1) Travel retail, also known as duty free, is the sixth largest continent for sales and contributes to brand development and reaching new consumers. 2) It has experienced tremendous growth over the past decades due to the increase in international tourist arrivals and air passenger traffic. 3) The main opportunities for Israeli brands are to use travel retail as a way to showcase brands, launch or relaunch products internationally, and build brand awareness on a global stage to help expand into domestic markets.

1. TRAVEL RETAIL: THE SIXTH CONTINENT
 THE OPPORTUNITY FOR ISRAELI BRANDS

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. OUR CLIENT PORTFOLIO: SNAPSHOT

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. WHAT IS TRAVEL RETAIL?

6. SHANNON – WHERE IT ALL BEGAN

7. DFS – CATERING TO THE JAPANESE TRAVELLERS

8. 1999: THE END OF INTRA EU DUTY FREE

9. PANIC STATIONS!

10. TRAVEL RETAIL GROWTH
$34bn
20162008 2020 2050
$62bn
$85bn
?????
????

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. 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. GLOBAL TRAVEL RETAIL SALES BY REGION: $62.1BN
39%
32%
1%
18%
10%
Regions
Asia Pacific
Europe
Africa
Americas
Middle East

14. MUMBAI DUTY FREE

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. 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. MAKING EVERY DAY PRODUCTS SPECIAL

18. LUXURY BRANDS AT AIRPORTS

19. GROWING CATEGORIES: SKINCARE, SUNGLASSES, NICHE
FRAGRANCES, HAIR CARE, FINE FOODS.

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. 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. THE AIRPORT RETAIL ENVIRONMENT

23. DUFRY – THE WORLD’S BIGGEST TRAVEL RETAILER

24. A SENSE OF PLACE

25. DOWNTOWN DUTY FREE – WHERE THE GROWTH IS

26. CRUISE SHIPS – A CAPTIVE AUDIENCE

27. AIRLINES – A VARYING APPROACH

28. KOREAN AIRLINES SKY SHOP

29. INFLIGHT EXCLUSIVES

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. BRAND SHOWCASE

32. LAUNCHING OR RELAUNCHING BRANDS
 Galaxy,
Galaxy
Relaunch
At
Dubai
Duty Free

33. BUILDING TR PRESENCE – THEN DOMESTIC

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. THE ESSENTIAL ELEMENTS
 RIGHT PRODUCT
 RIGHT PACKAGING
 RIGHT INVESTMENT
 RIGHT SUPPORT

36. CHALLENGES
 High margins
 Price competition
 Brand awareness
 High investment
 Category competition
 Listing fees
 Volatile industry
 Distribution
limitations

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.