Global Travel Retail Magazine TFWA May 2023

AIRY MOISTURE

A REVOLUTIONARY COMBINATION OF TRIPLE HYALURONIC COMPLEX AND ARGAN OIL HELPS TO RETAIN MOISTURE, PROTECT HAIR, AND HYDRATE THE SCALP.

Normal challenges W

hat a joy it is to write to you with the knowledge that the travel industry is settled firmly on the path to recovery after what can only be described as a traumatic three years. While much of the world was seeing triple-digit growth in the latter half of 2022, it wasn’t until the reopening of China’s borders earlier this year that the industry collectively breathed a real and heartfelt sigh of relief. And now, it seems good news is coming from nearly every corner.

At Lotte, the atmosphere is optimistic. Full recovery might be a way off yet, but the future looks bright as Korea flights resume and China has reopened. Meanwhile, Lotte’s expansion plans have continued, with two overseas openings last year, downtown stores in Sydney, Australia and Da Nang, Vietnam, and another airport store opening even as I write this, in Melbourne, Australia.

Gary Chau, General Manager of Taiwan’s Tasa Meng, confirms that the retailer is finally finishing the renovations that began just before the pandemic struck. While PAX numbers have a long way to go to reach 2019 levels, the retailer is buoyed by sales that far outpace passengers, announcing that travelers are ready to shop.

To no one’s surprise, India is now the travel powerhouse it was poised to become, with a growing middle class that’s ready and willing to travel, and to shop while doing so. Delhi’s airport is now the ninth busiest in the world, and Delhi Duty Free is seeing the results of this PAX expansion. Overall sales were up +45% for the retailer in H2 of 2022 vs. H1, and that growth is sure to be repeated over 2023.

One of India’s largest companies, Gujarat-based Adani Group, has set its eyes firmly on air travel as an important portion of its future revenue, with the creation of Adani Airport Holdings Ltd, the acquisition/takeover of seven airports currently, the construction of another, and with a pronounced jump into duty free.

I said earlier that it seems good news is appearing from everywhere and that statement was made consciously, because we still have forces working against us. The supply chain still has a long way to go to be up to par and shipping is slow. Retailers cannot always get everything they want, and when they order goods it must be with the understanding that the lead time will be longer than it used to be. The war between Ukraine and Russia continues, and additionally, we have a global recession that has taken over from a global pandemic; limited flights, staffing and other issues mean air ticket prices are at an all-time high.

But we can take heart that these challenges are of the more normal variety that our industry must always face — the challenges that continually test our resiliency. With what we’ve lived through since 2019, we know we truly can take on anything that’s thrown our way and come out stronger than ever.

We at Global Travel Retail Magazine look forward more than ever to seeing you all in Singapore. We anticipate an especially interesting conference as we move into the next chapter, and we wish you great success at the show.

Kindest Regards,

Global Travel Retail Magazine (ISSN 0962-0699) is published seven times a year by Paramount Publishing Company Inc. It is distributed digitally worldwide. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. May 2023, Vol 35. No. 3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Paramount Publishing Company Inc.

GLOBAL TRAVEL RETAIL MAGAZINE Tel: 1 905 821 3344 www.gtrmag.com

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT

EDITOR-IN-CHIEF Hibah Noor hibah@gtrmag.com

MANAGING EDITOR Jane Hobson jane@gtrmag.com

DEPUTY EDITOR Laura Shirk laura@gtrmag.com

SENIOR WRITER Rebecca Byrne rebeccabyrne10@yahoo.com.sg

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ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

HIBAH NOOR Editor-in-Chief hibah@gtrmag.com

WHAT’S INSIDE Contents

Top Stories

14 Improving its APAC presence

Korean superpower Lotte Duty Free is looking to differentiate between its downtown and airport business, boost engagement with VIP customers and not rely too much on returning Chinese customers

22 Sips & trips

As travel returned, Delhi saw a surge of passengers in the latter half of 2022, helping the airport rocket up the global rankings. Delhi Duty Free CEO Ashish Chopra says the retailer has benefitted from this PAX growth, plus the increasing purchasing power of the Indian middle class

26 Opening up Down Under

Heinemann Australia and partner Sydney Airport are poised to open Australia’s first department store concept in domestic terminals this summer, and the retailer tells Global Travel Retail Magazine how it is targeting leisure and business travelers with distinct offerings and shopping environments

Features

AIRPORTS

10 Changi’s virtual world

A look at Changi Airport Group’s ChangiVerse, an online experience that marks the airport’s debut in the metaverse

12 New kid on the block

The Adani Group’s takeover of Mumbai International in 2021 and the subsequent purchase of 74% of Flemingo and Mumbai Duty Free has brought Adani into duty free, a channel wherein expansion is in the company’s plans

RETAILERS

18 Sales fly higher

General Manager of Taiwan’s Taoyuan airport retailer Tasa Meng, Gary Chau, reports that sales are leapfrogging ahead of the increase in passengers since borders reopened in October, a sign that 2023 is heralding a strong return

TECHNOLOGY

28 The secret is out

An increasingly important provider of data in pre-pandemic travel retail with a particular focus on the Chinese traveler, data analytical company Jessica’s Secret, which provides a popular app for traveling shoppers, holds a wealth of knowledge to help brands and retailers understand TR’s new future

SPECIAL REPORT - BEAUTY

30 Beauty boost

FOREO has released a new campaign “Swedish Beauty in 3½ steps” in Asia Pacific to pay homage to its origin story

At Heinemann Asia Pacific, we strive to create a dynamic marketplace for some of the world’s most desired brands – from local champions to global icons –by creating unforgettable experiences for travelers.

We have been turning travel time into valuable time across the Asia Pacific for over a decade while building a track record of operational excellence and strong partnerships to excite customers.

Features

32 Highlighting and brightening

Dr. Ci:Labo shares details on its best-selling brightening line and the upcoming launch of a pre-aging range targeting Gen Z and millennials

34 Nature positive

A leader in sustainable beauty, L’OCCITANE outlines its eco credentials and brand products, values and authenticity in travel retail

36 Sense of direction

Entering the Chinese market in Q2 2023, Moroccanoil on the resilience of the beauty category and how to further personalize the consumer experience in travel retail

CONFECTIONERY

40 Chocolate for all Lindt GTR highlights its new category vision with goals to add confectionery to every basket during a private press event at the Lindt Home of Chocolate in Switzerland

43 Vegan sphere

Described as a logical step, Ritter Sport launched its TRE Vegan Tower in global travel retail earlier this year

44 Going for growth in Asia Pacific

HARIBO is targeting new traveling consumers and unlocking category growth with fun, colorful product offerings for Muslim, Gen Z and millennial travelers

SPIRITS & TOBACCO

45 Asia in focus

The independent tobacco group KT International reveals a balanced split between the King and Corset brands in Asia, where it is looking to increase business in the post-pandemic world

46 The art of play

Fraternity Spirits supports new serves within mixology to help create special moments and stand out from its competition

48 Making a meister piece

Mast-Jägermeister SE is eyeing growth in Asia Pacific travel retail with premiumization and consumer engagement at the center of its strategy, plus a multimedia art exhibit activation due to materialize at 60 airports this year

49 Solo but collaborative in a crowded market

Kavalan’s Kyle Lee discusses the brand’s many partnerships and highlights its Solist Series, which will be launching new expressions soon as the whisky-maker expands its global footprint

50 The Monus method

Monus tells Global Travel Retail Magazine that the company is focused on the future with technology and research at the forefront of its strategy

DRINK I T I C E C OL D

Changi’s virtual world

A look at Changi Airport Group’s ChangiVerse, an online experience that marks the airport’s debut in the metaverse

by LAURA SHIRK

Changi Airport Group (CAG) has unveiled ChangiVerse, an innovative online experience that marks the airport’s debut in the metaverse. It is the first airport to create a virtual world on the gaming platform Roblox, which has a monthly active user base of over 200 million worldwide.

Developed in collaboration with Accenture, this expansion of the Changi experience complements the physical realm by offering a playful twist on notable sights such as Jewel Changi Airport, the iconic Changi control tower, the outdoor dinosaur display attraction Jurassic Mile and more. Housed along the runways is the plane hangar, where players can personalize their own airplane based on a series of different models.

A variety of mini games that emulate the airport experience are available to users; the core game of ChangiVerse is the Changi Kart racing game, where the top racer each month from now until Septem-

ber 2023 stands to win a pair of Economy Class air tickets on Singapore Airlines. As users progress throughout the games they can “level up” and unlock new areas and items such as ChangiVerse-exclusive wearables to gift their digital avatar.

“With ChangiVerse, we want to strengthen Changi Airport’s position as more than just a transport node, but a fun and magical destination where memories are created. With our customers becoming more digitally savvy and interacting in the digital space, ChangiVerse is also about engaging our customers and serving them better through innovation and experimentation, in line with our belief of customers being at the heart of everything we do,” said Hung Jean, Group Senior Vice President at CAG’s Enterprise Digital Ecosystem & Business Division.

“We are privileged to collaborate with CAG to drive digital-physical convergence through ChangiVerse. By combining digital and physical worlds,

ChangiVerse can simulate the airport environment, creating immersive experiences that elevate human interactivity to new dimensions, enhance customer experiences, and drive innovation. We look forward to exploring new opportunities for CAG to leverage emerging technologies and differentiate themselves in the industry, as they continue to pioneer and provide revolutionary solutions for their customers in this exciting new era,” added Wee Wei Ng, Southeast Asia market unit lead for Accenture.

As a bonus, according to CAG, by traversing the “far reaches of ChangiVerse” or playing the mini games, players can gather purple Butterfly Tokens. Five special golden tokens, worth more than purple tokens, have been hidden in various locations throughout the virtual realm and reappear daily, rewarding only the most intrepid and determined of explorers.

ChangiVerse allows players to explore iconic landmarks of Changi Airport

New kid on the block

Adani Group’s takeover of Mumbai International in 2021 and the subsequent purchase of 74% of Flemingo and Mumbai Duty Free has brought Adani into duty free, a channel wherein expansion is in the company’s plans

by HIBAH NOOR

When times are tough, successful companies see opportunities for growth.

This was certainly the case for India’s juggernaut Adani Group, which, in addition to snapping up three ports on India’s coastline, took over operations for six mid-sized airports in 2020 and a seventh, the far from small Mumbai International, in 2021, operating as a subsidiary Adani Airport Holdings Ltd (AAHL).

As of the company’s takeover of Mumbai’s Chhatrapati Shivaji Maharaj International Airport, Adani became the country’s largest airport infrastructure company, with one in four Indian travelers passing through an airport it runs. Adani also manages one-third of the country’s air cargo and 25% of its sea cargo.

