Air-Porter

A I R – P O RT E R

Carmen M a r i a Po n c e | Senior Capstone |Winter 2019

A I R – P O RT E R Travel Retail Premier Luxury Destination

AGENDA

Brand Analysis

Industry & Trends

Primary Research

Service Functions

Marketing Strategy

Execution

B R A N D A N A LY S I S

N E T- A - P O RT E R - Was launc hed in 2000 and has established itself as the wor ld’s premiere luxur y destination.

- Deliver s the ultimate curation of product and content through its websites, shopping apps and the wor ld of Por ter providing a seamless shopping exper ience.

- Express worldwide shipping to more than 170 countr ies (inc luding one day shipping de liver y to Manhattan, London, and Hong Kong).

- Is par t of the Yoox Net-A-Por ter group, following the mer ger of Yoox group with Net-A-Por ter group in October 2015.

- Has an investment of 95% from The Ric hemont Group (YNAP)

B U S I N E S S S T R AT E G Y STRATEGIC DIRECTION - The company plans to growth its business, selling products from other 350 designer s, guaranteeing new customer s while providing credibility to the brand value .

INTERNET STRATEGY - Net-A-Por ter’s online presence consists of innovative platforms imperative to its success .

- The company is dependent on its social media c hannels and customer ser vi ce teams to provide around the clock guidance and help with customer purchases and per sonal shopping.

COMPETITORS - Farfetc h, a Br itish-based retailer stocks high-end apparel, footwear and accessor ies from 400 independent fashion boutiques around the wor ld.

- Farfetch’s busi ness model is commission-based, whic h benefits their smaller boutique par tner s by being their largest income source . Its main point of distinction is its “lab” labels , which tend to be emer ging brands .

- Mytheresa is a Ger man based online shopping destination, with a single storefront owned by Neiman Marcus group.

- Selfr idges is a tr usted UK competitor with rapidly evolving online c hannels .

I N D U S T RY & T R E N D S

N Y C J F K A I R P O RT - The New Yor k John F. Kennedy Int er na ti o n a l A i rp o r t w i l l h a v e a n up co min g tran sfo r mat i on beg i nni ng i n 2020 a n d ex p e c te d to b e c o m p le ted by 2 0 2 5 .

- Mo der nize the ai r p or t i nf ra st r uc t ur e to i n c o rp o ra te th e l a te s t tec hnological inn ov at i ons and ame ni t i e s .

- Sixt h bu siest ai r p or t i n t he U S wi t h ov e r 59 m i l l i o n p a s s e n ge r s 2 016 (FAA) an d ser vi ng 3 2 .4 mi l l i on i n te r n a ti o n a l p a s s e n ge r s .

- A bo ut 8 5 air lin es op era t e i n t he ai r p o r t - 51. 7 % of th e trav e l e r s are fe mal e - N ew Yor k City is one of t he bi g ge st fa s h i o n c a p i ta l s i n th e w o r l d .

- W ide diver sity o f p eop l e f r om al l ar o u n d th e w o r l d .

KHL Maga zine by And y Brow n

HIGH ACCESSIBILITY

LOW ACCESSIBILITY

$$$$$

$$

TRENDS - Enhance shopp i ng sp a c es a r e bei ng i m p l e m e n te d a c ro s s th e wo r ld’s b iggest ai r p or t s .

- A ppar el and ac c essor i es e- c ommer c e re ta i l e r s i n th e U. S . a re p ro je cted to gene ra t e over 1 3 8 . 7 bi l l i o n U. S . d o l l a r s i n rev e n u e by 2022 (Acc or di ng t o S t a t i st a) .

-

By 20 3 0 , h igh-end l ux ur y c onsume r s a re p ro j e c te d to re a c h 8 8

m illio n ar oun d the wor l d.

- Luxu r y c ompa ni es wi l l need t o st e p o u t o f th e i r c o m fo r t zo n e s in t e r ms of consumer i nt era c t i on a s w e l l a s i nv e s ti n g m o re o n s o cial justic e , the envi r onment , and t o ta l tra n s p a re n c y.

- Digital in ter fac es i n exp er i ent i al set ti n g s a re l u r i n g c o n s u m e r s bac k to physical shops .

- A irpor t travel ret ai l i s exp ec t ed t o r e a c h 91 . 75 b i l l i o n by 2025 (by G ran d V iew R esear c h) .

P R I M A RY R E S E A R C H

I N T E RV I E W S About Net-A-Por ter Interviewees Veronica Ar guello Geor gina Valenzuela

- Outstandi ng se r vi ce an d u se r- f r ie n dly w e bsit e - A w ide var i e ty of product asso r t m e n t - I t ’s n o t o n ly a p lat fo r m fo r bu y in g bu t as w e ll a sour ce of i nspi rati on .

