Duty Free Magazine Special Issue - Lifestyle 2016 by Paramount Publishing Ltd.

LIFESTYLE OCTOBER 2016 · SPECIAL ISSUE

Meet us at Bay Terrace 3

priority crew

m1nd-set Generation talks Lifestyle p. 6 MCM focuses on expansion p. 14 Industry specialists share insights p. 30

27736_LIFESTYLE_MAG_FRONT_COVER_SP.indd 1

DUTYFREEMAGAZINE.CA

01/09/16 17:21

LETTER FROM THE EDITOR

Turning browsers

to buyers

he duty free industry has changed drastically over the years, with more categories and a greater selection than ever before. Fashion, accessories, leather goods, jewelry and watches have never been more important, today making up about 25% of travel retail sales around the world, according to m1nd-set Generation data. Though that number is extraordinary, given the relative newness of the category, the potential is far higher. When a traveler has time to spare, shopping is a popular pastime, and the Lifestyle category has the ability to draw these potential customers into the store. According to research performed by Generation, the jewelry and watches shopper is also more likely to visit other categories, making this customer especially valuable on the one hand. On the other hand, this category shows the lowest conversion rate. As TFWA President Erik Juul-Mortensen says, conversion is a major issue and this category clearly needs to drive sales. Be that as it may, this category is especially good to offer exposure of new items to the general public, as a springboard for new customers, both for the shopper’s self-gratification and as gifts. The best news is that this category offers the perfect place to upsell. In the lifestyle category, a full 75% of items are purchased on impulse, with 56% of shoppers purchasing for themselves and 40% as a gift, with fashion and accessories more likely purchased as a gift for oneself and jewelry and watches more likely to be purchased as a gift for someone else. Travelers are keen to buy fashion, accessories, watches and jewelry; the challenge to the supplier is to find what they are looking for. As more airports are seeing the potential, they are offering a range of price points and recognizable brands. While most purchasers buy on impulse, those who do plan to buy have specific brands in mind, and a quality brand that the consumer feels comfortable purchasing means half the battle is won. But a quality brand is only part of the story; as in other categories, the Lifestyle shopper is looking for items not easily found elsewhere, with good promotional pricing, and a brand or design that offers a sense of place. As is often the case in business, this reality offers both a challenge and an opportunity. No other category offers such enormous room for growth, and so around the globe, airports and retailers are joining forces with brands to analyze the best way to offer these millions of browsers exactly the incentive they need to fill their shopping baskets. Fashion, you’ve come a long way.

OCTOBER 2016 · LIFESTYLE · SPECIAL ISSUE

Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. October 2016, Special Issue. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2016 Global Marketing Company Ltd.

AMERICAS, GULF-AFRICA, ASIA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Jas Ryat jas@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Claire Malcolm Mary Jane Pittilla Rebecca Byrne

Kindest Regards, CIRCULATION & SUBSCRIPTION accounts@globalmarketingcom.ca

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca

LIFESTYLE OCTOBER 2016

CONTENTS

What’s inside

LEAD STORIES 6 m1nd-set Generation: Data A WINNING COMBINATION OF CATEGORIES

Fashion, accessories, jewelry and watches are becoming true powerhouses in the duty free store selection. Here, Swiss and Sweden-based research specialist m1ndset Generation reveals in-depth insights into consumers’ shopping behavior in these categories

8 TFWA TIME TO GROW

Fresh data demonstrates the power of duty free and travel retail as a pathway to new consumers and increased sales in the watch and jewelry category

10 Diesel HIGH-ENERGY DENIM STYLE

Italian denim pioneer Diesel is returning to the TFWA World Exhibition in Cannes with Diesel Express, an innovative, new collection designed for travelers on the move through fashionable cities

12 Tumi REACHING THE PINNACLE

Tumi’s ultra-premium Landon collection for Fall/Winter 2016 collection is characterized by sophisticated and streamlined designs and clean, contemporary details

14 MCM STORING UP SUCCESS

In less than two years, MCM has grown its travel retail footprint massively. Now, the German luxury brand’s sights are set on further expansion in the Middle East, Europe and the Americas

16 Lagardère Travel Retail, Asia Pacific A LUXURIOUS LAUNCH

Lagardère Travel Retail continues to make waves in travel retail with a luxury multi-brand concept in Singapore’s Changi Airport

FEATURES Genie-S in a bottle Tateossian reaches for the moon Thomas Sabo: Back with a splash

24 26 28

Industry specialists discuss Lifestyle Softly does it for Morgan & Oates Paul & Shark celebrates 40th birthday

30 36 38

20 Dubai Duty Free TRENDING NOW IN DUBAI

Dubai Duty Free is reaping the rewards from the massive expansion of its fashion and lifestyle offer at Dubai International Airport

M1ND-SET GENERATION: DATA

A winning combination

of categories Fashion, accessories, jewelry and watches are becoming true powerhouses in the duty free store selection. Here, Swiss and Swedenbased research specialist m1nd-set Generation reveals in-depth insights into consumers’ shopping behavior in these categories

ccording to m1nd-set Generation, the four product categories of fashion, accessories, jewelry and watches combined represent around 25% of travel retail sales around the world. That’s an impressive figure. Furthermore, accessories, leather goods and jewelry are all among the top 10 selling categories in travel retail, based on m1nd-set Generation data. M1nd-set Generation set conducts ongoing research with travel retail shoppers at airports around the world, with an annual sample size of 20,000. In this article, m1nd-set exclusively reveals insights from the fashion, accessories, jewelry and watches category. The data is from interviews conducted in 2016. When looking at the four categories overall, the m1nd-set data shows that 75%

LIFESTYLE OCTOBER 2016

of people purchase on impulse, 56% buy for themselves, 40% buy as a gift, and 4% on request from others. Examining the four categories in detail, interesting insights can be seen. The main reason for buying jewelry is as a gift for others, followed by to treat oneself and to have a memory of the trip. Almost all travelers are interested in price reductions for jewelry, which is followed by receiving a gift with purchase and new launches. The majority of travelers – seven out of 10, which is the highest of all categories – prefer to get an advice from sales staff while buying jewelry in duty free shops.

Fashion shoppers tend to plan their purchases in advance Turning to fashion, the main reason to buy from this category is to treat oneself, followed by gifting purposes and convenience. Every third traveler planned a purchase in the fashion department in advance. The price comparison for fashion is mainly made between prices in duty free shops and prices in downtown stores in a home country. Therefore the most important criteria for shopping for fashion in duty free shops is to save money when compared to shopping in downtown shops. This is followed by attractiveness of available brands, finding brands that are not available at home, and buying better brands that travelers don’t usually buy. As for accessories, shoppers cited the main reason for buying from this category at airports is for self-indulgence, as a gift for others and to have a memory of their trip. The price comparison for accessories is mainly made between prices in duty

free shops and prices in downtown stores in a home country, followed by comparisons on the internet. The most important criterion consumers cited for shopping for accessories in duty free shops is to save money compared to downtown shops. This is followed by finding brands that are not available at home, and special promotions/events. Interesting promotions for men are new launches, while for women it is receiving gifts with purchase. Travelers say they do not buy or rarely buy accessories in duty free shops mainly because they prefer to buy items of this category elsewhere rather than at airports. One of the major reasons for not buying accessories is the small assortment, and they say they want to see more items in the airport shops. The main improvements that could be made in the accessories departments are to provide better prices than downtown, a wider assortment, and limited editions. The main reason consumers cited for buying watches at airports is to treat themselves, followed by gifting, to have a memory of their trip, and promotions/ special deals. In general, travelers buy watches at duty free shops spontaneously (around eight out of 10). The most important criterion consumers gave for shopping for watches in duty free shops is to save money compared to downtown shops. This is followed by the ability to purchase better brands that travelers don´t usually buy, and special promotions/events. In conclusion, m1nd-set’s research makes it clear that for the four categories under examination, value for money and gifting are the major motivators for travelers across the world.

