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Dissecting the Ever-Expanding Airport Activation

Published September 12, 2024
Published September 12, 2024
Sol de Janeiro

High-profile promotions (HPPs) and other attention-grabbing activities by beauty brands at airports are increasing—and these marketing and sales projects appear to have also been stepped up in scale since the pandemic.

One reason airport activations have become bigger is because the major beauty multinationals like Coty, L’Oréal, Estée Lauder, and LVMH’s beauty division are fighting it out for share of sales in a travel market that was decimated by Covid-19. The channel is recovering, but it is taking a while.

In Europe, passenger traffic has only just topped 2019 levels—that means almost five years of lost revenue. In July, LVMH admitted that international travel had only “partially recovered” in Europe and important locations like Hong Kong and Macau. It’s therefore not surprising that brands and retailers want to claw revenue back—and increasing average transaction values (ATVs) from every passenger has become a priority. Which is where HPPs can help.

France-based Elba Group—which specializes in marketing and visual merchandising in luxury and selective distribution channels including travel retail—has seen the promotions uptick; so much so that it is on an acquisition path to be better represented in all global regions.

Mathieu Vazart, who heads up the company’s global travel channel (GTR), said, “Travel retail has been fantastic for us, opening many new doors globally since the brands’ GTR teams are small but managing large regions. So they need key partners with global yet local support due to sustainability priorities. This led us into a strategic global growth plan, needing production sites around the world to support our clients.”

Preempting Demand

BeautyMatter understands that acquisitions will be finalized by this fall, taking Elba’s production presence into Asia-Pacific, Middle East, and North America with a total of 18 factories, including five pre-existing in France and one in Romania. New country targets will be China, Vietnam, Malaysia, and Australia in Asia; the United Arab Emirates and Saudi Arabia in the Middle East; and the US, UK, Netherlands, Spain, Portugal, and Turkey elsewhere.

Beauty represents about 70% of Elba’s turnover of which GTR makes up 30%. The company has created a string of beauty outposts including Coty’s Orveda at La Samaritaine and Maison Francis Kurkdjian at Le Bon Marché, both LVMH-owned retailers in Paris; Dries van Noten in Amsterdam; and L’Oréal pop-ups at Paris Charles de Gaulle Airport.

Targeting the United States will put Elba up against another player in the market: Propelle + Konnect, which chiefly operates in North America. The company has also been stepping up its airport animations with big beauty brands including the likes of Burberry, Dior, Gucci, and Marc Jacobs.

Throughout July, Armani hosted an experience using a vending machine to feature the Aqua Di Gio men’s fragrance at Montreal-Trudeau Airport in Canada. Also present were certified makeup artists using Armani's new makeup line to give travelers makeovers. The focus was the brand’s Cheek Tint and Luminous Silk liquid blush. Another July activation in the airport was Givenchy’s pop-up in pink and black decor to match the colors of its Irresistible eau de parfum.

Making a Connection

Propelle + Konnect’s founder, Allison Grodd, commented, “Beauty pop-ups allow brands to forge deeper connections with consumers through touch, sound, and often a takeaway. The Armani pop-up exemplified this with various interactive touchpoints: a vending machine dispensing fragrances, a personalized shopping experience with our brand ambassadors, and our makeup artist showcasing the latest Armani color cosmetic lines.”

A prior Dior activation throughout June at Montreal-Trudeau was a large-scale pop-up featuring the brand’s Toile De Jouy Sauvage print. Grodd said that such experiences “enhance brand loyalty and cultivate a dedicated following” if they are executed authentically.

In a statement, Propelle + Konnect added, “Dior’s pop-up with its branded print was picturesque … it would make anyone stop to take a picture.” The company is now also supporting Coty at Vancouver International Airport with three sales associates representing Gucci, Marc Jacobs, Burberry, and others.

Brands want more than consumers taking pictures; they want hard sales given how costly these HPP experiences can be. Propelle + Konnect said, “We are not able to discuss clients' revenue and profit, (however), success can be defined by customers’ responses to the event and engagement with the activation.”

Biggest-Ever Pop-Up

At L’Occitane Group, its fast-growing skincare brand, Sol de Janeiro, is in the midst of a global summer pop-up extravaganza in travel retail—its biggest ever—called "Unleash Your Summer Self!" Following huge product demand, it will surface at 105 airports with activations in 18 locations across the UK alone, including a mega pop-up at London Heathrow. Plans also include another 49 in Europe, 19 in Latin America, 14 in North America, and four each in Asia-Pacific, and the Middle East.

At Istanbul Airport the campaign, in partnership with Gebr. Heinemann and Unifree Duty Free, uses spectacular digital arches, giant lightboxes, and 150 digital screens to create an eye-catching environment. Complementing the airport activities is a social media push on Instagram (2.3 million followers) and Facebook (345,000 followers) using hyper-local geo-targeting to reach travelers in their pre-trip phase to amplify the campaign’s message.

Jens Peter Peuckert, Marketing Director at Gebr. Heinemann, said, “With its impressive social media presence, Sol de Janeiro will engage travelers before they even arrive at the airport. This immersive adventure fits perfectly with our goal of providing unforgettable experiences. We can't wait to see the fun and excitement this promotion will spark.”

It will be interesting to see what the benefits of such a large-scale travel retail promotion are, at the end of the summer season. One aspect is that Sol de Janeiro will very likely avert eyeballs away from competitor brands; another reason why more labels are joining in the FOMO rush to execute HPPs.

Propelle + Konnect’s Grodd, comments, “Showcasing a niche selection of new products, as opposed to the overwhelming options in a large department store, makes the experience more personal. While the likes of Christian Dior need no help with recognition, first-hand interactive experiences allow consumers to form a closer tie to the brand.”

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