Page 143 - EM - Export Magazine Perfumery Edition

R E P O R T

Most analysts concur that future success in travel retail depends over two years. As well as SIM cards, Orange also has mobile
upon the following factors: a sharper focus on operational banking services which are very important to African consumers.
efficiencies for sustainability, creating immersive retail In the two-year process of visiting airports and talking to their
experiences that blend the virtual and real world, and meeting operators, I discovered that the duty-free business could be doing
consumers where they are on or offline. Indeed, much is written better....Orange opened a door for me. Then, one of the biggest
about the larger travel retail markets, such as Asia. Yet, when it beauty players in the industry contacted me and explained the
comes to the travel retail landscape in Africa, little is known. And reorganization they were planning for Africa. It was L’Oréal and we
this is likely due to the fact that the market is small. signed an agreement for travel retail distribution in Africa. I had
While duty-free and travel retail sales grew, in Africa sales already built a 27-strong perfumes and cosmetics team. Today,
were reported at just over US$800 million in 2018 (Source: Africa represents a market of 5 billion in Fragrance sales.”
Generation Research). Given the region’s population (in relative
terms, 1.3 billion in 2018 Source: Worldometers) this was a On the African continent, Beaute Luxe
small fraction of the potential. By comparison, the neighboring set up a call and collect system with local
Middle East region with a population of 411 million (including telephone operators. Customers can
Egypt) generated over US$6.3 billion in sales in the same year. connect themselves on an app or a website
In fact, only 2% of African travelers are high spenders. at home to look at what products are
available so they can make an order, then
Despite these factors, the product will be ready and waiting for
David Dayan Founder and them at the airport. To support the economy and retailers,
President of Beaute Luxe, they offered payment maturity plans (up to 12 months) and
decided to penetrate the micro-credit arrangements.
market. One of travel retail’s
serial entrepreneurs and In another interview, Dayan explained further: “Though Africa is
best-known personalities, still a fragmented travel retail market, it’s resilient. Africa was the
Dayan successfully helped continent least affected by Covid (except for South Africa). We have
to introduce many brands hired four area managers to ensure solid coverage of the whole of
into the travel- retail channel, Africa. This was important so that we could run animations and
including Lacoste, La Maison pop-ups quickly and efficiently for L’Oréal, which created special
du Chocolat, Lancel, Nuxe, collections for Africa based on skin tones. Our job is to develop
Rituals, Vilebrequin, and David Dayan CEO Beaute Luxe those, with a focus on the brands Maybelline and L’Oréal Paris to
more. When entering Africa, start with before moving on to the luxury brands in the portfolio.”
he partnered with L’Oréal. Dayan hoped it will be a catalyst for
improving the poor travel retail sales to population ratio that has Dayan explains why he doesn’t think Africa is as risky as it may
existed in Africa. Dayan recruited several key names, including seem: “There is more risk in the local market. People don’t buy
familiar travel retail stalwarts. They include Vice President of there because they worry that products may be fake but they trust
Sales Jerome Blanchard (20 years in the channel with Gucci, Duty- the airport environment. This makes things interesting… I wouldn’t
Free Americas and Rémy Cointreau); Marketing Director Corinne say risky. In fact, foreign direct investment in Africa is rising. The
Berger (15 years in travel retail with Lacoste, Groupe ADP, and Chinese have invested US$18 billion in the continent. When seven
LVMH); and Brand Manager Edith Chapelle Petit (founder of new Chinatowns opened in Africa, Chinese traveler numbers
Tintamar). Today the company is based in the Jebel Ali Free Zone multiplied at least threefold.”
of Dubai, and operates in 37 countries in Africa. Its presence
(primarily as a distributor of luxury beauty brands) is not only Indeed, Africa as a travel retail market seems under-
made in duty-free shops, but also through 3000 partnering appreciated. If current trends continue, arrivals on the
pharmacies in the region. Dayan reports that Beaute Luxe is in continent are expected to reach 134 million by 2030. Dayan
contact with all the major retailers, such as Dufry, Lagardère has often attested to the fact that GDP and average salary in
Travel Retail, and Heinemann, as well as the local retailers. African countries is rising and with 380 million consumers, it is
a continent ripe with potential.
In an interview, Dayan explained how he decided Africa was
his next big opportunity: “With Orange [the French telecoms Beaute Luxe is present on three continents. And has a
giant], we introduced 34 airport doors in 21 countries in Africa foundation that disperses hygiene kits to African villages.

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