- I s like i nve sti ng in so m e t h in g t h at wi l l l ast for a whi l e .

- Q u alit y in su r e d, tai l ore d to fi t all t y p e s o f bo dy.

- T h e pac kag i ng alm o st fe e l s l i ke a g i ft.

- T h e y c ar r y bran ds n o t fo u n d at Saks o r N e im an Mar c u s .

- “I f th e y w o u ld h av e a br ic k an d m o r t ar, I ex p e c t t h e ambi ance t o be mode r n and

profe ssi onal .”

- Smal l and l i g htwe i g ht products p r e fe r r e d w h e n sh o p p in g at t h e air p o r t .

- “I wo u ld m ake it m o r e t h an ju st fash io n . Sim ilar t o Lan e Craw fo r d w h ic h is m o r e o f a

l i fe styl e it s so m u c h m o r e t h an ju st a st o r e .”

S U RV E Y S 84.6%

Participants wait from 60 to 90 min before their flight.

61.5%

Participants that shop at Airport retailers.

Participants like to shop at Duty Free.

46.2%

69.2% participants identify as females

69.2% Participants who will try new products and brands.

84.6%

Participants who will like to have more variety of brands at airport retailers.

61.5% Participants who definetly interested in Air-Porter.

92.3%

Participants are between 18 to 24 years old.

53.8%

Participants travel for vacation purposes.

46.2%

Participants travel once a year to NY.

SERVICE FUNCTION

Customer will receive the products when pre boarding their flight.

AIR - PORTER

Receive products on gate before the flight.

- Duty Free - Convenience - Exclusive products Most of the products will be from independent designers

Amount paid for preordering the products and having the easiness and effectiveness when traveling abroad.

Getting advantage of the duty free costs.

MISSION

VISION

R evol ut i oni ze t ra v e l re ta i l by o f fe r i n g

Be co me th e wo r ld ’s pre mie re fa s h io n tra ve l

women a l l over t h e w o r l d a c o nv e n i e n t

re ta il lo ca tio n by cre a tin g ex clu s ive s to re s

l uxur y fash i o n d e s ti n a ti o n

a n d ex pe r ie n ce s in a irpo r ts .

“It’s about creating true experiences, enhancing the product in a way we haven’t seen, and creating ambiance.” Art has the power to create emotional connections in brick and mortar stores that can’t be matched online.

V irgil Ablo h

“The room will be illuminated with LED light, and mirrors will be displayed in the walls visually expanding the space. Inviting the guests to interact and feel at ease.�

“Lighting, mirrors and black matte color scheme are the central theme of the space. Showcasing the brand aesthetic and creating a space where customers can immerse and connect with the brand.�

USER JOURNEY MAP TRAVEL CONSIDERATION Decision to travel

Travel Booking

Browse the app

TRAVELING OUT At Airport Departure

In Flight

AT THE DESTINATION Arrival at destination

At Airport Return

RETURNING HOME

In Flight

At Airport (Arriving Home)

Share experience with friends

EXPERIENCE

FEELING

THINKING

DOING

Day dreaming considering traveling

TRAVEL PREPARATION

Plans business meeting with her associte partners in New York

Deciding all the travel details for her trip

Selecting the days she is going to travel for her business meetings

View Air-Porter add when booking flight

Dreaming Concerned

Convenience Enjoyability Enrichment

Decisive Concerned

Decisive Concerned

Pre-order products from the app

Commute

Browses Air-Porter app to see if there is any thing she might need for trip

Her driver picks her up from her house and takes her to the airport

Pre-orders items for her meetings

Excited Inquisitive

Convenience

Convenience

Convenience

Enjoyability

Enjoyability

Enjoyability

Enrichment

Enrichment

Enrichment

Stressed Rushed

Convenience Enjoyability Enrichment

Rate the service

Receive products at gate Products are deliver at her gate before pre-boarding

Arrives at London with her items ready to use it and as a gift for some of her friends and collegues

Flys out to London for her meeting

She is happy about the ease and convenience of the store

Relieved Relax

Convenience Enjoyability Enrichment

Returns to airport and flys back home

Anticipatory Rushed

Convenience

Convenience

Enrichment

Arrives home after a long flight but happy about her travel experience

Chats with her friends about Air-Porter and mentions her extraordinary experience

I for sure will use this service each time I travel to another country

Excited Attentive

Enjoyability

She is exhausted but happy about her business meeting

Enjoyability Enrichment

Exhausted Hungry

Convenience Enjoyability Enrichment

Relaxed Satisfied Enriched

Convenience Enjoyability Enrichment

Talkative Connected

Convenience Enjoyability Enrichment

Optimal intersection of behaviour and experience

ACCESSIBILITY

QUALITY OF INTERACTION

- Restricted number of days to preorder the products.

