Gulf-Africa MEADFA 2015 by Paramount Publishing Ltd.

MEADFA 2015

DUTYFREEMAGAZINE.CA NOVEMBER 2015 · MEADFA VOL 25 · NO 3

Morocco on the move p. 18 QDF stages Armani fashion show p. 28 BPI hits the right notes p. 62

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They sell as good as they taste

LETTER FROM THE EDITOR

NOVEMBER 2015 · MEADFA · VOL 25 · NO 3

Gulf-Africa Duty Free & Travel Retailing (ISSN 0954-0592) is published four times a year (Spring, Fall and Winter) by Global Marketing Company Ltd., 26 Pearl Street, Mississuaga, Ontario L5M 1X2 Canada. It is distributed to duty free operators and distributors in the following countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE, Yemen, Algeria, Azerbaijan, Benin, Cameroon, Cape Verde, Djibouti, Egypt, Ethiopia, Gabon, Ghana, Guinea, Iran, Ivory Coast, Jordan, Kenya, Lebanon, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Namibia, Pakistan, Reunion, Senegal, Seychelles, South Africa, Sudan, Syria, Tanzania, Togo, Tunisia, Turkey, Turkmenistan, Uzbekistan and Zaire, as well as to duty free suppliers worldwide. Subscriptions: $200 for one year, $300 for two years and $400 for three years. Art and photographs will not be returned unless accompanied by return postage. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. November 2015, Vol. 25, No.3. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2015 Global Marketing Company Ltd.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ASSOCIATE EDITOR Ryan White ryan@globalmarketingcom.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Mary Jane Pittilla Claire Malcolm

ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca

Optimism abounds I

n a sector where ups and downs are the norm, the Middle East region has been remarkably consistent where air travel growth is concerned. According to the latest statistics available from Airports Council International, the region posted a year-over-year international passenger traffic gain of 15.5% in August 2015, the highest increase by far of any region worldwide. Similarly, the Middle East’s year-to-date performance to August 2015 showed an 11.8% gain in international passengers over the same period in 2014, again the highest of any region by over three full percentage points. Middle Eastern duty free operators, never content with resting on their laurels, have ensured that passengers traveling through their airports are greeted with something new every time they visit. In this issue, you can read about a recent Qatar Duty Free initiative that was the first of its kind—a Giorgio Armani airport fashion show at the operator’s Giorgio Armani store at Hamad International Airport. You can learn more about the event, organized to celebrate the brand’s Autumn/Winter 2015/16 collection, on page 28. World Duty Free Group (WDFG), too, is seeing the potential that the region holds despite slowing growth in its Jordan airport stores due to the conflict in Syria. On page 10, Pedro Castro, Chief Operating Officer International at WDFG, tells us that the operator is refurbishing its Kuwait stores and is expecting to more than double its sales in Saudi Arabia in 2015. And while North Africa’s international passenger traffic may not be quite as consistent as that of the Middle East, Gulf-Africa Duty Free has learned that innovation and optimism nonetheless reign supreme in the region. On page 18, we speak with Christopher Tantoco, Vice-Président Exécutif of International Duty Free Stores (IDFS), about the latest developments at the operator’s stores. From a new 155-square-meter departures shop at the new Fes-Saïss Airport to a rebranding that is wowing customers, Tantoco says that IDFS’s basket size is growing across the business, and in Casablanca specifically sales are up 19%. Of course, there is much more to be found in this year’s Gulf-Africa Duty Free MEADFA issue, including news from the region’s airports and air carriers, as well as developments from all the hottest brands in duty free. I wish you a productive MEADFA 2015 conference and look forward to seeing you at the event. Kindest Regards,

CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

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

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

Welcome to the award-winning Qatar Duty Free - a shopping emporium at the very heart of Qatar's state-of-the-art Hamad International Airport. Where you will discover more than 70 boutiques and over 30 cafes and restaurants, turning your stay at the airport into an unforgettable 5 star experience. We bring together some of the worldâ&#x20AC;&#x2122;s leading brands in a sophisticated environment, with the largest airport perfumes and cosmetics store in the world, to the latest fashion trends, jewellery, electronics, toys and confectionery. A visionary new travel retail experience, Qatar Duty Free offers an unprecedented choice of tailor-made shopping concepts to appeal to everyone. Qatar Duty Free â&#x20AC;&#x201C; Another Class of Duty Free

CONTENTS

What’s inside

LEAD STORIES 10 World Duty Free Group GREAT EXPECTATIONS

Travel retail powerhouse World Duty Free Group has big ambitions for its rapidly expanding operations across Kuwait, Saudi Arabia and Jordan

14 Dubai Duty Free LEADING BY EXAMPLE

With revenue projections of US$2 billion for 2015, Dubai Duty Free remains a frontrunner in the industry and a pioneer for the region

18 International Duty Free Stores MOROCCO ON THE MOVE

Playing up its ‘last good buy before you fly’ philosophy, IDFS has high hopes for its new Fes store with other locations also bucking the regional downwards trend

22 Buying trends SHOPPING FRENZY

New travel shopping index reveals Muslim shopping behavior

24 Aer Rianta International Middle East ONWARD AND UPWARD

ARI’s Gerry Crawford tells Gulf-Africa Duty Free that despite challenges in the Middle East, a strong business strategy is acting as the foundation for ARI’s continued growth

28 Qatar Duty Free QATAR DUTY FREE STAGES WORLD-FIRST GIORGIO ARMANI AIRPORT EVENT

Italian fashion brand Giorgio Armani has underlined its commitment to Qatar Duty Free in style at Hamad International Airport

24 60

FEATURES Air travel statistics Full speed ahead for Ferrari Capping a niche A tale of two fragrances The power of daily ritual

54 58 60 62 68

Quality in the bag Solid case for category growth Capturing the zeitgeist Editor’s picks “Changing from the inside”

70 72 76 78 80

CONTENTS

LEAD STORIES 32 ATÜ Duty Free ATÜ DUTY FREE OPENS REFURBISHED STORE AT TUNIS CARTHAGE AIRPORT

Turkish operator ATÜ Duty Free has aired its wide-ranging ambitions in Tunisia, following the opening of a revamped store at Tunis Carthage Airport with its joint venture partners

34 African travel retail research BRIGHT HORIZONS

New research by m1nd-set reveals African airport duty free’s strengths and weaknesses, but most importantly its potential for growth

38 Dufry Sharjah SHINING A LIGHT ON SHARJAH

With a refurbishment planned for later this year and an all-new customer loyalty scheme on the cards, Dufry Sharjah is capitalizing on the growing number of passengers to the northern emirate

100

42 Cairo Airport Duty Free PREPARING THE GROUND

Times are tough for Cairo Airport Duty Free, but there is light at the end of the tunnel with the planned opening of its stores in the new Cairo International Airport Terminal 2 in 2016

46 ATÜ Duty Free GLOBAL AMBITIONS

ATÜ is making its mark among the major duty free sellers with a group of loyal partners, a growing home airline and customer centered approach to travel retailing

50 India allowance HARSH LIMITS

Passengers from Dubai have been put on a strict carry-on diet, and duty free is part of that rigid plan

FEATURES

A gift for growth Confectionery news Liquor news Brown Forman dives deeper Bringing joy to the Gulf Party on!

82 84 88 94 96 98

A natural addition 100 Tobacco news 101 Chinese tobacco brand plans further expansion 102 TFWA WE review 104 Questionnaire: Saboohi Khan 106

RETAILER NEWS: WORLD DUTY FREE GROUP

Great expectations by

MARY JANE PITTILLA

A complete assortment of products in all categories is available at QAIA. The best-selling categories are beauty and tobacco

Travel retail powerhouse World Duty Free Group has big ambitions for its rapidly expanding operations across Kuwait, Saudi Arabia and Jordan

ew shops in Kuwait, expansion in Jordan and developments in Saudi Arabia have made life very busy for Pedro Castro, Chief Operating Officer International at World Duty Free Group (WDFG), since the last MEADFA conference was held in November 2014. First up, Kuwait. “We are currently renewing our stores in Kuwait International Airport, after being awarded the tender issued by the Directorate General of Civil Aviation,” Castro explains. “We operate two stores of 192 square meters each. Refurbishment of the new stores will be finished by December 2015. “We are mainly focused on the core product categories (beauty, food and tobacco) plus a gold shop. Every category will have its own promotional space within its location. This will help to enhance the commercial offer and drive penetration to the store.” As Kuwait is a key market for WDFG, constant and steady sales growth is expected in the coming year, he notes. In terms of the best-selling product categories and brands in Kuwait, Castro explains that there are two main differentiated passenger profiles, one more focused on beauty and fragrances (Kuwaitis) and the other on food, massmarket goods and tobacco (expatriates). 10

Next up, Jordan. WDFG operates in three airports in the country: Queen Alia International Airport (QAIA) and Marka in Amman, and the third in Aqaba. The total commercial area for the operator’s 11 stores is around 3,700 square meters. The most important airport is QAIA, in which the main stores are located in departures and arrivals, three Express shops, electronics and gold outlets. All main categories are included. In Amman the company stages constant promotions. The most recent ones include the Winston cigarette brand, supplied by Japan Tobacco International, the Sauvage men’s fragrance from Parfums Christian Dior, and Olympéa, the new fragrance from the Puig-owned house of Paco Rabanne. Regarding passenger traffic numbers,

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Castro cautions that the political situation in the Middle East has impacted WDFG’s business and that the previous year’s growth has stopped due to the conflict in Syria. On a more optimistic note, he adds that despite this, the company is still experiencing “reasonable” sales performance and the situation seems to be improving. In August there was a record increase in traffic with 830,000 passengers, up 5% VLY. Amid the political turmoil in recent years, WDFG has observed some changes in consumer shopping behavior. The operator’s main nationalities – the Jordanians and Iraqis – have made more demands for attractive and competitively priced offers. In Jordan WDFG offers a complete assortment of products in all categories.