Main reasons for buying Good value for money

30%

Suitable as a gift

29%

Price was lower than in local stores

23%

Convenient to buy in the Duty Free shop

18%

Display of the product caught my attention

15%

Appealing promotion

15%

Value for money, gifting suitability and prices that are lower than local stores were the three main reasons shoppers gave for buying in the categories of fashion, accessories, jewelry and watches, according to m1nd-set’s research

First time purchase

38% buy an item in these Categories for the first time in Travel Retail

38%

Nearly 40% of shoppers had bought products from the categories of fashion, accessories, jewelry and watches for the first time in travel retail, m1nd-set found

Moment of Decision of Duty Free Purchase

At home – Before Leaving for the Airport

15%

On the way to the airport

At destination – Before Leaving for 7% the Airport

25%

At the Airport

15 %

In the Duty Free Shop

48% 12 %

After looking Around

After Getting Advice from Sales Staff

75%

Almost 50% of m1nd-set survey respondents decided to purchase a product after looking around the duty free stores, while 15% made the decision at home, before leaving for the airport

Professor Alex Seret

Renowned professor strengthens m1nd-set Generation team Swedish-Swiss joint venture m1nd-set Generation has boosted its analytics and forecasting capacity with the appointment of leading business analytics expert Professor Alex Seret. Seret, who joins m1nd-set Generation as a consultant specifically on the sales forecasting aspects of the business, has a Ph.D. in Decision Science from KU Leuven University and is a Professor at the University of Los Andes in Santiago, Chile. Commenting on the appointment, Generation CEO Fredrik Lindh said: “Generation has been providing industry sales and forecast data for over three decades now and our analytics tools and the methodologies used are extremely complex. Despite this, we recognize the need to constantly improve and provide excellent service when it comes to data accuracy. The collaboration with Professor Seret brings a wealth of experience in business analytics, data science and quantitative marketing across different industries, including retail. Alex Seret is a recognised expert in analyzing and forecasting data in ultra-complex environments such as ours where data is often missing. We look forward to his proficient perspective on the way we operate.” m1nd-set owner and CEO Peter Mohn added: “We are delighted to welcome Alex to the m1nd-set Generation team as he will play a key role in our joint ‘Big Data’ service. This relationship will enable m1ndset Generation to provide much improved data, enriched by our consumer insights, best-in-class air traffic forecasting and macro-economic data, which will help put the sales data trends and forecasts into a much clearer perspective. “Sales data estimations and forecasting in travel retail is exceedingly different compared to the domestic market, due to its unique structure, dynamics and diversity, and we therefore think it is essential to continuously invest in providing the travel retail industry with the best and most precise possible data today and in the future.” www.dutyfreemagazine.ca LIFESTYLE

TFWA

Time to

GROW

Fresh data demonstrates the power of duty free and travel retail as a pathway to new consumers and increased sales in the watch and jewelry category

recent study from leading duty free and travel retail association TFWA has highlighted how the duty free and travel retail channel can provide a lucrative market opportunity to watch and jewelry brands. The watches and jewelry report is part of the TFWA Category Reports series, produced by Counter Intelligence Retail, travel industry research and insight specialists. It is based on approximately 1,000 shopper interviews conducted at four key airports across the globe. A minimum of 50% of the sample were duty free buyers. The study found that a substantial 78% of shoppers buying for themselves purchased a brand they do not usually buy, while 40% purchased the brand for the first time and seven in ten buyers had no prior awareness of the brand. “This indicates that the channel can offer outstanding exposure to new audiences, and that the travel retail sector is a sound springboard to new customers.

LIFESTYLE OCTOBER 2016

It is also the perfect place to upsell, with one in five trading up from their domestic product ranges and brands,” says TFWA President Erik Juul-Mortensen. However, only one in two watch and jewelry buyers purchased for themselves, the lowest of all categories in the survey, while almost one in every two purchases are for a gift. With the gift buyer a key travel retail customer, this also presents significant opportunity for the category, TFWA believes. Another opportunity lies in turning the category’s many browsers into buyers. While one in seven shoppers visit watches and jewelry, only 5% buy. This equates to a conversion rate of just 34%, the lowest of all the categories. “The watches and jewelry category in global duty free and travel retail was valued at US$5.7 billion in 2015,” says JuulMortensen. “However, the sector needs to do more to turn the very substantial amount of watches and jewelry browsers into buyers, as currently about one in

seven airport shoppers visit the category but only 5% buy. By focusing on improving conversion, the category has plenty of scope to capitalize on the significant opportunity presented by the duty free and travel retail channel.” The study also found that on average, watches and jewelry shoppers visit 2.1 categories, which is significantly higher than shoppers overall (1.5). This would indicate that those visiting the category have more time to shop, making them valuable within the airport retail environment. “While passenger numbers are increasing significantly across the globe, our ability to turn these travelers into customers has not kept pace, and conversion is a major issue for our industry,” warns JuulMortensen. “As the poorest performer, there is clearly considerable scope to drive sales in watches and jewelry.” The full report is available as an exclusive benefit to TFWA members at www. tfwa.com.

coccinelle.com

DIESEL

Highenergy denim style Italian denim pioneer Diesel is returning to the TFWA World Exhibition in Cannes with Diesel Express, an innovative, new collection designed for travelers on the move through fashionable cities

A cozy sense of protection runs through casual, wintery pieces offered in bright shades, specially designed for travelers

LIFESTYLE OCTOBER 2016

At the upcoming TFWA World Exhibition in October, Diesel will be presenting the new Fall/ Winter 16 collection: Diesel Express

iesel is bringing its denim mastery back to the 2016 TFWA World Exhibition in Cannes after the Italian brand’s successful debut at the Cannes fair last year. Diesel’s focus for the travel retail industry seeks to capture the essence of the brand, but filters it through a fresh, modern perspective – the many Diesel customers on the move, making their journeys through fashionable cities and far-flung places. Diesel is an innovative international lifestyle company, producing a wide-ranging collection of jeans, clothing and accessories. At the upcoming Cannes show in October, Diesel will be presenting the new Fall/Winter 16 collection: Diesel Express. Taking a trip through the building blocks of the brand’s iconic style, mixing rock, denim, military and sport, the results are a new, high-energy flavor. Artistic Director Nicola Formichetti explains: “I started the collection with the idea of the stadium: concerts, sports,

Diesel’s focus for the travel retail industry seeks to capture the essence of the brand, but filters it through a fresh, modern perspective

where people gather and have fun. Rock style is interpreted in a pop way and the clothes are almost like a uniform.” Sport and activewear’s elements are incorporated in sharp, urban line-up with a dark, nocturnal feel. The combination of black and white enhances the graphic appeal of sweatshirts, T-shirts and knitted ribbed dresses decorated with stripes, while metallic press studs add a rock ‘n’ roll touch to shorts, dresses and skirts trimmed with leather, as well as sweatshirts with detachable parts. A cozy sense of protection runs through casual, wintery pieces offered in bright shades. Diesel’s signature leather jackets come in a graphic combination of vivid tones, such as orange, which is also used for unconventional camouflage patterns of shirts and T-shirts. The sense of comfort is exalted by the punkish warm and soft mohair knits with coordinated long scarves. A leader in the denim wash business, Diesel brings its research and innovations to the next level with Royal

The sense of comfort is exalted by the punkish warm and soft mohair knits with coordinated long scarves

