In a few days time, the travel retail industry will once more make our way to Cannes for the TFWA World Exhibition. As always this will be a vital chance to meet and discuss the topics our industry for the year ahead – and many more to come.
As always, I have no doubt that sustainability will play a key role, as more companies begin to recognise that action is needed rather than promises, and the industry’s enduring addiction to the Master Concession model must once more be put under the microscope.jour
But here are some more core issues I believe we all need at the top of our agendas as we meet friends, partners and clients, old and new, on the Riviera.
F&B integration
Travel retail is no longer just a pit stop, it is an experience and a way to engage travellers to create memorable moments. To fully do this, the potential of F&B must be unlocked by fully integrating it with blended, experiential concepts, which break down the barriers and leverage its appeal to consumers. Furthermore, restaurant concepts require the same approach as brand stores, with recognised names and new concepts allowed to operate and flourish directly, not just the same players wearing a new label.
Use of space
The travel retail space is undergoing a huge shift and our offer and approach must reflect that. Pop-up stores, cross-category offerings and new concepts are needed to make sure we are creating something truly new for travelling shoppers. This requires, above all else, collaboration. We must find ways to work together to make travel retail as vibrant and unique as it can be.
Tailored service
Shoppers today expect something special – and that means something crafted specifically for them. The travel retail sector has huge amounts of data on its shoppers, but failure to share and use it means the service is not as tailored and personalised as it could be. As a result, travel retail is missing out on an opportunity to create added value.
Direct retail
To make the most of the experience opportunity, travel retailers must give brands more control over their retail spaces. Brands understand storytelling better than anyone, and they are most adept at bringing it to life. This is, often, best done through directly operated stores, but that requires contracts with the flexibility and share of risk that gives brands the space to innovate.
The return of China
China’s return to the travel retail – and international luxury retail – has been far slower than many predicted. I am not alone in believing that the industry is stronger for having reduced its reliance on this demographic. However, as they return, Chinese shoppers bring a new level of expectation with regards to service and experience. Getting this right will be paramount as the market looks to capitalise on this slow recovery – and it will take expert help.
Future markets
Despite China’s return, India is poised to take its place as the darling of travel retail, and the bright light for the future. With a growing middle class and demand for travel on the rise, India also has a Gen Z population which is set to surpass China and the US. But making the most of this will require collaboration between brands, retailers and local players, to tap into the needs and demands of the local markets. Beyond that, growing potential in Vietnam, Japan and the future possibilities in Africa mean travel retail’s gaze must be more global than ever.
Experience
There can be no doubt that the shopper experience is a topic of paramount importance in the travel retail market today. Shoppers today are seeking out experiences in store more than products themselves, and travel retail has a unique opportunity to craft completely unique and standout experiences for them.
I look forward to seeing many of you in Cannes, where we can discuss how, together, we can make this industry’s future even brighter.