RETAILER NEWS: WORLD DUTY FREE GROUP Kuwait is a key market for WDFG; constant and steady sales growth is expected in the coming year

The best-selling categories are beauty and tobacco. Turning to Saudi Arabia, WDFG operates two main stores in Riyadh Airport, in Terminals 1 and 2, which began trading in November 2014, in partnership with Al Musbah Trading Group. The most recent store to be opened was Dammam, in January 2015. These two new airport locations followed on from Jeddah South and North Terminal shops, which opened in 2013. The total commercial area is 7,665 square meters across the five stores: Jeddah (South Terminal 2,040 square meters, North Terminal 1,645 square meters), Riyadh (T1 and T2, 1,520 square meters each), and Dammam (940 square meters). The company is offering the top brands that suit its different passenger profiles.

Castro is upbeat about the performance of the Saudi Arabian operations in 2015. “The expectations are high,” he enthuses. “All our shops are walkthrough stores and we expect to more than double sales in this country, mainly thanks to the opening of our Riyadh and Dammam stores.” In terms of trends in consumer shop-

WDFG’s main stores are located in departures and arrivals of QAIA

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

ping behavior, Castro is seeing different profiles for each terminal/airport across the country, and this is why the commercial offer is specially tailored to passengers in the different locations. Sales are concentrated on the top suppliers from beauty and food categories. Gold is also a very significant part of the sales mix, he adds.

RETAILER NEWS: DUBAI DUTY FREE

The company currently operates 28,000 square meters of retail space at Dubai International Airport as well as 2,500 square metres of retail space at the new Al Maktoum International

Leading

With revenue projections of US$2 billion for 2015, Dubai Duty Free remains a frontrunner in the industry and a pioneer for the region

by example

n early 1983, Dubai was in the nascent stages of economic expansion, and its soon-to-be-launched duty free operation was a test bed for the potential of non-aeronautical revenues at the emirate’s international airport. “The Dubai government wanted us to set up a duty free operation based on a modern, European model. After we’d been there for just a short time, it was obvious they wanted it to grow, and this was a story that was to be played out across the aviation sector,” says Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free. Launched on December 20, 1983, in its first full year of operation Dubai Duty Free achieved sales of US$20 million, with a total of three million passengers travelling through the airport in 1984. By the close of 2015, McLoughlin expects to achieve revenues of close to US$2 billion, with the airport welcoming 79 million travelers. “Back in 1983, the business was an amalgam of 16 different concessions with a lot of duplication. The airport wasn’t really making any revenue from it and so, on our recommendation, the system of concessionaires was discontinued, and the government decided to run duty free,” he explains. Today, Dubai International Airport outranks London Heathrow as the world’s busiest airport for international passengers, and will shortly add an additional 7,000 square meters with the imminent debut of the new Concourse D at Terminal 1. Says McLoughlin: “We now operate 28,000 square meters of retail space at Dubai International Airport as well as 2,500 square

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

CLAIRE MALCOLM

meters of retail space at the new Al Maktoum International, which, with the addition of seven daily flights from flydubai on October 25, 2015, will make a big difference.” Dubai Duty Free has one of the highest levels of passenger penetration in the world, selling to just under half of all travelers using the airport, compared to a global average of 18 to 20%. Revenue per passenger at Dubai Duty Free has, in fact, risen from US$5 per head in 1984 to around US$46 today, and that is supported by a small army of sales staff and management–numbering 6,000 people–who, collectively, sold 78 million items of merchandise in 2014. “That was 27 million transactions on our cash registers and, if you do the sums, that equates to 73,000 transactions per day,” notes McLoughlin. Despite a tough 12 months with the decline in Russian traffic, currency fluctuations and other geopolitical challenges, he is forecasting 1% growth on last year; bucking the global industry trend, if only marginally. Compared to 30 years ago, McLoughlin flags increased product choice and category diversity as the main change to the duty free landscape, as he explains: “In the early days, duty free was perceived to be all about alcohol, tobacco and perfumes. Today, however, confectionery accounts for seven per cent of our business, for example, and we sell around US$4-$5 million per year. “So, having a bigger choice has been very important to our development. There is also a wider spread of travelers and, as an example, they want to buy things like chewing gum. So it’s

Dubai Duty Free has received numerous accolades over the years, with a growing tally of 500 awards to its name

Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free

An additional 7,000 square metres will shortly be added to Dubai Duty Free’s retail space with the imminent debut of the new Concourse D at Terminal 1

not merely about luxury brands, perfumes, jewellery and cheap alcohol – passengers want access to a much bigger collection of retail opportunities.” The fashion counter is another development that McLoughlin highlights as indicative of the evolution of duty free as a wellrounded retail destination. “Many of the brands you find now in duty free locations around the world weren’t sold previously. Take Dubai Duty Free; until two years ago we didn’t retail Chanel handbags. “And it’s the people traveling who help dictate the direction we take. We’ve all read about the Chinese traveler phenomenon, and their love of big brands, but there are now more Chinese

traveling than ever before and they are buying secondary brands as well.” Innovation both in technological advancement and product offering is a business prerequisite, as McLoughlin elaborates: “We couldn’t manage our business if our storage areas weren’t 90% automated. “It’s all done at the touch of a button. So, someone in duty free will electronically request 25 pieces of a certain item and a crane in our 27,000-square-metre store will automatically go and find the correct pallet and bring it to our warehouse staff to select the items. “After that, they place the items in a trolley, press another but-

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

RETAILER NEWS: DUBAI DUTY FREE

recruited a senior person outside of the company for 17 years. If you compare us to many other Middle Eastern companies where there is annual staff turnover of 30 to 35 per cent, we had just 6.3 per cent last year,” he notes. Dubai Duty Free staff represent 47 nationalities, speak 32 languages and, last year, the company received 51,000 job applications. Duty of care extends beyond the employee remit with Corporate Social Responsibility a core commitment, as McLoughlin explains: “With our chairman, Sheikh Ahmed’s approval, we transfer a small percentage of our top line every year to fund the foundation and have supported By the close of 2015, McLoughlin expects to achieve revenues of close to US$2 billion, with Dubai International Airport forecast to welcome a total of 79 million travelers 85 different charities to date from restoring the eyesight of 800,000 people through Sightsavers to donating US$1.5 million to fund 4,000 cleft palate operations in the Philippines and rebuildton and the crane removes the pallet, puts it back in its rightful ing an entire Sri Lankan village after the 2004 tsunami.” place and then waits until it’s needed again.” After 46 years in the business, McLoughlin laughingly says Dubai Duty Free has 27,000 of these pallets and, in 2014, that his passion for the industry will see him round it out to a delivered 174,000 from its offsite store to duty free, which half century. involves security clearance routing and police x-ray at multiple “What also continues to fire my passion, apart from our levels. It also has 70 trucks that criss-cross the airport runways people and the fact that we’ve won 500 awards over the years– every day. which suggests that we’re pretty good at what we do–is the fact Technology is also fronting increased customer interaction that if you look at the returns for the duty free industry globally, with Dubai Duty Free introducing a new online sales portal in the income per square meter is US$34,000, and at Dubai Duty 2014. “We took AED50 million (US$13.6 million) in sales this Free it’s US$82,000. year to date, and we expect to double this to AED100 million “As we expand with new space like Concourse D, this will (US$27 million) next year,” he remarks. decrease, but it will still be around US$70,000 per square meter, Another vital means of driving awareness and eventual and that’s a great measure of our success.” spend is Dubai Duty Free’s sponsorship of major sporting and other events, with 2.5% of top line revenue allocated to sponsored advertising each year, or AED174 million (US$47 million) Through its foundation, for 2015. Dubai Duty Free has supported 85 different The company’s new operation at Al Maktoum International charities to date is a scaled-down model of its existing format at Dubai International, but change is already afoot with McLoughlin referencing the current expansion program, which will see retail space grow to 4,000 square meters in two years’ time. “The airport’s capacity will also rise from seven million passengers per annum to 20 million and, looking further ahead, by 2021-22 there will be another terminal building, two new concourses, three runways in operation and capacity for 135 million passengers. We will then have a grand total of 80,000 square meters of Dubai Duty Free retail compared to the current 33,000 square metres, once Concourse D opens,” he says. If those numbers aren’t mind-boggling enough, under the Dubai Government’s SP30 Plan, Al Maktoum International will eventually grow to accommodate a staggering 240 million passengers per annum. At the heart of the business are Dubai Duty Free’s people, and McLoughlin puts staff recruitment, training and retention at the top of his criteria for success list. “We started with 100 staff, 32 years ago, and we still have 35 of the original team working with us. We also have an internal promotion policy and haven’t 16

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

RETAILER NEWS: INTERNATIONAL DUTY FREE STORES

Refurbishment of the group’s Casablanca store in 2014 resulted in an exciting new look after a challenging two-month closure