Airport ecosystems

While this purchase took place during a severely depressed time in the air industry, the chairman of Adani Group, Gautam Adani, stated that his company was intending to build “an airport ecosystem of the future for business, leisure and entertainment.”

“Our larger objective is to reinvent airports as ecosystems that drive local

economic development and act as the nuclei around which we can catalyze aviation linked businesses,” stated Adani at the time. “These include metropolitan developments that span entertainment facilities, e-commerce and logistics capabilities, aviation-dependent industries, smart city developments, and other innovative business concepts.”

New venture

The seed of that ecosystem may have begun with the acquisition of airports, but it soon expanded into travel retail. Shortly after the company’s takeover of Mumbai airport in July 2021 — after a criminal investigation into multiple illegal activities by its then-operators —Adani Group purchased 74% of Flemingo Duty Free in addition to 74% of Mumbai Duty Free.

Given the timing, the purchase of Flemingo was made at a jaw-droppingly low price, reported to be a mere 28.5 million Indian rupees, or about US$386,110. This launched a new and burgeoning channel for AAHL, which has made no secret that it plans to increase duty free operations at airports and seaports as it increases operations of the ports themselves. The duty free expansion has already begun, with a recent announcement that Adani will operate Chennai

Increasing airports & PAX

In the most recent fiscal year, AAHL’s operations served 20 million PAX, with 11 million traveling through Mumbai and nine million through the other six airports: Thiruvananthapuram, Guwahati, Jaipur, Mangaluru, Lucknow and Ahmedabad. Those numbers will surge as travel picks up through 2023 and beyond. In 2022, the seven airports saw an increase of 92% in domestic and 133% in international travelers.

Air travel is expected to skyrocket in India, with additional airports being added to larger centers. By virtue of acquiring MIAL, Adani also acquired the rights to develop the Navi Mumbai airport close to Mumbai. The airport construction had already begun in 2018, but is now in full force. Adani Group has reported that the Navi Mumbai airport will be operational by 2024. The Times of India reported that Adani Group will bid on more airports across the country.

"Our airport expansion strategy is intended to help converge our nation's Tier 1 cities with the Tier 2 and Tier 3 cities in a hub and spoke model," stated Gautam Adani.

Duty Free, operating as its joint venture with Flemingo.

Adani Group has become India’s largest airport infrastructure company, with one in four Indian travelers passing through an airport it runs

Solis t Vinh o Barrique

P OWERFU L & COM P LEX

Citrus and melon, warm caramel, and hints of oak.

Improving its APAC presence

by HIBAH

The Korean travel retail and duty free market may yet to have recovered from the Coronavirus pandemic, but the current trading environment cannot be worse than it is was previously, according to travel retailer Lotte Duty Free.

Speaking candidly to Global Travel Retail Magazine (GTRM), a Lotte spokesperson indicated that things are looking quite optimistic with international flights to and from Korea increasing and China lifting COVID-19 travel restrictions.

“Lotte Duty Free will continue to strengthen its foundation as a leading travel retailer in the domestic market. In the meantime, we will improve our presence in the Asia Pacific region through continued overseas expansion.”

Lotte Duty Free has presented its new metaverse shopping platform at the Consumer Electronics Show in Las Vegas for two successive years

Korean superpower Lotte Duty Free is looking to differentiate between its downtown and airport business, boost engagement with VIP customers and not rely too much on returning Chinese customers

NOOR

An exterior shot of the new Lotte Duty Free store in Da Nang, Vietnam

Overseas expansion plan

Following two new openings last year, Lotte’s overseas business is expected to generate the strongest growth in 2023. Last year, Lotte opened a new store in Sydney, Australia and another in Da Nang, Vietnam. Next month, it will open one more store at Melbourne International Airport where it secured the 10-year duty free contract in January.

“We will continue to expand our footprint to other retail sectors through new business to grow as a retailer rather than merely a duty free operator.”

The spokesperson adds, “The Vietnamese market is full of potential, while the Australian market is quickly rebounding from the pandemic. These two markets will be the growth engines for the next couple of years. We will continue to bring an array of new and market-exclusive brands and provide an enormous shopping experience to our customers in the regions.”

As reported by GTRM, Lotte opened a three-level boutique on the corner of Pitt

and Market Street in the heart of Sydney’s retail precinct in May 2022.

The store offers over 100 international and Australian beauty brands and a curated collection of luxury watch and jewellery brands such as Omega, Montblanc, Longines and Mido.

This publication also reported the opening of Lotte’s new downtown store in Da Nang on November 15, 2022. Located on the second floor of the VVMall, which is situated on My Khe Beach in Da Nang, the store spans about 2,000 square meters. The new opening was Lotte’s fourth duty free store in Vietnam and largest in the country.

Da Nang is an emerging Southeast Asian resort destination, which welcomed about 3.6 million tourists pre-pandemic in 2019.

Over at Singapore Changi Airport, Lotte, which began its six-year contract as liquor and tobacco concessionaire in June 2020 (taking over from long-term incumbent DFS Group), is working on implementing various innovations to better engage with shoppers.

Under the terms of the contract, Lotte will eventually run 18 liquor and tobacco stores across the airport’s four terminals and offer more than 3,000 tax and duty free wines and spirits.

“Customers visiting our T2 and T3 stores will be immersed in unique digital touchpoints such as our interactive media mirror and the world’s first Airport Robotic Bartender experience.”

In addition to the augmented reality experience, the retailer will launch its LOTTESG App this year.

“Users can enjoy the gamification and avail extensive product information such as pricing. They can also locate specific products. With advanced artificial intelligence and digitalization, Lotte aims to create meaningful and long-lasting relationships with travelers at Changi Airport.”

As the travel market gradually returns to pre-pandemic levels, Lotte is confident in improved performance across its downtown and airport businesses. Differentiating between both channels to

The Vietnamese market is full of potential, according to the Lotte Duty Free spokesperson

overcome limitations as offline businesses is priority, according to the spokesperson.

“Digital transformation has been accelerated due to the pandemic. Online sales are increasing and duty free operators, suppliers and brands are now focusing on enhancing online consumer experience.”

More engagement with VIPs to improve its customer experience is an initiative Lotte is undertaking at its brickand-mortar stores.

The spokesperson explains, “Lotte Duty Free has begun hosting offline events to boost engagement with VIP customers.”

The VIP experience

“We recently teamed up with global beauty brands including Estée Lauder and Lancôme to arrange beauty classes for our VIPs. We are planning to hold such events regularly this year.”

Lotte is also striving to ensure the digitalization of the VIP lounges in its downtown stores by 2025.

“Each VIP customer will receive a barcode on their mobile app account. Using the barcode, they can enter the lounges, order beverages and check VIP benefits by themselves.”

Casting an eye on the future, the spokesperson urges the industry not to rely on the re-emergence of high-spending Chinese consumers following the easing of travel restrictions in China.

“One thing luxury powerhouses, suppliers and travel retailers must keep in mind is that things will not be the same as pre-pandemic. We all cannot merely count on growing Chinese outbound travelers and must take a close look at China’s tourism trends.”

Meanwhile, Lotte Duty Free has been working on a metaverse shopping platform, which it presented two years in a row at the Consumer Electronics Show in Las Vegas. Entitled Virtual LDF (Lotte Duty Free) Tower, the spokesperson believes the new concept will be a novelty in the travel retail market.

“In this hyper-realistic futuristic store, each customer takes the form of an avatar. They can move on their own, talk to other customers, visit brand virtual stores, and try on fashion items in a virtual fitting room,” the spokesperson concludes.

Last year, Lotte opened a new store in Sydney, Australia

Lotte Duty Free has partnered with various global beauty brands including Lancôme to arrange beauty classes for VIPs

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Sales fly higher

General Manager of Taiwan’s Taoyuan

airport retailer Tasa Meng, Gary Chau, reports that sales are leapfrogging ahead of the increase in passengers since borders reopened in October, a sign that 2023 is heralding a strong return

by HIBAH NOOR

With one of the more restrictive border policies during the pandemic, Taiwan’s drop in international traffic was extreme. In the three years prior to the COVID-19 pandemic, Taiwan averaged about 11.2 million overseas visitors per year. In 2020 that figure dropped to a mere 1.38 million, with 2021 plummeting further still to a previously inconceivable 141,000. In 2022 overseas visitors increased to 895,000, with a spike at the end of the year caused by the opening of the border in October of that year.

With an increase in travel comes an increase in travel retail, and Gary Chau, General Manager at Taipei-based travel retailer Tasa Meng, says by January of 2023 sales had already jumped to 50% of 2019’s level. This, though passenger

numbers were still a fraction of what they had been pre-pandemic, due to a change in shopper behavior.

And the future looks bright. “Traffic will continue to improve as our government policy is to welcome international

travelers to visit Taiwan. We expect great business during 2023 vs. 2022,” he says.

Attracting visitors in 2023

In fact, Taiwan’s government policy is about more than just welcoming visitors, as the country is planning various cash incentives to boost inbound travel. Though travel has improved greatly since the strict border controls were lifted in October, passenger numbers have yet to take off in a meaningful way.

Though specifics are still being worked out, the country plans to distribute 500,000

Passenger traffic will continue to improve as Taiwanese government policy continues to welcome international travelers

Tasa Meng’s January 2023 sales have already jumped to 50% of 2019’s level

NT$5,000 (US$165) vouchers to foreign nationals visiting Taiwan if they meet certain criteria, such as arriving individually and not as part of a tour group.

Taiwan is hoping to attract six million visitors this year – still far from prepandemic numbers but a massive leap over the past three years. By end of February, the country had received nearly 625,000 visitors, with that figure expected to have reached at least one million by end of March.

Of the six million visitors predicted this year, one million are expected to arrive from China. Chau reports that China has opened one more airport with a direct flight to Taiwan. Ten airports now offer, collectively, 110 flights to Taiwan weekly, while 13 other airports offer charter flights to the city.

Higher tickets

Around the world, passengers have been traveling less frequently but for a longer duration due to the increases in travel costs, and retailers are seeing changes in shopping behavior attributed to these differences.

Chau confirms that Tasa Meng is seeing similar trends, with significant increases in three areas. First, the number of items purchased per passenger has increased to almost two units per

PAX. Second, the spend per ticket has increased. Third, customers are showing a clear propensity to buying more expensive or luxury items to save more. “This has become a new trend since 2022,” says Chau.

