Lifestyle Special Issue Oct 2015

LIFESTYLE OCTOBER 2015 · SPECIAL ISSUE

another day another airport

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Fashion frenzy p. 6 Seasonal trends p. 14 What’s hot in TR p. 28

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DUTYFREEMAGAZINE.CA

22/09/15 14:07

LETTER FROM THE EDITOR

Fulfilling fashion’s

potential

T

his is the first time we’ve launched a Fashion & Lifestyle supplement to support a fast-growing category in the industry. We want to shine a light on one of the most dynamic and exciting areas of travel retail.

Years ago, it seemed unthinkable that fashion and accessories would become the third most important category in travel retail. Would travelers really buy apparel, bags and shoes on their journeys, operators asked? Well, the reality is, they do.

As a new, dedicated study commissioned by TFWA and undertaken by research firm Counter Intelligence Retail shows, travel retail is a very important recruitment channel for fashion and accessories, highlighting the importance of marketing spend in this area to drive brand awareness and sales.

The study also found that as fashion and accessories shopping appears to be a key activity for many to kill time in the airport, this category needs to be positioned close to relaxation areas and prioritized in transit airports. However, the research revealed that one in five shoppers visited the fashion and accessories category—yet conversion was relatively low at 37%. This is a familiar story in travel retail across all product categories.

But travel market researcher m1nd-set has some good news for airport fashion retailers: most travelers want to see a broader selection of fashion shops and products in travel retail. Furthermore, more men are shopping and buying fashion items, widening the target audience. Interestingly, Dr. Peter Mohn’s research discovered that most fashion purchases at airport shops were spontaneous, with only 31% of purchases pre-planned.

The sheer potential of this category is why some of the world’s top operators, most notably Dubai Duty Free, are creating dedicated fashion zones, featuring glitzy standalone stores for the likes of Chanel and Hermès.

Over at Singapore Changi Airport, fashion sales are also booming, boosted by constant newness, exemplified by the recent opening of Zara’s first ever duplex store in an airport. The addition of new, affordable brands such as Uniqlo, Kate Spade New York and Calvin Klein Jeans have injected much excitement into the mix for shoppers, the company says.

Meanwhile, in Hong Kong, Lagardère Travel Retail recently won five fashion concessions at Hong Kong International Airport, bringing its expertise in the category to the Asian hub for the first time.

There are challenges, however. Fashion buying is difficult to get right, as the key Chinese consumer’s tastes are rapidly evolving, and retailers must cater to all passenger profiles passing through, to name just two reasons.

Amid this exponential growth, has the fashion category now reached its potential?

“Certainly not for Dubai Duty Free,” says Saba Tahir, Vice President – Purchasing.

What’s more, the company sees a lot of potential to grow the fashion category in the future, space permitting.

Fashion, you’ve come a long way.

Kindest Regards,

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca 4

LIFESTYLE ISSUE OCTOBER 2015

OCTOBER 2015 · LIFESTYLE · SPECIAL ISSUE

Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean.

The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. October 2015, Special Issue. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2015 Global Marketing Company Ltd.

AMERICAS, GULF-AFRICA, ASIA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Ryan White ryan@globalmarketingcom.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca OVERSEAS CORRESPONDENT Claire Malcolm claire@dutyfreemagazine.ca CONTRIBUTORS Mary Jane Pittilla Rebecca Byrne

ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION accounts@globalmarketingcom.ca

CONTENTS

What’s inside LEAD STORIES 6 Lifestyle/Fashion Overview TRAVELING IN STYLE

The world’s leading travel retailers in the Gulf and Asia are making space for luxury fashion as sales leap—and the potential has not yet been realized, they say

12 Fashion research: m1nd-set FASHIONING A TOP THREE CATEGORY

6

Dr. Peter Mohn, Owner & CEO of research specialist m1nd-set, casts fresh light on the huge potential of the fashion category in travel retail

30

28

14 Fashion: Wolford WOLFORD PLANS DRAMATIC EXPANSION IN TRAVEL RETAIL

The new dedicated international team will maximize duty free opportunities worldwide with a tailored offering and eyecatching display

16 Category Research: CIR/TFWA TURNING BROWSERS INTO SHOPPERS

A new fashion and accessories study commissioned by TFWA highlights the popularity of shopping the category at airports and makes recommendations for operators

20 Retailer News: Qatar Duty Free A FASHION LOVER’S OASIS

Qatar Duty Free has experienced a fashion renaissance since the opening of Hamad International Airport in 2014

24 Fashion Files: Lagardère Travel Retail UK & Ireland ANSWERING THE CALL

Lagardère Travel Retail UK & Ireland’s latest concept, called The Fashion Place, has been designed from the ground up to meet travelers’ fashion needs

FEATURES Irene Kim: A social media sensation An iconic year for InterParfums USA MCM captures the zeitgeist

28 Fashion: Paul & Shark THE KEY TO SUCCESS 30 31 32

Diesel: Offers an alternative Tateossian celebrates 25th Anniversary Desigual grows global presence

34 36 38

Italian luxury lifestyle brand Paul & Shark is making a significant investment in the Americas market this year, after an excellent first year in travel retail marked by exclusive innovations

LIFESTYLE: FASHION OVERVIEW

Traveling

in style by

HIBAH NOOR

The world’s leading travel retailers in the Gulf and Asia are making space for luxury fashion as sales leap—and the potential has not yet been realized, they say

I

t’s boom-time for travel retail fashion sales across the Middle East and Asia, driven by the voracious appetite for trends among Chinese outbound travelers. Operators are adding retail space at a clip to cater for the category’s popularity – and sales are surging.

According to Saba Tahir, Vice President—Purchasing, fashion sales at Dubai Duty Free, sales jumped by 34% compared to the same period of last year, mainly spurred by the new brands introduced in Concourse A—a different presentation than usual.

Even though Concourse A opened early 2013, it was only mid2014 when the whole fashion area was complete, namely with the opening of Chanel and Hermès. “This has had a welcome and positive upswing on sales,” says Tahir.

Has the fashion category now reached its potential? “Certainly not for Dubai Duty Free,” Tahir says, “and we see a lot of potential to grow the fashion categories in the future, space permitting. We can see more and more categories having fashion elements—technology, for instance, is a perfect example. Fashion evolves continuously and very quickly and in order to maximize its potential, we need to be ready to embrace required changes at any given time.

“The new fashion concept in Concourse A, where the brands like Chanel, Hermès, Gucci and Salvatore Ferragamo are showcased in a different environment, is a way of adapting to changes required at this time and making the most of what we can do for this category.”

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LIFESTYLE ISSUE OCTOBER 2015

Dubai Duty Free’s top three fashion/lifestyle products overall are bags, wallets and small leather goods

Catering to different requirements In terms of buying, fashion is dictated by the trends and therefore Dubai Duty Free must ensure that the key items for each collection are in its assortment, says Tahir, while the profile of its customers dictates the specific requirements when it comes to size, shape, color, etc. “As much as we cater to the international market, we need to be diverse when it comes to product assortment to ensure that we cater to different requirements,” he adds.

“However, we still have to be mindful of the fact that when it comes to ready-to-wear, customers will still be drawn to basics and safe styles and designs. Trying to strike a balance between being true to the ethos of a brand and buying more safe and conservative can be difficult and one we find challenging when going to do orders!”

Dubai Duty Free’s top 10 fashion/lifestyle products overall are bags, wallets, small leather goods, scarves, ties, belts, sunglasses, jewelry, men’s polo shirts, and men’s shirts.

#FeelGood

coccinelle.com

LIFESTYLE: FASHION OVERVIEW

Amid the success of its fashion offer, there are challenges. The decline of the euro rate against the US dollar makes Dubai Duty Free’s prices less attractive than European markets, notes Tahir.

“The Russian situation is another challenge as the Russians are considered to be one of the most important fashion customers.

The evolving Chinese customer can also be difficult to stay ahead of. The larger middle class market has varying needs and trying to ascertain for future buys can sometimes be a gamble.”