Morocco on

the move

hristopher Tantoco, Vice-Président Exécutif of International Duty Free Stores (IDFS) is on tenterhooks as the Morocco operator awaits the opening of its latest location with a 155-square meter departures space at the new Fes-Saïss Airport in the country’s old imperial capital. The new facility, which was originally scheduled to open for business in May this year, is awaiting its official inauguration but, once operational, will have capacity for up to 2.5 million passengers per annum. It will replace the old facility, which currently services 1.2 million travelers each year, double its 600,000 passenger capacity. “We were given a very tight timeframe by the airport in which to deliver the space and from design to implementation, we did it in just five months; so it is fitted out and ready to go,” says Tantoco. With a number of new flights and carriers reported to be taking up residence at the airport, IDFS has high hopes for its future performance, as he explains: “As well as the 155 square meters for the main shop we have an additional 42 square meters allocated for the Lacoste store, and the space is double the size of our existing location. We are also looking at an arrivals shop next year, once the airport is up-and-running. “We rebranded two years ago with an entirely new look and style, which we rolled out to our new stores—including Fes— based on the use of Moroccan colours with a local flavour, and also incorporating our new logo.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Playing up its ‘last good buy before you fly’ philosophy, IDFS has high hopes for its new Fes store with other locations also bucking the regional downwards trend by

CLAIRE MALCOLM

The rollout plan also uses vertical breaks to create segmented shops in order to specifically highlight each merchandise category and the customer journey is delineated by overhead departmental signage and internally lit tower fixtures clearly marked with designer brand logos. “This is accentuated by ambient LED lighting punctuated with softly luminous ceiling-hung pendants to enhance the welcoming effect whilst, underfoot, the ever-changing Moroccan desert landscape inspired a circulation path which transitions from dark tile to lighter coloured ones,” Tantoco explains. To bring the effect together, and to reflect the country’s rich culture and natural beauty, an indigenous color palette featuring shades of rich ivory with sea and sky-inspired blues is combined with classic Moroccan graphical design motifs. Functionality is also a vital element with the integration of a smart and flexible fixture system to accommodate a variety of merchandise across all categories. Although the new concept betters suits an open space layout—as seen at the flagship Casablanca location—to highlight the hanging 3D logo and raised arches of Moroccan riads that feature prominently in the design, the company adapted the offering to fit the Fes shop with the exception of the central hung globe. In terms of brands and category differentiation, Tantoco says that the new location will replicate the existing brand offering. “We previously introduced Al Fakher Shisha, which will also be in the new store, and will also be improving our wines and spirits

IDFS held its first ever catwalk fashion showcase in Casablanca at the end of October 2015

IDFS is seeing basket size growth across its entire portfolio, which has prompted a rethink of the merchandising strategy for 2016

Business at IDFS’ Casablanca location has picked up by 19% year-on-year thanks to the new design and open store layout

assortment. As with the existing store, we are expecting tobacco to remain the number one category, followed by fragrances. We may also look at growing our fashion and travel accessories categories. For example, Lacoste will be there with its own boutique,” he says. Current top-selling fragrance brands include Chanel, Dior, Giorgio Armani, Guerlain, Givenchy, YSL and Lancôme with wines and spirits sales led by Johnnie Walker, Absolut Vodka, Camus and Medallion. Finally, in confectionery, Mondelez and MARS products headline category performance. Promotion will, naturally, be a focus with the imminent opening, and a calendar of special offers, sampling activities and gift with purchase is being compiled; with Tantoco forecasting sales growth against the existing store of +10%.

The objective of the fashion show and IDFS’ Fashion & Beauty Fair was category brand building between F&C and fashion

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

RETAILER NEWS: INTERNATIONAL DUTY FREE STORES

IDFS rebranded two years ago and is currently rolling out its new Moroccaninspired design across the portfolio, with Fes the next location to open

The new departures store at Fes will be double the size of the current location at 155 square meters plus a 42-square-metrered dedicated Lacoste shop

“We have worked on a number of activations/promotions for perfumes and cosmetics, confectionery, and wines & spirits across all our stores. There is a lot of price sensitivity in the market, and we have found that our brand partners have been very supportive when it comes to creating appealing offers like the buy two and get a third bottle [alcohol] with 40% discount, or purchase any two bottles of spirits and save 25%.” The slowdown in 2014 was also due to refurbishment of the Casablanca site, IDFS’s number one store, where the two-month closure directly impacted F&C and confectionery category sales. However, on a positive note, he says that IDFS has noticed that, across the board, its basket size has been growing. “The passenger traffic numbers are perhaps not there, nor is the conversion rate going up, but we have seen single digit growth in basket size. This is an upward trend across all our locations,” he comments.

Christopher Tantoco, VicePrésident Exécutif, International Duty Free Stores

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

“This has prompted us to rethink our merchandising strategy, and we have decided, from 2016, to make each store a custom fit destination. So, we are buying and supplying to each store the brands/products that we know are popular and that will sell,” he continues. Over in Casablanca, he reports that business is starting to pick up after a difficult year. “The new design and open layout has resulted in 19% pick-up in sales. It has also facilitated passenger access as well as visibility,” he says. “In numbers, this overall enhancement program has seen category growth of 8% for cigar sales, 30% in F&C, 21% for confectionery, and 27% in gifts and travel accessories,” he adds. And he is crossing fingers that the numbers will continue their upward trend and Q4 2015 activity is focused on Sparkling Holiday Deals, with gift suggestions offering value for money across all categories, and savings of between 10 to 25%. “We also held our first ever catwalk fashion show at Casablanca at the end of October. This was a great opportunity to showcase our fashion and accessories brands,” he notes. “The thought process behind this was category building between F&C and fashion, to highlight our Fashion and Beauty Fair campaign. With the fashion show we paired fashion brands covering bags, jewelry, watches and Lacoste, with leading fragrance brands with the aim of demonstrating to our customers that we have a variety of merchandise that caters to their needs,” he adds. For Tantoco, it is important that IDFS remains innovative and creative, as he clarifies: “That’s a major point of difference between us and the competition. As a smaller organisation we can fast track the decision-making process and get goods directly and faster than anyone else.” In the last year the team has started working on getting a website set up and this is currently in the final stages of design and development, with a tentative implementation date of Q1 2016. “Next year we will centralise our warehouse and office operation to increase efficiency and, of course, we also continue to grow our portfolio,” he notes, adding: “When I joined the company three years ago we had 20 stores in 10 locations. Today, and with the recent concession win to operate a 14-square-metre last minute shop in Casablanca, launching November 1, we have 24 exciting locations.”

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BUYING TRENDS

Shopping

frenzy New travel shopping index reveals Muslim shopping behavior

otal expenditure of Muslim travelers visiting 40 cities amounted to US$36 billion in 2014, of which 26% was spent on shopping, according to a new report released by MasterCard and CrescentRating in the run-up to the Global Islamic Summit to be held in Dubai. Four cities from across the Arab world are among the top 10 destinations to visit globally for Muslims for shopping purposes. The Muslim Travel Shopping Index 2015 analyzes the trends and preferences of the Muslim travel shopping market based on the performance of 40 main international shopping destinations against a number of set criteria. Compiled by MasterCard and CrescentRating, the inaugural 2015 index ranked Dubai in the UAE as the leading shopping destination for Muslim tourists globally. The report found that 56% of respondents shop for souvenirs as typical purchases, while 45% shop for local clothing brands. Some 40% of respondents also purchase Islamic clothing and accessories, while 38% chose traditional handicrafts.

Almost one-third (27%) of respondents spend between US$250 and US$500 on shopping whilst traveling, while 24% spend between US$500 and US$1,000, and 20% spend over US$1,000. Singapore and London ranked among the top five destinations for Muslim shopping travelers. Manama was the second highest ranked destination in the Arab world for destinations within the Organisation of Islamic Cooperation (OIC), coming in at seventh overall, while Doha followed as the third-ranked shopping destination in the Arab world, with an overall position of eighth. Riyadh was the fourth highest ranked destination in the region in the OIC list, with an overall ranking of ninth. While it fell outside of the top 10 global Muslim travel shopping destinations, Sharjah ranked fifth highest among the destinations in the Arab world, coming in 12th overall. Commenting on the 2015 index, Raghu Malhotra, Division President, Middle East and North Africa, MasterCard said: “With 108 million Muslim travelers representing 10% of the entire travel economy in 2014,

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

and forecasted to grow even further to 150 million visitors by 2020, it is evident this segment of the travel market represents a huge opportunity for both public and private sector organizations. We are very pleased to publish this Index on the travel and shopping patterns of Muslim communities in order for organizations around the world to more effectively target and capture share of this lucrative travel sector.”

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RETAILER NEWS: AER RIANTA INTERNATIONAL - MIDDLE EAST

ARI refined its car draw campaigns to encourage ticket buyers to make a second purchase by offering a number of discount vouchers that could be used in the duty free store

Onward and upward

ulf-Africa Duty Free had the rare opportunity to sit down with Gerry Crawford, Chief Operations Officer at Aer Rianta International (ARI) Middle East to discuss the company’s business in the region and the strategy behind new store openings, renovations, promotions and product launches at its stores in Beirut, Bahrain, Cyprus and Delhi. “Overall sales growth is very positive and we are trading well above last year in most locations in what is currently a challenging environment for a variety of external reasons in different regions,” Crawford began.

