1. IN FOCUS Aviation Media for Beauty Brands
Part of the Vertical Deep Dive series

2. Global PAX traffic has been outperforming world economic growth
In 2016, Travel & Tourism contributed US$ 7.6 Tn, representing 10.2% global GDP
Jan-Oct 2016
Passenger Traffic
+5%
Source: IHS Economics (real GDP), Apex/OAG data* (available to Oct16)
NB: ASKs = Available Seats Kilometres (Capacity)

3. Air travel has become affordable for more people in emerging economies
Emerging markets to represent 43% of world’s private consumption in the next decade, up currently from 31% unlocked by an expanding middle class
Source: International Civil Aviation Organization (ICAO), IHS Economics (Real GDP),
Oxford Economics (Middle Class = Yearly household income between $40,000=$150,000 at PPP in constant prices

4. Shopping remains at the centre of travel activities
Source: BCG – Global Luxury Consumer Insight 2016

5. Airports are the busiest gateways to shopping districts

6. Duty Free has become a high-frequency retail channel
Expansion of aviation mega-cities will propel sales in personal luxury goods in airports to grow faster over the next 4 years – attributed to the increase in luxury spending by tourists, accounting for 6% of the global market share in luxury goods led by beauty product sales
Source: 2016 Bain/Altagamma Luxury Markets Monitor

7. Duty free and travel retail sales, product category,
Fragrance & Beauty dominate share of travel retail sales in Airports ~30%
2016
Duty free and travel retail sales, product category,
market shares
in Airports
Source: 2016 Bain/Altagamma Luxury Markets Monitor

8. Asian, Middle Eastern and American buyers over-indexing vs
Asian, Middle Eastern and American buyers over-indexing vs. the global average

9. Fragrance & Beauty: Traveller segmentation based on need states

10. Brand discovery starts even before the store is physically present and after

11. Opportunity to influence key purchase decision-making along their travel journey
Extend digital presence into the physical space vice versa to create differentiation
Target a captive audience with high dwell – shopping is a key part of their travel experience and browsing can lead to purchase both in airport and in-flight
Travellers are highly attentive to advertising in the airports,
entice retail therapy to attract impulse purchasers
Airport advertising leverages great storytelling for maximum creative impact – foundation for strong branding, perceived brand confidence and authority