Indigo, dubbed the luxury of dark, with a multi-layered blue/black wash. The brand continues introducing fresh silhouettes and new seasonal washes for the Fall/ Winter season. And specially for travelers, the company offers hyper-comfortable Jogg Jeans, designed to be the perfect choice for those on the move. This season, the brand introduces a range crafted from a new soft fabric with a silky effect, guaranteeing sharper, more refined silhouettes, and a selection from the Spring/Summer 17 Preview Collection will be presented at Cannes. A pioneer in the world of denim and casualwear, Diesel has always remained both outside and ahead of trends. Never forsaking its original DNA, it has evolved into an iconic global lifestyle brand. Despite Diesel’s extraordinary growth, its philosophy is the same as when Renzo Rosso created the brand in 1978. He envisaged a brand that would stand for passion, individuality and self-expression. Today, Diesel continues to blaze its own trail. It is on a continuing mission to challenge the

status quo, experiment with fresh ideas, innovate and provoke. Diesel is part of the OTB group, the parent company of some of the most iconic fashion brands such as Maison Margiela, Marni, Viktor&Rolf, and state-of-the-art companies like Staff International, and Brave Kid. The group’s brands are globally recognized as the brands of unconventional, individual consumers. OTB reveals its brands’ true essence and character: innovative and iconic, unique and daring. Chaired by Renzo Rosso, the Italian entrepreneur who founded Diesel, the group embodies his spirit and vision today. OTB believes in pushing the boundaries of fashion and lifestyle, offering a portfolio of global brands to a new breed of consumer – those who challenge traditional perceptions, preferring to embrace fashion on their own. Standing for “Only the Brave”, even the name OTB reflects the group’s vision and values. Passion and creativity, and a pragmatic approach to building global brands.

www.dutyfreemagazine.ca LIFESTYLE

TUMI

Reaching the

pinnacle

For Holiday 2016, the Alcott backpack, Whitman tote and Bradmoor Slim Brief will be offered in a bold monochromatic black and white splatter paint print

Tumi’s ultra-premium Landon collection for Fall/Winter 2016 collection is characterized by sophisticated and streamlined designs and clean, contemporary details

umi is set to showcase its ultrapremium Landon collection at the TFWA World Exhibition in October, representing the US travel accessories brand’s pinnacle premium offering. Combining timeless design with modern sensibilities, the Fall/Winter 2016 collection is crafted from light matte pebbled leather, while the assortment is characterized by sophisticated and streamlined designs and clean, contemporary details enriched with advanced functionality. High-end details include the subtle curved lines, decorative aluminum luggage tag, and refined logo treatment on the exterior, and the leather accenting on the interior. Special exterior touches unique to this collection include refined hardware and magnetized anchor covers, designed to hook the removable shoulder strap with leather covers, maintaining the clean aesthetic of the bag when the shoulder strap is not in use. The interior of the bags features a pocket that combines Tumi’s signature ID Lock and protective pocket functionality, ensuring extra security for valuables and protection from identity theft. The collection is offered in classic neutrals, black and grey leather, as well as a seasonal embossed sueded black that is 12

LIFESTYLE OCTOBER 2016

designed to project a cool, exotic look. The Alcott backpack is offered in all three colors and includes both a dedicated padded laptop compartment and a tablet pocket. The leather pleated gusset allows easy access to the main compartment of the bag without having to fully unzip it, while the Add-A-Bag strap allows the backpack to be easily stacked on top of Tumi wheeled travel pieces. The digitally-driven Lowell Brief and Bradmoor Slim Brief are crafted for today’s multi-faceted businessman. These polished silhouettes are easy to carry and feature slim profiles with several easy-toreach compartments for tech and business accessories. A detachable shoulder strap adds comfort and versatility, while the Add-A-Bag strap attaches them securely to wheeled travel pieces. Form follows function in the new Whitman tote, which is described as a practical and versatile tote for everyday excursions in an eye-catching shape. It boasts a spacious interior, padded tablet pocket and multiple interior pockets. The Howell duffel is dubbed a stylish, highly functional statement piece. The spacious main compartment has a heavygauge zip closure and is equipped with interior pockets to hold everything from electronics to personal essentials, along

The Alcott backpack is offered in three colors and includes both a dedicated padded laptop compartment and a tablet pocket

with a separate drawstring bag for separating shoes from clothes. The AddA-Bag strap also doubles as an exterior back pocket when the bottom flap is zipped closed. The contemporary Elmore International four-wheeled carry-on fuses traditional leather craftsmanship with a modern, ergonomic design. It has four recessed multi-directional spinning wheels and boasts a premium and practically-designed interior. For Holiday 2016, the Alcott backpack, Whitman tote and Bradmoor Slim Brief feature a new, sporty pattern. These silhouettes will be offered in a bold monochromatic black and white splatter paint print, making these styles strong statement pieces. Designed in America, Tumi’s bags are sold in over 350 stores from New York to Paris to London and Tokyo, as well as the world’s top department and specialty stores and travel retail in more than 75 countries.

MCM

Storing up

success In less than two years, MCM has grown its travel retail footprint massively. Now, the German luxury brand’s sights are set on further expansion in the Middle East, Europe and the Americas by

MARY JANE PITTILLA

The Milla Primary is a classic tote made from Italian leather in bold Bauhaus colors such as blue, red and yellow

ess than 18 months ago, MCM embarked on a rebooted travel retail strategy under its Travel Retail Director, Nicolas Roptin. Today, the German luxury brand is thriving in the airport and downtown channels. The new strategy for the 40-year-old brand is working like a dream. Roptin reports a double-digit upswing in travel retail sales over the past year – an impressive result, given the various geopolitical events that have profoundly affected all players in this sector. “We’re doing well,” he says, noting the travel retail channel’s resilience in the face of such challenges. “Like everybody Dubbed Munich Epoque, the Autumn/Winter 16 collection continues MCM’s year of 40th anniversary celebrations and features “boldly elegant” designs inspired by its birthplace in the German city

LIFESTYLE OCTOBER 2016

else, we are facing geopolitical and economic issues, but overall we’ve been more resistant and we keep growing.” MCM is popular among Asia’s luxury-loving travelers and the company is seeing increasing numbers of South East Asian customers. Middle Eastern customers are also “very important”, notes Roptin. The ambitious company’s objective is to open good-sized stand-alone stores in well-targeted locations across Asia, Europe, the Middle East and the Americas. This has been achieved in Asia, where a major location spanning over 240 square meters began trading in April 2016 at Hong Kong International Airport Terminal 1, directly operated by MCM. The brand created a special-edition airport range for this milestone event. Fans of clever retail visual merchandising techniques can also delight in the store’s airport-style baggage carousel display for the accessories. A sizable, 100 square meter shop opened in Singapore Changi Terminal 1 in July, in partnership with Dufry. Also in a strategic location is a new store recently opened at Bangkok Suvarnabhumi Airport, operated by King Power. In China, a 60 square meter stand-alone shop opened at Shanghai Pudong Terminal 1, operated with King Power Group (Hong Kong) subsidiary Orient King Power, boosting the operator’s fashion and luxury offer at the domestic terminal. Taiwan is proving a rich seam of sales for MCM, where the brand boasts three Taoyuan airport locations in Taipei, comprising two stand-alone stores and a shop-in-shop. Over in Australia, Gebr Heinemann opened a 60 square meter space at Sydney Airport in May.

This Luxus backpack in croco-embossed Italian leather from the Autumn/ Winter 16 collection comes in a signature MCM shape

Bag charms are among MCM’s bestselling products

Other Asian region openings during 2016 have included Kuala Lumpur International Airport and Beijing Terminal 3. In September, a 75 square meter store was scheduled to open in Shenzhen Airport’s domestic terminal, featuring a “very high” façade, says Roptin. In Europe, a key travel retail target, Munich Airport is another significant opening for the brand, which was established in the German city in 1976. Also in Germany, a directly operated airport shop in Frankfurt opened for business in September. Meanwhile, Lagardère Travel Retail is operating an MCM space in its multi-brand store at Amsterdam Schiphol Airport. In the Americas, where Roptin sees huge potential for the brand, MCM has debuted at Toronto Airport. This follows the opening of a store at Los Angeles Airport in November 2015. Now, the focus is on London and Paris airports, where the company is scouting for locations, and is looking to return soon to Dubai International. There’s certainly lots more in store for 2017.