Breaking down sales performance Crawford tells us that Beirut Duty Free is performing extremely well and maximizing sales in spite of a challenging political situation, the unrest in neighboring countries and the impact of a strong Dollar/weak Euro. Parallel to this, Cyprus Airports Duty Free has been affected by a decline in the strength of the Rouble, and Russian passenger arrivals are down as compared to 2014. “I think many locations that had a significant level of Russian traffic are feeling these effects,” Crawford noted. “However, in this industry the only thing constant is change and we have learned over the years to adapt.” And adapt is what ARI has done in Cyprus, with a renewed focus on other key passenger groups such as UK-bound passengers. Crawford called Delhi Duty Free sales to date in 2015 “very encouraging,” with the operations in Delhi growing significantly over the same period in 2014. In fact, ARI has shown year-overyear growth at Delhi Duty Free every year since inception. “We

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

ARI’s Gerry Crawford tells Gulf-Africa Duty Free that despite challenges in the Middle East, a strong business strategy is acting as the foundation for ARI’s continued growth by HIBAH NOOR

have recently recorded some of our highest ever sales months since we commenced operations in 2010,” Crawford explained. With regard to Bahrain Duty Free, overall consolidated sales are running above 2014 levels and are in line with overall passenger traffic growth. In general across its operations, Crawford told us that better economic conditions, a more stable political condition and cheaper international holiday destinations have contributed to an increase in business and leisure travelers. “More passengers are also pre-planning and spending more on their duty free transactions,” he said. “A number of innovative marketing campaigns have also been instrumental in driving the improved sales performance.”

Tailoring promotions to travelers ARI makes a point of ensuring that its promotions are in line with the needs of shoppers at each of its operations. In Bahrain, for example, the retailer has developed promotions aimed at specific passenger groups, including the “cash back” promotion, where customers were given the chance to win back the value of their purchase. “This particular promotion was aimed at passengers with a lower average basket size,” Crawford explained. “It gave them the opportunity to win a refund of their purchases. Additionally, to coincide with the Bahrain Formula 1 race in April, a major campaign was run in conjunction with MasterCard where customers using their MasterCard received discounts of up to 15% on their purchases.” To complement the above, ARI refined its car draw campaigns to encourage ticket buyers to make a second purchase by offering a number of discount vouchers that could be used in the duty free store. The operator has also made significant improvements

Beirut Duty Free is performing extremely well and maximizing sales in spite of a challenging political situation

to its Shop & Collect service, making it even simpler for customers to use. “This provides travelers the facility of buying in Departures and collecting their purchases upon their return to Bahrain,” Crawford said. “This was the focus of a multi-language media campaign throughout the country in July targeting Arabic, English, Hindi and Malayalam speakers.” In Delhi, ARI has focused on ensuring that its shoppers are the first to purchase new launches in India by making sure that they are available at the same time as at other major airports. Furthermore, Delhi Duty Free’s promotional activity has lately moved into high gear, with campaigns that give shoppers the chance every month to win a BMW; win gold; and win a trip to Switzerland, among others. “These promotions have really helped elevate Delhi Duty Free’s brand reputation with its customers,” Crawford said. “We are also delighted to have been the recipient of many awards recognizing our social media activities and innovative marketing campaigns.”

Gerry Crawford joined the DAA group of companies after graduation with a Bachelor of Commerce degree from University College Dublin. He held various finance management roles before being recruited to the DAA’s international retail management program. Subsequently, he spent 14 years overseas with ARI, holding senior management positions in Eastern Europe, the Middle East, The Levant and the Mediterranean. Prior to taking up the role of COO, his most recent posts were Director Retail Operations, Head of Retail & Concessions (Ireland) and Regional Purchasing Manager – Middle East and General Manager of the award winning Cyprus Duty Free. Gerry also holds an MBA from Warwick Business School.

Who’s purchasing what? Crawford told us that across ARI’s Middle East region, Beauty, Liquor and Food & Beverage are the top three categories. He conceded, though, that there are regional differences, driven in no small part by the popularity of Arrivals shopping in different markets. “Arrivals account for a very significant portion of our total sales,” said Crawford. “Indian shoppers spend in significant numbers in Arrivals, whereas in our Departures stores Indians account for less of our customer base.” At Delhi Duty Free, the key shoppers come from India, the UK, Kathmandu, the US, China and Japan. In terms of luxury goods, Chinese travelers, followed by the Japanese, are the most significant spenders. At Bahrain International Airport, the mix is different; the main travelers are GCC nationals and residents, Indian Subcontinent nationals and Europeans. “In Delhi, customers are spending more every time they

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RETAILER NEWS: AER RIANTA INTERNATIONAL - MIDDLE EAST

With a renewed focus on other key passenger groups such as UK-bound passengers, this new focus provides a currency benefit

shop, and thus average spend is growing, as is the demand for more expensive products,” Crawford said. “Nearly a quarter of shoppers are repeat customers, which is extremely positive and testament to our customer loyalty program and strong value message.” ARI understands that first-time shoppers are still quite nervous about the airport experience and tend to rush to gates, making them less likely to shop. To counteract this trend, the operator is running a number of marketing programs to help increase penetration to its stores. The increase in transfer traffic at Bahrain International Airport has brought about a shift in the passenger demographic this year, which has unfortunately resulted in a larger proportion of passengers having a somewhat more restricted spending capacity. “This, coupled with the recent airline baggage restrictions being given by airlines traveling to the Indian Subcontinent, has proven challenging,” Crawford explained. Crawford also took the time to reiterate the challenge that currency fluctuations pose: “Overall, across the markets currency issues are providing a challenge to all operators in the Middle East, I think. The significant devaluation in the Rouble and the strong Dollar/ weak Euro is something our brand partners need to help us to tackle,” he said. “Hopefully, the recent devaluation in the Chinese RMB will not have a significant effect or else we will have a perfect storm of issues all related to currency fluctuations.”

Towards the end of last year ARI opened a new 420-square-meter fashion and lifestyle area, and Crawford noted that results have been extremely positive. 2015 to date has seen an upgrading of the product offering in ARI’s satellite stores at the airport, and the operator also relocated its Bahraini souvenir category into the main Departures store. A number of initiatives are also planned for late 2015/early 2016 in the Departures and landside stores. Over at Delhi Duty Free, ARI is upgrading its Departures and Arrivals main shops at Terminal 3 as a means of further improving the shopping experience. “The existing Departures and Arrivals stores are divided into two shops by a walkway which will now be reconfigured into a true walkthrough store,” Crawford said. “The new design will certainly help maximize penetration.” And Beirut Duty Free has responded to growing customer demand for electronics by opening a new 225-square-meter electronics store alongside ARI’s 85-square-meter Virgin megastore. The new store marks a significant expansion of the previous shop, which covered an area of just 170 square meters. The refurbished unit carries an extensive product range, which includes laptops, tablets, mobile phones, photography, audio, healthcare products, gaming, wearable tech and a wide selection of electronic accessories.

The last word Crawford, still relatively new in the role of COO, was appointed to the position in April of this year. We ended our conversation by asking him how he feels about taking on this challenge. “In my new position I am responsible operationally for all our business units globally, stretching from the Americas to New Zealand,” Crawford explained. “I am absolutely delighted to take on such a pivotal role in the organization. Whilst it is very challenging it is also very rewarding.”

Investing in the business Despite challenges, ARI continues to invest in its business in the Middle East. At Bahrain International Airport, 2014 saw the complete renovation of the arrivals store, followed by upgrading and relocation plans for the Book store, Toy store, Electronics store.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Delhi Duty Free sales to date in 2015 very encouraging, with the operations in Delhi growing significantly over the same period in 2014

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RETAILER NEWS: QATAR DUTY FREE

The live fashion presentation featured six models walking a runway starting in Qatar Duty Free’s Giorgio Armani boutique

Qatar Duty Free stages world-first Giorgio Armani airport event

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Italian fashion brand Giorgio Armani has underlined its commitment to Qatar Duty Free in style at Hamad International Airport

assengers visiting Qatar Duty Free’s Giorgio Armani store at Hamad International Airport (HIA) were the first in the world to enjoy an airport fashion show staged by the Italian designer. Armani’s women’s and men’s clothing, bags and accessories from the Autumn/ Winter 2015/16 collection were showcased in front of VIP guests and passengers on October 1. The live fashion presentation featured six models walking a runway starting in Qatar Duty Free’s Giorgio Armani boutique and extending out into the main passenger area. The event was held twice, both in the afternoon and evening. Giorgio Armani stylists and makeup artists traveled from Milan to offer passengers a personalized shopping experience, makeovers, styling tips and advice across the designer’s fashion and makeup collection. Keith Hunter, Senior Vice President, Qatar Duty Free, said: “We are delighted that our successful partnership with Giorgio Armani has enabled us to deliver this fantastic live fashion event in HIA, giving passengers a preview of Armani’s latest collection that is now available at the Giorgio Armani boutique

RETAILER NEWS: QATAR DUTY FREE

located at Qatar Duty Free in the airport departure terminal. “Last year Giorgio Armani selected Qatar Duty Free and HIA as the first airport in the Middle East to open a boutique. Today this exclusive fashion event further underlines Giorgio Armani’s commitment to the market and supports Qatar Duty Free in achieving its ongoing ambition to provide global travelers with luxury brands and exciting and memorable shopping experiences that go beyond regular retail expectations.” The Giorgio Armani boutique, opened by the award-winning Qatar Duty Free in November 2014, provides 190 square meters dedicated to ready-to-wear collections and accessories for men and women. The boutique is characterized by a refined and intimate feel using brushed silk, backlit onyx and polished stone.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

INSIGHT

25%

of shoppers would buy cash till offers in a duty free store.

CONFECTIONERY

• IS THE MOST SOUGHT AFTER CATEGORY AT CASH TILL. • HELPS TO DRIVE INCREMENTAL REVENUE.

