Mapping the global Chinese duty-free shopper, Baby Boomers and Gen Xers propel sales of night skincare, all markets fire for L'Oréal, and Yoox Net-A-Porter sells major stake.
Mapping the global Chinese duty-free shopper
Australia introduced three year, multiple entry visas for Chinese tourists last year and numbers soared past the one million mark. The strategy is poised to pay off even more handsomely, reveals the 2016 Global Shopper Report: China Edition from Global Blue, the tourism shopping refund tracker.
More than 81 per cent of Chinese travellers plan to shop abroad this year, and Australia ticks two important boxes. A destination's safety is top of mind for 56 per cent of Chinese travellers, and 22 per cent finger the ease of obtaining a visa as a strong influence in deciding where to go. The report also underlines the fact that more than 70 per cent of Chinese travellers intend to buy beauty and personal care products.
According to Global Blue, 2016 has not performed as well as 2015 to date. Last year, duty-free sales to Chinese travellers jumped 58 per cent. China remains the number one market in travel retail, generating a third of global tax-free revenues. The year is young, though, and the two busiest months are yet to come. May is the month when Chinese travellers flock to South, Korea, Japan and Europe. While October is a popular month to head for Australia and Singapore.
In spite of the terrorist attacks and refugee crisis in Europe, 41 per cent of Chinese travellers are planning visits to four key European countries - France, followed by Germany, Italy and the UK. South Korea holds the number one ranking in Asia, with Japan a very close second.
What's important when Chinese shoppers arrive in every country? Top of the most wanted list is a variety of shopping malls and retail outlets, followed by the availability of major international brands, Mandarin-speaking counter staff and in-store WiFi, says Global Blue. In countries like Australia where visiting Chinese have friends and family, local ties are crucial in influencing shopping decisions.
Baby Boomers and Gen Xers propel sales of night skincare
In yet another example of how Korea has become the leading trendsetter in global beauty, the night skincare market has exploded over the past year. Brands such as Elizabeth Arden, Garnier, , and more have launched a steady stream of new generation overnight masks and treatments.
The importance of beauty sleep has long been recognised in many cultures, but the Korean concept of the "Golden Hour" has reinvigorated the night skincare market. Koreans believe that the hours between 10pm and 2am are the prime time for skin cells from head to toe to regenerate. To have a ghost of a chance of achieving brighter, clearer skin, a skincare routine must begin at 10pm and you should fall asleep - not merely be in bed - by midnight to get a minium of two hours complete shut-eye in the early morning.
It's a message that's resounding strongly in all markets, says Technavio, who expect the global night skincare market to reach US$9.8 billion between 2016 and 2020. Baby Boomers and Gen Xers are leading the charge, notes the researcher, and the Asia/Pacific region is the number one market. Because of a stronger inherent promise - waking up with better skin - women are prepared to pay a premium for overnight masks and creams, notes Technavio.
All markets fire for L'Oréal
With all eyes focused on China, L'Oréal defied analysts expectations by posting a global increase in sales of 1.8 per cent to 6.5 billion euros (AUD$9.47 billion) for the first quarter of the year. Gains in mature markets such as North America and Western Europe more than offset the effects of a strengthening euro and slowing growth in emerging markets.
L'Oréal Consumer Products Division recorded the best quarterly results for nearly three years, says Jean-Paul Agon, Chairman and CEO of L'Oréal. "L'Oréal Luxe started the year well in line with expectations, despite the difficult comparison base in Hong Kong and the Travel Retail channel, and is continuing to roll out its brand portfolio worldwide. Sales in the Professional Products and Active Cosmetics Division (La Roche-Posay, Vichy etc) should strengthen in coming quarters".
NYX Professional Makeup and Maybelline New York were the star performers in the stronger North American market. Other dynamic brands included Urban Decay, Yves Saint Laurent, , and SkinCeuticals. The group's digital acceleration resulted in a growth of 35 per cent in e-commerce revenues, says Agon.
Yoox Net-A-Porter sells major stake
Mohammed Alabbar, widely acknowledged as a major force behind Dubai's economic growth, is the man behind The Dubai Mall - the 10th largest shopping mall in the world. Apart from this flagship asset, as Chairman of Emaar Properties, the energetic entrepreneur also invests in Asia and Africa. With a strong emphasis on exclusive and luxury retailing, Alabbar Enterprises has taken a 100 million euro (AUD$145.7 million) stake in Yoox Net-A-Porter - about 4 per cent of the company.
The Yoox Group, a global online retailer for prestige fashion and luxury brands, completed its merger with Net-A-Porter, which bills itself as the premier online luxury fashion destination, late last year. The e-commerce giant delivers to 100 countries, including Australia. The involvement by Alabbar Enterpirses signals an increased focus on the rapidly growing Middle Eastern market for fashion and other prestige goods.
Snippets from the wires
- Sales of pirated and counterfeit goods have more than doubled over the past eight years, reports the OECD. China is the largest producer of counterfeit products, and the market for fake fashion, accessories and cosmetics has climbed to US$461 billion a year - up from US$200 billion in 2008.
- Dunhill Icon, the prestige men's fragrance, has lived up to its promise of kickstarting a new era in fragrance for the luxe Brit brand. Last week, it picked up a FiFi d'Or award at the 24th Fragrance Foundation Awards in Paris. A coveted gong to add to its formidable collection of the Arabian Fragrance Oscar, GQ Best Male Fragrance of the Year, Glamour 2016 Best Men's Fragrance and Prix de Beaute Award.
- In the first major move since private equity firm Cerberus took over 's North American division, J. Scott White has been appointed as CEO from this week. White's resumé includes strategic positions at P&G and Abbott Laboratories, the global healthcare company with annual revenues of US$20 billion.
- AmorePacific is leaving no stone unturned in its bid to break into the exclusive "club" of the world's top 10 beauty companies. The Korean giant has launched its first international online shopping site, accessing consumers in 27 countries. In addition to core markets in the US, Europe and the Asia/Pacific region, AmorePacific ism also hoping to springboard sales in India, the Midde East and South America.