Considering the success of its new fashion concept in Concourse A, which comprises a dedicated area for the category, Dubai Duty Free will expand the concept into other concourses in time, says Tahir.

Meanwhile, in Concourse D, which is due to open later this year, new brands will come on-stream.

Dubai Duty Free also has its own brand, Akaru, which is promoted across many categories.

Last year Changi unveiled a number of fashion brands, including Uniqlo, Kate Spade New York (pictured) and Calvin Klein Jeans

Introducing new labels to the mix Over at Singapore Changi Airport, fashion sales are also booming, boosted by constant newness. An 850 square meter Zara duplex store in the Terminal 3 Departure Transit Hall opened its doors to passengers on August 7, 2015. The brand’s first ever duplex store in an airport carries apparel for both men and women.

“Fashion is one of the key categories we offer to passengers,” says a spokesperson for Changi Airport. “We have been introducing both fashion staples and new labels to the retail mix amongst the 350 stores we have across our three terminals. For instance, last year, we welcomed a number of new-to-Changi fashion brands, including Uniqlo, Kate Spade New York and Calvin Klein Jeans, injecting much excitement for shoppers.”

Other fashion brands available at Changi include Michael Kors, Marc by Marc Jacobs, Shanghai Tang, Victoria’s Secret and many more.

Zara’s first ever airport store duplex in the Terminal 3 Departure Transit Hall of Changi Airport

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LIFESTYLE ISSUE OCTOBER 2015

Meanwhile, in Hong Kong, Lagardère Travel Retail won five fashion concessions at Hong Kong International Airport (HKIA) in September 2015, consisting of four fashion stores in the West Hall and one in the Midfield Terminal, following the company’s success in a competitive tender process.

The win is seen as an exciting new chapter for both Lagardère Travel Retail and HKIA, as it brings the retailer’s fashion arm into both the West Hall and Midfield Terminal for the first time.

Four brands, Calvin Klein, Kate Spade, Pandora and Paul & Shark, will begin trading from the last quarter of 2015 to the early second quarter of 2016.

LIFESTYLE: FASHION OVERVIEW

Exciting shopping experiences

Maximizing value creation Louis Dambrine, General Manager of Lagardère Travel Retail in Hong Kong, says: “We are very excited to expand our business within Hong Kong International Airport. Our 10 constructive years of relationship in operating the bookshop demonstrated our ability to drive business by constantly delivering excellent customer service. We will continue to work at satisfying each and every traveler’s need, guaranteeing the highest quality, hence maximizing value creation for our brands and Hong Kong International Airport.”

Philippe Fontalba, Luxury Fashion and Accessories Director of Lagardère Travel Retail in Asia Pacific, shared his sentiments, adding: “We are extremely delighted to be extending our fashion presence, especially so in Hong Kong International Airport, where it is one of the world’s busiest passenger airports and gateway to the world.

“Additionally, we are thankful to have this opportunity to work with new brand partners such as Kate Spade and to extend our current partnership with Paul & Shark and Pandora. We are equally excited to open the first Calvin Klein Platinum store worldwide. Stay tuned for more news.”

The operator sees continuing growth for fashion and luxury goods in travel retail. “Airports are places where affluent tourists have time on their hands, and as a result, we foresee a big increase in airport retail investment, especially in the designer apparel and luxury accessories categories,” says Dambrine.

Frank Cancelloni, President of Calvin Klein Asia Pacific, welcomed the news of Lagardère Travel Retail’s contract award, which will see the US fashion brand open its first ever CK Accessories store in travel retail at HKIA. “We are excited and proud to partner with Lagardère Travel Retail in bringing CK Accessories to HKIA,” he said. “Hong Kong Airport is the obvious choice as the launch airport for what I believe will be a game-changing accessory offering.

“Calvin Klein has rapidly developed a strong strategic partnership with Lagardère Travel Retail since inaugurating our travel retail division in 2014. Bidding with them for a retail location in HKIA was a natural progression for us and we look forward to strengthening our partnership further with the opening of our first ever CK Accessories store in travel retail.”

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LIFESTYLE ISSUE OCTOBER 2015

Danish jewelry brand Pandora will open two concept stores in the busy hub. Kenneth Madsen, President, Pandora Asia Pacific, comments: “We are very happy to expand our co-operation with Lagardère Travel Retail, which has proven to be a very professional airport retailer and partner. We share many of the same values and operating principles in terms of ensuring a high level of service and overall shopping experience, so we are confident these two new stores will be successful.

Andrea Dini, President and Chief Executive Officer of Italian sportswear brand Paul & Shark, also praises Lagardère Travel Retail. “I am extremely pleased and honored that Lagardère Travel Retail will operate the first Paul & Shark store at Hong Kong Airport,” he enthuses. “Since 2014, when Lagardère opened a Paul & Shark store in Xian Airport, the relationship between Paul & Shark and Lagardère Travel Retail has constantly improved and I have to say that its management has excellent knowledge and skills in fashion travel retail.”

Cissy Chan, Executive Director, Commercial, of Airport Authority Hong Kong is confident of success. “Travelers are always looking for distinctive and exciting shopping experiences when they arrive at the airport, and through our strong partnership with Lagardère Travel Retail, we are sure that these four highly acclaimed and sought-after fashion brands will add delight to our passengers,” she says.

Louis Dambrine, General Manager of Lagardère Travel Retail in Hong Kong

The cachet of style Turning to the Chinese traveler—an important demographic in the fashion sphere—Alexander Glos, CEO of consulting firm i2i Group China, notes that millennials are starting to make their mark as Chinese outbound travelers, but in very distinct ways compared to older travelers from China. “Firstly, they don’t travel in groups, they are more adventurous, not going to the traditional destinations like Thailand or Korea, but instead trying India, South America and Eastern Europe.

“Chinese affluent travelers continue to be an strong component to the global Chinese traveler mix, but are also traveling to different locations that help them showcase their unique status and affluence, hence destinations such as Antarctica and Iceland are now targeted by the Chinese well-to-do.”

The Chinese are still the top spenders, as much as US$10,000 per person this summer in the US, according to Glos. “The millennials are not going for watches and jewelry, but apparel and technology. Affluent Chinese have shifted from watches to jewelry.”

International brands remain key, he believes, and he does not see the Chinese going for home-grown brands. “Global shopping is all about the cachet of style and that can only be found from foreign brands, so Chinese brands are still a long way from gaining that respect and desire.”

For millennials, fashion brands are more popular, but the size selection is still an issue around the world for Chinese shoppers. Sizes are often too big and are not cut to fit the Chinese shape, he says.

In some cases, Glos has spotted a shift toward the Chinese purchasing of mid-market brand fashion as opposed to luxury items. For example, Levi’s blue jeans are now popular and seen as cool.

Alexander Glos, CEO, i2i Group China

www.dutyfreemagazine.ca LIFESTYLE ISSUE

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  FASHION RESEARCH: M1ND-SET

Fashioning a top three

category by

HIBAH NOOR

Dr. Peter Mohn, Owner & CEO of research specialist m1nd-set, casts fresh light on the huge potential of the fashion category in travel retail

T

ravel market researcher m1nd-set has some good news for airport fashion retailers: most travelers want to see a broader selection of fashion shops and products in travel retail. m1nd-set, which is currently conducting bespoke research for several important players in the fast-growing fashion category, has been mainly focused on cultivating an in-depth understanding of the reasons why travelers prefer or choose not to buy in duty free versus downtown.

Additionally, the company has undertaken research to define the key triggers and what could be improved, as well as understanding what could boost conversion rates among fashion shoppers.

Dr. Peter Mohn, Owner & CEO, m1nd-set

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LIFESTYLE ISSUE OCTOBER 2015

According to m1nd-set Owner & CEO Dr. Peter Mohn, “We clearly see that in all parts of the world—from China to South America—most travelers wish to see the fashion category grow and offer a wider and broader selection of fashion shops and items compared to what is currently available. In this sense, fashion is quite the contrary to almost all other categories.”