Source: Global Duty Free Visitor Study, 2011 (11,000 interviews, 30 airports) Photo: Birmingham Airport

RETAILER NEWS: ATÜ DUTY FREE

Recently renovated main store in Tunis Carthage Airport

ATÜ Duty Free opens refurbished store at Tunis Carthage Airport Turkish operator ATÜ Duty Free has aired its wide-ranging ambitions in Tunisia, following the opening of a revamped store at Tunis Carthage Airport with its joint venture partners 32

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

TÜ Duty Free has announced that the majority (1,235 square meters) of the 1,552 square meter main store at Tunis Carthage Airport has been renovated and opened on September 16. In 2014, Istanbul-based ATÜ Duty Free (a joint venture between TAV Airports and Unifree Duty Free-Gebr Heinemann SE & Co and Hamila Duty Free) were awarded a tender to operate the duty free shops at Tunisia’s five international airports: Tunis Carthage, Djerba Zarzis, Sfax Thyna, Tozeur Nefta and Tabarka Ain Draham. The contract, which runs for eight years and two months, was gained with an offer of €32 million (US$36 million), starting November 2014. The total shop area covers 5,406 square meters and served 8 million passengers last year.

Speaking about the Tunis Carthage Airport contract, ATÜ Duty Free Managing Director Ersan Arcan began by paying tribute to the joint venture partners: “We combined with Gebr Heinemann SE & Co, which is the largest duty free retailer and supplier in Europe, who had taken the lead in the bid. We also had the opportunity to benefit from valuable insight and support from our other partner, Hamila Duty Free, a strong Tunisian duty operator. Tunis Carthage Airport is a very important operation point for us. Aviation and tourism is making rapid progress in Tunisia and the potential for further growth will help fuel our future success. We believe there are genuine opportunities to increase the scope and scale of our business.” Arcan said that the local culture would be an important factor in the retail opera-

tion. “Airports are generally the first point of contact with visitors to any country,” he said. “It is part of our business culture to offer our customers the best welcome possible. Here, our main aim is always to create real added value by delivering the best international retail standards as well as featuring and supporting local culture. Considering the fact that olives and olive trees are of great importance in Tunisia, the general concept of the store is based on the olive theme and it was designed to genuinely reflect the cultural elements of Tunisia in a modern way.” Arcan emphasized the importance of continually improving the product range. “Providing customer satisfaction is key to us. We aim to offer famous global brands at the best possible prices.”

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AFRICAN TRAVEL RETAIL RESEARCH

Bright horizons

New research by m1nd-set reveals African airport duty free’s strengths and weaknesses, but most importantly its potential for growth

r. Peter Mohn, CEO and Founder of research firm m1nd-set, recently revealed to Gulf-Africa Duty Free the results of a study on travel retail in Africa, providing some interesting insights on the sector in the region. He noted that while Africa accounts for about 15% of the world’s population, it receives only about 3% of world tourism receipts and 5% of tourist arrivals. Nonetheless, duty free has the potential to be big business in the region given a large population, a growing middle class and increased travel to Africa by other nationalities, especially amongst Chinese. Case in point: international tourism receipts in Africa totaled US$43.6 billion in 2012. Furthermore, just 25 years ago, in 1990, Africa attracted 17.4 million international travelers. By 2012, that number had exploded to 63.6 million. And with regard to travel by Africans, it should be noted that the continent has the second largest population in the world at about 1 billion people. Further good news for the future of air travel and duty free is that Africa’s population is the youngest among all continents, with 40% of Africans being 19 years of age or younger.

The basics

Dr. Peter Mohn, CEO and Founder of research firm m1nd-set

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

m1nd-set collected data for this particular study in Q2, 2015, surveying 2,000 respondents, both Africans and non-Africans who flew internationally from an African airport between mid-October 2014 and mid-April 2015. The most represented non-African nationalities in the study were Americans, British, Canadians, French, Dutch and Indians, while the most represented Africans were South Africans, Egyptians, Kenyans, Nigerians, Moroccans, Algerians and Cameroonians. The total conversion rate for all respondents was 51%, with the number of duty free visitors and buyers higher among non-

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AFRICAN TRAVEL RETAIL RESEARCH

Africans (56% and 31% for non-African visitors and buyers, respectively, versus 46% and 21% for African visitors and buyers, respectively), revealing a higher interest in duty free at African airports from non-African international travelers. The study revealed that the most visited categories by African travelers are Confectionery and Perfumes, followed by Electronics and Souvenirs. Non-African travelers preferred a more traditional mix of duty free categories—Perfumes, Liquor, Confectionery and Tobacco. The trend seen for visiting and buying continues within each category, says Mohn: “In general, all categories were significantly more often visited by non-Africans as compared to Africans,” he explains. With regard to who purchased what at the stores, non-Africans purchased the most in Liquor (52%), Perfumes (47%), Confectionery (47%), Tobacco (35%) and Cosmetics (29%). The African breakdown was as follows: Confectionery (49%), Perfumes (34%), Souvenirs (23%), Liquor (22%) and Tobacco (21%). The only categories where the share of African buyers is higher than non-Africans were Confectionery, Fashion, Stationery and Other, which includes bags, toys and the like. “Electronics topped the share of wallet with the highest share spent, where African buyers spent much more than non-African—30% spent versus 20%,” says Mohn. “The other top two categories with regard to the amounts spent were Perfumes and Liquor. All travelers bought mainly for themselves, with the exception

of Souvenirs, which were bought mainly for friends and relatives.”

Planned purchases A significant component of m1nd-set’s study focused on the habits of Tobacco buyers in African airport duty free. Purchases in the category were predominantly made by non-Africans; one third of travelers of other nationalities purchased Tobacco products while only 21% of Africans did so. As might be expected given that non-Africans purchased more, there were also more non-African respondents who smoked, 61% versus 39% of Africans. As has been revealed in other studies, Tobacco purchases in African airport duty free were generally highly planned. m1ndset’s research also indicates that most respondents who purchased Tobacco did so for themselves as opposed to buying as a gift. “The recommendation for increasing the conversion rate in the Tobacco category would be related to maintaining skilled and experienced sales advisors, as well as the availability of different sales and promotions,” Mohn says. “The survey revealed the significant impact of promotions of purchasing behavior, especially with regard to non-African travelers.”

Getting into their heads When respondents were asked to reveal their reasons for buying in duty free, an important feature of African airport travel retail became apparent: prices were lower than at downtown stores. Many travelers also stated that they wanted to buy a souvenir from their trip and found it more convenient to shop at the airport. African travel retail gets another gold star where customer satisfaction is concerned; many of those who took part in the study noted that they found exactly what they were looking for. About half of the respondents who visited

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

duty free interacted with store staff, with the main reasons for such interactions being to locate a product, to learn more about a product and to learn more about promotions. Importantly, Mohn notes that staff play a key role when it comes to converting visitors into buyers: “Interactions with the staff strongly influenced the final purchase in almost all categories, and mainly purchases made by non-Africans,” he says. As can be expected, promotional activity also played a role in getting visitors to purchase. Price reductions were unanimously selected as the most preferred promotion in the Liquor, Confectionery, Perfumes and Tobacco categories. For those who didn’t visit duty free, the most frequently cited reasons were a lack of time, no need to buy anything and not wanting to carry more items. Interestingly, despite buyers noting that favorable prices as compared to downtown were a deciding factor in their purchases, those who did not buy in duty free said that the biggest motivator for making a purchase would be having a guarantee that prices were lower in the airport’s duty free stores. “African airport duty free shops offer items that give good value for money, especially amongst non-Africans—81% of them considered the purchases made were excellent or very good value for money,” Mohn tells us. “This feature imposed over the study as one of the main highlights and is one of the strengths that African airports may offer to international travelers.”

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RETAILER NEWS: DUFRY SHARJAH

Shining a light

Non-aeronautical revenue accounts for around 65% of Sharjah Airport’s income

ON SHARJAH by

FAYE BARTLE

With a refurbishment planned for later this year and an all-new customer loyalty scheme on the cards, Dufry Sharjah is capitalizing on the growing number of passengers to the northern emirate

Iain Forrest, Deputy Chief Operating Officer, Middle East & India, Dufry Sharjah

hanks to a robust strategy for increasing its visitor appeal, drawing on its burgeoning reputation as a centre for arts and culture, Sharjah is steadily scaling the ranks as a preferred tourism destination and the aviation sector is scaling up alongside. Sharjah Airport is experiencing a marked rise in passenger traffic, handling 9.5 million passengers in 2014—up from 8.5 million passengers in 2013. It’s expected that the hub will see an additional 500,000 to 600,000 passengers annually, providing an ideal opportunity for Dufry Sharjah to leverage growth. “To capitalize on this, our focus has been tailoring our assortment to the passenger profile and offering new and innovative ways to increase penetration. An example is the scratch and win promotion we ran recently to incentivize our customers and boost sales,” says Iain Forrest, Deputy Chief Operating Officer, Middle East & India, Dufry Sharjah. “The airport’s traffic growth has been significantly aided by the expansion of Air Arabia’s services, for which we provide the onboard duty free offering.”

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gulF-AFricA DUTY duty FREE Free & TRAVEL trAvel RETAILING retAiling NOVEMBER tFWA We oCtober GULF-AFRICA 2015 2015

Dufry Sharjah has been focusing on tailoring its assortment to the passenger profile and offering new and innovative ways to increase penetration.