Return to activations

Earlier this year, with the increase in traffic, the retailer restarted its activations program, with Glenfiddich launching its Perpetual Collection in Taiwanese travel retail in an immersive Perpetual Collection pop-up. As Taiwanese are the top consumer of single malts in the world, this location was a reasoned choice.

“The initial sales results have been extremely promising. Now that the Taiwan borders are open, international travelers are excited to see this pop-up shop, which has proved hugely effective at engaging travelers, and maximizing the awareness and visibility of this innovative new single malt collection,” stated Chau soon after the launch. The activation ran until end of February.

Not yet normal

Two areas that continue to affect business even with the increase in passengers and the inclinations of those passengers to spend are supply chain issues and the global recession.

Chau says supply chain issues are still apparent and relevant. “This is still a major problem, especially for Spirits, Cosmetics and Fragrance,” he says. A lack of glass bottles and shipping materials have impacted the ability to receive goods in a timely manner.

Shipping concerns add to this impact. “Shipping costs have started to go down, but this is also still high at the moment,” he adds. “We continue to see a much longer lead time due to rerouting and these other issues.”

While the pandemic has triggered a global recession, Chau says the impact to Asia is expected to be less severe. “This will be a global issue for everyone,” he says. “We expect minor impact to Asia. Our central bank closely monitored the investment in other parts of Asia.”

Renovations

In early 2020 Tasa Meng had begun a renovation that included multiple shops. Early in the pandemic the company had decided to use that time to complete the renovations, but soon the work became untenable as supply issues worsened and the company had virtually no business with the country’s closed borders. Chau confirms that over the next one to two years, completion of these renovations will be a priority.

Taiwan is hoping to attract six million visitors this year – still far from pre-pandemic numbers but a massive leap over the past three years

Sips & trips

AS TRAVEL RETURNED, DELHI SAW A SURGE OF PASSENGERS IN THE LATTER HALF OF 2022, HELPING THE AIRPORT ROCKET UP THE GLOBAL RANKINGS. DELHI DUTY FREE CEO ASHISH CHOPRA SAYS THE RETAILER HAS BENEFITTED FROM THIS PAX GROWTH, PLUS THE INCREASING PURCHASING POWER OF THE INDIAN MIDDLE CLASS

by HIBAH NOOR

As has long been predicted, India has transformed into a true global powerhouse, and its air travel is no exception. With incredible growth in both tourism and in per capita GDP, the country is one of the fastest-growing markets in aviation and travel retail, preparing to reach more than one billion passengers by 2040.

The political capital of India, with a rich cultural history and a booming economy, Delhi’s Indira Ghandi International Airport served just shy of 60 million PAX in 2022, which catapulted the airport into the top-10 ranking of world’s busiest, thanks in large part to the return of domestic traffic.

Recently, Global Travel Retail Magazine connected with Ashish Chopra, Chief

Executive Officer at Delhi Duty Free, for an update on the operator and its consumer base. He says the duty free spirits

market in the region is expanding at a substantial rate, which he attributes to factors such as an improvement in economic conditions, an increase in disposable income and a shift in consumers’ lifestyle.

“Middle-class consumers are the largest contributors to economic development and have the spending capacity to support the growth of the duty free industry in the global market,” Chopra says. “Middle-class consumers are also the largest contributors to the growth of

DDF’s duty free spirits market in the region is expanding at a substantial rate

Delhi Duty Free’s top three categories during H2 2022 were Spirits (62%), Perfumes and Cosmetics (19%) and Confectionery (8%)

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international travel. As a result of this increase in the median income of middleclass households, their spending patterns, mode of travel and demand for premium brands will also increase, which will in turn drive the continued growth of travel retail sales.”

Top categories

Chopra says sales in general and categoryspecific sales in particular are benefitting from the increasing number of Indian citizens who are well traveled and who fly frequently. The retailer experienced strong passenger recovery in the second half of 2022. Overall sales were up 45% vs. the first half of the year, with Arrivals sales up +48% and Departures sales up +39%.

Overall, the retailer’s top three categories during H2 2022 were Spirits (62%), Perfumes and Cosmetics (19%) and Confectionery (8%); in Arrivals, the breakdown was as follows: Spirits (73%), Perfumes and Cosmetics (15%), Confectionery (10%); in Departures tobacco replaced confectionery for the third spot: Spirits (38%), Perfumes and Cosmetics (26%), Tobacco (15%).

A new dimension

While tourism is on the upswing, the cost of travel remains high. Chopra says this has led to the creation of a new dimension at all contact points across the traveler journey: spending on experiences.

“Customers who travel less frequently but for extended durations may place a higher value on experiences over material possessions if they have the opportunity to do so. As this relates to duty free, customers may be more likely to spend money on higher variants, travel retail exclusives, new releases, limited editions and other similar items,” he adds.

Chopra stresses the importance of incorporation of premiumization of the offer as a business move, as it not only attracts high-end shoppers who are prepared to spend more, it also has the potential to improve the retailer’s brand image. Chopra stresses too a trio of strategic benefits of premiumization: advantage in the market, increased consumer satisfaction and enhancement of perceived value. In the second half of this year, Delhi Duty Free will introduce a number

of new brands as well as adjustments to shop layouts in order to further improve customer engagement and experience.

While the region is currently transitioning from recovery to growth, Delhi Duty Free and its brand partners continue to face familiar challenges such as ongoing supply chain issues. Chopra lists

global shipping disruptions, deficiencies in the availability of basic materials and a surge in pricing across all modes of transformation as issues affecting the ability to receive goods. With this in mind, he says, Delhi Duty Free remains proactive and adaptable in its planning in order to preserve consistency and reduce risk.

The retailer experienced strong passenger recovery in the second half of 2022. Overall sales were up 45% vs. the first half of the year, with Arrivals sales up +48% and Departures sales up +39%

Opening up Down Under

Heinemann Australia and partner Sydney Airport are poised to open Australia’s first department store concept in domestic terminals this summer, and the retailer tells Global Travel Retail Magazine how it is targeting leisure and business travelers with distinct offerings and shopping environments

by JANE HOBSON

Heinemann Australia announced in December 2022 a new project in partnership with Sydney Airport.

The duo unveiled a department store for the airport’s domestic terminals (T2 and T3), marking Australia’s first department store concept in domestic terminals. The store will open in July, in time for the country’s school holiday travel season.

The space spans more than 2,270 square meters across both terminals – 1,765 square meters in T2 and 506 square meters in T3. A mix of iconic Australian brands and international bestsellers will be available across both terminals in fashion, accessories, watches, jewellery, perfumes, cosmetics, skincare, confectionery, wines and spirits. The health and well-being category will be available in domestic terminal stores following its success in Heinemann’s international tax-free business. Plus, new subcategories including sneakers and athleisure, featuring brands such as Lululemon and Adidas, no- and low-alcohol drinks, and niche fragrances.

“Our new domestic concession in Sydney is a step change in our regional business model and is a huge opportunity to engage with customers well before and after they travel, reinforcing our goal to be a valuable travel companion. This also represents a natural extension of our relationship with our brand partners into the domestic market,” says George Tsoukalas, Managing Director of Heinemann Australia.

Tailored terminal offerings

Tsoukalas tells Global Travel Retail Magazine (GTRM) the store will be curated to reflect each terminal’s passenger base.

He explains, “We are basing our strategy on a close look at the airlines, destinations and purpose of travel for each terminal, and tailoring our offer based on what we believe these traveler profiles are seeking. This is also based on the insights that we have from Sydney Airport, informed by their own overarching commercial strategy for the domestic terminals.”

Terminal 2 serves primarily low-cost carriers, such as Rex, Virgin Australia and Jetstar, with a strong concentration of passengers to and from Melbourne, most of whom travel for leisure, Tsoukalas explains. Meanwhile Terminal 3 is home to Qantas, Australia’s premium full-service carrier, and more than half of Terminal 3 passengers travel for business.

To cater to the differing needs of the travelers, Heinemann has infused the T2 product assortment with a trendy “youthful” offering, he says.

Leisure travelers tend to have more time to browse and discover new brands and products in the terminal. Heinemann is therefore placing more emphasis on experience, such as interactive displays and beauty services like lash and brow bars.

The T2 space will prominently feature designer streetwear and athleisure, as well as on-trend product categories such as

niche fragrances and clean skin in a more playful, vibrant retail environment catering to leisure travelers and a youthful passenger demographic.

In T3, there is a need for a strong gifting proposition for business travelers who are arriving home needing something for their families and friends upon return, Tsoukalas says.

The store will deliver a more elegant, luxurious design and a retail offer focused on gifting, premium and luxury fashion, accessories and beauty brands appealing to discerning shoppers and more seasoned business travelers.

Improving the shopper experience

When asked why it is important to target these shopper profiles, Tsoukalas tells GTRM, “The domestic setting gives us an opportunity to broaden our reach beyond international travelers. We also have access to more touch points to engage with customers given higher frequency of domestic travel, as well as through our e-commerce and home delivery offering where we can engage with them before and after they fly.”

Heinemann’s full domestic airport product assortment will be available on its web shop, and the retailer will deploy its Heinemann & Me loyalty program in its domestic airport stores. To provide added convenience for shoppers, Heinemann will offer Australia-wide home delivery services. Heinemann’s domestic terminal shops will also offer click-and-collect services.

“We aim to give shoppers the most convenient shopping options available, addressing pain points like baggage allowances and the hassle of needing to carry purchases throughout your entire holiday because something has caught your eye during transit or departure,” Tsoukalas says, adding that a stronger e-commerce offer is a key component of the retailer’s promise to add value.

T1 International Terminal relaunch

Heinemann will operate the T2 and T3 stores on a five-year concession, expanding its footprint from its current duty free concession which runs to 2029 at the T1 International Terminal.

Heinemann hosted a re-launch event in February for its T1 store, which has received “extremely positive” feedback from Sydney Airport and its brand partners.

To engage shoppers, Heinemann has run a series of high-profile activations since the re-launch, including the Future Friendly sustainable product range, pop-ups from brands including Kyle Cosmetics and Penhaligon’s, and the opening of the very first La Prairie Art of Beauty suite in an airport.

“Together with our T1 duty free store, we want to create a truly seamless shopping experience across Sydney Airport for connecting passengers moving from terminal to terminal. Our curated assortment will also aim to give passengers exactly what they want at each step of their journey,” Tsoukalas says.

Mark Zaouk, Sydney Airport’s Executive General Manager – Commercial, said in the December press release, “The retail experience in our T1 International terminal is amongst the best in the world and I’m excited that we are now able to bring a similar experience to domestic passengers. Heinemann delivered a strong vision for what we wanted to achieve, and it was a natural fit to extend our partnership to T2 and 3 to provide a cohesive, high-quality shopping experience across the airport.”