When it comes to consumer shopping trends in the fashion category, Mohn has observed that more and more men are shopping and buying fashion items. “Many men say they are starting to take this channel seriously when shopping for fashion, especially since they can mainly shop alone (without their wives or partners), and they have more time to shop at an airport compared to at home, plus they appreciate the appealing shopping atmosphere at airports, especially in Asia, where they often find downtown too crowded.”

In general, discovering new things can spur travelers to purchase in the category. “The mindset of travelers is always different compared to when they are at home, and they are consequently more likely to try new brands. However, most shoppers decide on the brands they already know,” he noted.

According to Mohn’s research, 56% of travelers at airports bought fashion items to treat themselves. Other reasons for buying fashion at airports included convenience (cited by 41% of those polled), as a gift for others (38%), to save money (33%), to have a memory of the trip (22%), promotion/special deal (19%), and because they could not find the item at home (17%). Some 16% said they made a fashion purchase because it was guaranteed to be authentic. Only 8% said they were asked to buy something for someone, while just 8% cited duty free exclusivity as a reason for purchase.

Most fashion purchases at airport shops were spontaneous, with only 31% of purchases pre-planned.

When buying fashion at airports, 45% of travelers compared prices with downtown shops, while 34% did not compare prices.

Only 12% compared prices against the internet, and 9% compared prices against other airports.

When it came to the disadvantages of buying fashion at airports, 42% of people cited the limited selection of brands/products. Other disadvantages included bringing the purchased item on the trip (21%), difficulty of exchanging purchased items (17%), and limited time to shop/try products (17%).

Regarding challenges facing the fashion category, despite the price perception being an important issue for shoppers, other unmet needs exist and should not be overlooked, said Mohn. The main reason for not purchasing is the inability to find a suitable brand or item. This is also reflected by the fact that the most frequently mentioned required improvement from the traveler is a greater selection of brands and products.

In addition, some convenience issues could be addressed in order to facilitate the shopping experience. The ability to exchange products in a downtown store or to pick up the purchase when returning from the trip would be a welcome addition to the current offer in the fashion category, he said, adding: “In order to match travelers’ expectations, the fashion category should offer a balanced mix of emotional self-indulgence products, well-known global brands, which are always expected, but also products suitable for gifting, as well as local and authentic products.”

It is difficult to predict what the category will be worth in the next five years, since external, uncontrollable factors might impact the growth. However, Mohn believes fashion will belong to the top three categories in future.

“This category is becoming more relevant for the traveler and a greater part of the whole travel and shopping experience. Over time, we see more and more travelers arriving early at the airport to have time for shopping, and shopping fashion plays a more significant role compared to two to three years ago.”

www.dutyfreemagazine.ca LIFESTYLE ISSUE

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FASHION: WOLFORD

Wolford plans

dramatic expansion

Newly appointed CEO Ashish Sensarma

in travel retail The new dedicated international team will maximize duty free opportunities worldwide with a tailored offering and eye-catching display by REBECCA BYRNE

W

olford, the leading global brand for luxurious legwear, exclusive lingerie and high-quality bodywear, is poised to take its products across the globe with a refocused travel retail strategy. At a recent meeting with the newly formed travel retail team,

Exclusive promotions include customizing the legwear with Swarovski crystal initials

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LIFESTYLE ISSUE OCTOBER 2015

Head of International Wholesale and Head of International Travel Retail Silvia Azzali outlined exciting new plans to put the Wolford brand in front of travelers worldwide.

Azzali comments: “Wolford is an established brand with a solid reputation and a history of innovation. We want to develop our position and presence at international airports in a sustainable way because in the field of travel retail, we see a profitable future market, in which we can be even more accessible for all our customers. This year we have developed a new concept for the duty free market which we believe will maximize opportunities for Wolford across the globe.”

Wolford currently operates 12 monobrand boutiques, mostly in Germany and Italy, and has a presence in 25 duty free stores across the world. The company has just opened a 35 square meter boutique in Kiev in partnership with Heinemann.

However, the new travel retail strategy has been designed to dramatically increase the brand’s footprint across the globe.

These plans will be presented at the TFWA World Exhibition in Cannes, however Asia Duty Free was given a preview of how Wolford intends to

capture the hearts and minds of international travelers.

“When we considered expanding in travel retail, our first step was to simplify our range to travelers,” continues Azzali.

“We decided to focus on our core offering of legwear. This is not just hosiery but includes socks, tights, leggings and jeggings. We now have a dedicated assortment, which can easily be tailored for each country so that we account for the differences between regions, for example the climate and skin tone changes between the northern and southern regions.”

“A focus of our new business is compression hosiery, which is extremely important for travelers. We developed compression tights in 1988 and they remain one of our best sellers due to their amazing results on the blood circulation.

We will continue to develop new products for compression and health, as we are convinced this is a market with great potential.”

Azzali also outlined plans to attract new younger customers. Wolford has developed an exclusive product for the duty free market which has a lower retail price point of €17 (US$18.60). Promo-

tions will also make the product more attractive to new and existing customers.

She continues: “We are looking at all areas of marketing to support the presentation of our travel retail offering.

This includes a dedicated GWP for travel retail; an exclusive travel retail set, which includes the three things you need to survive when you are abroad; and travelers will be able to customize hosiery with their initials in Swarovski crystals.”

Crucial to the success of the expansion plans are the fixtures to display the products in a dynamic yet practical manner targeted to make shopping as simple as possible for the customer. To accelerate the development of Wolford in the travel retail industry, Wolford appealed to David Dayan of Duty Free Development Consulting, a company that specializes in travel retail with many notable successes such as Lacoste, Parker and Rituals. Together they designed “gondoliers” which at 1m x 1.4m are highly portable yet eye-catching.

Dayan comments: “Wolford is a brand with a long history and reputation as the best in hosiery. Its challenge in travel retail is to capture the eye of the traveler who has only a few minutes to buy, does not want to be overwhelmed with choice and wants value for money. With the team at Wolford we have looked at simplifying the range of products for the duty free market, introduced an exclusive lower priced product and created the

self-service fixtures. These gondoliers are highly flexible not just in terms of product display but also in terms of advertising and can be easily tailored to the market.”

With this new concept, Wolford will be able to offer a wide range of products in a minimum of space and raise its brand awareness in multiple duty free locations. The new concept has been tested at Heathrow’s Terminal 5 over recent months and has been extremely successful. Various operators are already interested in partnerships and Wolford is confident that its travel retail business approach will develop quickly and garner strong positive results.

Wolford’s new CEO Ashish Sensarma concluded by explaining why his brand is so suited to travel retail: “Our origins are in hosiery and our lifelong mission has been to create products and fabrics that are closest to the skin. This journey has taken us into the new dimension of today’s modern world where we are emotionally connected with the modern feminine spirit of the woman by creating products which are multi functional and provide her with confidence. I am super excited with our travel retail plans; it is an incredible channel for us and a channel in which we absolutely belong. Our products are so naturally fitted to this channel because as the woman runs across the world at different airports, Wolford is her obvious choice.”

Wolford’s new “gondoliers,” fixtures that are higlyh portable and visible

Silvia Azzali, Head of International Travel Retail, Wolford

David Dayan from Duty Free Development Consulting

www.dutyfreemagazine.ca LIFESTYLE ISSUE

15

CATEGORY RESEARCH: CIR/TFWA

Turning

browsers into shoppers by

HIBAH NOOR

A new fashion and accessories study commissioned by TFWA highlights the popularity of shopping the category at airports and makes recommendations for operators

T

ravel retail is a very important recruitment channel for fashion and accessories, according to a new study commissioned

by Tax Free World Association (TFWA) and conducted by travel retail research specialist Counter Intelligence Retail.

As part of the overall Fashion & Accessories study for TFWA, Counter Intelligence Retail highlighted eight areas of focus in order to grow sales within the category. In this article, we focus on two of these: “Capitalising on time and desire to shop the category,” and “Development of brand recruitment opportunities within travel retail.” The full study is available only to TFWA members.