In future, the company is thinking of introducing a customer loyalty program

A fresh new look Back on the ground, non-aeronautical revenue accounts for around 65% of Sharjah Airport’s income. Dufry Sharjah already stakes a claim to the lion’s share of this and is intent on maximizing its contribution moving forward. “We are planning for a full shop refurbishment to commence in Q4 2015 and are investing in creating a world class shopping environment with brand personalizations and a design that creates a sense of place,” says Forrest. “We will also continue to offer our customers attractive promotions and pricing versus what they can get downtown, which will have a positive effect on revenue from both impulse buys and planned shopping.” To stay ahead of the curve, the company has been busy expanding its portfolio of leading brands with Victoria’s Secret, Tom Ford and Armani Jeans introduced over the past year. “The Victoria’s Secret opening marked the brand’s first airport outlet in the Middle East,” says Forrest. Aside from adding new brands, Dufry has unveiled a number of gate kiosks to facilitate last minute shopping.

Refining the proposition

Employing multi-lingual staff, specifically Mandarinspeaking employees, has been a major contributor to Dufry Sharjah’s success

The low-cost carrier now flies to more than 101 destinations across the Middle East, North Africa, Asia and Europe. Key route launches in 2014 included from Sharjah to Cairo, Egypt; Antalya, Turkey; Samara, Russia; Abadan, Iran; Al Jouf, KSA and Tbilisi, Georgia. Furthermore, in February this year, the airline launched a route to Urumqi in China, stimulating a fresh stream of visitors curious to explore the northern emirate. The airport’s new runway, which opened last year and is capable of handling A380s, has further aided growth and brought a set of new opportunities into play when it comes to targeting high-spending, premium passengers. “Some new destinations were added after the opening of the new runway in 2014,” says Forrest. “We adapted our strategy to have multi-lingual staff, specifically Mandarin-speaking employees, to aid communication in the shop. This has been a major contributor to our success.”

Currently, the best performing categories are perfumes and cosmetics, food, tobacco and alcohol. “Globally, these are the best performing categories across all duty free operations and hence are the focus of a lot of promotions and attractive offers,” says Forrest. When it comes to star brands, there are a number that warrant a special mention, including Chanel and Dior in perfumery, Toblerone in confectionery, Marlboro in tobacco and Johnnie Walker in the alcohol. “These are some of the star brands that have seen a huge demand in recent years and have been consistent performers,” says Forrest. “One of the reasons for this outstanding performance is the surveys we conduct on an ongoing basis in order to understand our customer’s needs and tastes. This information helps us cater well to them and we will continue adding worldclass brands to our portfolio in the near future.” Promotions are also helping to lure the crowds, with Dufry recently concluding its car promotion, presenting the winner with an Audi Q5 SUV. On July 1, the company started a new promotion for customers to win US$10,000 with one lucky winner picked at the end of each month for three months.

Future goals Looking ahead, Ali Salim Al Midfa, Chairman of the Sharjah Airport Authority recently said that the airport should be able to handle 25 million annual passengers by 2019—something Dufry has a vested interest in. “Dufry has been operating at Sharjah International Airport for the past 26 years and has been a strategic partner with the airport during this growth,” says Forrest. “We are actively involved in the masterplan process for Sharjah International Airport’s expansion. As for what we can expect to see in future, Forrest says: “Moving ahead, we want to develop a good base of loyal customers who will be rewarded through loyalty-based programs specifically designed for them. We would want to extend this reward program not only in Sharjah but Dufry globally.”

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25 39

RETAILER NEWS: CAIRO AIRPORT DUTY FREE

Cairo Airport Duty Free’s Valentine’s Day 2015 promotion in the T1 perfume shop aims to appeal to the terminal’s mainly Middle Eastern passengers

Preparing the ground by

MARY JANE PITTILLA

Times are tough for Cairo Airport Duty Free, but there is light at the end of the tunnel with the planned opening of its stores in the new Cairo International Airport Terminal 2 in 2016

Love hearts adorn Cairo Airport Duty Free’s perfume shop for Valentine’s Day 2015 in T3, catering to a European clientele

Always seeking out fresh products, CADF’s buying team have added Versace, Michael Kors and Maybelline in the beauty category this year

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Cairo Airport Duty Free is living through a difficult period as tourist numbers lag, but a big opportunity lies ahead as it plans for its allocated retail space in the new Cairo International Airport Terminal 2, scheduled to open officially in March 2016. But before that happens, growing sales is proving a difficult task. According to Cairo Airport Duty Free General Manager Magued Mounir, “Sales are quite challenging at the moment. We have seen that there has been a drop in the number of tourists visiting Cairo and that passenger spend is not at the same levels as previously. “We expect that passenger numbers and sales will increase in the near future as the Egyptian economy improves.” Despite the current challenges, Cairo Airport Duty Free’s turnover for the first six months of 2015 is above the sales achieved for the same period in 2014, though Mounir does not reveal the percentage figure. And, for the first seven months of 2015, passenger levels have climbed by double digits. Cairo International Airport passenger figures for both Terminal 1 and Terminal 3 for January through the end of July 2015 are 13.5% above 2014 for the same period, reports Mounir. The best-selling categories for Cairo Airport Duty Free are cigarettes, alcohol, gifts and accessories, and electronics. In T3, most people shopping at the operator’s stores are European, while the traveler make-up in T1 is mostly Middle Eastern. In terms of trends in customer shopping behavior, the com-

2015

RETAILER NEWS: CAIRO AIRPORT DUTY FREE

Regular and comprehensive promotional offers are communicated to passengers by in-store signage and brochures, which has proved a highly successful strategy

pany has observed that passengers are buying lower-priced items and items that are on promotion. Promotions play an important part in its marketing strategy and they are reviewed regularly to ensure that the offers remain attractive for passengers. “We have a comprehensive promotional calendar covering all categories, and this is very popular with passengers,” says Mounir. “This is conducted throughout the year and we target specific events such as summer, Ramadan, Christmas, Valentine’s Day and Mother’s Day. These offers are communicated to passengers by in-store signage and brochures.” Turning to brands, the purchasing team is constantly looking for fresh brands that would appeal to the customer

profile and introduce new brands and product lines regularly. They have recently added Versace, Michael Kors and Maybelline in the beauty category. Roberto Cavalli leather goods and APM accessories have been listed in the gift shop. Sunglasses are selling well following the opening of the Eye Zone Sunglasses specialty shop last year, which offers high-end Luxottica eyewear. “The Eye Zone Sunglasses shop has performed well since it opened and is proving to be one of the best-performing sunglasses shops in Egypt. Cairo Airport Duty Free received a certificate recently in appreciation of the sales levels achieved since the shop opening,” exclaims Mounir. The operator renovates its stores on a regular basis but does not have any

Passengers at Cairo International Airport are buying lower priced items and items that are on promotion, but traffic and sales at CADF are expected to improve in the near future

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

specific plans for the current stores for now, and no new shops are planned for Terminal 1 or 3. But big retail plans lie ahead. Cairo Airport Duty Free has been allocated space in the new T2 – set to open officially in March 2016 – and is currently working on the layout and designs for the shops. According to local media reports, the expansion of T2 is expected to add 7.5 million passengers to its annual capacity, increasing total capacity to approximately 30 million passengers per year. The path forward is clear for the airport’s ambitious duty free retailer. “We are concentrating on our current operations and planning for the opening of Terminal 2,” asserts Mounir.

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RETAILER NEWS: ATÜ DUTY FREE

A panoramic view of ATÜ’s operation in Istanbul

Global ambitions

long walk through a maze of narrow bustling hallways and back rooms at Istanbul Atatürk International Airport terminal might easily convince an uninformed person that ATÜ Duty Free is merely one among the many support companies that supply services to the busy facility that is quickly bursting at the seams. But looks can be deceiving in Turkey. A nation that stands astride two continents has ambitions that are anything but provincial and domestic. In a few short years, a new airport will be opening 40 kilometers from the sprawling city’s main facility and the flag carrier will have added new destinations, new aircraft and capabilities for its range of support companies.

Gulf-Africa Duty Free’s Publisher Aijaz Khan with ATÜ Duty Free Managing Director, Ersan Arcan

ATÜ Duty Free is making its mark among the major duty free sellers with a group of loyal partners, a growing home airline and customer centered approach to travel retailing by RICK LUNDSTROM in Turkey

The same will probably be said for ATÜ, a travel retail operator with global ambitions. By the end of this year, the company will have opened its new operation in faraway Bush International Airport in Houston and will know whether it was successful in its tender for the duty free operation at Muscat. ATÜ will also be keeping an eye on developments in Tunisia, where the company and its consortium of partners now operate more than 5,400 square meters of shop space at seven airports. If that is not enough, ATÜ, and its Managing Director, Ersan Arcan are eyeing opportunities in Saudi Arabia and the CIS states, while continuing strong success in Georgia, Macedonia, Latvia and elsewhere. The company’s holdings go further, to more than 100 individual stores in eight countries and 21 airports. Gulf-Africa Duty Free & Travel Retailing caught up with Arcan less than two months after the company’s last major opening in Salalah, Oman, where its tender has now been accepted for nearby Muscat. Arcan has been with ATÜ for 16 years, starting his time in 1999 as a shop supervisor in Istanbul.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

