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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Exclusive Deals Online Online Payment Gift Shop Exclusive Deals Payment Gift Shop Exclusive Deals Online Payment Gift Shop Exclusive products both online Shop Payment online and in store with credit Purchase gifts for your friends and Exclusive Deals Online Gift Shop Exclusive products both online Shop online and in store with credit Purchase gifts for your friends and Exclusive products both online Shop online and in store with credit Purchase gifts for your friends and Exclusive Deals Online Payment Gift Shop Exclusive Deals Online Payment Gift Shop and on the physical platform will card or paypal. Win airline miles for family and share your cart list with Exclusive Deals Online Payment Gift Shop Exclusive Deals Online Payment Gift Shop Exclusive Deals Online Payment Gift Shop Exclusive products both online Shop online and in store with credit Purchase gifts for your friends and and on the physical platform will card or paypal. Win airline miles for family and share your cart list with and on the physical platform will card or paypal. Win airline miles for family and share your cart list with Exclusive products both online Shop online andShop in store withand credit Purchase gifts forPurchase your friends and Exclusive products bothat online online in purchase. store with credit gifts fortheir yourfavorite friendspicks and be only available Air-Porter them and see Exclusive products both online Shop online and in store with credit Purchase gifts for your friends and each Exclusive products both online Shop online and in store with credit Purchase gifts for your friends and Exclusive products both online Shop online and in store with credit gifts forand your friends and Exclusive Deals Payment Gift Shop on the physical will will card orOnline paypal. Win airline formiles forPurchase family share your cartShop listpicks with Exclusive Deals Payment Gift Shop be onlyand available at Air-Porter them and see their favorite picks Exclusive Online Payment Gift be only available atplatform Air-Porter them and see their favorite and on the physical platform will Deals cardOnline or paypal. Win airline miles formiles family share your cart list with each purchase. each purchase. and on the physical platform card or paypal. Win airline family and share your cart list listwith with and on the physicalwillplatform will card or paypal. card Win or paypal. airline family share cart and on the physical platform airlineWin miles for miles for family and shareand your cartyour list with
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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
YOUTUBE
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
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Glam Ink @TheGlamInk Air-Porter @airporter · Jan 20 Free Twitter Mockup 2017 https://airporter.com/ #jewelry #2025
Joined January 2020 Tweet to
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Followed by Glam Ink and others
Freebies Cafe @Freebies..
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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