TRAVEL RETAIL: THE SIXTH CONTINENT
THE OPPORTUNITY FOR ISRAELI BRANDS
Essential Communications is an award-winning integrated public relations and
marketing agency with a proven track record in travel retail/duty free and
international wines & spirits.
WHAT IS THE SIXTH CONTINENT FOR L'ORÉAL?
"The travel retail distribution channel is a strategic market
for the development and visibility of our brands, and
contributes to the quest of one billion new consumers."
Barbara Lavernos, Managing Director of L’Oréal Group Travel Retail
THE INCREDIBLE GROWTH IN AIR PASSENGER TRAFFIC
Over the past 35 years there has been a tremendous growth in international tourist arrivals, from 277 million
in 1980 to just under 1.2 billion last year,
TOURISM WILL CONTINUE TO GROW
“International tourism reached new heights in 2015. The robust
performance of the sector is contributing to economic growth and job
creation in many parts of the world. It is thus critical for countries to
promote policies that foster the continued growth of tourism, including
travel facilitation, human resources development and sustainability”
UNWTO Secretary-General, Taleb Rifai.
GLOBAL TRAVEL RETAIL SALES BY REGION: $62.1BN
THE AMAZING SPENDING CHINESE
“Chinese tourists spent $215bn outside mainland China in 2015, up 53%
“ There were some significant shocks last year in the stock market and
the currency, but it didn’t slow the growth of travel and tourism”
World Travel & Tourism Council.
GLOBAL TRAVEL RETAIL SALES BY PRODUCT CATEGORY:
Fragrances & Cosmetics
Wines & Spirits
Fashion & Accessories
Watches & Jewellery
Confectionery & Food
Electronics, Toys and Other
GROWING CATEGORIES: SKINCARE, SUNGLASSES, NICHE
FRAGRANCES, HAIR CARE, FINE FOODS.
PREMIUM PREMIUM PREMIUM
“Travel retail’s endemic premiumisation drive continues
apace, with retailers keen to avoid any possible
cannibalization of their upscale portfolio.”
The Moodie Davitt Report
GLOBAL TRAVEL RETAIL SALES BY CHANNEL: $62.1BN
Where to buy?
Downtown duty-free stores
Ferries and cruises
WHAT DOES TRAVEL RETAIL MEAN TO GODIVA
"Travel retail is the window to the world for us; this is where
consumers get to first interact with us if we are not present in
the domestic market. We learn more about where the potential
markets are and we learn more about what consumers like. We
tend to plan our growth through the window or the lens of
Godiva CEO Mohamed Elsarky
THE ESSENTIAL ELEMENTS
TRAVEL RETAIL IS NOT A QUICK FIX
THIS BUSINESS SHOULD BE LOOKED AT FOR MID-LONG
TERM BRAND EXPOSURE/PROFIT, NOT SHORT TERM GAIN.