Interview: How Oliver Dubos plans to reignite The Estée Lauder Companies’ travel retail business

Prologue: When he assumed the post of Senior Vice President and General Manager, Travel Retail Worldwide at The Estée Lauder Companies last December, Olivier Dubos brought to the US brand powerhouse more than 17 years’ experience in the beauty sector – much of it in travel retail.

Dubos heads the key global travel retail organisation, including the channel’s leadership team in New York and across the APAC, EMEA and Americas regions, dividing his time between Switzerland and Singapore, while also spending time in New York and with his leadership teams globally.

He has assumed the reins at a challenging time for the group as – like its peers – it grapples with intense pressures on the pivotal North Asia travel retail business, largely driven by the challenged Hainan and South Korean markets and softening Chinese spend on skincare.

Dubos was in Hainan in April to attend the fifth China International Consumer Products Expo in Haikou, where The Estée Lauder Companies has enjoyed a major exhibition presence since year one, in keeping with its strong presence in the island’s offshore duty-free sector. There, The Moodie Davitt Report Founder & Chairman Martin Moodie caught up with him to talk about the company’s travel retail plans within the ‘Beauty Reimagined’ programme announced recently by the group’s President and CEO Stéphane de La Faverie.

Martin Moodie: Olivier, you’re a few months into your new role with The Estée Lauder Companies. You’ve arrived at a period of great uncertainty for the company, the sector and the world. We’ll talk about the market later, but first tell us what your priorities have been in these early months as you have got to know the travel retail team and the wider organisation?

Olivier Dubos: Thank you, Martin. The first thing to say is that the ‘Beauty Reimagined’ strategic vision recently announced by our President and CEO Stéphane de La Faverie for the whole company is particularly relevant for travel retail.

It’s all evolving around consumer-centricity, where we want to be the best. We want to create the best experiences wherever we are – in Asia, in Hainan here today, but also Europe, the Middle East and the Americas. That’s going to be the key driver of restoring sustainable sales growth and profit recovery for the company.

As you mentioned, I took the job very recently. I have been really amazed by the quality of the people we have in the travel retail organisation. It’s an outstanding team with a lot of talents and a great diversity of cultures and experiences.

The level of passion, expertise and commitment is incredible. So for me, joining The Estée Lauder Companies has been an amazing journey because the culture of the group is one of a kind. It’s a company that is so focused on people and professionalism, and developing highly skilled teams dedicated to performance, to sustainability, and to the long term. It’s really a great pleasure and honour to be part of it.

In terms of the Beauty Reimagined concept, where does travel retail fit in terms of articulating that vision?

In travel retail, our aim is to delight all travellers across the world. The consumer coverage that travel retail gives is amazing; it plays a pivotal role in creating amazing experiences for people who travel.

But beyond the experience is emotion. You and I travel a lot but remember that for most people who don’t travel every other day, the mere fact of travelling is a great experience and a great emotion.

As brands and retailers, we are part of this memory, of this emotion. We are now very much into an age of experiential retail – this is really where we’re heading to.

When I talk to the amazing operators and airport authorities, they all have a lot of plans to change mindsets, to change the way retail will look like in an airport.

This is where, as the number one player in the beauty category in travel retail globally, I think The Estée Lauder Companies has a key role to lead the way.

We must be disruptive and propose experiences and business models that will shape the future and are not necessarily those of the past.

It’s interesting to watch that journey from the mere transactional to the experiential. If you look at what retailers such as CDFG and GDF Plaza are emphasising here at the Hainan Expo, they’re talking about ‘duty free +’ – duty free + culture, duty free + tourism and so on. And that’s very much entwined with your thinking about the whole experiential gamut.

Indeed. Take Hainan, for instance. ELC’s total footprint across the island is over 65,000 square feet.

At CDF Sanya International Duty Free Shopping Complex Block C our portfolio covers nearly 19,000 square feet with the Estée Lauder global flagship alone covering 5,500 square feet across two floors.

Imagine the experiences and emotions we can convey to consumers here. It’s because of this incredible retail real estate that we are able to bring such innovative brand experiences to Hainan. It’s why Estée Lauder chose Hainan as the location of its first-ever Skin Longevity Institute globally.

Travelers come to Hainan looking to be pampered but also to better understand the science behind our products and how to use them in the best way for their skin. Our store fits all of those needs with a spa offering various facial treatments and knowledgeable beauty advisors who can educate consumers on the latest skincare innovations.

Exactly. And in Haitang Bay you have space and amazing infrastructure into which you can place your beautiful boutiques. You also have that crucial element of time with your consumer to tell them about the experience and treat them to it.

And you know what? The travel retail industry has evolved. In many ways, it used to be very transactional but now it’s about coming to the store and really enjoying the experience.

