BW Confidential - Issue #12 - November/December 2012 - 100

Travel retail
sNuance Group’s Duty Free Store concept at Antalya features a Fragrance Wheel, which groups fragrances according to olfactory family and is supported by touch-screen tablets, enabling passengers to find product details

Global air traffic year-to-date June 2012 Passengers International Domestic Total passengers % change 2012* vs 2011 +6.4 +3.8 +4.9

media strategies are set to play a greater role in engagement as word-of-mouth and online information are a major influence on
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Source: Airports Council International *January to June

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New and exclusive fragrance launches are driving sales for beauty

Air traffic trends
Overall passenger traffic posted gains of almost 5% year over year for the first half of 2012, according to Airports Council International. On a global level, demand for air travel has consistently posted positive year-over-year growth every month for the past two years. Much of the growth can be attributed to airports based in emerging markets. International passenger traffic has shown strong growth in June. Africa (+19.2%) and the Middle East (+13.9%) recovered from the sharp declines in traffic in 2011 brought on by the Arab Spring. Asia-Pacific also posted double-digit gains in international passenger traffic at +12.3%.
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Dubai Duty Free vice president purchasing Saba Tahir

purchasing decisions, especially those of Chinese passengers. The Shilla Duty Free is already tapping into social networking. A spokesperson says: “We try to map and develop marketing strategies based on customizing nationalities to maximize customer satisfaction. We have a corporate page on [Chinese micro blogging site] Weibo and post not only news, but events to build a relationship with Chinese customers.” New store concepts In-store concepts are also evolving with digital elements to encourage customer interaction. The Nuance Group, for example, has installed

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touch-screen technology at its new Duty Free Store concept stores at Antalya (operated through the Nuance Net joint venture), Zurich and Lisbon. At its Fragrance Boutique the use of a Fragrance Wheel groups fragrances according to their olfactory family and is supported by touch-screen tablets, enabling passengers to find product details. Meanwhile, customer service has reached new levels with retailers such as DFS Group introducing a beauty concierge service at several of its Gallerias. For Nuance-Watson (Singapore) recruiting, retaining and training front-line staff has been among the key priorities; the operator spent more than 90,000 hours last year on staff training and 7,000 hours for the year to June. There is a greater need for staff to have broad language skills to serve a wider passenger profile. The industry will continue to be challenged by global environmental, political and economic factors so retailers cannot be complacent about the future, despite the general resilience of beauty when sales are put under pressure. However, prospective uncertainties will be offset by proactive growth in other parts of the world as the sector continues to ride the crest of the Asian wave, led by the might of Chinese passengers. n

November-December 2012 - N°12 - BW Confidential

BW Confidential - Issue #12 - November/December 2012

Table of Contents for the Digital Edition of BW Confidential - Issue #12 - November/December 2012