as brand ambassadors, as both celebrities embody the brand’s ideals and are able to give our female consumers a sense of empowerment, which we are very passionate about at Shiseido. Some of our makeup brands exemplify the natural look: Laura Mercier was created on the basis of a ‘Flawless Face’ philosophy while bareMinerals promotes clean beauty with its natural, mineral-based products.
Values: Protect the Planet
In line with this trend towards naturality is the rise of the sustainability movement as consumers become more aware of the environmental impact of their purchases. For some, it has become part of their value systems and it is vital that brands connect with them on this level. As much as brands and companies can promote functional or experiential benefits, the most successful ones are those whose values are aligned with the values of their consumers.
Shiseido’s respect for the planet and society is rooted in our DNA. The name ‘Shiseido’ (資生堂) originated from a passage in the Chinese classic I Ching (Book of Changes) which says: “Praise the virtues of the Earth, which nurtures new life and brings forth significant values.” As a Group, we are taking actions to create positive social impact and a greener future, staying true to our mission ‘Beauty Innovations for a Better World’.
In essence, there are many areas where we can enhance our consumer strategies in the constantly changing travel retail landscape. We must place consumers at the heart of our marketing by listening to and really understanding what they want so that we stay at the forefront of their minds. I can’t stress enough how important consumer data is to our longevity, and I believe we can achieve a lot more as a channel if we work closely together with our retail partners, airports and airlines to generate deeper consumer insights that will feed into our strategies.