Autumn/Winter 16 collection hits the shelves In early July, the Autumn/Winter 2016 collection landed on travel retail shelves. Dubbed Munich Epoque, the collection continues MCM’s year of 40th anniversary celebrations and features “boldly elegant” designs inspired by its birthplace. Looking to Munich’s artistic heritage, the collection incorporates Baroque-inspired patterns juxtaposed against clean yet vibrant colorways. Reds, gold, deep blues and yellow ochre create the palette.

Taken in part from Munich’s Residenz Palace, the motifs and colors that run through the collection bring the designs back home with a contemporary feel. Details include hand-sewn embroidery, brocade, Swarovski crystals, applique velvet, beading and waxed canvas. The Baroque Print line is a stylish and modern interpretation of classic German artisan tradition. This print adorns key silhouettes such as the lightweight Kira shopper and Stark backpack. Inspired by MCM’s classic heritage travel collection, the lightweight Berlin Series pieces pay homage to the archive with the addition of bold rivets and studs. New season color ruby red is introduced as well as a Tambourine cross body style. Newly restored from MCM’s archives, the youthful Patricia shoulder bag is deceptively roomy. The bag features an adjustable strap with shoulder tunnel adornment, automatic laurel lock and rhodium hardware. The Milla Gepard boasts luxurious calf hair, leopard patterns and a detachable fox-fur charm, and is available in tote, clutch, and backpack shapes. Resurrected from MCM’s archives, the Mitte Brocade bag pays homage to the rich art of brocade in colored silks with gold and silver threads, and metal embroidery. Inspired by a vivid range of Bauhaus colors, the Milla Primary offers a classic tote made from Italian leather in bold hues such as blue, red and yellow. The Luxus line features croco-embossed Italian leather and is available in a range of styles including backpack, messenger, and briefcase.

www.dutyfreemagazine.ca LIFESTYLE

LAGARDÈRE TRAVEL RETAIL, ASIA PACIFIC

A Luxurious

Launch

Lagardère Travel Retail continues to make waves in travel retail with a luxury multibrand concept in Singapore’s Changi Airport by

REBECCA BYRNE

Emmanuel de Place, COO of Lagardère Travel Retail, Asia Pacific

The store will showcase more than 30 luxury fashion brands and categories crossing Ready to Wear, Fashion Accessories, Shoes, Bags and Jewelry

LIFESTYLE OCTOBER 2016

ast year Lagardère Travel Retail (LTR) brought luxury to China’s Kunming Airport with the airport’s first high-end concession and to Hong Kong Airport with the award of five fashion concessions. This year, Changi Airport’s Terminal 2 gets the Lagardère makeover of its luxury multi-brand store, The Fashion Gallery. This is a global concept for LTR with a presence in Europe and Asia. The Fashion Gallery was first launched at Changi Airport in 2010. The latest incarnation is located in terminal 2’s Departures and Transit Hall. Covering over 500 square meters, it is one of the region’s largest multi-brand airport fashion outlets. The store will showcase more than 30 luxury fashion brands and categories crossing Ready to Wear, Fashion Accessories, Shoes, Bags and Jewellery. New, fresh brands will be added, such as Balenciaga and Thomas Sabo, and some, such as Alexander McQueen and Lulu Guinness, will be unique not just to the airport but also to Singapore. Emmanuel de Place, COO of Lagardère Travel Retail, Asia Pacific, comments on the new launch saying: “Our award winning The Fashion Gallery is an exciting innovative breakthrough for Lagardère Travel Retail not only in this region but globally. This new version of the concept fully demonstrates our wealth of expertise and knowledge in high-end and luxury retailing and our ability to create exceptional fashion experiences constantly pushing the boundaries. “We are delighted to be celebrating its opening with our partners at Changi Airport, and to be complementing Changi’s

Alexander McQueen is unique not just to the airport but also to Singapore

Covering over 500 square meters, The Fashion Gallery is one of the region’s largest multibrand airport fashion outlets

formidable reputation for its exciting retail offer. The success of the project certainly lies in the genuine and efficient collaboration between Changi Airport, our teams in Asia and our global duty free teams in Paris, in sharing ideas about the future of retailing luxury in airport and working at the execution of the store.” The Fashion Gallery is said to offer travelers the “ultimate shopping experience, expressed through engaging editorial communication that encapsulates the spirit of luxury, while carrying the best selection of luxury fashion brands such as Salvatore Ferragamo, Bally, Versace, Bulgari, See by Chloe, Furla and Kenzo”. It also introduces many exclusive fashion brands such as Casadei, Chiara Ferragni, Sergio Rossi, Moschino and FOB Paris. Gerry Munday from Furla, which has three square meter corner store in the Gallery, is delighted to be part of The Fashion Gallery saying: “We are thrilled to have another Furla store in Changi, it really is a fabulous location. I thank Lagardère for their help with this opening, it is always a pleasure to work with them.” Nicola Burdett, Commercial Director, Lulu Guiness adds: “We are delighted to be going into our second season with Lagardère, their key locations provide ideal brand alignment for us and we can’t wait for all the busy jet setters to see what the Lulu Guinness Autumn Winter 2016 collection has to offer.”

S TA N D M 4 1 Green Village

www.dutyfreemagazine.ca LIFESTYLE

LAGARDÈRE TRAVEL RETAIL, ASIA PACIFIC

With customer service being key to the success of the store, LTR has invested strongly in a rigorous ISO 9001 accredited OSCAR training program, focused on learning sales techniques, language courses and intensive product knowledge. Visitors to the Fashion Gallery will be greeted and served by highly trained Fashion Service and Style Curator experts to find personalized styling tips that suits every individual needs. A highlight of the store is a first ever ‘Event Space’ in the travel retail industry. Located in the heart of the store, this is a customizable themed area reserved for exclusive global luxury fashion launches and promotions. The Event Space will launch with ‘Sports Luxury’ capturing this season’s sport events within the region and presenting five exclusive brands: Hackett London, Porsche design, Tod’s for Ferrari, J.O.T.T, Kenzo Men’s Shoes. The Fashion Gallery will be collaborating with fashion influencers around Asia, such as bloggers, to push stylish looks available in the store. Exploiting the online potential, engaging and informative social media contents and fashion influencer’s

recommendations will be published onto The Fashion Gallery Facebook page and Instagram. For Changi Airport, this is an exciting launch. Ms. Teo Chew Hoon, Senior Vice President, Airside Concessions of Changi Airport Group coments: “The rejuvenated Fashion Gallery boasts a stylish new look and offers our shoppers an extensive range of fashion brands, with some new to Changi, and exclusive products to choose from. We are confident that these will enhance Changi’s brand proposition and add freshness to our passengers’ shopping experience.” De Place says that this initiative is just one of many ongoing retail developments across several Asia locations this year as LTR continues to update its growing fashion offer alongside its duty free, travel essentials and foodservice businesses. He is firmly convinced that travel retail in Asia will continue to grow over the next five years, “even though there have been some questions in the past few years about the high-end luxury segment.”

New, fresh brands such as Balenciaga have been added to the Fashion Gallery

LIFESTYLE OCTOBER 2016

DUBAI DUTY FREE

Trending now in Dubai Dubai Duty Free is reaping the rewards from the massive expansion of its fashion and lifestyle offer at Dubai International Airport

ulf-Africa Duty Free magazine talks to Saba Tahir, Vice President for Purchasing at Dubai Duty Free, about fashion and lifestyle items – a category that’s remained buoyant despite a number of unforeseen challenges experienced this year. Gulf-Africa Duty Free Magazine: How is the lifestyle/fashion category performing overall? Saba Tahir, Vice President for Purchasing, Dubai Duty Free: We are happy with the performance of fashion and lifestyle categories together. Despite the challenges brought by many factors, these categories are performing at par with our expectation. For the remainder of the year, we expect most of the fashion sub-categories to perform even better as we approach the peak months and festive season. Currently, most fashion sub-categories are performing well against last year, thanks largely to the opening of Concourse D [Terminal 1, in February 2016], which has seen a massive uplift in the offer to our passengers. Moreover, a number of new brand concepts have been implemented in the concourse, which has given fashion a strong sense of place in the retail areas.