He took the top spot at the company when the new airport opened in the Turkish capital. ATÜ hasn’t accomplished the growth that places it close to the top 10 duty free companies in the world without the help of several partners. At various locations, the company makes use of the expertise and backing of its joint venture partners, TAV Airports in Turkey and Unifree Duty Free and the operator Gebr. Heinemann SE. The corporate culture among the partners is a “family approach” common among travel retail operators around the world, said Arcan. “It gives us a chance to explore the real sense of the business,” he said. “That means the service, the customer up front and shop design in-house according to the region and the culture and the flexibility of demands coming through the airport authorities.” In addition to the longstanding partners, ATÜ makes use of local expertise. For example in Tunisia, the company worked with Hamila Duty Free. When it opened its unit at Salalah Airport in Oman at the start of this year, the company made inroads through TAV, which had done construction work there. When the company opens its operations at Houston it’s ATÜ Americas operation will work with Gebr. Heinemann (which has U.S. operations based in Miami) and Air Ventures LLC, which is a 25% partner in the airport business. Houston is a particularly attractive

RETAILER NEWS: ATÜ DUTY FREE

Tobacco continues to be among the strong skus for sales at the airport in Istanbul

location for a duty free operator, and the partners are under a contract for the next 10 years, said Arcan. “It is the fourth largest city in the U.S. and the Texas economy is going well,” he said. In addition to the state’s oil industry, Houston has a large health care market, which holds the possibility to beckon international travel. The consortium plans approximately 1,000 square meters of shop space with small shopping operations at the airport’s terminals. With all its opportunities, ATÜ and the partners will face the challenges present at all duty free operations that operate at U.S. airports. “It is a dispersed operation,” said Arcan. “U.S. airports are not very much centralized. Compared to some of the airports in Europe, international and domestic aircraft are mixed, so this makes our business more complicated in the U.S. airports.” To make Houston work, Arcan said ATÜ will “put service up front.” “Attitude toward the customer is key,” he added. “Working on this, the position and design of the retail offer has an enormous effect on the shopping attitude. We do not have a big space, so what we will do is come up with creative design solutions [and] show a practical and new shopping strategy in Houston.”

Bringing it home Where the company has experienced double digit growth over the years has been its operations in its home country. Though the country has had its ups and downs, throughout its history Arcan said ATÜ has tried to maintain a sensible message to shoppers. “Duty free itself is a message not of discount, but advantages,” he said. And where 48

can a customer find better advantages and premium brands at the best prices than at the country’s airports? Makers of those premium brands seem to have gotten the message over the years, said Arcan. “What has been changing dramatically, and I’m very happy to see it, is presentation and cooperation with brands in all aspects,” he said. “All brands in all categories understand airport shopping is a prime location for building brand recognition. I think it is a very easy and a very valuable location to meet with the customer with a very focused, captive audience who has not much to do before boarding.” And what shoppers do in that time at airports such as Atatürk and three other locations in Turkey, is seek out the bread and butter of the duty free industry. With a reasonably competitive price point available, tobacco products have always been successful in the Turkish market, said Arcan. Though consumption is decreasing in the country as it is across the world, it is still a strong seller for the company. More than 40% of the company’s sales

in Turkey come from beauty products with other strong sellers being spirits and confectionery. At Atatürk, a 300-square-foot outlet specializing in regional products, the space is designed like a Turkish bazaar. Gifts and food move from the store at a brisk pace, as buyers snatch up traditional Turkish delights, confectionery, olive oil, cheese and deli products and silver and gold necklaces. ATÜ is also fortunate to have a dominant carrier in Turkey that has no duty free onboard sales program. The presence of Turkish Airlines has other advantages. The carrier is on a rapid growth track and a mix of international and transit passengers give duty free airport operations the distinction of the being the last stop for souvenirs before heading home or moving on. Atatürk Airport handled more than 57 million passengers last year with the flag carrier holding a 77% share of the international traffic and 70% of the domestic flights. The main airport is also undergoing some expansion. Last November TAV and the State Airports Authority agreed to a renovation and expansion of the international terminal and put into service a 26-aircraft parking area and taxiways. TAV is investing €75 million (US$82.6 million) to expand the international terminal. By the first quarter of 2016, the number of jet ways will be increased from 26 to 34 and 32 check-in stations will be added.

Partnership for growth ATÜ Duty Free has three key partners: TAV Airport Holding, Unifree Duty Free and Gebr. Heinemann. The company also has a number of shareholders and partners that represent local interests in the various countries ATU does business. TAV Airports Holding was established as a joint venture between Tepe and Akfen Groups — companies that won the tender for Istanbul Atatürk Airport International Terminal. Along the way, Aeroports de Paris purchased 38% of TAV. Unifree is the managing partner and supplier. The company has a selection of more than 30,000 products and more than 100 international brands in its stores. Unifree has broadened its objectives and become the Turkish partner of Gebr. Heinemann, the European giant duty free operator. Heinemann’s sales in 2013 topped €2.4 billion (US$2.65 billion) for its operations at 64 airports in 28 countries.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

INDUSTRY NEWS: INDIA ALLOWANCE

Harsh limits

arlier this year, some Air India Express passengers were shocked to find that they would have to pay extra fees in order to bring their overweight hand luggage on board. These passengers had not included the weight of their duty free purchases in their considerations, because previously they never had to. At least one man was so incensed that he refused to get on his flight. Carry-on restrictions are not new, and neither is the fact that technically duty free and other purchases could be counted in this weight restriction. What is new, however, is the zeal with which Air India has chosen to enforce these restrictions. “The carry-on restriction for airlines operating out of India have been there since the inception of budget airline flights,” says Bernard Aquino, Communications Manager, Dubai Duty Free. “They are not particular to duty free items but rather are weight driven.” He adds that budget airlines have become stricter with the enforcement of these restrictions.

The liquor industry is proactive creating items that are lighter, specifically for travel

Air India passengers from Dubai have been put on a strict carry-on diet, and duty free is part of that rigid plan by

WENDY MORLEY

Bold announcement

Impact on duty free

In June of this year, the Indian airline made the announcement official for flights leaving UAE: As of July 1st, the free allowance for hand baggage would be strictly enforced, and would include duty free or other airport purchases. Air India’s limit was set at eight kilograms and Air India Express at seven kilograms. For each excess kilogram, the passenger would have to pay a fee of Dh60 (US$16.33) While Air India has been maligned for this move, with opponents complaining that the airline is simply seeking creative ways to improve its bottom line at the expense of passengers, a spokesperson for the airline says it’s a matter of safety. He says while passenger carry-on is assumed to be seven or eight kilograms as according to the rules, a few extra kilograms per person means the aircraft might have two tonnes of additional unrecorded weight at takeoff. Other observers state that the issue was with passengers’ expectations that they could take goods far exceeding the limits, and it was bound to occur.

When the strict enforcement of this weight rule began, says Aquino, duty free business with those passengers was affected. “Passengers decided not to pay for additional weight. The airline did not benefit in any way. This did impact duty free purchases to an extent. At the beginning of the strict enforcement policy we saw that passengers were taken by surprise and keen to return duty free purchases.” Over the past three months, however, the retailer has noticed that passengers have begun to expect this and plan ahead. “More passengers travel light and plan their duty free shopping accordingly, taking the weight into consideration. Most passengers do not pay extra fees.” Aquino adds that since the original shock has worn off, there has been no further decline associated with this enforcement. “Most customers either premiumize to a single-bottle purchase or plan their purchases to fall within the boundaries of the weight restrictions being enforced for carry-on luggage.”

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

GOLD 2014

INDUSTRY NEWS: INDIA ALLOWANCE

Bottle weight It appears that the liquor category would have the most to lose from these restrictions, given the products’ weight relative to items in other categories. Aquino explains that Dubai Duty Free has offered smaller and lighter bottles for some time now, but the retailer is interested in trying larger formats if there appears to be interest. “Liquor companies have been forthcoming as part of the solution; they are looking at supplying us lighter-weight bottles and a supply of smaller formats, to address the requirement of the customers.” As for Air India, the airline has declared that it spent considerable effort trying to ensure that customers would not be caught off guard, although some clearly were. To this end, the airline sent advisories to travel agents, provided signage at check-in counters and required that check-in staff remind passengers of the rules. Of key note: no new rules were introduced. The airline simply decided to enforce the rules that were already there. Prem Sagar, manager of Air India and Air India Express in Dubai and Sharjah, stated at the time that this decision by no means meant the airline desired passengers to skip duty free. He suggests that it’s best if passengers plan ahead.

during check-in and boarding.” While that may be true, the popularity of discount airlines is such that if more decided on this type of enforcement, airport shops and the global travel retail industry could certainly be affected. For now, MEADFA and APTRA are watching what happens. Jaya Singh, President of APTRA, comments: “The application of charges for duty free carried in the cabin is an isolated incident, involving one airline and only on specific routes. It seems to have been introduced for operational reasons due to the high

Is more of this coming? So is charging for excess hand baggage including duty free items the wave of the future? As numerous airlines have begun charging for checked baggage it has become ever more common for passengers to use only carry-on luggage or carry more than usual, in order to avoid these extra fees. As this trend can cause overhead bins to overflow, many airlines have become stricter with their carry-on policies, often forcing passengers to check baggage that weighs too much (for a hefty fee). Whether the especially strict Air India crackdown is happening for safety, convenience or monetary reasons, should the duty free industry be concerned that other airlines will follow suit? Aquino says, “We do not believe this will spread to full-service airlines. Such airlines operate out of the vision to ensure the best service to passengers, with minimum amount of hassle. Full service commercial airlines tend to have relaxed restrictions enforcement, full onboard meals, superior service and extra comfort

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

number of passengers who board flights with excessive amounts of hand baggage. From our discussions with our business partners in India, we gather that the impact on the business there has been minimal. However, we take these kind of challenges very seriously; they can spread if airlines see a revenue opportunity. We will continue to monitor the situation and work with our partners at MEADFA should it escalate.”

