Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
TRAVEL RETAIL: THE SIXTH CONTINENT
 THE OPPORTUNITY FOR ISRAELI BRANDS
ESSENTIAL COMMUNICATIONS
Essential Communications is an award-winning integrated public relations and
marketing agency wit...
OUR CLIENT PORTFOLIO: SNAPSHOT
WHAT IS THE SIXTH CONTINENT FOR L'ORÉAL?
"The travel retail distribution channel is a strategic market
for the development...
WHAT IS TRAVEL RETAIL?
SHANNON – WHERE IT ALL BEGAN
DFS – CATERING TO THE JAPANESE TRAVELLERS
1999: THE END OF INTRA EU DUTY FREE
PANIC STATIONS!
TRAVEL RETAIL GROWTH
$34bn
20162008 2020 2050
$62bn
$85bn
?????
????
THE INCREDIBLE GROWTH IN AIR PASSENGER TRAFFIC
 Over the past 35 years there has been a tremendous growth in internationa...
TOURISM WILL CONTINUE TO GROW
“International tourism reached new heights in 2015. The robust
performance of the sector is ...
GLOBAL TRAVEL RETAIL SALES BY REGION: $62.1BN
39%
32%
1%
18%
10%
Regions
Asia Pacific
Europe
Africa
Americas
Middle East
MUMBAI DUTY FREE
THE AMAZING SPENDING CHINESE
“Chinese tourists spent $215bn outside mainland China in 2015, up 53%
on 2014”
“ There were s...
GLOBAL TRAVEL RETAIL SALES BY PRODUCT CATEGORY:
$62.1BN
26%
21%
18%
13%
11%
11%
Product sectors
Fragrances & Cosmetics
Win...
MAKING EVERY DAY PRODUCTS SPECIAL
LUXURY BRANDS AT AIRPORTS
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 po...
GLOBAL TRAVEL RETAIL SALES BY CHANNEL: $62.1BN
57%
33%
6% 4%
Where to buy?
Airports
Downtown duty-free stores
Airlines
Fer...
THE AIRPORT RETAIL ENVIRONMENT
DUFRY – THE WORLD’S BIGGEST TRAVEL RETAILER
A SENSE OF PLACE
DOWNTOWN DUTY FREE – WHERE THE GROWTH IS
CRUISE SHIPS – A CAPTIVE AUDIENCE
AIRLINES – A VARYING APPROACH
KOREAN AIRLINES SKY SHOP
INFLIGHT EXCLUSIVES
SO WHAT DOES THIS MEAN FOR ISRAELI BRANDS?
 3.5BN PASSENGERS AND GROWING
 BRAND SHOWCASE
 PRODUCT LAUNCHPAD
 BUILDING ...
BRAND SHOWCASE
LAUNCHING OR RELAUNCHING BRANDS
 Galaxy,
Galaxy
Relaunch
At
Dubai
Duty Free
BUILDING TR PRESENCE – THEN DOMESTIC
WHAT DOES TRAVEL RETAIL MEAN TO GODIVA
"Travel retail is the window to the world for us; this is where
consumers get to fi...
THE ESSENTIAL ELEMENTS
 RIGHT PRODUCT
 RIGHT PACKAGING
 RIGHT INVESTMENT
 RIGHT SUPPORT
CHALLENGES
 High margins
 Price competition
 Brand awareness
 High investment
 Category competition
 Listing fees
 ...
TRAVEL RETAIL IS NOT A QUICK FIX
THIS BUSINESS SHOULD BE LOOKED AT FOR MID-LONG
TERM BRAND EXPOSURE/PROFIT, NOT SHORT TERM...
Upcoming SlideShare
Loading in …5
×