Saba Tahir, Vice President for Purchasing at Dubai Duty Free

LIFESTYLE OCTOBER 2016

GADF: Are you running any high impact/notable promotions? ST: Fashion houses are not keen on running promotions because it is important for them to maintain their individual brand

Currently, most fashion sub-categories are performing well against last year, thanks largely to the opening of Concourse D

image. However, we ensure that we launch the new collections well on time and sometimes even earlier than the domestic market to keep the passenger interest high in the category. Moreover, we strive to maintain a proper assortment to cater to all travelers. Some of the notable promotions done this year besides the usual end of season discount include the 40% discounts on Montblanc leather goods and belts, which saw a wonderful response. GADF: Has the lifestyle/fashion category reached its potential? ST: We believe fashion at Dubai Duty Free has just reached the tip of the iceberg. It is very obvious that there is much more potential than what has been realized until now. The fact that the brands are willing to adopt the current trend, be it on assortment or price point, these categories are on the right path to maximize the potential. Fashion brands have been adopting a much more diverse approach when it comes to assortment and price point without targeting specific profiles. Sports brands like Adidas, Nike, Superdry and others are getting more into lifestyle than the usual athletic performance. We have noted a re-creation of iconic items with a modern touch that makes it unique and interesting to consumers. GADF: What type of products are you looking for when buying fashion items as a retailer?

ST: The choice is in accordance with the specific demand and buying behavior of our fashion consumers. We invest more in the fashion/seasonal items, as consumers tend to shy away from the basics/classics. It has been noted that passengers tend to be more price sensitive and therefore price point is part of our consideration when make our buying decision. It is important to have the advertised model within the assortment, as we cater to worldwide travelers who are greatly influenced by social media. Travel retail exclusive products are also a must in the assortment. GADF: Is there a specific product concept that is working particularly well? ST: Brands that are presented in a proper environment with an identified brand concept particularly work well with us. It is important that the brands and category create the right theme and sense of place to attract passengers to buy. GADF: Many fashion companies are gathering research to enhance the category. Is this helping business? ST: Definitely, yes. The only way to cope with the fashion business is to adopt the current trend and understand the future. Moreover, it is very important to understand the motivations of a traveler who purchases fashion compared to a downtown shopper.

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DUBAI DUTY FREE

GADF: What are your top 10 fashion/lifestyle products overall? ST: Our top 10 fashion brands are: Chanel, Hugo Boss, Hermès, Salvatore Ferragamo, Gucci, Coach, Lacoste, Montblanc, Tumi, Michael Kors. The top 10 products are handbags, wallets, small leather goods, men’s polo-shirts, men’s T-shirts, men’s shirts, ladies’ scarves, men’s ties, sunglasses, and footwear. The top 10 lifestyle brands are Adidas, Nike, Puma, Lamborghini, Ferrari, Superdry, Billabong, Fitflop, Skechers, and Crocs. GADF: Is there a message you’d like to send out to these suppliers? ST: It’s highly important for suppliers to maintain proper price positioning in the travel retail environment, especially in global hub airports such as Dubai. Passengers who hail from different parts of the world are exposed to differential pricing due to regional pricing policies, which sometimes can have an adverse effect on sales, especially in the case of a strong currency fluctuation. Moreover, it’s also important to adopt the current trend while anticipating the future to ensure that proper product offer will be available in the collection.

Also, they need to take into consideration the dwell time and space restrictions in the travel retail industry. GADF: What challenges are you facing? ST: The current restriction on luxury items in China as well as the currency fluctuations, the geopolitical situation – all of which end up as an unforeseen challenge in the fashion and lifestyle category. GADF: Do you have any new, dedicated spaces just for lifestyle/fashion? ST: We have a new, dedicated space for children’s fashion in Concourse D. Moreover, a number of brand concepts introduced this year have included Burberry, Ralph Lauren and Tory Burch. Some new brand concept launches or line extensions to existing ones have led to sales increases over 2015. GADF: Where do you see the lifestyle/fashion category in the next five years? ST: Lifestyle/fashion has a bright future and will continue to grow as much as we see that brands are willing to adopt the necessary changes.

Saba Tahir believes that believe at Dubai Duty Free has just reached the tip of the iceberg

LIFESTYLE OCTOBER 2016

TRAVALO

Genie-S in a bottle The creator of patented portable perfume spray brands, Travalo and Perfume Pod is expanding its strategic base as it positions itself alongside the crème de la crème of the fragrance world by

LIFESTYLE OCTOBER 2016

CLAIRE MALCOLM

ashion forward with a portfolio that includes the bestselling Classic HD, leatherette covered Milano and Swarovski encrusted Divine lines, Travalo uses revolutionary patented U-Change technology for its 5ml ‘engine’, with each spray bottle containing enough fragrance for 65 spritzes and made from carry-on baggage approved aircraft grade recyclable aluminium. “The U-Change system is key to our success and the idea is to give our consumers total freedom, with the ability to mix and match between the different covers, with infinite possibilities, depending on whether they are playing sport, off to a lunch or attending a cocktail event,” says Myriam Welsh, Marketing Director, Genie-S International. Launched just nine years ago, Perfume Pod is the entry-level product designed for the mass market with Travalo delivering a premium experience and targeting a more selective audience. Although Travalo isn’t a travel retail exclusive, the brand’s handy size and innovative packaging lends itself to the duty free environment, and also features great gifting options such as its four-piece box set. Genie-S International is also banking on price appeal with the Perfume Pod variants all under US$10, the Classic HD averaging US$15, Milano for US$38 and, at the top end, the Divine, which costs around US$400 for the silver and US$600 for the gold. And this appears to be paying off according to Ralph Bou Nader, Vice President, Genie-S International, driven largely by a new global domestic partnership with Sephora, which will see Travalo stocked in all its retail outlets. “This also has a domino effect for travel retail as previously, a lot of operators didn’t really know where to place us; but when we tell them how it works with Sephora, they get it and it makes entry easier,” he says. “A great example is Lagardère, with who we’ve just signed

27 Aelia locations including Charles de Gaulle. This is a good benchmark for us,” he adds. Do the math and its commercial argument is undeniable, as he explains: “A large percentage of women don’t necessarily choose to put their regular perfume bottle in their handbags, but if you carry a 5ml Travalo spray then there are multiple opportunities throughout the day to refresh, and it can increase usage by up to 60%, which is a major selling point for fragrance brands and retailers.” The company is adding impetus to its vision with expanded team presence in Paris and Hong Kong, and a cadre of regionally focused sales people. Says Bou Nader: “With Asia, we had to do our homework first, especially after Europe and Middle East, which are the strongest markets in terms of fragrance; and we are now entering the region in a heavy way. “Compared to other markets, Asian consumers are not so much into fragrances, but at this year’s Singapore exhibition we had a lot of unplanned meetings and strong interest from places like Malaysia, Philippines and Japan.” Another area where the company sees huge potential is cobranding, and a new Dior tie-up is about to roll out worldwide, as Bou Nader explains: “With the limited editions we have, we are now looking at developing this in a very structured manner. We don’t want to oversaturate the market with too many products and co-branding is an important B2B focus for us.” Ultimately, alliances are all about strengthening brand awareness. “We managed the entire Dior creation process from A to Z, and worked with their designer to develop a unique product,” he says, adding: “The most important thing to note is that we are not, and never will be, a gift with purchase. We are retailed along with the fragrance as an inclusive product, with an average 20% price increase reflecting our brand credibility.”

