Travel Retail, a Great Opportunity to Boost Sales

Travel retail is a classic and important sales channel for many brands. But, in recent times, it is becoming even more relevant. The data made available in recent years shows that not only is it worth paying attention to, but it could also be one of the best moves for boosting sales.

According to the Duty Free World Council (DFWC), sales in duty free stores throughout the world have improved considerably during the last quarter of 2017. This improvement has been particularly consistent in the Asia-Pacific region, with an increase of 12%, as well as in other regions such as North America and Europe where sales have seen an increase of 7% and 8%, respectively.

But this didn't happen out of nowhere. In fact, since 2004, sales data in travel retail trade has grown by an average of 10%, and the forecasts remain positive for at least the next six years [1].

Why Is There Such an Increase in Travel Retail?

The globalization of tourism has made it possible for people to travel much more than they did a few decades ago, causing the tourism industry to develop enormously. In this sense, commercial spaces that are related to tourism, such as shops in airports, railway stations, ports and museums, have caused a renewal of travel retail business formats. This growth has also been influenced by the industry's development and changes to the management of commercial spaces, as we discussed earlier.

When we think about what classic airport shops were like just ten years ago, we remember cold and impersonal shopping spaces, where people ended up making purchases out of obligation or boredom, after spending endless hours in the airport.

The difference today is that the needs of travelers are increasingly better understood. People who travel spend many hours at the airport and require more welcoming environments, as well as more enjoyable experiences in the commercial spaces.

However, this is not enough if retailers do not want to fall into stagnation. On top of the innovation and creation shopping areas that offer experiences to customers, we must add a touch of differentiation and exclusivity. Just as Pere Ruiz Fausto, Commercial Director of HMY Retail Solutions, says, "Purchases must be perceived as a set of unique experiences, in which the products offered are shown as something unique, which cannot be found elsewhere or by other means."

The Most Successful Sectors in Travel Retail

Within travel retail, we must highlight some categories in which the numbers are especially good. Businesses dedicated to food products (especially liquor-wines & spirits and confectionery) and beauty-fragances & cosmetics category are the classic players in the commercial areas of airports, as well as the toy, magazines and tobacco sectors. The luxury segment also stands out particularly.

A clear successful example has been that of Estee Lauder Companies, whose brands have experienced a lot of positive growth within the travel retail channel, with a 14% increase during the last fiscal quarter.

Innovation and Technology as Keys to the Future

When it comes to innovating and creating unique spaces and experiences for the buyer, technology has and will continue to play a key role. Not only because it is essential for increasing and reinforcing a brand's visibility, but because it can also be a starting point in the creation of truly distinctive spaces.

But when we talk about purchasing experiences, we do it not only in terms of sampling and testing products, or in decorating environments, but also during the final moments in the purchase, which is payment. This is something that Patricia Rodríguez Mediano, Key Account Director of HMY Retail Solutions, explains very well: "The differentiation of supply in relation to other distribution channels and other geographical areas will be the key to boosting consumption, based not only on the product, but on Payment Methods (Click & Collect) and the purchase experience, the key to success."

Latest news

New Fleg 7 Furniture: an Innovative Design that Adds Value to the Fruits and Vegetables Section. 26/05/2018

At HMY we are committed to innovation as a way to offer the best solutions to our clients.  We are also always paying attention to trends in the retail world, taking into acco

Read more

How Can Brands Take Advantage of the Soccer World Cup to Connect with Customers? 21/05/2018

Soccer’s World Cup is an event that attracts hundreds of millions of people every four years.  During the month-long competition, it seems like nothing else exists, and

Read more

What are Customers Looking for at Points of Sale?14/05/2018

The retail sector is going through a period of great change. For years, with the growth of online commerce, retail establishments are no longer seen as places to be visited.

Traditionally

Read more

The World Cup, a Unique Opportunity to Boost Retail Sales07/05/2018

The Football World Cup is one of the most viewed sporting events worldwide and therefore it has a huge economic impact. As an event that brings together the best players of th

Read more

HMY's Factory in Spain Reinforces its Commitment to the Environment, Society and Quality03/05/2018

At HMY we continually commit ourselves to sustainability whether that be environmental, social or in terms of the total satisfaction of our clients thanks to our quality standards. One ex

Read more

You’re Invited to HMY's Showroom in its Monéteau, France Facilities27/04/2018

Retail is a sector in which all five senses are very important. This is why the challenge is for companies to arrange for their customers to enjoy memorable experiences, creating

Read more

Top five things offline consumer electronic retailers need to do to compete with online26/04/2018

Footfall is one of the most essential measures when it comes to running a bricks-and-mortar store, traffic into store means more opportunities for sales and customer engagement, which in

Read more

Think Global and Act Local: The Key to Success in Internationalization25/04/2018

Internationalization has always been a key aspect in business growth strategies. And this is even more true in the retail world than in other sectors.

For internationa

Read more

Today we talked to Javier López about the importance of creating a brand experience in retail.19/04/2018

Retail spaces provide a key opportunity to brands who want to develop a relevant experience for their customer. We know that the purchasing experience is crucial in achieving customer sat

Read more

HMY's Plant in France Receives Triple Certification as a Guarantee of Commitment to Sustainability11/04/2018

HMY has officially received triple ISO 9001, ISO 14001 and OHSAS 18001 certification in its production plant in France. These certifications serve as a guarantee for HMY's clie

Read more

HMY: innovation in retail

This website uses cookies to help and improve navigation. By continuing to use this website you are giving consent for cookies to be used.

Accept Read cookies policy