- Pre odering is online

- Must be an international travel to attain the service

- Easy access to the platform and customer service

- Just offer to New York JFK international airport

- Communication between buyers and us is done both face to face and online

-Exclusives products restricted to the rules of the NY goverment - Internet access required

-Easy connection from Net-A-Porter to designers

CUSTOMER PARTICIPATION - Buyer preorders online

SERVICE EXPERIENCE

CUSTOMER EXPERIENCE

- Customer tries products in the store - Delivers the order to the designated gate

How to Shop

1

2

3

4

30 DAYS

Shop 30 days in advance and up to 24 hours before your flight

Select your preferred delivery, gate delivery, or pickup at the store

Pay with credit card or pay-pal

Collect your purchase from your selected point of collection

Benefits 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%

30 DAYS 30 DAYS 30 DAYS 30 DAYS

30 30 DAYS 30DAYS 30 DAYS DAYS 30 30 DAYS 30 30 DAYSDAYS DAYS

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M A R K E T I N G S T R AT E G Y

PLACE AIR-PORTER will be located at the JFK International Airport in the new Terminal One Terminal One Group Association (TOGA) a consortium between Lufthansa, Japan Airlines, Air France and Korea Airlines is in charge of the renovation of “The new Terminal One” what is now Terminal 1, Terminal 2 and the site of the former Terminal 3 – with 23 new gates (potentially increasing to 27).

High international traffic / Sixth busiest airport within the USA, set to accommodate a total of 59.4 million passengers IN 2017 being this 32.5 million international passengers. It increase 2.4% from 2016 New York #1 leading getaway and international hub to the USA JFK’s $10bn infrastructure improvement/renovation will accommodate 75m passengers by 2030 and 100m by 2050.

Curbed Magazine New York | Federal Aviation Administration | Metropolitan Airport News

PEOPLE Demographics Young women with an average age of 23 to 45 years old $170, 600 annual household income Average spend in fashion $13,400 Single or Married Global outreach (all nationalities due to its location)

Psyc ho-graphics Travels frequently for business and leisure Tech-savvy and spend heavily on technology High appreciation for art Aware of the latest trends and styles Values quality and designer products Values easiness and convenience Appreciates emerging designers equally as established designers/fashion houses Constantly searching for unique and on trend products Values experience and high end service etiquette

TA R G E T C U S TO M E R Kate the Art Lover Age: 28 Nationality: London, UK Residence: Paris, France Bio: Owner of her Interior Design firm in France Income: $190,000

Attitudes: affluent, high society circle, art lover, passionate, fashion and beauty advisor, peculiar taste, confident, likes to spend long hours in her computer developing media work.

Visual communication is very important to her.

Lifestyle: She is immerse in her social, work and cultural life. She hangs out at her friends houses and also on trendy restaurants and bars. Very curious about emerging artists, travels constantly for pleasure and to visit her family.

Needs & Motivation: She needs to feel confident and on trend. She wants to always have unique pieces from independent designers and as well from the big fashion houses.

Consumption Behavior: Purchases innovative statement pieces from luxury brands. She dresses in a very artistic way and owns a large make up collection that helps her explore her creative side. Wears mostly black and warm tones to showcase her youth.

Connection Moments: As she travels frequently and is driven towards omnichannel brands.

She often shops in travel retail because of the duty free and ease. Prefers to experience the brands both in a physical and online platforms.

PRODUCT - AIR-PORTER will offer in store four product categories in-store: Accessories,

Beauty & Fragrances, Handbags and Jewelry.

- Most of the products will be from independent designers who aim to reach a wider audience and have there products showcase physical space.

- Main independent designers will be featured such as Sensi Studio, Danse Lente, Pop and Suki, Ratio et Motus, Low Classic, Heir Atelier, Spinelli Kilcollin, Prager Skincare, Revive, TL-180, Martin Katz, L’AFSHAR, Wald Berlin, Lack of color, Chylak.

- AIR-PORTER will offer exclusive products from fashion houses - The merchandise online offer will carry more product categories due that there is no need of store space.

- Merchandise will change every three months

PRICE - Our main pricing strategy is to set a competitive price point with other travel luxury retailers at New York JFK. It will encourage consumers to try our products and to experience with different brands.

- We will be maintaining a competitive price throughout the merchandise.