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TATEOSSIAN

Tateossian unveils a collection of cufflinks and pendants that incorporate precious lunar stones

Reaching for

THE MOON

UK-based accessories supplier Tateossian has taken innovation to the next level with a jewelry collection that incorporates rare and precious lunar stones from the moon

nspired by US President John F Kennedy’s Moon speech to Congress in 1961 which eventually put an American on the moon, UK-based luxury jewelry and accessories brand Tateossian has unveiled a collection of cufflinks and pendants that incorporate age-old lunar stones. Precious lunar stones are four billion years old, having survived meteorite blasts on the moon, orbited the sun and finally been pulled back by gravity in a fireball to land on Earth. “Always pushing the boundaries of jewelry design, we at Tateossian are constantly on the lookout for fascinating stones that we can engineer into beautiful wearable objects,” says company owner Robert Tateossian. “With this vision in mind, we have transformed these unique and extraordinary lunar stones into a collection of 18 carat gold and silver jewelry.”

LIFESTYLE OCTOBER 2016

Tateossian has the exclusive global licence to distribute Ermenegildo Zegna’s accessories

Representing the ultimate in exclusivity and luxury, The Lunar Collection comprises extremely rare lunar meteorites collected in the Sahara Desert, and authenticated by the Meteoritical Society by comparing the composition of these rocks with samples taken on the Apollo missions. Formed on the surface of the moon, in an extremely dry environment with no free oxygen and little gravity, lunar igneous rocks have a crystallization age that is older than any known rocks on Earth, making the stones in this collection one of a kind. In the collection’s Lunar Unica line of cufflinks and pendants, the lunar breccia meteorite stone is intricately encapsulated by the artisans in the company’s Italian workshops with a series of white pave diamonds around its periphery to symbolize its preciousness. The lunar stones are crafted into an 18 carat matt

black gold organic bezel body and consist of 125 diamonds for the cufflinks and 61 diamonds for the pendants. Genuine Italian leather completes the men’s pendant, carefully knotted to enable an adjustable system. The women’s pendant features the moon stone attached to a delicate 18 carat black gold chain and accompanied by elegant aquamarine beads for a timeless sophistication. Also available in the collection is the Lunar Quadrata line of cufflinks. A lunar meteorite called feldspathic fragmented breccia has been encapsulated within a hammered circular piece of silver plate and held strongly by 18 carat yellow gold claws. These limited-edition cufflinks come in only four pairs. For the Lunar Rara cufflinks, feldspathic fragmented breccia is intricately designed within a rectangular piece of sterling silver and gently placed upon a sheet of 18 carat yellow gold. A signature Tateossian whale tail elegantly holds the silver case and stone together. This limited-edition pair of cufflinks encapsulates the organic nature of a meteorite within a case that is specially designed to fit each individual piece for a unique finish. The Lunar Romana cufflinks feature pieces of feldspathic fragmented breccia intricately set within a mosaic pattern in a ruthenium-plated sterling silver square case. A limited edition of only two pairs, these cufflinks push the art of design a step further by using rare pieces of lunar rock to create a stunning visual effect. The Lunar Pura line incorporates lunar achondrite, a stony meteorite with distinct textures indicative of igneous processes. Expertly designed into wearable cufflinks, these stones retain the organic shape in which they were found. Meticulously crafted into an 18 carat matte black gold body, which defines the exact periphery of the meteorite, these cufflinks are a limited edition of only two pairs. All pieces are engraved with Lunar Breccia NWA 8277 – a reference to the exact location where the stones were discovered in North Africa. In addition to producing fashion-forward, contemporary and timeless collections for the Tateossian brand, Robert Tateossian also has the exclusive global licence to distribute Ermenegildo Zegna’s accessories, a licence the company has held for over 10 years. The brand is currently carried in the inflight assortments of Etihad and KLM. “The Milano Bracelet is our best seller whilst Signature pieces – the ones featuring the Zegna crest – are also very strong,” says Tateossian. “Our sterling silver cufflinks are consistently very popular,” he adds. The accessories are aimed at the “sophisticated, fashion-forward gentleman that already knows and has a love for the brand as well as frequent flying businessmen”, he says. The Zegna accessories brand has been present in duty free for at least 10 years, in Italy as well as the rest of Europe, with the introduction of Australia more recently. Thanks to its distinctive design vision, Tateossian sells in over 71 countries around the world, with more than 1,000 points of sale, spanning travel retail locations as well as the most prestigious, fashionable boutiques and department stores, including Tsum in Moscow, Harrods in London, Saks in New York and Isetan in Tokyo.

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THOMAS SABO

Back with

a splash After a six-year hiatus, Thomas Sabo has returned to the travel retail channel with a vision to become a major international jewelry player right away by

HIBAH NOOR

homas Sabo stepped away from travel retail some time ago, but now the German jewelry brand is plunging back into travel retail with a global brand re-launch. Why the time out? Jordi Valls, Global Travel Retail Director, explains that the company wanted to direct its attention to domestic markets, in order to strengthen the travel retail channel. “In the last few years we’ve been putting a lot of focus on the domestic market, because we thought that even for travel retail, it is very important to be well positioned in the local markets – that was the management’s strategy,” he says. Last year, the management team decided it was time to return to travel retail, and to come back strongly with a worldwide approach. To this end, Thomas Sabo took a stand at the TFWA World Exhibition in October 2015 and reintro-

LIFESTYLE OCTOBER 2016

duced the brand to buyers. “We had a great show in Cannes, and we had visitors from all the continents,” says Valls. “For us it was like time had not passed. People were waiting for us, in a way. We had a very pleasant feeling, which afterwards was repeated in Orlando [at the IAADFS show], in Singapore [at the TFWA Asia Pacific fair]. There’s a lot of interest in the brand now.” The time away has proved a good move, says Valls. “We learned a lot about our first trial in the channel and we’ve come back with a lot of new tools and new strategies and new product developments, targeting this market very clearly.” He continues: “One thing we learned – you must make things as easy as possible for the operators’ staff and the final consumer. In this industry staff are a very precious asset. Our approach in the past

was a more domestic focus, where the merchandizing was extraordinary but really time-consuming for staff. So we came up with some systems which are as easy as possible for display, for a nice, attractive visual presentation.” The firm has developed a self-service unit, a round and rotating fixture for commercial items. In addition, a modular shop-in-shop concept has been introduced. “The idea is that each piece of jewelry has its special place,” explains Valls. “This is the picture, this is what it looks like – it’s easy for staff to follow. You have to make an effort to make it look untidy. Before, you had to make an effort to make it look tidy. This is the big difference.” There’s a similar system for back-up stock. It’s all designed to be clean, easy to manage and very focused on worldwide best-sellers.

Now that the company is a global player in domestic markets, Thomas Sabo wants to be a global player in travel retail “right away”, says Valls. A worldwide structure has been put in place, in Asia, Eastern Europe, Western Europe, in the Americas, with a team based in the headquarters to support it. The re-launch is worldwide, but it’s a market by market approach. In the past, Thomas Sabo had a universal pricing policy for travel retail, but now, because of its presence in the domestic market, the company works around what price advantage the consumer is looking for in that specific market, so the pricing can be adapted accordingly for each market. The focus today is on airports, downtown stores and also on cruise lines. Valls says the company has a lot of new concepts, including the new Love Bridge jewelry collection which was launched at Cannes last year and which is ideal for the cruise industry. “It’s really having great acceptance, it’s doing very well in the local market,” he says. Because of the brand’s roots in Western Europe, Valls has kickstarted the plan in this region. “Our first partner was German – Heinemann – but from there we’ve been developing in West Europe. Our second strongest area in the domestic market is Asia. Our travel retail focus is China, India, Korea – the markets where we anticipate the most success.” Thomas Sabo is offering travel retail exclusive items, and even tailored pieces for individual customers. In the self-service unit, around 20% of the items offered are exclusives. For inflight, there’s a range of airline exclusive items. Thai Airways requested charms shaped like a tuk-tuk and an elephant, so the company created a bracelet with these two charms exclusively for the airline. The airline business is important to Thomas Sabo, so the brand never stepped back from the inflight market. “We didn’t pull out of the airline business, because of branding – it’s good advertising for the brand. We continue with the concept of full page, showing the model wearing the jewelry. It’s a brand projector. It’s a business, but we see it as well as a branding tool,” stresses Valls. Turning to the Cannes show in 2016, the plan is to take a big team. “We really expect to boom there,” says Valls.