Let us make you feel good and show what the product can do for you. And before everything, let’s start by looking at your wants and needs. You’re looking for a perfume, say, for an emotion. What kind of perfume would you like to wear in which circumstances, etc?

What I find amazing in The Estée Lauder Companies is that we have such an impressive portfolio, including Estée Lauder, La Mer, Le Labo, Jo Malone London, Tom Ford, M•A•C and so on. We can bring so many different experiences and be very innovative as well.

If you look at KILIAN Paris, for example, and the KILIAN Bar concept – where consumers can sample the brand’s scents while tasting cocktails inspired by the brand’s fragrances – I am amazed each time I enter one of the stores how I’m transported into another world.

We often talk about the showcase role travel retail plays. Here at the CICPE – the Hainan Expo – The Estée Lauder Companies has a compelling presence. You portray the history of the company and its brands, and you are showcasing in a very visual and interactive way some of the stars from your portfolio.

2025 marks the fifth year for this Expo, which at launch represented a landmark event for Hainan and for China and still does. The Estée Lauder Companies has been here from day one. Tell us about that commitment not only to this show but also to Hainan’s offshore duty-free sector.

The Estée Lauder Companies’ commitment to Hainan and to China is very strong. If you take Hainan, we have now an office dedicated to the market. We have about 350 beauty advisors in Hainan and a total of 65,000 square feet of retail for 14 brands from our portfolio.

And while, as you say, we will always go through some ups and downs in travel retail, I can see that from all the conversations I have, especially here in Hainan, with a lot of people from the government, but also our retail partners, the future is still very bright.

We know their commitment is to make Hainan an ever bigger, better destination – not only for Chinese tourists but also for global tourism. Hainan is a magnificent island and I love to come here for vacation now.

The Estée Lauder Companies is very committed to providing the best experiences to travellers in Hainan; to being the first in many instances in terms of retail design or experiences as well as product innovation. So we have a lot of innovation and a lot of exciting things for the future.

People tend to forget that we are looking at an offshore duty-free industry in Hainan that’s just 11 years old. That first small CDFG store in Sanya was only opened in 2014, a time when there wasn’t much tourism infrastructure. Look at the number of hotels that have gone up since, and the dramatic improvement in restaurants and other tourist infrastructure.  

The other factor supporting your optimism is that still only a very small minority of Chinese citizens carry passports, just above 10%. So by definition, if the remainder want to take a vacation to a holiday paradise packed with natural attractions and man-made ones – including duty-free shopping – Hainan is going to be high on many people’s lists.

Yes, Hainan is going to remain a bright spot. Also, for some Chinese travellers from tier three, four and five cities, it’s the first time to be in contact like this with some of our beautiful brands. So we have an amazing role to play in education, in showcasing our product through the beauty rituals we can propose, etc.

This interview is going to be read by people all around the world, not just here in China. So let’s talk about your global remit – what hot spots and emergent spots are you seeing? And where are the bright lights?

I’m actually seeing a lot of bright lights worldwide right now. I’ve been meeting our retailers across the world in the past few weeks, as you can imagine. And I am very pleasantly surprised to see the ambition, to see the way they want to develop the business with innovative ideas, all of them being very aware of the fantastic channel we are in.

I’m extremely positive about the long-term outlook for our channel. Like many, I see India’s emerging markets as a next great contributor of growth. There we are taking a consumer-centric approach with one consumer view across the domestic affiliate and the travel retail team to really address these consumers in the best way possible.

Our strength and deep understanding of and with the Indian consumer are especially interesting when you look at how we in travel retail market to consumers not just in their home geography but from a travel corridor approach. The way we are organised today within ELC is an amazing advantage, because we almost operate beyond borders. That’s the beauty of being consumer-obsessed or consumer-centric.

And elsewhere geographically? The Middle East, for example?

Of course. I will be there in two weeks. The Middle East business and the Middle East consumer are fantastic opportunities for our brand portfolio.

And within the Middle East, you’ve got Saudi Arabia, which has emerged with dramatic speed over recent years.

Saudi Arabia is going to be an amazing journey for the whole industry, and we’re looking forward to that. Then in the Americas there is a lot happening. We see a lot of growth opportunity in the Americas, EMEA and in the Middle East, because if you look at our fragrance portfolio, for instance, which is one of the largest categories in these regions, I think we can do so much more.

I look at the power of brands such as KILIAN Paris, Frédéric Malle, Tom Ford and Jo Malone London. I have met with lots of retailers recently, and I can tell you we are talking together about some amazing new concepts we will create in the future. We are also gearing for major acceleration in this part of the world.

