L'Oreal has created a new travel retail division to utilise growing markets in areas such as China and Brazil. The world's largest cosmetics company is hoping to tap into a fast-growing middle class, which is increasingly taking the opportunity to travel and purchase luxury products.
Chief executive officer Jean-Paul Agon said the travel retail division "could be considered a sixth continent. L'Oreal already has extensive expertise and strong relationships with client-retailers, and has high ambition for the future of the channel."
The travel retail division will include luxury brands such as Lancome Creams, as well as those from other divisions, such as active cosmetics and professional products. The division will be based in Paris and the managing director will report to Nicolas Hieronimus, president of selective divisions.
L'Oreal products sold in airports, cruise ships and duty-free shops enjoyed an increase of nine per cent last year, to €55.8bn (£45.8bn). The largest categories of products being sold were perfume, skin creams and make-up, accounting for 30 per cent of travel retail revenue last year.