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INDUSTRY EXPERTS COMMENT

View from the top Industry specialists share their personal insights into how the fashion category has evolved in travel retail Emanuele Mazziotta, Head of Global Travel Retail, Coccinelle Q: How long have you been in the fashion and duty free industry? A: I started my career in fashion 10 years ago, a segment which I particularly love and has shaped me professionally. I joined the travel retail industry in early 2011 at Bally. Coccinelle appointed me as Head of Global Travel Retail with the aim of greatly strengthening the company’s presence in this segment in 2014. In 2015, I took part of the judging panel of the Frontier Awards 2015. Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free? A: The last few years, and especially 2016, has been difficult. Terrorist attacks and the macro-economic and political situation in the different regions around the world are jeopardizing the overall travel retail business. As a consequence, customers are now more price-sensitive and conscious about spending money. They look for durable, good quality products at a reasonable price. Coccinelle is an accessible luxury brand offering high quality products with a very good price/value ratio. These are distinctive features of our brand. Despite the unfavorable overall macro-economic situation, 2016 has been a prosperous year for us, with 30 openings around the globe in the first eight months, boutiques, shop-in-shops and corners in China, South Korea, the Philippines, Myanmar, Russia and on cruise ships, to mention a few. The rest of the year and 2017 will be tough, but I still see space for accessible luxury brands to grow.

Hayley Lyttel, International Travel Retail Manager, Radley Q: How long have you been in the fashion and duty free industry? A: In fashion, five years, and duty free two years. Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free?

LIFESTYLE OCTOBER 2016

Michael Petry, Creative Director, Tumi Q: How long have you been in the fashion and duty free industry? A: I’ve always done accessories. Joining Tumi was a great honor because I’ve been a design and creative director for some great brands throughout my career. Coming to Tumi was an opportunity to take on a real American brand that has a fantastic reputation. Q: How do you think the fashion/lifestyle/travel category has evolved in the last few years in duty free? A: The movement of everyday travel has evolved. I’m finding that people are traveling differently and packing less; they’re taking shorter trips more frequently. Travel used to be more of a definitive thing, but now, everyone’s on the go, all the time. Q: What is the most sought-after fashion item in duty free, in your opinion? A: The fashion, accessories and lifestyle categories have seen strong growth this year in travel retail and Tumi has performed exceptionally well. Our customers are streamlining their travel needs, mixing their everyday, business and travel pieces. We have found that backpacks in all Tumi collections have been performing very well.

A: Travelers are becoming more savvy about what is on offer to them, looking for great quality at affordable luxury price points and seeking interesting global brands with a strong brand heritage, which makes Radley a great choice. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Handbags and accessories. It’s an easier impulse purchase than apparel, as you don’t need to worry about the fit, plus the affordable luxury price points. Our best-selling leather bag price point is £189 (US$250), plus our leather wallets and purses are seeing rapid growth.

INDUSTRY EXPERTS COMMENT

Giles Marks, Travel Retail Director, Maui Jim Q: How long have you been in the fashion and duty free industry? A: I have been involved with Maui Jim since 1998 and travel retail for the past 10 years. Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free? A: The sunglasses category has evolved from a fashion item to an essential protection in a stylish frame. Maui Jim has been a leader of polarized sunwear for over 30 years. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Polarized sunglasses are a natural fit for travel retail. Apart from providing invaluable protection for the eyes and increasing the comfort of travelers in sunshine, snow and water activities, they also make a fashion statement. They can define the wearer as a sporty type, an adventurer, a beach babe, a high flier, a follower of fashion, or whatever they choose.

Gerry Munday, Global Travel Retail Director, Furla Q: How long have you been in the fashion and duty free industry? A: 30 years. Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free? A: I think it is taken far more seriously now by retailers, with a much higher expectation from consumers for a broad fashion and lifestyle offer. Certainly, a lot more brands have come into the business over the past decade offering fashion/lifestyle products at all levels, from mass-market to luxury. I think retailers still, in some cases, need to look more carefully at creating the right offer for the passenger profile and getting the product adjacencies right – but generally we’re seeing the business getting bigger every year. And that’s a good thing! Q: What is the most sought-after fashion item in duty free, in your opinion? A: A good, stylish, practical and functional handbag that can carry a woman from day to night. Furla is an expert at providing the perfect bag for every woman!

LIFESTYLE OCTOBER 2016

Mimmo Mariottini, VP Global Sales and CEO Americas, Porsche Design Group Q: How long have you been in the fashion and duty free industry? A: 15 years. Q: How do you think the fashion/ lifestyle category has evolved in the last few years in duty free? A: If I think back a few years, fashion/lifestyle has been the category that has evolved the most in travel retail. Even the biggest brands, which initially were not interested, are now fast developing in the channel. Q: What is the most sought-after fashion item in duty free, in your opinion? A: It really depends on the different countries and airports. For Porsche Design, I would say sunglasses, followed by leather goods.

Stephane Alech, President, Misaki Q: How long have you been in the fashion and duty free industry? A: Duty free is quite recent for me; it will soon be two years since we bought Misaki. I’m still discovering the duty free industry and learning a lot every day. But I trust my team and my Business Unit Manager has been in the industry for more than 10 years. Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free? A: To increase fashion sales in the airport, the category has evolved with more stand-alone boutiques and personalized counters with dedicated staff who offer the same quality of service as in the domestic market. In the fashion and jewelry markets, personalization has also become more important. People like the idea of creating their own product. Misaki is working on that idea. We also give our jewels a story. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Environment and time are key to purchasing a fashion item for oneself; it is less of an impulse purchase than other categories. Fashion items need to be tried on and compared with other styles. However, I believe that small accessories, such as earrings, bracelets, etc, which need less consideration, are the more sought-after in duty free. Originality is important in fashion and in duty free, as it can make a real difference, helping the client buy a new piece very quickly because of its incredible design. For that reason, Misaki is doing timeless pearl jewels but with graphic, modern and asymmetric designs to create love at first sight.

INDUSTRY EXPERTS COMMENT

Rasmus Olsson, Global Head of Sales, Buckley London

Francis Gros, Head of Global Channels, Luxottica Group

Q: How long have you been in the fashion and duty free industry? A: Buckley London has been a leading expert in designing and supplying unique and giftable fashion jewelry for over 28 years.

Q: How long have you been in the fashion and duty free industry? A: I have over 25 years of experience in the fashion and cosmetics industries, of which more than a decade has been in travel retail.

Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free? A: It’s a very exciting time within this constantly changing market. Over the past few years, the increased number of passengers and the accessibility of low-cost airlines have provided an opportunity for brands entering the market, as well as for those looking to expand their offerings. Duty free shopping is becoming increasingly popular. This growth brings a huge opportunity to target a younger demographic who are emerging as major spenders due to their strong interest in fashion, brand awareness and the influence of social media. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Giftable products with a special meaning or message behind them continue to sell well in travel retail. Talismanic profiles, including symbols or semi-precious stones, work well across the globe and make the perfect keepsake. The award-winning I Love You bracelet, which uses Morse Code replicated in cubic zirconia, continues to be a bestseller inflight. There is a real emphasis on the personalization trend, as wearers want their look to be individual. Our Be You collection has an added USP for the customer; the pendant can be personalized with a free initial letter charm along the chain.