That’s a perfect segue as I was going to ask you about innovation. During the Q2 earnings call, Stéphane de La Faverie highlighted innovation as critical to revival. In challenging times, besides working hard, being cost efficient and all those good things, innovation is a must, isn’t it? Tell us if you can about anything that’s in the pipeline, or just where innovation figures for travel retail this year.

I can tell you first that Stéphane de La Faverie’s vision is definitely to accelerate the number of innovations.

That is going to be amazing for travel retail because this is one of the ways you can accelerate retail very fast. When you have innovation, you have a lot of new stories and amazing scientific breakthroughs.

On our booth here in Hainan we are featuring some fantastic science around La Mer and Estée Lauder. We are also showcasing an in-depth study from our China Innovation Labs around the diversity of Chinese consumers’ skin based on our database of more than 2 million consumers we are featuring here.

So there is already a lot happening in China in terms of innovation that is dedicated to Chinese consumers. Imagine that from a global perspective – there is going to be a major acceleration for the future to deliver new experiences and a lot of innovation around our products.

On a related theme, Olivier, the company plans to ‘reignite’ retail sales growth by placing enhanced focus on consumer-facing investments globally, both domestically and travel retail. How’s that going to play out in travel retail? I guess a lot of promotional activity and a lot of experiential activities.

It’s going to be a very good balance between permanent real estate and more disruptive retail spaces with our brands, and more scalable innovation.

Because when you talk about innovation, we must scale our ambition, and one of the key points Stéphane made is to really own innovation, be accountable and be extremely ambitious for the future.

One of the levers of growth we have is to scale what we have better. I have had amazing conversations recently, with retailers such as CDF, Avolta, Lagardère Travel Retail and Heinemann, and they are very willing to scale with us and amplify everything. So that’s going to be a key driver.

The great retailers, of course, want the sector brand leaders to be very strong as well. They need a strong Estée Lauder Companies, don’t they? So that kind of collaborative spirit, I think, is going to be vital going forward.

It is indeed going to be vital. We are the number one beauty player globally in the travel retail channel. We also have a role to play for the whole industry, to push the boundaries and to create more areas for growth.

And, again, all the discussions I have had over the past few months make me think that the long-term future for this channel is bright. The Estée Lauder Companies has really developed very strong and close relationships and partnerships with operators across the world and this is something I want to continue to nourish, to develop.

Our travel retail community is very close. We all want the same thing for the industry, to continue to deliver the best experiences for travellers worldwide.

Absolutely. Community is a good word. It is a single channel, but it’s global, with only a relatively limited number of sizable retail players, for example. So that sense of community is vital. That leads me onto my concluding question, because within that community, you are well known. You’ve been in the beauty world for 17 years, much of it in travel retail. What do these sectors mean to you?

It’s true that I do have a passion for the beauty world. It’s fascinating to work with and build the beautiful brands we have and to create amazing memories and experiences for travellers.

So I’m very attached to the travel retail industry. I have both personal friends and professional connections there. I am so inspired by the people in this industry and I get energised and learn so much from being in the field and doing market visits.

That means spending time in an airport and visiting the counters, looking at the competition, at our brands, the look and feel, looking at consumers, having a coffee with beauty advisors, talking to counter managers.

With all this you learn so much, and it’s always impressive to see how passionate our beauty advisors are for the brand. They are really the true ambassadors every day for our brands, our products, our technology, etc. I have so much admiration for them. This is probably what I love the most in my job today.

Tell us about your business philosophy.

My life is very much about work, but I work with a very collaborative approach, whether it’s internally within the travel retail division, but also with all the other stakeholders within the company, the domestic market teams, all the functions etc.

I think travel retail has a pivotal role in delivering the whole strategy of the company. And I want travel retail to be well embedded within the global strategy of the enterprise. That’s very important.

And with all the operators, it’s also about collaboration. It’s all about making win-wins together and supporting each other. This is something for me that is quite natural after so many years in the industry. Today we are having real conversations, and that makes things happen so much faster, in a very mature and professional way.

Everything you’ve told me today, Olivier, suggests you’re going to be keeping us pretty busy over the next year. I go back to that word reignite. This is a pivotal time for The Estée Lauder Companies as well. From what you’re telling me, you’re really going to go for it.

We are going to go for it as a team and I can tell you the ambition is there. More than ever, the capabilities are present in the company, whether in terms of products, go to market, activations, and the team.

I think the environment is also bright for the future. We may have turbulences here and there, as we know. That is travel retail. But our line of sight remains, the commitment remains and I am very committed not only to making The Estée Lauder Companies remain number one in beauty travel retail globally, but also to be the very best in retail around the world, providing the best experiences and the best memories for our dear travellers.

A perfect note to finish on Olivier, thanks so much.

Thank you, Martin.