In the press release Tsoukalas added, “The possibilities in a domestic retail offer are extremely exciting - we are now able to offer more brands and value-added services like home delivery, all enhancing the customer experience. We are also thrilled to pioneer this new concept in Australia, which we know customers will love. This new concession is the fruit of the great trust and collaboration we have built with Sydney Airport in our duty free business and we are delighted to have the opportunity to deepen our partnership with them.”

Artist’s impression of Heinemann’s fashion area in Sydney Airport T3

Artist's impression of SYD T3 department store

George Tsoukalas, Managing Director of Heinemann Australia

The secret

IS OUT

An increasingly important provider of data in pre-pandemic travel retail with a particular focus on the Chinese traveler, data analytical company Jessica’s Secret, which provides a popular app for traveling shoppers, holds a wealth of knowledge to help brands and retailers understand TR’s new future

by HIBAH NOOR

As an app and system that provides services for the shopper, the retailer and the brand, Jessica’s Secret is seriously in the know. For shoppers, the company provides real-time price and shopping information, whereas for brands and retailers, it provides invaluable information about the shoppers.

Pre-pandemic, Jessica’s Secret had a particular focus on travel retail and duty free. During the pandemic that focus inevitably changed, and the company shifted to domestic consumers and brands.

Mirko Wang, Owner of Jessica’s Secret, expands, “At present, our company mainly operates under the following business segments: currently a total of 3.2 million tourists have downloaded and used our app ‘Jessica's Secret.’ Before the pandemic, we had very good results in attracting traffic for duty free shops and brands in various countries and regions. In some regions, we even ranked top on the attracting traffic list. During the pandemic, we have mainly served domestic retailers and some brands. To decrease the impact of the pandemic on our company's business, we transformed part of our energy into B2B business, such as IT development and agent operation.”

While the company provided these types of services before the pandemic began, officially becoming the developer and agent operation service provider of the Chinese e-commerce website of Thailand King Power Duty Free Group in 2018, Jessica’s Secret has now also become the service provider for CDFG's mini program "CDF Member" in 2021. And the company continues to provide international brands with technical development services.

For brands and retailers

Jessica’s Secret’s AI Tracking price analysis system help brands and retailers effectively analyze prices and promotion trends. The company also provides a monthly industry report written from the perspective of Chinese practitioners titled OTRO (Oriental Travel Retail Observer), which has released 31 issues as of writing.

“Based on the above services and our in-depth understanding of China's travel retail industry, some internationally renowned brands and retailers choose our company to provide customized industry research and consulting services,” says Wang. “For example, we just now finished a project about China and South Korea daigou groups research.”

He adds that these [B2B] sectors have developed rapidly, becoming one of the core service areas of the company.

The homepage of Jessica’s Secret’s app which has been downloaded by a total of 3.2 million tourists

Mirko Wang, Owner of Jessica’s Secret

“More and more customers choose to cooperate with us. Industry research and big data analysis have become an important aspect of our competitiveness.”

Increased activity

Since the reopening of borders, Wang says the activity of the app has shown an obvious increase. “Tourists' demand for price inquiries and price comparisons of unknown destinations is apparent,” he says. “Recently, our company has been in renewed communication with internationally renowned retailers about business cooperation. We hope that through cooperation, our company can bring more customers to retailers and brands.”

In particular, Wang says consumers have begun to pay more attention to cosmetics and perfumes once again. “It may be that consumers began to gradually pick up cosmetics and perfumes after removing their face masks. According to my understanding, the impact of the pandemic on make-up and perfume has been very large.”

As our industry has been seeing virtually across the board, Wang says the growing trend of increased interest in the luxury sector is apparent, especially when it comes to some high-end luxury goods. “There is still a large price gap between China and foreign countries, such as Europe and Japan, after the reopening of the borders,” he says. “Due to the price gap, we

expect some consumers to choose to purchase high-end luxury goods overseas.”

Wang adds that in response the company is seeing another trend: some high-end luxury brands are trying to balance the global price system to achieve the same price level and eliminate the price difference.

Purchase desire

While the company’s app is not yet in the position to provide direct purchase, Jessica’s Secret cannot see purchase information, but it can see the trend of what Wang refers to as “purchase desire.”

Wang says the user data from the first two months of 2023 appear to be very different than that of 2019. “From my understanding, 2019 is a relatively normal level, and it may also be the future stable trend. Since China has just recently reopened its borders, the trend of luxury price inquiries has grown rapidly.” This statement suggests that it remains to be seen whether this trend will continue.

China travel resumption

While Chinese borders have reopened, the number of flights remain low in comparison to 2019 — keeping travel numbers low and costs high — but there are signs this will change. “On March 24, the Civil Aviation Administration of China announced the flight plan for the summer and autumn of 2023, which gave us hope for recovery. In addition, the Ministry of Culture and Tourism has released two batches of tourist country lists to open group tourism. The overseas travel market of Chinese tourists is gradually picking up, which will drive the recovery of the Chinese market in the travel retail industry,” says Wang.

While more flights may be upcoming and international travel expected to resume, we have yet to see how the longterm shopping habits of the Chinese will have changed. “During the pandemic, Chinese retailers launched many new business models to meet the shopping needs of Chinese tourists. However, due to the high price of domestic luxury goods and the lack of duty free categories, luxury goods should be a fast-growing category,” says Wang.

The pandemic has forced many Chinese consumers to develop the habit of purchasing everyday goods online, such as ordering food and shopping for vegetables. Wang says these habits will make it easier for Chinese consumers to accept the online preorder model; he believes they will no longer balk at pre-ordering before leaving or returning to the country, which provides a good opportunity for the development of digital channels for retailers and brands.

Normality in sight?

Wang says that during the pandemic, many changes have taken place in the traditional business model. He gives the examples of the wholesale business in South Korea and the direct delivery business in various countries. “These changes have greatly affected the prices of commodities, and the prices has dropped significantly,” he says. “Our company specializes in price analysis. We have noticed that since the pandemic is over, especially from January 1 this year, South Korea stopped the commodity wholesale model. This indirectly reduced the price impact on China's taxed and duty free markets. The overall price of duty free goods, in China and China's neighboring countries, showed an upward trend and began to gradually return to a normal level.

The company provides a monthly industry report written from the perspective of Chinese practitioners titled OTRO (Oriental Travel Retail Observer)

Beauty boost

FOREO HAS RELEASED A NEW CAMPAIGN “SWEDISH BEAUTY IN 3½ STEPS” IN ASIA PACIFIC TO PAY HOMAGE TO ITS ORIGIN STORY

by LAURA SHIRK

Swedish beauty tech and wellbeing house FOREO is rooted in a less is more approach to beauty that revolves around a simple and effective skincare routine to keep skin healthy and glowing. As indicated by the company, a Swedish beauty routine focuses on functionality and follows a holistic model to cleanse, lift, hydrate and elevate. FOREO has redesigned Swedish beauty to welcome all skin tones, types and textures to participate in a culture that promotes healthy living and strives for an “inner glow.” The goal: to make Swedish beauty accessible to all.

To help celebrate its 10th anniversary and pay homage to its origin story, FOREO has released a new campaign “Swedish Beauty in 3½ steps” in Asia Pacific (APAC). This is the first time that the brand has created its own step-by-step skincare routine and “Swedish Beauty” is the first global campaign to launch in the APAC travel retail and domestic market – where consumers are familiar with Asian beauty. With this in action, FOREO is pushing the Swedish concept of a performance-oriented routine powered by natural ingredients.

“The consumer has to resonate with the brand and feel a sense of personal connection to its ethos in order to gain loyal customers. For this reason, we conceptualized ‘Swedish Beauty,’ an umbrella campaign that highlights FOREO’s star products and ties in elements of Sweden such as sceneries and models – and the overall mood of the country. The campaign idea and assets are in line with minimalistic Swedish design, while remaining functional with a purpose and aesthetic,” says Gary Leong, Global Travel Retail Director at FOREO.

The steps of the routine are as follows: cleanse using the LUNA 4, which delivers a deep and gentle face massage to relax

FOREO has redesigned Swedish beauty to welcome all skin tones, types and textures

muscles and boost radiance; lift using the facial toning device BEAR, which smooths the appearance of wrinkles and lines; hydrate using the UFO 2, which provides a 90-second customized mask treatment with heating and cooling pulsations and LED technology and elevate using the four-in-one oral care tool ISSA 3, which uses a hybrid brush head made of bacteria-resistant silicone and ultra-hygienic PBT polymer bristles.

When asked about the components involved in the planning and executing of the omnichannel campaign, Leong says the brand has received overwhelming support from its retailers in APAC.

“Swedish Beauty” has secured key placements at cdf Haikou International Duty Free Shopping Complex and Hainan Tourism Duty Free Shopping Complex and on Wangfujing Duty Free and cdf-Sunrise apps. It is also running on e-commerce platforms in collaboration with The Shilla Duty Free, Hyundai Duty Free and Lotte Duty Free, as well as on Navier.com in South Korea. Plus, the campaign can be spotted generating brand awareness at several domestic locations in Asia Pacific.

“We hope that by promoting a new skincare method, instead of honing in on one product, we can educate consumers on the simplicity and effectiveness of the FOREO brand and champion our message of beauty for all,” adds Leong.

FAQ in the news

Also in the news, FOREO has unveiled the latest innovation from its sister anti-aging brand FAQ. FAQ 200 is a tech-driven LED mask that offers seven colors of LED treatments and Near Infrared Light treatment to target a range of skincare concerns including wrinkles, redness, discoloration and hyperpigmentation. Designed with flexi-fit silicone, this lightweight, portable and wireless mask adapts to the curves and contours of individual faces and lends not only to the at-home spa experience, but also a beauty on the go routine.

Tapering its multi-brand strategy to incorporate medicalgrade technology across its product line, Global Travel Retail

Magazine also asked Leong about the direction of the brand. FOREO aims to drive its position on at-home beauty devices and communicate that these types of tools are safe and effective.

“What differentiates our devices from others on the market is the fact that FOREO products are FDFA approved and medicalgrade; this means users can achieve the same results at home as they can from a professional aesthetic clinic. It is important to us that everyone has the same, equal access to professional beauty devices that can assist them in achieving their skincare goals, without the hindrance of cost and time,” he says.