Jean-Louis Delamarre, CEO Asia Pacific & Global Travel Retail, Lacoste Q: How do you think the fashion/ lifestyle category has evolved in the last few years? A: Over the years, we’ve seen the strong rise of sport in all collections, especially among the top luxury brands. Consumers tend

LIFESTYLE OCTOBER 2016

Q: How do you think the fashion/lifestyle category has evolved in the last few years in duty free market? A: The fashion and accessories category has established itself as a key growth driver in the channel over the past few years. While Generation Research figures for 2015 showed a decline in global travel retail sales of fashion and accessories, this was pretty much in line with every other product category, and was attributed to currency, macro-economic and geopolitical factors. Thankfully, the performance of Luxottica in travel retail in 2015 did not echo this negative trend and we have consistently outperformed our category, which in turn outperformed the overall travel retail industry over the last 10 years. Fashion and accessories is, and will continue to be, a growth engine, and the sunglasses category has a very important role to play in that. Back in 1997, sunglasses were ranked the 25th product category. In 2008, we had climbed to 16th. And last year, we were ranked number 12. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Universal appeal. Dynamic. Innovative. Inherently linked to travel. The sunglasses category offers something for everyone, at affordable price points, has functional benefits and acts as entry points into lifestyle, premium and luxury brands. Lifestyle and sport performance brands – such as Ray-Ban and Oakley – continue to anchor the category, and we are seeing major growth from personalization investments with these brands in partnership with retailers such as Dufry, Gebr Heinemann and DFS. Sunglasses have become an extension of one’s personal style, and this has resulted in a shorter replacement cycle and an increase in multiple purchases.

to purchase sport pieces for a lifestyle purpose. At Lacoste, the “athleisure” trend is very natural given the sport-inspired roots of the brand and the importance of elegance and freedom of movement. Q: What is the most sought-after fashion item in duty free, in your opinion? A: Lacoste’s L1212 polo is the most iconic piece to buy in duty free. Since the very first polo was created in 1933 in France, Lacoste relies on its authentic sporting roots to bring high quality, inventive and elegant garments to global consumers.

paulshark.it

TRAVEL RETAIL CONTACT catherine.bonelli@paulshark.it

MORGAN & OATES

Softly does it for

Morgan & Oates

Bold new designs, accelerated demand for its unisex collection and avant-garde use of next generation textiles has put the UK-based brand on a direct flight to future growth by

CLAIRE MALCOLM

ravel retail-exclusive fashion brand Morgan & Oates is playing on the allure of its ‘100% all natural’ positioning with the recent launch of a 10% cashmere-90% modal wrap, made from the wood pulp bio-based textile and retailing for around US$95. According to Jeannie Archer, Sales/ Development for Morgan & Oates, this follows on the back of the success of its 100% silk line, which has also seen the addition this year of a splash of color and accented pattern designs; as well as new additions to its hugely popular 100% UKproduced cashmere range. “We unveiled a large number of designs at Cannes last year, and saw a lot of interest in the 100% cashmere; so at this year’s TFWA Asia Pacific show we introduced some more designs, and one of the big successes was the new eye-catching stripe,” says Archer. The company has also extended its 90% merino-10% cashmere wrap collection with florals a key motif for 2016/7, as well as new unisex options. “This was a first for us and, since launching the line around 18 months ago, we’ve gradually widened the range and it’s doing really well. We’re also working with a new designer, which is adding a further dimension to our collections,” says Archer. “Our cashmere-merino Raindrop pattern, with its stunning color range, has also outperformed expectations, so we’ve now introduced a lighter color palette for the new season,” she adds. Strong performance on board European carriers such as Lufthansa and Swiss is clearly supported by the popularity of

LIFESTYLE OCTOBER 2016

the ‘Made in UK’ tag and new lines such as the sustainability-friendly cashmere-modal wrap, while Morgan & Oates’ traditional lines like the Chinaproduced cashmere-merino range remain a quality staple. “As a daughter company of the family owned and run Calzeat group, we have access to their decades of experience in the textile manufacturing industry; so this is great from a heritage and quality angle,” remarks Archer. “It also means that when dealing with our China supplier, for example, we are able to deliver a product that matches our very exacting specs and custom design promise,” she adds. A travel retail-exclusive brand, Morgan & Oates is a familiar name in inflight duty free catalogues and on airline websites, with its continent-crossing client list including Malaysia Airlines, Emirates, Aeroflot, British Airways, and Aer Lingus. Says Archer: “We sell to most of the major airlines, and once we get on-board it’s very rare that we are de-listed. Our client relationship is extremely important, and if something isn’t selling well anymore then we will work together to find the next popular product, as well as producing exclusives on demand.

“Although we try to follow the fashion trends, we are very much focused on producing items that are timeless and that had a wide appeal, which matches our client’s on-board audience. We have some really wild designs, but we have to respect the market demand.” Current market challenges haven’t adversely affected Morgan & Oates’ performance in recent times, with Archer crediting its price point diversity as a key brand affordability anchor. “We’ve got lots of different projects under development, such as the unisex offering but, for now, we are evaluating market demand and gauging future potential.”

Strong performance on board European carriers such as Lufthansa and Swiss is clearly supported by the popularity of the ‘Made in UK’ tag

PAUL & SHARK

Making waves in Cannes

Paul & Shark has graphically revisited an image by South African biologist and shark photographer Chris Fallows, to create an exclusive pattern for this T-shirt, part of the SHARKFLAGE capsule collection

Italian lifestyle brand Paul & Shark is marking its 40th birthday with a unique designer collaboration, a special-edition capsule collection – and a regatta during the Cannes show

o celebrate its 40th anniversary in style, luxury Italian lifestyle brand Paul & Shark is taking to the seas during the TFWA World Exhibition, sponsoring TFWA’s first regatta, taking place on Sunday, October 3 in the Bay of Cannes. “We wanted to do something special in Cannes this year which would relate directly to the Paul & Shark brand,” explains Worldwide Travel Retail Director Catherine Bonelli. “The regatta is perfect, celebrating Paul & Shark’s heritage and sense of adventure. It’s going to be a wonderful event with teams enjoying a fun yet challenging day at sea. And, of course, there is a competitive element and lots of great prizes. It’s going to be an unforgettable experience for all those taking part.”

The special-edition SHARKFLAGE capsule collection will be available in travel retail stores from February 2017, with items on show at the TFWA World Exhibition this year

LIFESTYLE OCTOBER 2016

As the business week begins, the company will be highlighting on its Riviera Village stand the Project 40 concept, which has seen three world-class designers – Zhang Zhoujie from China, Ladies & Gentlemen from the USA, and Tomas Alonso from Spain – create exclusive packaging designs for the brand. Celebrating the iconic metal can and suitcase in which Paul & Shark first sold its early British Navy-inspired sweaters made of water-repellent wool, the three packaging concepts will be made available through Paul & Shark’s flagship stores globally. Within travel retail, the 40th anniversary will be celebrated via a display animation using the classic packaging that inspired the Project 40 designs. Says Bonelli: “This is a landmark occasion for Paul & Shark; one that we knew should be celebrated by releasing something extremely special. Bringing together these three worldclass designers to create new ideas based on our oceanic heritage was always going to produce something unforgettable.” As part of the celebrations, Paul & Shark is also presenting a special Spring/Summer 2017 capsule collection to pay homage to the shark. Developed in collaboration with South African biologist and shark photographer Chris Fallows, Paul & Shark has graphi-

cally revisited one of his images to create an exclusive pattern for T-shirts, technical jackets and accessories such as a backpack, baseball cap and surfboard. Called SHARKFLAGE, the project will be available in domestic and travel retail stores from next February, with items on show in Cannes this year. As part of the project, Paul & Shark will donate part of the proceeds of the capsule collection to the Dyer Island Conservation Trust, a non-profit organization that protects the great white shark with which Fallows collaborates. To support the project, a 3D Samsung Gear virtual reality activation will be available, enabling consumers to enjoy an enthralling 360-degree experience, swimming in the ocean alongside a great white shark. “Worldwide, Project 40 has already created some fantastic buzz around the Paul & Shark brand, and this is important for continuing to build interest among consumers within the travel retail environment. Although the limitededition presentations are not suitable for travel retail, we are nevertheless using the Project 40 inspiration to celebrate our anniversary within stores via display animations wherever possible, while the SHARKFLAGE capsule collection will certainly feature in selected airport stores next year,” adds Bonelli.

ALMERIA { NOUVELLE COLLECTION } Stand E26, Yellow Village

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