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Can Travel Retail Survive Today's Aggressive Market Competition?

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Can Travel Retail Survive Today's Aggressive Market Competition? Special Issue TFWA World Exhibition/ FDFA October/November 2015 Can travel retail survive today’s aggressive INSIDE INSIDER News market competition? North America U.S. Airports: MSP, LGA, DFASS at The travel retail industry is DFW, MIA, DFA at IAD facing some daunting challenges Canada: FDFA turns 30 - this year, from currency issues, A look back and ahead with FDFA’s mergers and consolidation, to Peter Brain and Laurie Karson increasing competition coming from outside the channel. South America is suffering from dire political and economic woes, which are impacting travel Expansions and renovations at retail especially hard in Brazil Importations Guay Ltee, and on the Uruguayan border. Blue Water Duty Free “It is a tough market, and unfortunately we think this may Caribbean be the new normal for travel retail Puerto Rico fiscal crisis, in South America. So we will Cuba opens have to get used to doing business South America under these conditions,” one Economic analysis major supplier told TMI. One of the most pervasive Innovative animations like this race car video game experience for RL complaints voiced by retailers Fragrances Polo Red at Ezeiza International Airport in September use from Canada to the Caribbean retailtainment and digital tools to recruit customers and build brands. Page 61 is the threat posed by internet sales, which are inundating the internet is having on their business: seen within the pages of this issue marketplace with aggressively “Customers come in to try of TMI, U.S. airports continue priced goods and to-your-door the new fragrances, but then tell to expand and modernize their service. us they will buy it online,” was facilities and commercial offer to The Estée Lauder 2015 Breast Peter Brain, president the refrain voiced over and over. satisfy the retail demand. Cancer Awareness campaign is a call to action of Canada’s Frontier Duty The online price is attractive and Ever resilient, the travel Free Association, addressed travelers do not wish to carry retail industry is adapting to Supplier Features the “aggressive price-based any extra purchases these days, accommodate the changing Giorgio Armani Cosmetics, competition in the U.S.” most especially as more airlines are marketplace, providing value and RL Polo Red, Parlux, Kering takes aim eloquently: charging luggage fees, they say. entertainment at the point of sale at Americas, Safilo, worldclassbrands “…As niche retailers with a The United States and the and using many new digital tools limited product breadth relative Canadian airports are brighter to communicate with consumers to mass-market discounters and spots in the gloom, however. at all points of their travel internet retailers, we have to Anna.aero reports that the experience. ensure our duty free offering U.S.-Europe market is undergoing The travelers are there – air continues to provide trusted and its longest period of sustained traffic and visitation numbers compelling value. Otherwise, capacity growth in over a are up throughout the Americas. it will become more and more decade, with the trans-Atlantic The challenge will be to find new easy for consumers to transfer route growing by 6%. Next year ways to appeal to these potential purchases away from duty free to promises further growth in U.S.- shoppers while they are in the other sellers,” he observes. Europe capacity with eight carriers channel. Sinatra Century During the Tairo International launching new U.S.-Europe Read all about it, Inside Brown-Forman celebrates beauty training that took place at services. The number of Chinese Insider. Frank Sinatra’s 100th birthday the end of September, nearly every travelers to the U.S. and Canada Caribbean retailer TMI spoke with also keeps growing, and these Lois Pasternak, Plus Products-People-Places brought up the impact that the visitors are here to shop. As will be Editor/Publisher The Insider View SUPERIORITY. COMPLEX. ROCA PATRÓN HAS A COMPLEX TASTE THAT’S HANDCRAFTED USING A COMPLEX PROCESS. WE SLOW-ROAST THE FINEST WEBER BLUE AGAVE, THEN CRUSH IT WITH A TWO-TON TAHONA STONE WHEEL—AN ANCIENT, LABOR-INTENSIVE METHOD. THE AGAVE JUICE IS THEN FERMENTED AND DISTILLED WITH THE FIBER, RESULTING IN A MULTILAYERED, EARTHY TASTE. The perfect way to enjoy Patrón is responsibly. ©2015 Handcrafted and Imported exclusively from Mexico by Patrón Spirits International AG, Schaffhausen, Switzerland, 42-45% abv. VISUAL SI EDP TMI C.pdf 1 30/09/15 17:21 C M Y CM MY CY CMY K TFWA/FDFA Issue October/November 2015 2 VISUAL SI EDP TMI C.pdf 1 30/09/15 17:21 C M Y CM MY CY CMY K 3 October/November 2015 TFWA/FDFA Issue TFWA/FDFA Issue October/November 2015 4 5 October/November 2015 TFWA/FDFA Issue ROUGE PUR COUTURE THE ROUGE THAT DRESSES ME TFWA/FDFA Issue October/November 2015 6 yslbeauty.com 194396_1.indd 