Acknowledging that safety is a critical consideration when designing medical-grade products, FOREO knows that by putting such powerful technology into the hands of consumers, it has a responsibility to ensure consumers understand how to use it properly. Leong points out that all devices need to be registered via the FOREO app to become active; the brand provides in-app video training to educate users on correct usage to maximize the benefits of the product.

Power of performance

Moving forward, the company is focused on performance and result-oriented developments, which translates into new medical-grade products for FOREO and FAQ. From the start, FOREO has been on a mission to provide easier access to professional at-home treatments. “Swedish Beauty” has demonstrated the ease and effectiveness of its brand collection – and more products will be added to the campaign to cover additional skincare needs and concerns.

Leong shares a different direction that FOREO is treating with equal importance is safe and clean beauty developments; this is seen in the creation of its new skincare lines. The brand has upgraded its skincare range with new formulas to enhance the power of performance. The new and improved lines will hit the market in the second half of this year. FOREO’s skincare lines are designed to be used in tandem with its product collection to maximize the benefits.

The mask features medical-grade technology and enhances the at-home spa experience

Highlighting and brightening

by JANE HOBSON

Marking its second appearance at TFWA Asia Pacific Exhibition & Conference since its debut in 2019, Japanese skincare brand Dr. Ci: Labo (DCL) says the focus in the year ahead is on its brightening line and a new pre-aging range which is set to launch this year, exclusive to the travel retail channel.

Best-sellers, launches and TR exclusives

The highlight of the brand’s TFWA product showcase is the 377VC Brightening line, which Michelle Tong, Regional Business Development Associate Director, Travel Retail, Johnson & Johnson, calls the “hero range.”

Often at the center of its giftset and TR-exclusive launches, the iconic 377VC products lead the DCL offer in travel retail, with the Serum at number one closely followed by the Cream.

Recognizing the success of the line, DCL has leveraged the popularity of the line to launch several popular Travel Retail Exclusive (TREX) sets, including a 377VC Serum (28-gram) Duo Set and a 377VC Regimen Set which pairs the Serum (18-

gram) with the Cream (50-gram).

The biggest launch this year will be the Retin169 Pre-Aging line. The range will include a face serum, eye serum and face cream, all of which will launch in TR near the end of Q3 with a tailored TREX strategy. The Face Serum will be available in a 45-mililiter Duo Set, and the Pre-Aging Regimen Face & Eye Serum Set will be available together, both sets exclusive to the channel.

“For Dr. Ci:Labo this is an important launch as we look to engage with younger shoppers, allowing us to introduce the brand and its heritage to the hugely influential Gen Z and young millennial consumers,” Tong tells Global Travel Retail Magazine. “Pre-aging products are proving to be increasingly popular as consumers look to take a more proactive approach to skincare, tackling the early signs of premature aging before they develop.”

The art of gifting

Dr. Ci:Labo seeks to create memorable and impactful gifting experiences inspired by the Japanese Oseibo tradition. Oseibo is the time-honored expression of appreciation through gifting and a way to celebrate relationships and build longlasting connections with its customers –both retail partners and consumers.

“We believe that true service goes

beyond just a transaction. It’s about embodying a spirit of generosity and gratitude, centered around human touch, through the art of Oseibo,” Tong says.

Digital engagement

In November 2022, DCL unveiled the Online to Offline (O2O) Concept Store at Haikou International Duty Free Shopping Complex. Extending its physical footprint in the Hainan market, the store delivers an immersive, digital-powered shopper experience that aims to drive shoppers to add TREX products to their baskets, including several gift sets exclusive to China Duty Free Group.

“Hainan is a strategic market in our three-year expansion plan to engage with digital-savvy Chinese shoppers. Extending our brand’s physical footprint with an O2O concept is a natural step forward for us in partnership with China Duty Free Group, whose ambition and vision for the retail experiences of the future align closely with Dr.Ci:Labo’s digital vision,” Tong said in the press release.

"Leveraging technology, we offer shoppers a game-changing travel retail experience while providing our hallmark Omotenashi care and clinical skincare equity in a seamless fashion combining the best of the online world – ease, convenience, digital engagement – with the power of the offline, physical world,” she added.

Dr. Ci:Labo shares details on its best-selling brightening line and the upcoming launch of a pre-aging range targeting Gen Z and millennials

The Dr.Ci:Labo O2O Concept Store extends the brand's physical footprint and delivers an immersive, digital-powered shopper experience

The 377VC Brightening line is Dr. Ci:Labo’s hero range

Michelle Tong, Regional Business Development Associate Director, Travel Retail, Johnson & Johnson,

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The Alpine energy to the heart of your skin!

SKIN VITALITY

Nature positive

Since market research has reported definite growth within the perfumes and cosmetics category and a rise in consumer interest in health and wellbeing products post-pandemic, L’OCCITANE Group is capitalizing on the forecast in the channel. During an interview with Mona L’Hostis, Head of Global Travel Retail Marketing at L’OCCITANE Group, she tells Global Travel Retail Magazine that as confidence in global travel continues to grow, there will be greater opportunity to harness consumer engagement with innovative products and new concepts, disruptive campaigns and digital games.

With the launch of its premium clean beauty brand Grown Alchemist at Sydney Airport in partnership with Heinemann Australia, the Group has strengthened its multi-brand strategy. This is the brand’s first airport boutique worldwide; starting in May, Grown Alchemist will be on display in the channel across Europe. Described as the right time and environment to showcase its global brand portfolio, L’OCCITANE is also making waves with other beauty brands including Brazilian-inspired Sol de Janeiro, Korean brand Erborian and British and B Corp certified brand ELEMIS.

“This growth surge offers us the opportunity to showcase our portfolio to existing and new travel retail audiences – especially Gen Z – using marketing

by LAURA SHIRK

initiatives like our current Nature Positive Chapter II ‘Gift of Nature’ pop-up global airport roadshow. This one follows our 2022 Spring/Summer ‘Nature Positive’ campaign,” explains L’Hostis.

The follow up campaign launched in January at Frankfurt Airport in collaboration with Gebr. Heinemann with a TREX (Travel Retail Exclusive) limited edition 150-milliliter L’OCCITANE Shea Hand Cream offer. The best-selling product contains 96% natural origin ingredients and is packaged in a recycled tube that is 95% aluminum. “Gift of Nature” also consists of a Nature Positive collection, an interactive photo booth and natural wooden props on-site including a tree and flowers that emit real scent, which emphasize messages about biodiversity. The pop-up activation will be unveiled this summer at airports worldwide including in Asia Pacific and Hainan.

Beyond its back-to-back campaigns,

L’OCCITANE has increased the number of travel retail sets available in eco-refill format, introduced its Solid range and expanded its Clean Charter range. The Group highlights its ingredients such as almond and fair-trade agreements with local partners. Plus, it’s now offering 100% single-use plastic-free wrapping for its TREX kits.

“We have taken a virtuous approach to packaging, using only 100% FSC-certified paper with cellophane removed from our permanent kit portfolio. We will relaunch our iconic travel retail eco-refills with recylced and recyclable plastic bottles. Our plan is to reach 100% recyclable packs by 2025,” says L’Hostis.

As a cultivator of change, the Group incentivizes consumers to practice sustainabilty by providing discounts, gifts with purchase, refill subscriptions and loyalty programs. It aims to be fully B Corp certified this year.

A leader in sustainable beauty, L’OCCITANE outlines its eco credentials and brand products, values and authenticity in travel retail

The Group has increased the number of travel retail sets available in eco-refill format

L’OCCITANE “Gift of Nature” pop-up activation at Frankfurt Airport

SENSE OF DIRECTION

Entering the Chinese market in Q2 2023, Moroccanoil on the resilience of the beauty category and how to further personalize the consumer experience in travel retail

by LAURA SHIRK

According to a report by Research and Markets, trusted source of market data and statistics, the global travel retail market is expected to grow to US$111.02 billion in 2026 and at a CAGR (compound annual growth rate) of 12.8% with perfumes and cosmetics as the most profitable category. For an update on the resilience of the category and contributing factors of its growth, Global Travel Retail Magazine spoke with Sebastien Levi, Vice President Global Travel Retail at Moroccanoil. We also covered the global haircare and beauty brand’s expansion in travel retail, sustainability efforts and multi-sensory experience.

The general impression across the beauty industry is that the prioritizing of self-care and at-home treatment will continue to trend upward as it transitions from recovery to growth. This impression is observed at every brand level of the market. Driving the strong recovery of brick-and-mortar retail, Levi says once consumers had the chance to return to shopping in-store, they did so in “striking” fashion. Since consumers are becoming more accustomed to switching from channel to channel throughout their shopping journey – benefitting from brand variety in retail and digital convenience – it is important that travelers are given a reason to shop duty free. In addition to price advantage, the channel draws shoppers because of its exclusivity.

Moroccanoil Hand Cream Fragrance Originale 40-milliliter

Moroccanoil Hand Wash Ambre Noir 360-milliliter

An expert in haircare

A leading brand in the cosmetics category, Moroccanoil has claimed a top spot in the haircare segment and with the launch of its Body range expanded its footprint. Levi explains there is a willingness among key operators to “play” within the haircare category and the brand embraces this point of view – even if it leads to greater competition. With the support of brand components like the addition of hair brushes and styling tools to its product range, Moroccanoil drives category innovation. Following a successful trial at Brussels Airport and Tel Aviv Airport, this move has reinforced Moroccanoil as an expert in haircare. The company is also looking at introducing electric tools such as hair dryers to its range to allow the category to “express itself.”

Right now, Moroccanoil is concentrating on how it can further personalize the consumer experience and provide a more exclusive offer in travel retail. In addition to exploring the potential to develop hair services and touch-up stations in the channel, the brand is in the process of expanding its portfolio sets to deliver a full hair and body routine.

As the company’s largest airport in terms of square footage and sales per passenger, Levi says the dedicated retail space in Brussels offers the total brand experience and communicates the DNA of the brand directly to consumers. While there is interest in duplicating this model in the future, Moroccanoil recently opened a flagship store in Panama maximizing the space available.

Tapping into the Chinese market

Continuing its successful run, in partnership with Sephora, Moroccanoil will enter the Chinese market in Q2 2023. The late arrival is due to the brand’s refusal to compromise its core values, work ethics and PETA cruelty-free certification. When asked about the launch and the brand’s plan to tap into this growing market, Levi points out that considering the situational change in animal testing, the reopening of China and Moroccanoil’s new “Airy Moisture” campaign it is perfect timing. Consisting of an exclusive formula, Airy Moisture has been crafted with local hair needs in mind and will replace the brand’s Hydration line in Asia.

