‘Brazilian shoppers love the beauty category, but plan well’ CiR research reveals
18th October 2016
Continuing the CiR review of messages shared at TFWA Cannes, we look in more detail at the insights to come from the annual L’Oréal Travel Retail press conference, and the implications for Brazilian beauty shoppers.
Describing the pace of change in the travel retail industry, L’Oréal Travel Retail CEO Vincent Boinay used the term 'changing at the speed of light'. Highlighting the need to expand the portfolio and range of brands and products available in store, he pointed out that 20 years ago the category was dominated for four brands; Lancôme, Estée Lauder, Chanel and Dior. He went on to say, "Today it is totally different. Travel retail is changing at the speed of light because of customers like millennials and Chinese and Brazilian shoppers".
With insight into millennial and Chinese shoppers having been shared previously, CiR will draw on insights from their 2016 in-depth study into South American passengers to share behaviours of the Brazilian beauty shopper. A unique group of passengers with high levels of purchase item and budget planning.
Key insights for retailers and brands include:
Focus on Cosmetics
Brazilian beauty buyers shop for fragrance but purchase cosmetics. Although the fragrance category attracts higher levels of footfall, beauty buyers are more likely to be converted and make a purchase in the cosmetics category. Departures shopping is key for cosmetics buyers, with more purchasing there than in arrivals, due to better dwell time.
Source: CiR Brazilian Beauty Shopper 2016
Cater for non-traditional brand purchasing, through non-traditional channels
Greater cosmetics purchasing in travel retail amongst Brazilians means that MAC is the leading beauty brand purchased in South America, ahead of more traditional brands such as Chanel, Estée Lauder and Dior. With the rise of digital and exposure to a much wider brand repertoire, retailers need to reflect changes in buyers needs and wants, to continue to meet expectations. L’Oréal's Boinay commented that 2017 is anticipated to be an extremely strong year for make up , with the NYX brand "instrumental". The NYX brand has been launched and is supported on social media, the first truly digital launch in this industry and category.
Capitalise on self-treating
Euromonitor research into global shopper types has shown that Brazilian shoppers are more likely to be 'Conspicuous Consumers' and 'Social Experimenters' than their northern and eastern counterparts. This supports the belief that Brazilian shoppers buy to reinforce their principles. However CiR research also shows that over 4 in 5 Brazilian beauty buyers are on a self-treat mission. Brazilians are also more likely to have set a budget before shopping in the beauty category, so they are processing hierarchical decisions when in-store.
Recognise that quality remains an important element in brand recruitment
CiR research shows that 7 in 10 Brazilians bought a more expensive or better quality brand than they usually buy at home. So despite being budget planners, that budget allows for trading up, luxury and self-treating when travelling. Additionally Brazilians are also more likely to buy an occasional or non-regular brand suggesting that they have a wider repertoire in the channel. In addition to quality, Brazilian beauty buyers demand the best pricing too. Antoine Bora, executive sales director of Essence Corp (a distributor/agent of fragrances and cosmetics in South America) has said "Pricing has become such a sensitive issue for the Brazilian consumer, as the distribution channel widens via unauthorized channels. Retailers can help by ensuring that the best pricing is offered in each Store”.
Male Beauty is important amongst Brazilian beauty shoppers
Nearly one-third of purchases in the Beauty category are intended for a male recipient, and whilst purchasing for spouse or other family member ranks highly, Brazilian buyers are more likely to be purchasing for friends and work colleagues than other nationalities. Male skincare as a sub-category attracts higher footfall from Brazilian buyers than seen amongst other nationalities. So whilst self-treat is an important purchase driver for Brazilian buyers, gift-worthiness of the category must also be present to capture the gifting spend, for both female and male recipients.
Discover more about the CiR South American Duty & Tax Free Retail Market Report 2016, and to view sample pages: Click here
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: BW Confidential - Collector's Guide - No3 - 2016-17
Article based on CiR insight. Images: Shutterstock