Travel retail: the sixth continent

1,162 views

Published on

Israel presentationfin

Published in: Food
  • Be the first to comment

  • Be the first to like this

Travel retail: the sixth continent

  1. 1. TRAVEL RETAIL: THE SIXTH CONTINENT  THE OPPORTUNITY FOR ISRAELI BRANDS
  2. 2. ESSENTIAL COMMUNICATIONS 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.
  3. 3. OUR CLIENT PORTFOLIO: SNAPSHOT
  4. 4. 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
  5. 5. WHAT IS TRAVEL RETAIL?
  6. 6. SHANNON – WHERE IT ALL BEGAN
  7. 7. DFS – CATERING TO THE JAPANESE TRAVELLERS
  8. 8. 1999: THE END OF INTRA EU DUTY FREE
  9. 9. PANIC STATIONS!
  10. 10. TRAVEL RETAIL GROWTH $34bn 20162008 2020 2050 $62bn $85bn ????? ????
  11. 11. 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, 1980 277 million 2015 1.2 billion
  12. 12. 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.
  13. 13. GLOBAL TRAVEL RETAIL SALES BY REGION: $62.1BN 39% 32% 1% 18% 10% Regions Asia Pacific Europe Africa Americas Middle East
  14. 14. MUMBAI DUTY FREE
  15. 15. THE AMAZING SPENDING CHINESE “Chinese tourists spent $215bn outside mainland China in 2015, up 53% on 2014” “ 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.
  16. 16. GLOBAL TRAVEL RETAIL SALES BY PRODUCT CATEGORY: $62.1BN 26% 21% 18% 13% 11% 11% Product sectors Fragrances & Cosmetics Wines & Spirits Fashion & Accessories Tobacco Watches & Jewellery Confectionery & Food Electronics, Toys and Other
  17. 17. MAKING EVERY DAY PRODUCTS SPECIAL
  18. 18. LUXURY BRANDS AT AIRPORTS
  19. 19. GROWING CATEGORIES: SKINCARE, SUNGLASSES, NICHE FRAGRANCES, HAIR CARE, FINE FOODS.
  20. 20. 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
  21. 21. GLOBAL TRAVEL RETAIL SALES BY CHANNEL: $62.1BN 57% 33% 6% 4% Where to buy? Airports Downtown duty-free stores Airlines Ferries and cruises
  22. 22. THE AIRPORT RETAIL ENVIRONMENT
  23. 23. DUFRY – THE WORLD’S BIGGEST TRAVEL RETAILER
  24. 24. A SENSE OF PLACE
  25. 25. DOWNTOWN DUTY FREE – WHERE THE GROWTH IS
  26. 26. CRUISE SHIPS – A CAPTIVE AUDIENCE
  27. 27. AIRLINES – A VARYING APPROACH
  28. 28. KOREAN AIRLINES SKY SHOP
  29. 29. INFLIGHT EXCLUSIVES
  30. 30. SO WHAT DOES THIS MEAN FOR ISRAELI BRANDS?  3.5BN PASSENGERS AND GROWING  BRAND SHOWCASE  PRODUCT LAUNCHPAD  BUILDING BRAND AWARENESS  DESIRE FOR NEWNESS, EXCLUSIVITY
  31. 31. BRAND SHOWCASE
  32. 32. LAUNCHING OR RELAUNCHING BRANDS  Galaxy, Galaxy Relaunch At Dubai Duty Free
  33. 33. BUILDING TR PRESENCE – THEN DOMESTIC
  34. 34. 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 travel.” Godiva CEO Mohamed Elsarky
  35. 35. THE ESSENTIAL ELEMENTS  RIGHT PRODUCT  RIGHT PACKAGING  RIGHT INVESTMENT  RIGHT SUPPORT
  36. 36. CHALLENGES  High margins  Price competition  Brand awareness  High investment  Category competition  Listing fees  Volatile industry  Distribution limitations
  37. 37. TRAVEL RETAIL IS NOT A QUICK FIX THIS BUSINESS SHOULD BE LOOKED AT FOR MID-LONG TERM BRAND EXPOSURE/PROFIT, NOT SHORT TERM GAIN.

×