The wide-ranging TFWA study aimed to understand shopper profiles; identify cross-category visiting and reasons for visiting stores; identify category interactions, motivations and purchasing reasons; identify spend levels; understand the role of travel retail exclusives; understand perceptions of the fashion and accessories product offering; understand the degree of price checking and perceptions of airport prices; and evaluate staff interaction and their role in driving category sales.

Research was conducted between February and April 2015 in four key airports, New York JFK (Terminal 4), Amsterdam Schiphol (Lounges 1, 2, 3), Singapore Changi (T1, T2 and T3) and Dubai (T1 and T2). A minimum of 100 category shopper interviews were conducted in fashion and accessories per location, and a minimum of 50% buyers.

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LIFESTYLE ISSUE OCTOBER 2015

Some 823 people were fashion and accessories shoppers, while 304 made a purchase within the category.

The study revealed two key findings: first, that travel retail is a very important recruitment channel for fashion and accessories, highlighting the importance of marketing spend in this area to drive brand awareness and sales; and second, as fashion and accessories shopping appears to be a key activity for many to kill time within the airport, this category needs to be positioned close to relaxation areas and prioritized in transit airports.

On the subject of capitalizing on time and desire to shop the category, there were a number of insights. One in five shoppers visited the fashion and accessories category—yet conversion was relatively low at 37%. Fashion and accessories shoppers were more likely to be in transit than the average shopper (43% versus 34%), especially Americans.

Frequent flyers were more likely to visit the category, implying propensity to visit increases among more experienced/confident travelers.

Key reasons for visiting the store were cited as “had time to visit” (38%) and “to browse and maybe buy” (32%). Some 28% of fashion and accessories shoppers visited as “it’s what I do when I travel” (versus 23% for the average shopper), suggesting fashion and accessories shopping plays an important role in many traveler journey plans. Additionally, shoppers were equally interested in both luxury and high street fashion and accessories brands.

Based on the findings in the “Capitalizing on time and desire to shop the category,” Counter Intelligence Retail has made some recommendations for travel retailers: • Ensure strong visibility and availability of fashion and accessories brands, especially in key transit airports.

Fashion and accessories outlets should be strategically positioned close to relaxation areas in the airport to tempt travelers.

• Communicate “time left to shop” on the information displays to encourage travelers to maximize their time in retail before boarding their flights.

• Range rotation, especially on storefront displays, are important to maximize the interest of those with time to kill as well as frequent flyers.

• Ensure a range of more accessible high street brands as well as a strong range of premium and luxury brands to maximize appeal for all travelers.

Counter Intelligence Retail Founder and Director Garry Stasiulevicuis

Yellow Village BOOTH E26

www.misaki.com

CATEGORY RESEARCH: CIR/TFWA

Turning to the issue of “Development of brand recruitment opportunities within travel retail,” the insights included: 45% of fashion and accessories buyers who preplanned had not planned which brand to purchase so there is scope to influence brand choice in airports; 68% of buyers who purchased for themselves bought outside of their regular brand, so travel retail is an important brand recruitment channel for fashion and accessories; and 27% actually purchased for the first time in travel retail, with nearly one in two of these seeing the brand for the first time in 18

LIFESTYLE ISSUE OCTOBER 2015

the airport. Fashion and accessories had the second highest first-time purchasing of all categories, losing out to watches and jewelry. Key reasons for purchasing outside their regular brands were based on liking the design/style of the item, but also wanting to try new/different brands.

Recommendations for operators included: • Invest marketing spend in communicating key fashion and accessories brands within the airport environment.

• Develop a targeted airport strategy for key brands, ensuring brands fit with shopper profiles within that airport.

• Ensure an appropriate range within each airport is aligned to shopper profiles.

• Ensure strong POS (in key languages) is available and visible to highlight new launches, travel retail exclusive lines, as well as latest season stock. * TFWA is running an insight session during the 2015 TFWA World Exhibition in Cannes where there will be the opportunity to see further information from this study.

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RETAILER NEWS: QATAR DUTY FREE

The multi-brand Junction store was designed and executed by Qatar Duty Free’s in-house team, and is performing extremely well

A fashion

lover’s oasis by

Qatar Duty Free has experienced a fashion renaissance since the opening of Hamad International Airport in 2014

Keith Hunter, Senior Vice President, Qatar Duty Free

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LIFESTYLE ISSUE OCTOBER 2015

I

HIBAH NOOR

n just over a year, Qatar Duty Free has shot to the top of the fashion retail charts with its impressive assortment of mid-range and high-end brands targeting the diverse passenger mix at Hamad International Airport (HIA) in Doha.

From the understated Italian chic of Giorgio Armani to the vibrant Arabia-inspired T-shirt designs from local brand Fanilla Couture, the retailer is going after both the dedicated fashionista and the casual shopper.

Keith Hunter, Senior Vice President, Qatar Duty Free, is keen to stress the retailer’s distinctive approach to the fashion category, choosing to work with both established and niche brands that are new to the airport environment.

“We are delighted with the reaction that we have had to our unique mix of mid-range and high-end fashion and lifestyle brands which we have brought to HIA,” he enthuses. “Most notably our own concept multi-brand stores that were designed and executed entirely by our in-house team have been performing extremely well. We took a risk by introducing brands and concepts that are not traditionally associated with travel retail or airports and it has really paid off.

“Our bespoke boutiques such as Esquire, a one-stop shop for every man’s sartorial needs, or The Boulevard, which was designed to meet the requirements of today’s fashion-conscious travelers, have found an appreciative audience at HIA. Junction, with its trendy mix of male and female urban brands such as Desigual and Diesel, has also been a big hit with travelers.”

At the upper end of the market, Qatar Duty Free has an avenue of luxury boutiques, which includes brands such as Hermès, Ferragamo, Giorgio Armani, Tiffany & Co, Rolex, Hugo Boss, Coach, Burberry and Michael Kors, which is also a popular destination for fashion-savvy travelers.

Cool casualwear and denim from Hugo Boss is displayed alongside colorful, sporty separates from Desigual, with mannequins providing interest

The secret seems to lie in the buying strategy, which focuses on freshness and creativity. “We are always looking for products and brands that will surprise and delight our customers; items that they are not expecting to see at an airport,” notes Hunter.

“We have approached and worked with many fashion and lifestyle companies that have never worked in travel retail before and we are the first to introduce them into an airport environment. Our buyers source products at fashion exhibitions such as Pitti Uomo in Italy, great locations to see the latest trends to do our buying and research.

“Other criteria when sourcing new products are great craftsmanship, good heritage and reasonable price points. Qatar Duty Free is not just about high-end luxury products but also about items that offer both exclusivity and affordability.”

One of Qatar Duty Free’s biggest success stories is a new local label, Fanilla Couture, as Hunter explains. “This was new to travel retail, a T-shirt brand that we discovered and purchased for our store Junction. Created by a local Qatari designer, Fanilla Couture has since become a huge success and will soon be available in Harrods.”

Alongside Fanilla Couture, there are numerous region-specific brands, products and even boutiques. The retailer’s Armani Junior store is its only mono-brand boutique in travel retail. In addition, the Giorgio Armani store is also the brand’s only boutique in a Middle East airport.

Other brands which have chosen Qatar Duty Free as their only airport point of sale in the Middle East include Paul & Shark, Pinko, Smythson, Jott and Pal Zileri, among many others.

On the luxury side, Ferragamo and Hermès bags are bestsellers, with the Hermès Lindy bag selling extremely well, says Hunter. Other products that have been well received by custom-

ers include Diesel Jogg jeans, Fanilla Couture T-shirts, Tumi luggage, MCM backpacks, Gas Bijoux, Desigual dresses and UGG boots.

Responding to the popular “athleisure” trend in fashion, Qatar Duty Free has seen “tremendous” growth in the sports category, which still has huge potential, believes Hunter. The operator’s multi-brand sports store, InPlay, is performing well.

Exclusive, one-of-a-kind experiences and promotions are also a key part of the fashion strategy. “We are currently developing a major fashion event with Giorgio Armani to promote its autumn/winter 2015 collection, which will be an airport first,” says Hunter.