Following the launch, Moroccanoil will consolidate its brand image in China and create regional opportunities to push the category; Levi says this will open new doors for the brand. During the second half of this year, Moroccanoil will focus on its growth in Hainan and potentially shift its focus to mainland China in 2024.

“Airy Moisture is our first local development in Asia, which proves the region’s importance to the brand. This campaign will have a major impact on Moroccanoil’s overall presence in travel retail,” he comments.

Sustainable production and brand consistency

Speaking about Moroccanoil’s sustainabilty efforts and practice of responsible consumption, Levi notes that it is a journey for the

Moroccanoil Hair Repair + Moisture Trio set

brand to become more sustainable across its product range, its operations and within its community.

Along with the fact that the brand’s main factory in Tel Aviv, Israel, is 100% solar-powered, Levi highlights its partnership with Oceana, the largest international advocacy organization centered on ocean conservation. In the short term, the team would like to create a single-page showcard to post at every point of sale in travel retail to showcase its sustainability efforts and credibility. This information would be digitally accessible via QR code at a later date.

“How do we talk to the consumer about our efforts? This is a big question internally because we want to be candid about our efforts, while there is still work to be done,” says Levi.

Multi-sensory brand experience and new scents

Playing to three of the five senses (sight, touch and smell), Moroccanoil’s multi-sensory experience causes the consumer to transport. More than its brand image and the texture of its products, Moroccanoil is most identifiable by its signature scent, which is the common thread across its collection. The argan oil-infused beauty brand understands the notion of selfcare is not strictly about the quality of the product – and its confirmed results – but also the type of experience it offers.

Gearing up for the release of its Body range, which includes body lotion, shower gel, hand wash and hand cream, Moroccanoil experimented beyond its Fragrance Originale to create five new scents: Ambiance de Plage, Ambre Noir, Bergamote Fraîche, Oud Minéral and Spa du Moc and recreate five different “voyages.”

“The way we launched our five new scents, it’s about relating to a place and a moment in time. It’s not a surprise that the greater a consumer is transported, the better their reception. This is what people are looking for from our brand,” he adds.

Based on the brand’s guide to its Moroccan-inspired scents and Levi’s input, the following is a summary of what type of transportive experience each one has to offer:

• Fragrance Originale (to a sparkling Mediterranean vista)

• Ambiance de Plage (to a warm summer day on a Mediterranean beach)

• Ambre Noir (on a walk through a Moroccan marketplace or a dry, earthy landscape)

• Bergamote Fraîche (to a citrus grove by the Mediterranean Sea)

• Oud Minéral (to a driftwood-strewn beach on an overcast morning)

• Spa du Moc (to a Hammam Spa in Marrakesh)

Looking ahead, Levi is optimistic about the future, Moroccanoil has reached its 2023 targets one year ahead of schedule and will continue to prioritize personalization, exclusivity and the full haircare experience in travel retail.

Moroccanoil Body Lotion Bergamote Fraîche 360-milliliter

Moroccanoil Shower Gel Fragrance Originale 250-milliliter

BASEMENT 2 BOOTH L31

FOR ALL Chocolate

The LINDOR Gift Box (287 grams) personalized with the gifting message “FOR YOU,” wrapped in lace-embossed packaging, adorned with a golden bow

Lindt GTR highlights its new category vision with goals to add confectionery to every basket during a private press event at the Lindt Home of Chocolate in Switzerland

by JANE HOBSON

Tucked neatly into the western coast of Lake Zurich in Kilchberg, Switzerland proudly stands the Lindt Home of Chocolate. Opened in 2020, the building houses a museum, café, an enormous chocolate fountain, Lindt & Sprüngli’s largest retail store and several corporate offices.

Located on the same grounds as Lindt & Sprüngli’s original headquarters and factory, which were established in 1899, the grand Lindt Home of Chocolate is the ideal backdrop for unveiling an energetic new approach to the global travel retail confectionery category.

This spring, Lindt Global Travel Retail (GTR) hosted a media event at the Lindt Home of Chocolate where the brand presented its new category vision for TR which focuses on adding confectionery to every basket.

“We enchant the world with chocolate. Our mission is to create premium chocolate for the global confectionery market based on consumer preferences and extensive research,” said Peter Zehnder, Head of Lindt GTR, during the press presentation.

“We are very proud that over the last year we did more and more research specifically for travel retail and adapted shopper studies for the travel retail world.”

From left to right: The Lindt GTR team, Stephanie Schmidle, Peter Zehnder and Florence Benguerel at the Lindt Home of Chocolate in March 2023

Reporting a “strong rebound” in GTR with triple-digit growth of +109% in 2022, the vision is ambitious but clear.

Category growth

Lindt & Sprüngli partnered with Ehrenberg-Bass Institute for Marketing Science to conduct a deep dive study into the confectionery category and its growth drivers. The study includes 17 countries, five continents and more than 100,000 consumption occasions and shopper interviews.

“Understanding the key thoughts, needs and occasions of shoppers will guide us to success,” explains Zehnder.

Noting that “chocolate is a resilient category,” the findings reveal that more than 64% of shoppers say they love chocolate and 65% say they are never without chocolate in their house. Furthermore, 66% say they would buy their favorite brand even if not on sale.

Premiumization remains a relevant “growth engine” of the confectionery category, even in a recession, with research highlighting that 55% of shoppers are willing to pay more for premium chocolate.

The POLARIS Category Research study concludes that the versatile and impulse-based role of the category makes adding confectionery to every basket a very realistic undertaking.

Demand moments, needs and occasions

The study indicates that reasons why people purchase chocolate in global travel retail fit within five categories called demand moments: “Treat,” “Indulge,” “Recharge,” “Connect” and “Delight.” Within these demand moments are common needs and occasions that come up during travel – which are major growth drivers of premium chocolate.

Travelers looking for something quick and easy to eat falls under the “Treat” demand moment (accounting for 11% of sales). Something enjoyable that offers a momentary escape is categorized under the “Indulge” demand moment (22% of sales). A practical bite that quickly combats hunger, low energy and boredom fits within “Recharge” (leading at 32% of sales). Travelers looking for something to share with others falls under “Connect” (also accounting for 11% of sales). Those seeking something to gift fits in the “Delight” demand moment (which rings in at second place accounting for 25% of sales).

The research confirms that more than 90% of gifting purchases occur outside of key gifting periods. Finding the right format and delivering engagement at the point of sale during key gifting periods can fuel sales growth, Zehnder tells GTRM, referencing last year’s Diwali promotions in partnership with Delhi Duty Free and Dubai Duty Free which led to double-digit percentage sales growth.

The entrance to the Lindt Home of Chocolate in Kilchberg, Switzerland

Adding confectionery to every basket

The study points to four action items – or growth platforms - that can lead to conversion and have potential to add confectionery to every basket.

The growth platforms, categorized as “Say it with chocolate,” “Taste discoveries,” “Sharing the adventure” and “Be seen,” encompass gifting and festive occasions, channel exclusive editions and ingredient discovery, enchanting experiences and activations, formats and sense of place, multiple touchpoints, traffic generation, and ease of shopping and navigation.

Lindt GTR has created TR exclusive products for gifting in 2023: The LINDOR Gift Box (287 grams) personalized with the gifting message “FOR YOU,” wrapped in lace-embossed packaging, adorned with a golden bow; the Napolitains Destination Sleeves Carrier Box (500 grams) unique to the destination; Gold & Silver Tablets (300 grams) serving as the “fail-safe gift that speaks for itself,” and the newly-introduced Nuxor Milk and Assorted (165 grams).

Playing into confectionery impulsivity and key visibility, Lindt GTR is bringing the art of gifting to life at Heathrow Airport this spring with freshly made LINDOR truffles from one of its Master Chocolatiers. To enhance the shopping experience, extras such as gift wrapping, personalized cards and bags are available to create an unforgettable memory. With the theme of “Bring home the gift of bliss,” the activation runs at Terminal 4 from March 30 to April 26.

Lindt GTR highlights that the focus on growing the confectionery category reaches industry wide with a better-together approach. Growing the category benefits retailers (strategic partnerships that increase value), suppliers (move away from stealing share to growing the category and value overall), shoppers (focus on relevant and engaging experiences) and consumers (meeting all demand moments, needs and occasions with a complementary portfolio).

Lindt Home of Chocolate homage to history

Lindt & Sprüngli tells GTRM the Lindt Home of Chocolate welcome 500,000 visitors last year and expects to easily exceed that figure in 2023. Located just south of Zurich proper and its Altstadt (Old Town) tourism hub, Zehnder says the Lindt Home of Chocolate has quickly become an attraction for both explorers and locals alike.

The architecture inside the Lindt Home of Chocolate resembles the conche, a grinding tool that gives Lindt & Sprüngli chocolate the smooth-melting taste and texture it has become known and loved for. Happened upon as a happy accident by Rodolphe Lindt in 1879, Lindt & Sprüngli became known for its use of the conche which is now a chocolate industry standard, but as Zehnder highlights, “Lindt has the most experience conching.”

Currently Lindt & Sprüngli enjoys a global presence in more than 120 countries with 500 shops worldwide, 100 distributors, 31 subsidiaries and 11 production facilities.

The new category vision identifies key ways to grow premium chocolate and add confectionery to every basket

While a popular spot for tourists, locals also visit the café inside the Lindt Home of Chocolate regularly

Following a successful trade show at Summit of the Americas, where Ritter Sport showcased its valued partnership with leading global food company Otis McAllister and latest range of travel retail exclusives, Global Travel Retail Magazine spoke with Jan Pasold, Managing Director at Ritter Sport for an update. The two are working together to widen the distribution and the availability of Ritter Sport’s Germanmade, family-owned chocolate.

To kick of 2023, Ritter Sport announced the launch of its Travel Retail Edition Vegan Tower 5x 100 grams (TRE Vegan Tower), which entered the channel globally in March and offers three varieties of non-dairy chocolate in a five-pack. As shared by the company, featuring the best ingredients and containing 100% sustainable cocoa, the product is packaged in a colorful gift box and consists of three versions of its 100-gram vegan bar: Roasted Peanut, Salted Caramel and Smooth Chocolate. Discussing the brand’s mission, Pasold calls the introduction of the TRE Vegan Tower a logical step and an important piece of the puzzle. Since the TR exclusive meets a range of

VEGAN SPHERE

Described as a logical step, Ritter Sport launched its TRE Vegan Tower in global travel retail earlier this year

by LAURA SHIRK

gram bar as a travel retail edition and an updated Ritter Sport Mini Tower new flavor mix, which features ingredients that represent specific regions across the globe.