1 10/5/15 11:46 AM ROUGE PUR COUTURE THE ROUGE THAT DRESSES ME 7 October/November 2015 TFWA/FDFA Issue yslbeauty.com 194396_1.indd 1 10/5/15 11:46 AM TFWA/FDFA Issue October/November 2015 8 9 October/November 2015 TFWA/FDFA Issue INSIDER TABLE OF CONTENTS Retail and News Features COVER COMMENTARY Lancôme “All Stars” unite in Can travel retail survive today’s Advanced Génifique campaign Page 59 aggressive market competition? L’Oréal TRAM and Dufry engage air passengers with Polo Red challenge Page 60 BY THE NUMBERS Essence Corp. brings excitement at POS Page 64 ACI 2014 World traffic report Page 12 Parlux launches RiRi by Rihanna Page 66 Airports, Aviation, Tourism Page 14 Tairo seminar honors Caribbean BAs Page 68 TFWA 2015 World Exhibition Page 18 Rituals expands inflight Page 69 Revlon unveils LOVE IS ON fragrance Page 70 North America - U.S. Crislu reinforces reputation for Dufry, Hudson at MSP Page 20 “affordable luxury” Page 71 Westfield at LAX Page 20 Kering Eyewear launches with special Page 74 LGA to get $4b redo Page 22 plans for Americas and TR DFW chooses DFASS JV Page 24 Safilo: brand-led and design-inspired Page 76 Buckley London: a TR success story FEATURES in the Americas Page 78 MIA transforms with expanded retail Page 26 Worldclassbrands adapts Page 80 Furla, TUMI, WOPI, Paul & Shark, DEN adds new retail Page 29 Scorpio Page 82 DFA inaugurates branded boutiques at Dulles Page 30 Spirits News Industry supports DFA Golf Charity Page 32 IWSR rankings Page 84 Brown-Forman’s American Whiskey Page 86 North America – Canada Devallet joins Rémy Cointreau TRA Page 88 FDFA President Peter Brain: Toronto hosts John Dewar & Sons Canadian land border must adapt Page 33 Fine Whisky Emporium Page 90 FDFA celebrates 30 years Page 34 Chivas Regal The Icon at Vancouver Page 91 Operator Focus: IGL Page 36 Absolut, Disaronno, Macallan, Operator Focus: Blue Water Bridge DF Page 38 MONARQ, Accolade Wines, U’Luvka Page 92 Canada by the numbers Page 40 The Art of Patrón Page 98 ARI opens MAC in Montreal Page 41 Diageo Page 99 Beam Suntory’s whisky focus Page 100 Latin America & Caribbean Wm Grant’s special partnerships Puerto Rico’s fiscal crisis Page 42 drive business Page 102 Cuba ramps up Page 46 New flavor from Dooley’s Page 102 Image DF sets sail to Bimini- Next stop: Havana Page 48 Confectionery/ Electronics News Page 104 Economic Review: LA downturn impacts entire region Page 50 Special TMI Feature Asuncion tender Page 52 “Mr. DANZKA” turns 60 and looks More Brazil airport privatizations Page 54 back on how it used to be Page 112 Air traffic up in Chile Page 54 Advertising Index Page 112 ON THE SUPPLY SIDE Fragrance & Accessories People News Page 113 Estée Lauder’s 2015 BCA campaign takes off with Heathrow event Page 56 TFWA/FDFA Issue October/November 2015 10 Prime Cellar Selection Reserve Cellar Selection DUTY FREE EXCLUSIVE 11 October/November 2015 TFWA/FDFA Issue INSIDER BY THE NUMBERS ACI 2014 World Airport Traffic Report: ATL #1 in pax traffic; O’Hare #1 in aircraft movements, Dubai overtakes #1 in international traffic Atlanta and Chicago may still be economic engines driving this phenomenon. growing airports among the world’s top 30 duking it out for the position of #1 airport in airports for passenger traffic, moving from the world, but both have bragging rights for Key statistics: Passenger traffic 18th to 13th rank. a top spot in 2014: Atlanta (ATL) remains · Worldwide airport passenger numbers The world’s top 30 airport cities handle the world’s busiest airport on the globe with increased by 5.7% in 2014 to over 6.7 more than one-third of global passenger 96 million passengers in 2014, and Chicago billion, registering increases in all six traffic. London remains the world’s largest (ORD) regained its position and became regions. airport system with almost 147 million the busiest airport in terms of aircraft · Atlanta (ATL) -- the world’s busiest airport passengers handled at six airports in and movements, followed by Atlanta (ATL) and -- reported 96 million passengers in 2014 around the metropolitan area. New York Los Angeles (LAX). with traffic up 1.9% over 2013. #2 ranked maintains the second position with 116 But Dubai (DXB) – while the sixth- Beijing (PEK), with 86 million passengers, million passengers at three airports. Tokyo busiest airport in the world in overall experienced growth of 2.9% in 2014, down is the third city market with 109 million passenger traffic – can now claim the title of from the double-digit growth it had achieved passengers. the world’s busiest in terms of international in previous years. passenger traffic, ahead of London- · Airport traffic in emerging markets and The world’s busiest international airports Heathrow (LHR) in 2014, according to developing economies experienced growth (international passenger traffic) Airports Council International (ACI)’s latest of 8%, whereas airports in advanced Dubai, United Arab Emirates – DXB (69.9 World Airport Traffic Report.
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