The company seeks to provide experiential promotions and activations in the airport throughout the year to add to the overall passenger experience when they are shopping at Qatar Duty Free. “We aim to keep our offering fresh with seasonal promotions following the important events happening in Qatar and across the world.

Earlier this year, the main atrium of the departures hall welcomed its acclaimed Chinese New Year Pavilion, with exclusive products from all categories, including limited-edition Paul & Shark China polo shirts.

And there’s much more to come on the fashion retail front, says Hunter. “We are very excited about the imminent opening of our new women’s multi-brand boutique Volante, which will be dedicated to highly-fashionable, mid-luxury labels such as Pinko and Hugo Women—a worldwide first in airport—as well as other bags, shoes, sunglasses and scarf brands. Also coming soon is a new concept in travel stores, Detour, where passengers will be able to purchase a wide range of innovative travel and lifestyle accessories.”

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RETAILER NEWS: QATAR DUTY FREE

When the North Node of HIA opens, the retailer will also be launching a core fashion offering combined with other key categories in an open-plan space created to give passengers access to a wider range of products in one dedicated area.

Hunter is sure that the momentum will continue. “We are not even close to fulfilling the potential for fashion and lifestyle at Qatar Duty Free. We will continue to expand as new areas of HIA open, and we have many new concepts and boutiques in the pipeline. Although we are already home to some of the biggest names in fashion, there are plenty more to follow, including a Victoria’s Secret boutique, which is set to open in the near future.”

Executing one of the world’s most impressive fashion retail operations is not without its challenges, however.

“The diversity of our passengers is something that makes our job both challenging and rewarding,” states Hunter. “With people from so many different backgrounds and ethnicities traveling through Qatar Duty Free, we have to make sure that we cater to each and every one of them.

Esquire for Men offers both casual and formal outfit options for male travelers, including Italian brand Pal Zileri and UK knitwear label John Smedley

“Our biggest challenge is a situation we created for ourselves by not taking the traditional approach to travel retail and instead working with companies which are not used to operating in an airport environment with the limitations that can entail. Instead of choosing to only work with bigger companies that have the logistics and infrastructure to support our requirements, we have chosen to also work with smaller companies that can provide more niche products but don’t always have knowledge of the market or the parameters that we work within.”

The third challenge is one that many travel retailers would love to encounter—how to market a world-leading fashion retail destination. “Another challenge facing us is communicating to the rest of the world just how amazing the shopping opportunities are at Qatar Duty Free. Until passengers visit and see the vibrant mix of products and brands for themselves, it is hard for them to grasp how different Qatar Duty Free is to other duty free offerings around the world.”

Premium handbag brands such as Furla and Pinko are merchandised on back walls, alongside carefully placed mannequins to create a warm and inviting shopping space

Junction carries a wide selection of urban-casual labels for fashion-conscious men and women such as UGG boots, Desigual, Diesel, Pinko and Gas Bijoux

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TRAVEL RETAIL CONTACT catherine.bonelli@paulshark.it

FASHION FILES: LAGARDÈRE TRAVEL RETAIL UK & IRELAND

Answering the call by

Lagardère Travel Retail UK & Ireland’s latest concept, called The Fashion Place, has been designed from the ground up to meet travelers’ fashion needs

Mélanie Musso, International Retail Brand Manager, Duty Free Global, Lagardère Travel Retail

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LIFESTYLE ISSUE OCTOBER 2015

HIBAH NOOR

L

agardère Travel Retail UK & Ireland recently announced the opening of The Fashion Place at Glasgow Airport. The store is a pilot of the concept but more openings are already planned for Seville in January 2016 and Nice in March 2016.

Mélanie Musso, International Retail Brand Manager, Duty Free Global, Lagardère Travel Retail, tells us that fashion has been a focus for the company worldwide for some time now since a significant portion of the growth that duty free has experienced of late has come from the category. “Fashion also represents an opportunity for us to grow our own business,” Musso explains.

Of course, Lagardère Travel Retail knows a thing or two about fashion, with the operator’s multi-brand concept, The Fashion Gallery, currently in place in Singapore, Madrid and Warsaw airports. Fashion and accessories are performing extremely well across Lagardère Travel Retail’s global network, with Musso calling it the operator’s “main lever of business growth,” with a turnover evolution at +21% in 2014 versus 2013. A clear indication of the importance of fashion to Lagardère Travel Retail’s bottom line is the fact that in 2014, 41 boutiques were opened; a further 57 are planned for 2015.

“The fashion business is definitively becoming an important category in travel retail,” Musso explains. “For instance, our fashion portfolio now represents 16% of our global business. Fashion purchases in travel retail are at 75% impulse, yet passengers are more likely to yield to accessories and jewelry offers. The positioning of The Fashion Place Glasgow offer has been defined based on the airport and passengers research we performed.”

Newly opened The Fashion Place at Glasgow Airport

A formula for success Lagardère Travel Retail’s success to date with fashion retailing is anything but accidental. The operator makes a concerted effort to research brands, traveler profiles and more in the lead-up to new store openings.

“We have performed customer research, and analyzed Glasgow Airport’s passenger mix and their expectations when it comes to fashion,” says Musso. “We’ve also done benchmarking activities and examined the latest fashion trends.”

As a result, Lagardère Travel Retail UK & Ireland has identified two key barriers to purchase: 31% of respondents cited a limited selection of brands, while 3% of customers interviewed noted that there weren’t enough promotions and that prices weren’t affordable enough.

The operator has addressed both of the above issues with The Fashion Place. The concept’s overarching vision is “Fashion is fun!” Lagardère Travel Retail UK & Ireland’s main goal was to provide a playful fashion marketplace where, according to Musso, “travelers can dive in and hunt through the abundant displays for their favorite styles.”

In terms of the passenger profiles that The Fashion Place is targeting, Lagardère Travel Retail UK & Ireland has identified three types: those traveling for business or leisure who want to treat friends and family at home with an original gift idea that doesn’t seem like it comes from an airport; passengers traveling on holiday who don’t need anything in particular but have free time to buy things and enjoy treating themselves to a personal gift now and again; and those who travel often, know the airport well and are looking for functional items out of necessity.

“To sum up,” she says, “The Fashion Place concept is a playful, fun, quirky and energetic shopping experience which leaves a smile on all shoppers’ faces.”

Going with the flow Another key to Lagardère Travel Retail’s success is its proven ability to evolve with changing consumer tendencies. This skill is on full display at The Fashion Place, with both marketing initiatives and product mix remaining flexible enough to pick up on the latest trends with minimum lag time.

“We have an annual marketing plan proposing brands and retailer animations, as well as promotions,” Musso says. “We adapt it depending on the business situation, but we aim at always having something happening in the shop in keeping with our vision of being a playful and dynamic store.”

Likewise, The Fashion Place adapts its brand offer to market trends and customer expectations. Musso does note, however, that swapping out brands too often would take away from the carefully crafted nature of the store. Rather, The Fashion Place relies on many brand partners to collaboratively create the store environment, with promotional spaces at the entrance where new, hot brands can be added.

And finally, in the lead-up to TFWA WE in Cannes, we asked Musso what she wants to see of fashion and accessory suppliers.

Not surprisingly, given Lagardère Travel Retail’s penchant for thorough analysis of markets and trends, she expects wellresearched products that speak to traveler needs.

“My advice for suppliers would be to propose an offer that targets different passenger types with varying expectations,” she concludes. “It is also vital to answer to the impulse characteristic of the fashion category in travel retail.”

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MOROCCANOIL: ONE BRAND. A WORLD OF OIL-INFUSED BEAUTY. Moroccanoil.com

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FASHION: PAUL & SHARK

The

key to success Paul & Shark is positioned as an Italian luxury lifestyle brand with a focus on quality, craftsmanship and innovation, such as clothing made from highperformance materials that can withstand all weather conditions

C

atherine Bonelli, Worldwide Travel Retail Director of Paul & Shark, is fizzing with excitement about the Italian luxury lifestyle brand’s progress in duty free over the past year.