No Tax / Duty Free We will set the price range respectively: Accessories (price range from $10 up to $1,000) Beauty & Fragrances (price range from $8 up to $2,500) Handbags (price range from $75 up to $3,000) Jewelry (price range from $40 up to $6,000)

P R I C I N G A N A LY S I S DUTY FREE T GALERIA (Direct Competition) - DFS Group is the world’s leading luxury travel retailer, owned by LVMH. Established in Hong Kong in 1960, continues to be a pioneer in global luxury travel retail, offering its customers a curated selection of products from over 700 of the most desired brands through 420 boutiques on four continents. The stores are located in 11 major global airports and 20 downtown T Galleria locations.

Handbags ($96 up to $2,100) Beauty & Fragrances ($5 up to $1,230) Jewelry ($56 up to $5,960) Accessories ($32 up to $740)

P R O M OT I O N - The service will be advertised through different media platforms such as magazines, travel booking, Net-A-Porter’s platform, social media, and airlines media coverage.

- The primary communication tool will be through social media, Net-A-Porter’s platform (which includes Porter Magazine, The Edit and the app) and premium airlines media.

- Air-Porter will have a high coverage on press releases in order to communicate the new service offer at New York JFK airport.

- Videos will be a key feature for advertising in order to explain the customer the process of pre-ordering and picking up in store.

Travel Booking Ads (Online) - Expedia, Kayak, Airbnb, Momondo, JET SETTER, Luxury Retreats, Skyscanner

Magazines (Online and Printed) - V Magazine, Architectural Digest, Allure, Wmag, Travel Leisure, NYTimes Style, Departures Magazine, Tatler, Financial Times, Wired and others. https://www.fttoolkit.com/d/audience/consumer.php

M A R K E T I N G M AT E R I A L S

Social Media Platforms

FACEBOOK

TWITTER

YOUTUBE

INSTAGRAM

PINTEREST

GOOGLE

1.6 Million followers

846K followers

251K subscribers

3.4 Million followers

305K followers

762K followers

Home

Notifications

Tweet

Messages

Tweets

Following

123

Tweets

Air-Porter

@netaporter Follows you

Preorder now the latest travel pieces for your next trip. Up to 24hrs before your flight. If you don’t have time to visit the store we can deliver it to you at your gate. airporter.com

Followers

789

Tweets & replies

Likes

Following

10

Media

Air-Porter @airporter · Jan 1 Pre-order NOW at https://airporter.com/ #exclusive #deals #2025

Who to follow • Refresh • View all Followed by Glam Ink and others

WPCrumbs @WPCrumbs Follow

Followed by Glam Ink and others

Glam Ink @TheGlamInk Air-Porter @airporter · Jan 20 Free Twitter Mockup 2017 https://airporter.com/ #jewelry #2025

Joined January 2020 Tweet to

456

Follow

Followed by Glam Ink and others

Freebies Cafe @Freebies..

Message

Follow

Find people you know

Trends • Change #Freebies

39K Tweets

#FreeSocialMediaMockups2017 24.9K Tweets

Air-Porter Exclusives 2025 · Pre-order NOW

#TwitterMockup2017

Air-Porter now has exclusive jewelry from independent designers from all around the world. You can pre-order items and save time at the airport. airporter.com

#FreebiesCafe

Air-Porter @airporter· Feb 10 Exclusive designer jewelry at https://airporter.com/ #exclusive #designer #jewelry #2025

17.2K Tweets 8K Tweets

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S W OT A N A LY S I S

Strengths

Physical store experience High foot traffic Brand value and experiences Wide and diverse target market Customer relationship Location Travelers waiting time

Expensive rental space On demand and constantly changing merchandise Customs restrictions and regulations Short window time

Opportunities

Weaknesses Threats

Travel retail fast growth Strategic Alliances with Airlines High Brand Visibility Captive audience Limited product returns

Delivery logistics Limited time Airport delays Currency exchange High rent

S T R AT E G I E S & TA C T I C S

- Communicate and promote the service through the airlines’ entertainment platform.

PARTNERSHIPS

- Target to domestic and International travelers.

- Communicate Service to travelers - Advertise after they shop their tickets - Commission based

NYC Designers - Collaborate with local New York City artists to showcase their pieces in the store.

ECONOMICS OF THE BUSINESS

SALES FORECAST (2025) $6,758,533.60 PROFIT (2025) $64,755

g n i r e d r O e r

P

Sales + Upsales

Bran

d Vis

ibilit

y

Pre-ordering sales accounts 30% of the total sales

S U S TA I N A B I L I T Y

AIR-PORTER Sustainability Process

Sustainable Raw Materials

Sustainable Supply Chain

Delivering Products / Carbon Net Zero

Minimizing Packaging

Transportation of Merchandise

User

Conscious Consumption

CREDITS

Carmen Maria Ponce Project Manager / Creative Director

Nicole Betances Styling Director

Julie Kim Interior Designer

Nayelin Delgadillo Model

Julia Llaguno Photographer

Camile Von Simson Model

THANK YOU