A meaningful expertise for your specific issues in the travel retail industry
Today, Duty Free & Travel Retail (DF&TR) is a USD 76 billion (2018) industry that covers seven distribution channels including airports and airlines.
The DF&TR industry keeps growing fast and strengthening its position of significant international shop window. It has been the case for companies that focuses on traditional product categories such as Wine & Spirits, Tobacco and Cosmetics, upon which the industry was first founded. Indeed, it is also the case on luxury goods, including Watches & Jewelry and Fashion & Accessories, which become increasingly popular in DF&TR.
Finally, Confectionery & Fine Food will always have a natural customer base in the rapidly growing number of travelers.
An outstanding booming industry, a 6th continent outplacing each fast-growing economy
Facing new and rising challenges regarding customer behavior, digital, tourism and transportation issues
Compelled to play with a fragmented market and retail even if market has quickly concentrated since 2005
Urged to find new, agile and innovative solutions to capture all opportunities
INTENSIVE GROWTH
The travels and tourism industry’s growth outpaces the one of the world GDP
Rising tourism from low-cost air carriers with PAX shopping duty free for discounted purchases
How to…
Benefit at best from this growth?
Segment destinations and travelers?
Develop an immersive customer experience?
GROWING THREATS
Over tourism and fly shaming
Uncertainty appears as some areas tend to slow tourism flow down
A decreasing ratio of passengers' volume expenditures
How to…
Stimulate buying power? Leverage digital and omnichannel?
Increase the conversion rate of regular travelers? Reward loyalty for mobile buyers?
Avoid strong dependency on one market?
MASSIVE DATA
Multiple sources of data exist: retailers, travelers, local and regional statistics or brand sales
Confidentiality on data remains or data quality is low with too many levels of granularity
How to…
Better manage sell-out data? Monitor performance relying on sell-out and not sell-in only?
Refocus value on analyzing to foster the growth and not on processing data?
Develop accurate forecasts?
COMPLEX SUPPLY CHAIN
A significant SKU amount to manage from manufacturing to points of sales all across the globe
Important and frequent roll-out of brands and products
A dependence to the highly volatile energy markets
How to…
Streamline the supply chain and reduce costs to maximize margins?
Offer an “ATAWAD” level of service and sustainable solutions?
Optimize production locations regarding moving customers?
HUGE INVESTMENTS
IT investments are made to increase shopping opportunities: click and collect, e-shop,…
Investments are made to improve the shopping experience: training sales teams, store display, stands,…
How to…
Prioritize investments regarding the stakes and the objectives?
Adapt product assortments and category management?
Implement a ROMI (Return On Marketing Investment) approach?
NARROWED SHOPPING TIME
Security requirements of air travel take time to customers so that average shopping time decreases of 30 minutes
But new tax free and more relaxed zones appear downtowns
How to…
Initiate shopping before reaching the airport? Develop E & M-commerce? Stimulate impulsive purchases?
Enhance shopping experience?
Foster convenience of in-store experience from shopping to payment?
Develop access offers to reach middle classes?