“It’s been an exceptional year for Paul & Shark, during which we have seen very strong performance for our travel retail activity,” she says, noting the fashion category’s rise to prominence in the channel.

“Fashion is a very buoyant category within travel retail, attracting more and more attention from airports and retailers.

We see huge opportunities for the brand and our focus and investment in the channel is certainly proving us to be right.

We are positioned as a luxury lifestyle brand and the main focus by retailers is to develop the luxury and premium sectors—so we expect this upward trend to continue.”

Since the very beginning, innovation and exciting developments have been at the core of Paul & Shark’s growth. Bonelli cites the family-owned brand’s clothing made from high-performance materials that can withstand all weather conditions, and its exclusive in-store instant embroidery solution, which allows customers to receive personalized products embroidered with their initials.

This focus on innovation is set to continue. “We never stand still and are pleased to share that we have some very important developments to announce, but please 28

LIFESTYLE ISSUE OCTOBER 2015

Italian luxury lifestyle brand Paul & Shark is making a significant investment in the Americas market this year, after an excellent first year in travel retail marked by exclusive innovations

allow us to reveal these during our TFWA World Exhibition press conference,” she says. The company will also be announcing details of its new business in Cannes.

Pop-up stores are a key feature of the travel retail strategy. “We believe that pop-up stores, if created well to reflect the DNA of a brand, can prove to be a fabulous opportunity for airports—particularly where there is limited space, for additional brand placement, seasonal activations, etc,” says Bonelli. “For Paul & Shark, we have been working on creating the perfect pop-up store, and I’m delighted to say that development is now finished. We have received the prototypes in our factory and we will be presenting the final version during the TFWA World Exhibition. We are not able to announce any specific airports as yet, but we can say that we are working on a number of future projects.”

In a recent marketing initiative, the company launched an animation during the busiest summer weekend in Cyprus from its 32 square-meter shop in Larnaca Airport’s departures hall, which opened in March 2015. A dedicated, trained person from its team traveled from Italy to personalize the travelers’ purchases on-site, and the promotion has been a “very successful indeed”, notes Bonelli.

Cyprus is a very good market for Paul & Shark, where the brand has five shop-inshops on the local market, so the brand is well known. “Larnaca has a very international mix of passengers and the person-

As travel retailers continue to develop their luxury and premium sectors, Paul & Shark’s Worldwide Travel Retail Director Catherine Bonelli expects the brand’s sales growth to continue

alization was perfect for travelers heading home, making their visit to Cyprus even more memorable,” she says.

Elsewhere, Paul & Shark is a global brand and its travel retail focus reflects that. “We are seeing growth in all regions.

In terms of the US, Paul & Shark is significantly expanding its investment into the US domestic market this year and we are confident that this will reflect in new airport retail opportunities within the country.”

wolford.com

V I S I T U S A N D D I S COV ER O U R N E W T R AV EL R E TA I L CO N C EP T AT T F WA C A N N ES Y E L L O W V I L L A G E A 1 9

ESTEE LAUDER: IRENE KIM

A social media Korean-born Irene Kim is Estee Lauder’s Global Beauty Contributer

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rene Kim is passionate about sharing her take on fashion and beauty with her fast-growing Korean and global social media following. Raised in both the US and South Korea, her interest in fashion and beauty began when she was a student at New York’s Fashion Institute of Technology.

Dubbed by Women’s Wear Daily (WWD) as fashion’s It girl, Irene hosts popular South Korean fashion and beauty television programs in both English and Korean, including K-Style. She has starred in K-pop videos, and has been photographed globally for her multi-colored hair and distinctive street style.

Fusing Eastern and Western beauty tips and techniques, Irene has quickly become an influential beauty voice to an Asian and international audience across her social media platforms. In July 2015, Irene was named Global Beauty Contributor for Estée Lauder, where she will create beauty content for the US brand’s online and social media platforms.

Q: What’s your definition of beauty?

When did you first become interested in it?

A: Beauty is confidence and how you carry yourself. It’s really about finding something you love and making it your own. The first time I became aware of it was when I decided to cut my own bangs with a pair of scissors when I was

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LIFESTYLE ISSUE OCTOBER 2015

sensation Korean-born model, social media star and TV personality Irene Kim has been snapped up by Estée Lauder to create beauty content for the brand’s online and social media platforms

four! Back then I also used to play in my grandmother’s lipstick drawer. She had the best colors.

Q: Who was your first beauty crush?

A: The Spice Girls!

Q: Who are your beauty icons now?

A: I love Charlotte Gainsbourg. She has this ease about her and it doesn’t seem like she tries too hard. Makeup-wise, Kate Moss will always be my favorite. From her iconic cat eye to a sexy red lip, she just pulls everything off with class.

Q: Could you talk us through your dayto-day routine? We know that good skin is important to you.

A: Skin is incredibly important to me because I’ve always had sensitive skin, so I’m always on the hunt for any soothing remedy. I like to keep my steps simple though, because I feel like too much won’t let my skin breathe. I keep it to five steps: cleansing, toning, essence, moisturizing and sun-blocking. In the morning, I simply wash my face with water instead of cleansing.

Q: What about makeup?

A: I love playing around with makeup but my everyday look tends to be more natural, with healthy-looking skin, mascara and a lip tint. For special occasions, I like a cat eye or a pop lip color.

Q: You travel all the time for Fashion Weeks around the world; what are your must-haves on the plane?

A: A facial mist, my eye cream and moisturizer and an eye mask!

Q: Everyone is going crazy over Korean beauty products at the moment. Any personal favorites?

A: I love all the lip tints, BB creams and sheet masks. There are actually so many products that I’m trying a new one every week!

Q: K-Pop! We have to know, who are your favorites?

A: My current favorite is Sistar—they are one of the hottest girl groups in Korea right now! Their style, makeup, dance moves and music always hit the top of the charts. And of course there are my friends in the business, Amber from f(X) as well as members from Miss A and SNSD (Girls’ Generation). Korean hip-hop and R&B are also very hot right now and there are so many talented musicians.

Q: And finally, if you could take a selfie with anyone you haven’t met yet who would it be with and why?

A: Karl Lagerfeld! He’s just beyond.

BEAUTY: INTERPARFUMS USA

An iconic year by

HIBAH NOOR

InterParfums USA is hailing the success of Dunhill Icon, the new fragrance from the storied UK men’s fashion house, and is looking forward to a busy second half

Icon by Dunhill

I

t’s been an iconic year for InterParfums USA, the New York-based supplier of prestige fragrance brands, in more ways than one. The company has had a good year in travel retail, with sales up an impressive 8%, buoyed by the launch of the new Dunhill Icon fragrance.

Herve Bouillonnec, Vice President International - Managing Director, InterParfums USA, is certainly upbeat about the year so far. “Our business is doing well versus the global environment,” he tells Americas Duty Free. “Year-to-date June we are at +8% due to successful new launches like Dunhill Icon and Extraordinary from Oscar de la Renta.

“Europe and the Middle East represent most of the growth so far this year. We launched a great product with Dunhill Icon; London and Dubai being particularly successful. Asia has seen a lot of variation per location due to different events, but Anna Sui remains strong.”

Designed with a new generation of global consumers in mind, Icon gathers all the DNA elements of the Dunhill brand, Bouillonnec notes, describing the fragrance as “unique, elegant, masculine, timelessness and highly qualitative”.

Taking inspiration from the evocative Icon POS display at Dubai Duty Free

world of British motoring, Dunhill Icon targets the refined gentleman who likes traveling, is elegant and seeks quality. The bottle design features an engine-turned pattern, a functional and decorative technique in which a very precise, intricate repetitive pattern is engraved into an underlying material. The design was first used in Dunhill’s hard product accessories in 1924 and is still widely used throughout the house.

The sleek, aromatic and woody scent, conceptualized by Master Perfumer Carlos Benaim, is designed to translate the luxurious and classical heritage of the Dunhill house, yet with a touch of modernity. “This scent exudes masculinity and the originality of a sophisticated gentleman,” he says.

