The global shutdown remains in place, with many countries on lockdown and travel restrictions in place, but there is a growing call in the travel retail industry for businesses to get ready for the future
Is the travel retail industry ready for the return of shoppers? After weeks of global lockdown and travel restrictions, passenger numbers have plummeted and the travel retail market has been in hibernation.
But with the green shoots of recovery beginning to show in China and Asia, there is a growing call for the industry to ensure it is ready for the return of shoppers – and that means more than just being open.
“Anyone who thinks the world will go back to the way it was is mistaken,” says Marco Passoni, Senior Executive VP at 2.0 & Partners.
“We all recognise that there will be a new normal to come to terms with once travel begins again.
“People will be more cautious about health and human contact, there will also be new restrictions and rules from governments and airports which will have to be carefully adhered to. Trying to pick up where we left off will result in customers being turned away.”
Footfall will return, sales will be up to brands and retailers to deliver
Passoni is one of a number of stakeholders who believe that the physical retail environment for travel retail has great potential once travellers return, but it requires investment and innovation to start now.
“We must look at all the aspects of physical retail which they have missed out on during the global shutdown and ensure that we provide the engagement they will so desperately want,” he argues.
His comments were echoed this morning by CircleSquare Executive Director and Founding Partner Philip Handley, who called on the industry to be “ready to start the race” and make the most of trading opportunities in the post-Covid market.
“Given what has happened it’s easy to put the brakes on but that means you are likely to miss the chance to access a significant share of the consumer spending that will surely come when people can move more freely again,” Handley explains.
With a three-to-six month turnaround time for creating activations for in-store use, Handley believes work needs to start now to ensure the stores have something to offer when shoppers walk back through the door.
“Brands and retailers need to start briefing their creative agencies now to be ready on time,” he adds.
“My strong suggestion to all brands and travel retail directors out there is that I know many of them have budgets on hold, but that doesn’t mean you can’t start planning now; you can start testing new ideas for retail space without sacrificing revenue and be ready to move quickly when the time comes.”
Handley and Passoni’s view that there is a market to be seized is borne out by recent figures from Heathrow Airport, which showed that average spend per passenger is up year-on-year for the first quarter of 2020.
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While those numbers may be skewed by the current travel situation, consumer behaviour in China – and the rise of so-called “revenge shopping” – suggest shoppers are eager to return.
Swedish beauty giant Foreo reported that the first day of the Golden Week holiday in China saw hundreds flock to the CNSC Duty Free Store in Beijing, with $140,000 in sales recorded in the Perfume & Cosmetics section alone.
As the industry begins to look to the future, the signs exist that the market is there if the industry is ready to capitalise on it; as Passoni reflects: “I firmly believe that footfall will return, sales will be up to brands and retailers to deliver.”
in Asia/Pacific, Comment, Comment & Insight, Cosmetics, Fragrance, Global, Latest News, Regions, Retail News May 5, 2020 0