Opportunities & challenges

consumer dietary wants and needs, it is believed the brand launched the right product at the right time.

Ritter Sport has continued to increase its vegan product range in recent years, with sales more than doubling since 2018. The company reports that chocolate is a key product within the vegan sphere and it is seeing consumer demand growing globally with six out of ten consumers willing to increase their consumption of vegan or vegetarian confectionery.

“Our main focus in 2023 is our TREX portfolio and to widen distribution in general. We created a travel exclusive product with our new vegan bars, since they are convincing with great taste and new flavors. With this product, we have one of the still rare vegan confectionery TREX products on the market. At the same time, we wanted to fill a gap in the category and fulfil the growing demand of such products due to increased consumer consciousness when it comes to health and wellbeing and sustainability,” he says.

This year, the brand will also launch its Taste the World Limited Edition 100-

With the duty free and travel retail industry returning to pre-pandemic levels, Pasold says the expected growth of the channel – and the confectionery category – presents the opportunity to build brand equity, awareness and loyalty among global travelers. However, he adds that it also acts as a challenge because it will be a race for market share.

“The initial challenge will be competition between categories; followed by competition within the category. As a family-owned, mid-size company Ritter has to be creative and innovative in order to compete with larger, multinational companies and global brands. The growth and development of the brand partly depends on the behavior and investment expectations of airports and retailers,” explains Pasold.

Ritter Sport’s sustainability and fair-trade practices also contribute to its advancement. The brand shares its sustainability agenda, achievements and success stories via several different measures including QR codes on its TREX packaging and special promotions such as “Discover Ritter Sport.”

The TRE Vegan Tower contains three varieties

Travel Retail Edition Vegan Tower 5x 100 grams

Going for growth in Asia Pacific

HARIBO is targeting new traveling consumers and unlocking category growth with fun, colorful product offerings for Muslim, Gen Z and millennial travelers

by JANE HOBSON

According to ReportLinker, an AI-enabled market intelligence platform, the global jellies and gummies market grew from US$2.47 billion in 2022 to US$2.54 billion in 2023 at a compound annual growth rate of 2.7%. The Jellies & Gummies Global Market Report 2023, published in February, also reveals that Asia Pacific is expected to be the fast growing region in the forecast period, highlighting a significant opportunity as Asian countries lift COVID restrictions and return to international travel and shopping.

Furthermore, CrescentRating, Halal travel consultancy and host of the Halal in Travel Retail Global Summit 2023, reports in February that “Muslim traveler arrivals will reach 140 million in 2023 and get back to 2019 level 160 million in 2024. The visitor arrivals are projected to reach 230 million with an estimated expenditure of USD 225 Billion by 2028.”

HARIBO tells Global Travel Retail Magazine (GTRM) the brand aims to target new traveling consumers and unlock category growth with its fun, colorful new product offerings, a focus on Halal offerings, and sour-flavored sugar confectionery for Gen Z and millennial travelers.

Growing number of Muslim travelers

“Growing in number and spending power, Muslim travelers are an underserved consumer group within the travel retail confectionery business. HARIBO is eager to meet the needs of travelers with specific dietary requirements, such as Halal foods adhering to Islamic requirements,” says Elisa Fontana, Head of Marketing Travel Retail at RIGO Trading S.A, the HARIBO Group subsidiary.

HARIBO will launch the GTRexclusive Friends & Party Halal Pouch at the TFWA Asia Pacific Exhibition & Conference, aimed at key markets across India, the Middle East and Africa. It will include a mix of HARIBO favorites, such as HARIBO Goldbears, HARIBO TroppiFrutti, HARIBO Happy-Cola and HARIBO Starmix.

Untapped potential among younger generations

HARIBO sees untapped potential with sour-flavored sugar confectionery among

Gen Z and Millennial travelers who are the top consumers of sours. HARIBO will showcase a new GTR exclusive Duo Pack combining HARIBO with MAOAM, the German company’s popular chewy fruit-flavored candy, for the first time. The pack contains popular sour favorites, such as HARIBO Roulette Fizz, HARIBO Goldbears Sour, MAOAM Bloxx Sour and MAOAM Stripes Sour.

In the post-pandemic travel retail environment where the self-consumption purchase occasion has become more important, HARIBO is prioritizing the availability of products in tall pouches to provide more gift solutions and to maximize the easy-to-spot, on-shelf vertical merchandising opportunity. HARIBO’s colorful and engaging pack designs continue to help drive footfall and conversion, the brand explains.

“HARIBO is delighted to be attending the TFWA Asia Pacific Exhibition & Conference at a time when international travel in the region is restarting after the pandemic,” Fontana tells GTRM. “We are on a mission to bring moments of happiness to people of all ages and all cultural backgrounds. We offer popular solutions for all wallets and believe Asia Pacific is set to be one of the fastest growing markets for sugar confectionery in the next few years.”

The HARIBO & MAOAM duo pack (653 grams) includes HARIBO Roulette Fizz, HARIBO Goldbears Sour, MAOAM Bloxx Sour and MAOAM Stripes Sour

Elisa Fontana, Head of Marketing Travel Retail at RIGO Trading S.A, the HARIBO Group subsidiary

ASIA IN FOCUS

by JANE HOBSON

While Europe may be the main strength and focus for the independent tobacco group

KT International (KTI), the gradual recovery from the pandemic has kickstarted plans to enter more Asian markets.

The company has limited presence in Asia, but Stuart Buchanan, Chief Commercial Officer at KTI, tells Global Travel Retail Magazine, that the group is experiencing an extremely high growth rate in the region, albeit from a small base.

“Asian consumers are embracing our products for their innovation and uniqueness,” he says. “Following a review at the end of 2023, we will be able to fully evaluate where we have had our most successful brand adoption.”

Balanced split in Asia

As a producer, KTI focuses on two global brands – The King and Corset. Globally, The King is the company’s biggest volume brand, but this is not the case in Asia.

“In Asia, we have found a very balanced split between both brands as we strive to meet consumers’ demands with specific product propositions Corset in particular, [the world’s first shell pack],

is a constant pipeline of taste, flavor and filtration innovations. This has resulted in the brand establishing itself as a true global contender for consumers wanting variety, premium quality, and differentiation from the mass,” Buchanan explains.

On the company’s global travel retail business in general, KTI has noticed several airports awarding concessions to duty free operators following tenders over the past year. KTI says it sees this as a sign of the industry becoming more competitive, which can only lead to more consumer benefit.

“We have been encouraged by our entry into several Dufry-operated airports. We are currently in seven Dufry airports with the latest being Antalya and Sabiha Gökçen in Istanbul and will soon enter the major Spanish airports,” says Buchanan.

He says it is encouraging that the likes of Dufry are allowing smaller independent players to flex their muscles in prime locations globally. “We feel this is a very positive move, not only for leading the travel retail industry, but also in giving consumers more value through choice.”

What’s trending in tobacco

KTI is witnessing a significant increase in consumer prices. This is driven by a rise in tobacco leaf cost and global shortages in other non-tobacco material costs.

“The increasing price differential between traditional cigarettes and vaping products is also contributing to the proliferation and environmental impact of disposable vaping products, which are still not subject to excise in many countries.

“Staying true to our philosophy of offering global international brands at accessible price points, we are striving to keep this impact as minimal as possible on our consumers,” Buchanan says.

Remaining innovative and flexible is also important for KTI. “Being an independent manufacturer gives us the freedom and agility to adapt and respond to specific clients’ needs and expectations.”

The company’s production facilities and progressive methods of operations ensure tailor-made solutions and overall flexibility at all levels, Buchanan explains.

“Innovation is a central pilar in our company philosophy. Besides the constant innovation on our brands, we believe innovation is not only about products. To this end, and in line with our global environmental responsibilities, we are proud to announce the completion of our project to become more energy efficient. Our newly built solar park demonstrates our commitment to this goal.”

The independent tobacco group KT International reveals a balanced split between the King and Corset brands in Asia, where it is looking to increase business in the post-pandemic world

As a producer, KT International focuses on two global brands, The King and Corset

Stuart Buchanan, Chief Commercial Officer, KT International

The art of play

by LAURA SHIRK

IWSR also revealed consumers continue to seek comfort in nostalgic serves and saline notes.

While Berardi believes in traditional products and flavors, he points out that innovation is a requirement to succeed. This is why Fraternity Spirts supports new serves within mixology to help stand out from its competition and the introduction of new liquids with different profiles and unique combinations.

“We are constantly developing new ways to create special moments. For us, bringing people together through our products is the final goal and we do so by supporting our clients with creative, fun and original ideas that will leave an experience in our consumers' memories,” says Berardi.

As a company that specializes in Mexican spirits, Fraternity Spirits seeks to reinvent the customer experience and runs promotions directed at bringing visitors to its distillery. It is essential that visitors have the chance to engage in an authentic Mexican experience by learning about the origin of the product and getting a taste of the culture.

providing a temporary reprieve from the stresses of everyday life. The heightening of a moment by a product in Fraternity Spirits’ portfolio could bring a feeling equivalent to the sense of escapism that travel offers to individuals.

“When we travel, we are often exposed to new culinary experiences that can be incredibly memorable and that can transport us to new states of mind. Trying flavors can be exciting and stimulating and help us feel more connected to the places we are visiting and the people we are interacting with,” he explains. Additionally, Berardi says taste can be a powerful memory trigger especially with tequila – and spirits in general –having such enormous flavor within every drop.

Disrupting norms

As reported by IWSR Global Trends Report (IWSR) earlier this year, flavor innovation across the spirits category in 2023 focuses on “unique experiences and fun moments.” Tapping into this playful mood in the travel retail space, Global Travel Retail Magazine spoke with Fraternity Spirits Owner Rafael Berardi to learn how the spirits distributor is driving innovation and prioritizing escapism.

Sense of escapism

At the same time, Berardi notes that classic cocktails like the old fashioned or margarita and nostalgic serves and flavors are rooted in the past and often evoke memories of a simpler time. The perspective of the brand is that its portfolio and product range should always be authentic. According to Berardi, nostalgia ties into the concept of escapism by transporting consumers to a different time or place and

Fraternity Spirits continues to be a leader in driving innovation in the spirits category by focusing on sustainability, leveraging technology to enhance the customer experience and disrupting category norms through more inclusive and diverse marketing campaigns. Berardi provided a 2022 brand campaign as an example. Launched in partnership with local LGBTQ+ organizations and in collaboration with its Saints Hard Seltzer brand, the campaign featured a series of inclusive ad placements in celebration of Pride Month.

The company also maintains relevancy among a wide group of travelers by identifying new consumer segments and designing versatile products that cater to various occasions.