The fragrance, which was rolled out from January 2015, opens with a blend of rare and expensive ingredients. Top notes of Italian bergamot and neroli absolute intertwine with black pepper, fusing the mid-notes of cardamom and lavender from Provence, to add a unique twist of masculinity and originality. At the base are smoky oud wood and an Oris-leather accord, blended with vetiver and a hint of oak moss.

To promote the fragrance, the company is organizing in-store podiums and animations globally, and also advertises through TV, magazines and digital. “We had a strong PR plan for the launch with events in Dubai, London, Hong Kong, Singapore, Indonesia, Malaysia and Colombia,” says Bouillonnec. “Thanks to this PR strategy, Dunhill Icon has gained coverage on all top titles.”

Due to the success of Icon, InterParfums decided to build the franchise by launching Icon Absolute, which will be introduced first in Dubai International Airport in travel retail.

Looking ahead, Bouillonnec believes the Americas region will “over-perform” during the second part of the year with the launch of Abercrombie & Fitch, the first fragrance from the US teen retailer since InterParfums signed a seven-year exclusive worldwide license agreement for Abercrombie & Fitch and Hollister fragrance brands in December 2014.

“We are pleased to start with Duty Free Americas in New York, Miami and Atlanta,” he enthuses.

Abercrombie & Fitch is rolling out in 2016 worldwide, and Bouillonnec sees a great future ahead. “We have exciting projects for the next three-year cycle, new brands like Abercrombie & Fitch and Hollister which bring young customers in-store. We will be interactive with customers and digital.”

FASHION: MCM

MCM’s largest and best-performing store is at Haitang Bay in the Chinese resort of Sanya, which celebrated its first anniversary on September 1, 2015

Capturing the zeitgeist by

MARY JANE PITTILLA

W

ith a new travel retail chief at the helm, German luxury leather goods brand MCM has embarked on a fresh strategy for the channel.

Aside from its huge, multi-million dollar business in Seoul Incheon Airport, where MCM is among the top three fashion brands at the US$7.9 billion duty free powerhouse, the Korean-owned brand has ambitious plans.

“We’re targeting key locations, key airports and key hubs, including downtown,” Travel Retail Director Nicolas Roptin tells Americas Duty Free.

“We already have strong brand awareness in Asia, where we’ve had faster development, and now we are targeting Europe, Middle East and Americas.

“We’ve had a couple of openings since the 2014 TFWA World Exhibition in Cannes, in Hong Kong International Airport, Singapore Changi, and we’ve just opened in Osaka, Japan.”

Airport shop openings in the pipeline this year will include Taipei; Los Angeles Tom Bradley International Terminal; and Bangkok Suvarnabhumi next year. “By next year, we will already be in all key cities in Asia. In the coming months we will have more strategic openings in Europe,” asserts Roptin.

Sales over the past year have been “very good”, says Roptin, with likefor-like growth across the board in all locations, though he declines to give percentage figures.

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German luxury brand MCM is determined to follow its globe-trotting customers around the world with key travel retail openings in strategic locations

LIFESTYLE ISSUE OCTOBER 2015

The brand’s largest – and bestperforming – store is at Haitang Bay in Sanya, China, which celebrated its first anniversary on September 1, 2015.

Over the past year, MCM has opened pop-up shops in key locations, notably with DFS at the T Galleria Singapore and at Munich Airport with Eurotrade, but with the travel retail strategy now firmly in place, temporary stores will no longer be utilized as a key travel retail brand awareness tool.

The best-selling products are large leathergoods, small leathergoods including belts, and charms. “All product categories are growing,” he notes.

The brand’s best customers are the Chinese, though Roptin is observing more customers from the Middle East, South East Asia and the Americas.

In July, MCM unveiled its Autumn/ Winter 2015 campaign, titled “We are the Futurists”.

Shot by the Munich-born photographer Daniel Sannwald, the campaign features talents from the worlds of art, design and culture, including Chinese supermodel Ming Xi, New York-based artist Tali Lennox, and Korean tattoo artist Noma Han. Each Futurist is paired with a bag from the Autumn/Winter 2015 collection, including the Milla, Berlin, Heritage Weekender and Munich models.

Roptin describes the outlook for the coming year as “very good”.

“We have a lot of openings planned in key locations, and as our brand awareness is growing, travel retail will follow.

“Over the past year, MCM has opened a flagship store in New York, and stores in other US cities will open soon, so we are achieving good brand awareness.

This will translate into travel retail development.”

Turning to the next major event in the travel retail calendar, the 2015 TFWA World Exhibition in October, MCM will have a larger stand this year in the Riviera Village, with a new interior design. Roptin won’t give away details in advance. “I want it to be a surprise for all our visitors,” he laughs.

Chinese supermodel Ming Xi is one of the stars cast in MCM’s Autumn/Winter 2015 advertising campaign, titled “We are the Futurists” and shot by German photographer Daniel Sannwald

MCMWORL DWIDE. COM

The brand is about feelings, emotion and positive messages, as seen in its ‘happy box’ set-up

FASHION: DESIGUAL

The scarf, bag and wallet set is an airport exclusive

Trading on emotion With the recent addition of Melbourne and Sydney airports to its portfolio, Spanish fashion brand Desigual is using travel retail to grow its global presence through travel retail by CLAIRE MALCOLM

D

esigual has strong domestic and travel retail brand awareness on both sides of the pond, with well-established European presence and a rapidly growing audience in the US, where fast-paced growth is being boosted by a significant calendar of new openings.

“The American traveler really loves our brand and it is something completely new for the travel retail industry in the US. In fact, if you look at the entire travel retail fashion segment there is no other brand that really focuses on women,” says Marco Gadola, Head of Travel Retail, Desigual.

A full ready-to-wear brand covering women, menswear and kids, the company’s focus for this channel is women and accessories—a natural fit in the fastmoving travel retail environment.

“So, while there is great brand awareness for Desigual in Europe in general, in the US this is mainly due to our unique-

Marco Gadola, Head of Travel Retail, Desigual

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ness in terms of the female-focused product offer,” says Gadola.

“We have a price point that is affordable for everyone and we are also a brand that expresses emotions, which drive impulse purchases, and this is the main driver of sales for the travel retail industry,” he adds.

In North America, Desigual is working with Dufry to drive expansion. Says Gadola: “The team at Dufry really sees the potential of the brand and understand both consumer preferences and where the brand can work, and this really helps us in identifying the right locations.”

South America is another vast region with future promise. “Even if our domestic presence isn’t that developed, the potential is huge, and any location that opens in the region is always a success,” he says.

“And it’s really easy to understand why.

The brand is about feelings, emotion and positive messages, and that’s a great fit for Latin America,” he adds.

With ample opportunities for global expansion and an active growth strategy, the ‘something to suit every woman’ approach is translating into a healthy average ticket.

Turnover is split 65:35 between readyto-wear and accessories, with an average purchase of two pieces per passenger and average ticket price of US$100-$120.

Says Gadola: “Whether it’s a bag and scarf, bag and wallet or dress and scarf, this high level of rotation is very attractive

for retailers when considering Desigual.”

Walk into any Desigual store and you’ll find a riot of color and choice, and adapting this to the travel retail environment is an interesting exercise, as Gadola explains: “We work with different business models and can go from a 25- to 30-square or a temporary pop-up.

“Depending on which category we want to focus on, we usually go with 70% ready-to-wear versus 30% accessories and, based on performance, we have the flexibility to change the mix as required.”

Brand bestsellers tend to be the same in the US as in Europe but what does change, according to Gadola, is the product mix, with higher sales of readyto-wear in the US, due primarily to the availability of bigger retail space as a product showcase.

For travel retail specifically, the development of exclusives is winning the brand new fans, as Gadola explains: “For inflight we have a new exclusive line with different channel options such as a wallet for your passport, frequent flyer cards etc., which is on board with 15 airlines. We also have a recently launched duo scarf set.

“Our other travel retail exclusive line, targeted at airport stores globally, is made up of three elements—a scarf, bag and wallet. We previously created a limited collection set with three different bags, which sold out almost immediately, so we hope this will be the case with the new airport exclusive.”

