Estee Lauder 2014 Annual Report Download - page 27

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25
Travel Retail was one of our highest-growth channels in fiscal 2014. More than one billion international
travelers pass through airports each year, and that number is expected to grow by approximately
4 percent annually according to industry projections. As the global leader in prestige makeup and skin
care in Travel Retail, we are expanding into new airports, increasing the number of brands and products
we offer to travelers and converting more travelers into buyers.
We are particularly focused on travel corridors that are frequented by consumers from key emerging
markets. For instance, we continue to build our presence in the Dubai International Airport, where
Chinese nationals account for approximately 60 percent of our skin care sales. By studying global travel
patterns, we are able to frequently interact with our consumers in their native languages and appeal
to them with products they find especially desirable.
We continuously innovate our High-Touch services to pamper travelers who are pressed for time. In
fiscal 2014, Estée Lauder launched Three-Minute Beauty, including the popular Fatigue Fighter, which
teaches travelers four simple steps for brightening the eye area. Similarly, La Mer’s Arrive Hydrated
skin care regimen suggests specific La Mer products for use pre-boarding, as well as for a pampered
pick-me-up during flights.
PAMPERING
WORLD TRAVELERS
In May 2014, we unveiled a new retail concept at the
Detroit Metro Airport, which is Delta Airlines’ second
largest hub and the carrier’s primary gateway to Asia.
The flagship Beauty Boutique features a unique mix of
our prestige brands, including Estée Lauder, Clinique,
M·A·C, Smashbox and Aveda. The boutique boasts
a First-Class lounge area that features new product
launches and High-Touch services, and is equipped with
free Wi-Fi and a Flight Information Display Ticker, so
travelers can shop and relax while keeping updated on
their flight status. The Beauty Boutique taps into another
significant growth opportunity in Travel Retail — the
expansion of duty-paid shopping.
SETTING THE BAR FOR
BEAUTY RETAILING EXCELLENCE
Left: Aveda Invati products resonate well with our Korean consumers.
Right: Clinique offers High-Touch service to busy travelers at the new Beauty Boutique inside Detroit Metro Airport.