99,000 Hours Tequila

Fraternity Spirits supports new serves within mixology to help create special moments and stand out from its competition

Rafael Berardi, Owner, Fraternity Spirits World

Ron Prohibido XO Mexican Rum

Making a meister piece

Mast-Jägermeister SE is eyeing growth in Asia Pacific travel retail with premiumization and consumer engagement at the center of its strategy, plus a multimedia art exhibit activation due to materialize at 60 airports this year

by JANE HOBSON

Family-owned Mast-Jägermeister SE tells Global Travel Retail Magazine it is debuting at TFWA Asia Pacific Exhibition & Conference this year with a focus on growing the brand in the region and global travel retail, bringing its The Secret is You campaign to life.

“Our presence at the show is evidence of our ongoing commitment to the Asia Pacific region and to creating surprising, high-quality activations geared to Jägermeister consumers. Many of the world’s best travel retail locations are in the Asia Pacific region and we are taking this opportunity to show visitors that premiumization and consumer engagement are at the heart of what we do,” says Jägermeister Vice President Global Travel Retail Tobias Witte.

Witte says the brand is enjoying “great momentum” in the region with an eye on growth in 2023 as travel in and out of Asia picks up. The business is turning its focus to visibility with more activations, building on previous successes. This includes the exclusive regional launch of Jägermeister Cold Brew Coffee last year as well as the installation of a permanent backwall with education and a tasting bar at the new Haikou Mall in Hainan. Digital communications are highly important

and integral in the expansion, in particular Wechat, Alipay and WeiBo, says the company.

Ice Kühl Gallery activation

Launched in 2022, The Secret is You celebrates “travelers who are the secret ingredient in the artistic process,” the company says. This year, the campaign will transform more than 60 Jägermeister airport spaces into an outpost of the Ice Kühl Gallery, showcasing multimedia art exhibitions.

The two-story Jägermeister stand is a digital art experience that encourages travelers to express themselves by creating their own “meister piece” and share the experience on social media. Jägermeister, Jägermeister Cold Brew Coffee and Jägermeister Manifest will be featured at the show.

“Jägermeister is the number one shot brand in the world and a lifestyle brand in a category of its own. The Secret is You is a perfect platform to leverage the progressive spirit of Jägermeister, not only to engage existing drinkers but also bring new consumers into spirits and grow the overall spirits category,” says Witte.

Jägermeister’s secret recipe remains unchanged, the company says. Made from

all-natural ingredients, its taste is characterized by hints of citrus, ginger and star anise, accompanied by a slightly bitter herbal note.

Experienced team driving TR

Jägermeister launched into Asia Pacific domestic markets about 10 years ago and then into travel retail in 2018 as the traveler demographic evolved to younger, more affluent travelers, the company notes. Hong Kong-based Francois Picquot joined the business in 2019 and has since successfully expanded Jägermeister, adding new distribution points and increasing availability.

“We will drive forward our consumer interaction and continue to expand and develop digital elements for the brand in order to deliver Jägermeister’s mission to provide the Best Nights of your life, today and tomorrow,” says Witte.

The company says the growing investment in Asia Pacific follows a very successful 2022 in the global travel retail channel when Jägermeister significantly increased its sales to achieve double-digit growth, marking its best results ever.

According to IWSR, Jägermeister is now the eighth largest premium spirits brand line in the channel.

The Secret is You campaign, pictured here at Hamburg Airport, features a multimedia art exhibit, an outpost of the Ice Kühl Gallery

Tobias Witte, Vice President Global Travel Retail, Jägermeister

Solo but collaborative in a crowded market

by JANE HOBSON

Taiwan-based Kavalan Distillery is expanding in global travel retail, increasing its production capacity and expanding its third maturation warehouse to meet growing demand.

Regional Manager Kyle Lee tells Global Travel Retail Magazine (GTRM) Kavalan is also focusing on creating unique and memorable experiences for consumers, with virtual and physical tours, tastings, and blending labs that showcase the history and production process of its spirits.

“Kavalan is always exploring new and creative ways to stand out in a crowded market,” Lee says.

Partnerships and collaborations

The brand partnered with Singapore Airlines to create Kavalan Batik Solist Vinho Barrique. Available through the airline’s retailer KrisShop, the exclusive collaboration received a “great response and feedback from consumers and Singapore Airlines,” Lee says.

Kavalan will be launching the Kavalan Batik Solist Series soon.

Kavalan partnered with China Duty Free and Lagardère’s joint venture Duty

Zero by CDF to bring its Distillery Select Series exclusively to Duty Zero stores. Lee tells GTRM the brand may launch a new travel retail series for all duty free operators and partners in the future.

Solist update

“The name of the Solist series comes from ‘soloist,’ a musician or singer who performs solo. It is known as our single cask strength series, performing solo in the Kavalan warehouse,” Lee explains.

The single casks are first-filled and bottled without colorings, chill-filtration or dilution. The Kavalan Solist Series Single Cask Strength includes four types of rare sherry casks (priced from NT$8,000 [US$262] to NT$10,000 [US$328]) among 13 expressions.

“It can be said that Kavalan has the most abundant single cask whiskies in the world,” Lee says.

In 2015, the Kavalan Solist Vinho Barrique Single Cask Strength Single Malt Whisky won the World Whiskies Award for Best Single Malt. While giving Kavalan whisky higher brand value, it also promoted sales among the full range creating a positive cycle, Lee says.

In 2021 Kavalan launched three barrels of 100% full-time matured sherry, extremely rare in the market. A combination of Oloroso, the “king of sweet sherry P.X.” (Pedro Ximénez, an intensely sweet style of sherry), and Moscatel, the sweet sherry “queen.”

The Solist Series remains Kavalan’s “perennial best-seller” for its exceptional quality and unique flavor profiles. The brand saw decline in GTR sales of the

Solist Series through the pandemic, but Kavalan enjoyed notable success at JTO, a Jeju, Korea-based duty free shop. Tourist destination Jeju Island provides a particularly attractive shopping opportunity.

“Many Korean customers were unable to travel overseas and thus had a greater incentive to shop for duty free products within the country,” Lee explains.

However, he also notes that during COVID, Kavalan successfully expanded into new markets while maintaining steady growth. The company completed the registration and exportation of its products to Nepal, and entered markets in Seoul, Myanmar, Costa Rica and Argentina. Kavalan’s products are now sold in more than 60 countries.

New products to come

On a mission to expand its global footprint, Kavalan plans to introduce new products in coming years, including those aged in different casks and a gin range. It also plans to release limited edition products for distributors. Further details are not yet available.

“These efforts reflect Kavalan's ongoing commitment to innovation and quality, as well as its dedication to meeting the evolving preferences and needs of whisky enthusiasts worldwide,” Lee says.

Kavalan’s Kyle Lee discusses the brand’s many partnerships and highlights its Solist Series, which will be launching new expressions soon as the whisky-maker expands its global footprint

Kyle Lee, Regional Manager, Kavalan

The Monus method

Monus tells Global Travel Retail Magazine that the company is focused on the future with technology and research at the forefront of its strategy

by JANE HOBSON

Monus is known for creating some of the best tobacco products in the world.

Since its start almost two decades ago, the company has evolved to boast a 22,000-square-meter production facility with modern equipment, warehouse space, a tobacco store and 200 employees. It exports nearly three and a half billion cigarettes annually on a mission to satisfy the tastes and expectations of all consumers.

Tatjana Agrez, Director of Export Department at Monus, tells Global Travel Retail Magazine that the company continuing its stride forward with cuttingedge technology and research guiding its way.

The tech behind the cigarette Agrez attributes Monus’ long history of success to its rigorous standards and perpetual research, combined with continuous investment in its production methods and facilities throughout the years. Keeping up with the changing times also ensures the production method is the most efficient and environmentally conscious, she says.

“When we think about technology, people do not traditionally associate it with cigarettes. But cigarettes are high-tech products, production is highly sophisticated,” Agrez explains. “Thanks to our state-of-the-art facility, we have the capacity and expertise to blend a variety of character-rich tobacco from around the world – and we do this very well.”

Monus has nine cigarette brands and more than 40 extensions which are exported globally directly from its factory in Belgrade, Serbia. The company’s biggest markets are North Africa and West Africa domestic and duty free; Middle East domestic market; Asia domestic and duty free; and Europe duty free.

The Monus method

The Monus method uses eight fully automated production lines. The versatile blends for each market are produced at 10,000 cigarettes per minute on each line. The process starts by shredding a variety of tobacco leaves and stems mechanically into tobacco cuts, at the rate of 4,000 kilograms of cut rag per hour. The cuts are stored, rolled into cigarette paper and cut to the desired length. From here, the prepared cigarettes are packaged and sealed. Finished products are stored in the warehouse before distribution.

“Every day, we dry with care, cut with precision and blend with dedication some of the finest tobacco varieties to satisfy our every customer,” Agrez says.

Blend and traceability

Agrez says the most obvious trend in the tobacco category is the global decline in smoking. The tobacco business is facing some difficulty due to many cigarette smokers opting for non-combustible products. To overcome this, Monus constantly innovates and delivers highquality cigarettes.

“Our focus is mainly on blend to appeal to the diverse range of likes and tastes of our consumers. We believe that tobacco users will stay cigarette smokers despite a range of other combustible and non-combustible products. It does not mean that tobacco products, such as cigarettes, are less attractive.”

The company is working with government authorities to fight illegal trade of tobacco products. Monus invests in track and trace systems to reduce counterfeit products which threaten brand integrity and consumer safety.

“Improving traceability in the supply chain minimizes the risk of these imitations, prevents the sale of illegal imports or stolen goods, and simultaneously helps producers to avoid fraud in their drawback systems. Tracking products from source to shelf ensures that goods pass through legitimate distribution and retail channels and allows consumers to verify the authenticity of the products they buy,”

Agrez explains.

Monus offers nine cigarette brands and more than 40 extensions which are exported globally directly from its factory in Belgrade, Serbia

Monus' process starts by shredding a variety of tobacco leaves and stems mechanically to become tobacco cuts, at the rate of 4,000 kilograms of cut rag per hour

READERSHIP AWARDS 2023

RETURN TO

HAMBURG!

From onboard caterers to connectivity and all the latest in aircraft cabins, the PAX Readership Awards will once again recognize those in the industry that go above and beyond — this year in partnership with TravelPlus for the first time!

The award winners will be announced on June 6, 2023 at the Radisson Blu Hotel in Hamburg.

Award winners will be featured in a special spread, as well as in our e-Newsletter.