TATEOSSIAN LETTER FROM25TH THE ANNIVERSARY EDITOR

Silver jubilee by

HIBAH NOOR

Robert Tateossian, Owner & Founder of Tateossian

Men’s jewelry brand Tateossian marked its 25th anniversary with an exclusive new collection in aid of the Elton John AIDS Foundation, as the brand’s Founder Robert Tateossian reveals

A

ward-winning UK men’s jewellery brand Tateossian celebrated its 25th anniversary earlier this year in style with a high-profile, celebrity-filled event in collaboration with the Elton John AIDS Foundation.

Since Robert Tateossian founded his eponymous company in London in 1990, the brand has become a global success story, selling in over 60 countries worldwide with a presence in top international department stores in London, New York, Tokyo, Moscow, across Europe and the Middle East. The company operates five standalone stores in London, and also has a robust expansion program in the duty free sector, selling onboard the world’s leading airlines, including British Airways.

To mark its significant 25-year milestone, Tateossian said he wanted to do something “very special” and “different”. He decided to launch his new PILL XXV capsule collection of men’s jewellery in collaboration with the Elton John’s AIDS Foundation at London’s menswear fashion week, London Collections: Men. The collection aims to raise funds to fight for an AIDS-free world, and Tateossian is donating 30% of the retail price of all the pieces to the foundation.

The event, hosted by Robert Tateossian and Elton John AIDS Foundation Chairman David Furnish in June 2015, was a big success with about 215 attendees who enjoyed a night in the legendary Ronnie Scott’s jazz club in London. Maverick Sabre performed for the guests, including celebrities and VIPs such as TV star Lucy Mecklenburgh, actress Samantha Barks, designers Melissa Odabash and Dean and Dan Caten, and singer-songwriter Diana Vickers, among many others.

Tateossian explained: “For our 25-year anniversary I wanted to do something different and that is why we created the PILL XXV project. We wanted to do something that actually made a difference in the world and also to help other people. The Pill concept was born because a pill a day can save someone’s life and give someone a better way of living. If the necessary funding is raised for medication, HIV could be eradicated and we could live in an AIDS-free world. I have supported the Elton John AIDS 36

LIFESTYLE ISSUE OCTOBER 2015

Elton John AIDS Foundation Chairman David Furnish and Robert Tateossian host Tateossian’s 25th anniversary party

From left: Designer Dean Caten, Robert Tateossian, Carolyn Rush, Chief Executive of the British Fashion Council, Dylan Jones is a fashion and lifestyle Editor for the British GQ and Designer Dan Caten Robert Tateossian and singer-songwriter Diana Vickers

Foundation for many years and I am a friend of David Furnish and Sir Elton John. To me the perfect way to celebrate our 25-year anniversary was to approach the foundation to create a collection which will benefit their work.”

The PILL XXV collection is available in two versions: the Luxe Pill is a micro pavé of black and white diamonds set in silver with an 18 carat gold band, while the Pop Pill comes in red and white enamel on stainless steel. The range includes a pair of cufflinks, a bracelet, a necklace and a pin. Aiming to be whimsical, the Pop Pill cufflinks unscrew to reveal a message. The collection will be exclusively sold at London department store Selfridges from July 19 to September 2015, and in addition from September the collection will be sold on Mr Porter, the luxury menswear e-commerce site.

Commenting on the collection, Furnish said: “For millions of people living with HIV around the world, a pill means not only one more day of life, but also a better life... every day. Tateossian’s PILL XXV range is a beautiful way to make that difference for people around the world.”

Explaining why the Elton John AIDS Foundation is so important to him, Tateossian said: “So many people have died from this disease. There is a way now to eliminate HIV completely from the world. If you can stop something, isn’t it crazy not to stop it? I am a strong believer in the work that EJAF is a carrying out around the world and in their objective to make the world Aids Free in the near future, possibly even in our generation.

Now a successful businessman dubbed the “King of Cufflinks,” Robert Tateossian started out working in finance, raising debt for big companies in the Europe markets, but at the age of 27 he decided to start his own business. “I didn’t want to report to anyone,” he said. “I wanted to be in fashion. I started with cufflinks.

Maverick Sabre performed for the guests

PILL XXV capsule collection marks Tateossian’s 25th anniversary

Everyone in the City [London’s financial centre] was wearing cufflinks. I wanted to travel the world.”

Musing upon his subsequent success, he added: “I didn’t expect to be where I am today, I am thankful that I am. Now my ambition is to take it to the next level.”

In terms of inspiration, Tateossian travels 70% of the time, so architecture and furniture are key stimuli. “For example, we were in Egypt. We took a cruise down the Nile to the Valley of the Kings. Every day you’re visiting temples seeing all the hieroglyphics. I’m very inspired by that.”

For the upcoming summer collection, a scuba diving trip in the Maldives, with its beautiful corals, inspired Tateossian and his Creative Director Ariel Thompson, who create all the designs together.

Tateossian, who has overseen gradual growth over 25 years, says he runs the company as a family business. And it won’t stop there—now he has ambitions to open stores in the fashion capitals of New York, Milan and Tokyo.

Actress & singer Samantha Barks

www.dutyfreemagazine.ca LIFESTYLE ISSUE

37

FASHION: DIESEL

A true alternative to luxury

Ambitious global premium fashion brand Diesel is endeavoring to position itself as the true alternative to luxury in travel retail by HIBAH NOOR

G

lobal premium fashion brand Diesel is forging ahead with its plans for the duty free channel, based on the success of a number of innovations for travelers.

Having tested all business models and formats over recent seasons, the company has concluded that its best performance comes from a retail concept that shows off its DNA, including a balanced mix of product categories, spanning apparel, footwear and accessories. It has identified four successful formats: stores from 60 square meters and above, shop-in-shops, corners and pop-ups.

The breadth and depth of product categories varies according to each space and passenger profile. In some countries the company can directly operate stores, while in others it prefers to cooperate with professional retail operators in mono- or multi-brand stores.

In September 2015, Diesel opened at Panama Tocumen Airport North Pier 38

LIFESTYLE ISSUE OCTOBER 2015

(62 square meters) and in the west hall of Haikou Airport in Hainan Island, China (82 square meters) in October. Other projects are in the pipeline but their success will depend on the tender results.

According to Michele Turrin, Diesel Head of Travel Retail, the brand is ideal for the airport environment because of its premium fashion market positioning, as many potential customers are looking for alternatives to luxury brands.

Turrin acknowledges that in the past the jeans category has not been deemed an easy sell because of sizing issues, but he counters that argument by saying that thanks to the strong awareness and credibility Diesel has gained over the years, the selling rate of this product category in its travel retail doors is “really high”, and can account for more than 30% of total sales. Customers often know the model/ fit they want and they don’t even try it on before buying, he adds.

Mindful of the needs of travelers,

Diesel has invented JoggJeans, which are designed to offer the comfort of a jogging pant and the aesthetics of jeans, making them suitable to wear while traveling.

“Denim and JoggJeans are Diesel’s USPs,” continues Turrin, “and an opportunity for us because it’s a strong point of difference versus our competitors in a category with high value and which doesn’t need a big retail surface.”

In addition to JoggJeans, Diesel is launching its Actyvista denim range for women, which combines the look of JoggJeans with the elastic recovery as well as the uplifting and shaping effect of its best selling jeans: “Skinzee”.

Meanwhile, in the underwear category, the company offers the new Hero Fit boxer short featuring a new fit shaped with a focus on fabric, form and function.

Its new contour-defining construction in breathable natural cotton fibers shapes and enhances at the front and lifts and defines at the back.

Also new for men is the casual and contemporary leather Twice Back rucksack.

Diesel boasts a network of more than 400 stores, 450 department store concessions and is present in 3,500 premium multi-brand stores worldwide. “Travel retail represents today a channel to invest in, being for the company the new frontier of development,” concludes Turrin.

JoggJeans is a “Jean-ious mix of jersey and denim”

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