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AIR TRAVEL STATISTICS

Mixed SIGNALS The Middle East shines when it comes to growth in air travel during August; Africa performs weakly despite potential for future growth over the long term

ccording to Airports Council International (ACI) World, Global passenger traffic at the world’s major airports rose by 6.4% year over year for the month of August while international and domestic traffic posted growth rates of 6.4% and 6.5% respectively. Both July and August had strong increases in passenger numbers due to holiday travel and tourism activity. Growth continues to be above the twelve-month average trend. With the exception of Africa, which experienced a drop of 4.6% in passenger traffic, all regions posted large gains. Ongoing security concerns in Northern African countries have left the region’s air transport demand in a weakened state. Middle Eastern airports reported the greatest increase in passenger traffic with double-digit gains of 15%. Doha (DOH) and Abu Dhabi (AUH), two of the region’s major hubs, grew by 22% and 17.4% respectively.

With continued recovery in the Euro area and the United States, growth in airport passenger traffic in these regions has continued on an upward trajectory. Both European and North American passenger traffic grew by 5.7%. Robust growth of 8.3% in passenger traffic was achieved across airports in the Asia-Pacific region. Many airports in China and India reported significant gains in year-overyear passenger numbers. Shanghai (PVG) and New Delhi (DEL) grew by 20.9% and 15.3% respectively. While passenger traffic remained strong in many parts of the Asia-Pacific region, global air freight markets were affected by slowing economic growth in China. With a high concentration of the world’s major air freight hubs located in the region, this has an impact on global growth in volumes, which has remained flat as compared to last year. Hong Kong (HKG), the region’s largest air freight hub, declined by 1.4% year-over-year.

“Middle Eastern airports continue to achieve the highest growth among all regions; airports there continue to expand their capacity and capitalize on their strategic location for the transfer of passengers.” ANGELA GITTENS, DIRECTOR GENERAL, ACI WORLD

Despite the economic revival in advanced economies, air freight contracted by 1.7% in North America. Memphis (MEM), a major FedEx hub, and Louisville (SDF), the UPS hub, experienced a decrease of 1.4% and 0.8% respectively in terms of year-over-year growth in volumes.

The airline perspective

August 2015 airline passenger statistics (source: IATA)

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

The International Air Transport Association (IATA) announced global passenger traffic results for August showing a continuation of the strong growth in air travel demand for both domestic and international traffic. Total revenue passenger kilometers (RPKs) rose 7.1% compared to the same period last year. August capacity (available seat kilometers, or ASKs) increased by 5.9% and load factor rose 0.9

AIR TRAVEL STATISTICS

The last word

August 2015 airport passenger and freight statistics (source: ACI World)

percentage points to a record 84.7%. August international passenger demand rose 7.1% compared to the same month last year, with airlines in all regions recording growth, led by Middle East carriers. Total capacity climbed 5.8%, pushing load factor up 1.0 percentage point to 85.2%. Asia-Pacific airlines’ August traffic surged 7.7% compared to the year-ago period. Capacity rose 5.8% and load factor increased 1.5 percentage points to 82.5%. While emerging Asia has experienced notable declines in trade activity this year as well as slower than expected growth in China, neither factor appears to be impacting international air travel on the region’s carriers. European carriers saw traffic increase by 5.7%. Economic recovery in the Eurozone is supporting demand for international travel. Capacity climbed 4.1% and load factor rose 1.3 percentage points to 88.3%, the highest among the regions. North American airlines’ traffic rose 4.5% year-over-year. Capacity climbed 3.7% and load factor rose 0.6 percentage points to 87.2%. Expectations for better economic performance are supporting demand for air travel in the region. Middle East carriers’ August demand jumped 13.7% over the same month in 2014. Major economies in the Middle East, including Saudi Arabia and the United Arab Emirates, have experienced slowdowns in non-oil sectors but the growth rates remain robust. Capacity nearly kept pace at 13.5% and load factor edged up 0.1 percentage points to 83.7%. Latin American airlines experienced a 6.7% rise in traffic compared to August

a year ago. Capacity exceeded demand at 7.1% and load factor slipped 0.3 percentage points to 82.0%. Latin America was the only region to see a decline in load factors. Despite recessionary conditions in Brazil and Argentina, improving regional trade volumes provided a boost to business-related international travel. African airlines’ traffic rose 3.6% in August year-to-year, which was the slowest growth among the regions but the second consecutive month of growth. Capacity increased 2.9%, with the result that load factor improved 0.5 percentage points to 75.2%. Adverse economic developments in parts of the continent, including Nigeria, the largest economy, suggest that Africa will continue to experience weak growth at best.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

“Although the global economic outlook is decidedly mixed, demand for aviation connectivity remains strong.” TONY TYLER, DIRECTOR GENERAL AND CEO, IATA

“Middle Eastern airports continue to achieve the highest growth among all regions,” said Angela Gittens, Director General, ACI World. “The region’s airports continue to expand their capacity and capitalize on their strategic location for the transfer of passengers. Despite a contraction in passenger traffic at African airports during August, the number of air travelers is forecast to more than double over the next 15 years or so given a rising middle class with more disposable income and a desire to experience the joys of air travel. There is great growth potential in Africa.” “Although the global economic outlook is decidedly mixed, demand for aviation connectivity remains strong,” said Tony Tyler, Director General and CEO, IATA. “We are seeing the benefits of that connectivity play out at the Rugby World Cup taking place in England. Over 450,000 international fans attended the six-week pinnacle event of the sport. Ernst and Young estimate that they will have directly spent GBP 870 million (US$1.3 million) and add GBP 2.2 billion (US$3.4 billion) to the UK economy. Aviation is helping to make this enormous infusion of spending possible. One can only speculate how much more value would be created for the UK’s economy were it not for the punitive UK Air Passenger Duty.”

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BEAUTY: PERFUME HOLDING

Full speed

ahead Italy’s Perfume Holding is revving up its Ferrari fragrance business with ambitious plans to go upscale and boost visibility in travel retail stores across the Americas

Targeted at a new breed of male consumer, the Man in Red fragrance range is modern and sophisticated and pays tribute to the LaFerrari supercar in its bottle design

erfume Holding is powering up its Ferrari fragrances as it moves to expand the range and take the brand upmarket. For the first time, the company is introducing Ferrari’s premium lines all over the Americas, and all its partners and retailers are committed to boosting the brand according to this new strategy, according to Dino Pace, CEO of the Italian company. “We all know that the travel retail business has been suffering a lot since the beginning of 2015. We can say that for Ferrari the trend is slightly different thanks to the aggressive action plan we set up with the main players in travel retail since the end of 2014,” he says. “2015 represents an important year for Ferrari since we have achieved an amazing product portfolio on both the brand lines, Cavallino and Scuderia. In each market we are trying to increase the visibility with special trade activities and with permanent furniture.” Peru, Chile, Bolivia and Colombia are the main markets where the company expects significant growth due to a key partnership with a local partner and retailers. Brazil also represents an important growth opportunity consider-

ing the power of the brand in the country. And in Canada, the brand is having very positive results, so Pace believes there is an opportunity to grow more and boost the business. The Ferrari brand is very strong in Brazil. The fragrance is always in the fourth or fifth position in the rankings behind Carolina Herrera, Paco Rabanne and Azzaro, notes Pace. “We are investing a lot in the POS and in advertising as well with special activities in order to give high visibility, and this year we started to build permanent furniture.” A special agreement that the company has struck with the main retail partner in the country is helping the brand at this “very complicated” time for Brazil, adds Pace. Globally, Perfume Holding is now preparing to launch Ferrari Man in Red, its new fragrance. Pace says Ferrari Man in Red embodies the unique sensations of the Ferrari world. The fragrance, a fruity amber fougere, is strong and elegant, while the bottle is modern and sophisticated and pays tribute to the LaFerrari supercar. It is targeted at a new breed of 30 to 45-year-old men who are dynamic, self-confident and accomplished, living life in the fast lane.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

The bottle is capped with a luxurious glossy metal band and stamped with the classic Ferrari logo and Man in Red wording in silver lettering that runs along the base. Ferrari’s silver metallic prancing horse emblem is etched into the indent of the glass that represents the LaFerrari bonnet. The presentation box echoes the elegant red bottle design, incorporating the silver horse and Ferrari logos which are delicately embossed. A silver band wraps across the top in a finishing touch. Man in Red will be available in the Americas at the end of 2015 and beginning of 2016. It will be launched in the top department stores and premium perfumery chains, and will be supported with strong advertising and promotion investment, spanning TV, print, PR, digital and trade. Looking ahead, two important product innovations have been patented by Perfume Holding. One of these will be introduced by the end of 2015, while the other one will be available in October 2016. “We believe these two innovations will perfectly fit in travel retail channel. All the details will come very soon,” he promises.

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BEAUTY: AJMAL PERFUMES

Capping by

CLAIRE MALCOLM

a niche

With 30% year-on-year growth, homegrown UAE brand Ajmal Perfumes is capitalizing on the appeal of its Oriental portfolio with new locations and ecommerce ambitions

he appeal of Oriental fragrances is on a universal upswing, much to the delight of Dubai-headquartered premium perfumier Ajmal Perfumes as it works on augmenting its presence in the Middle East and

The Middle East has long been a fragrance inspiration and oud mania is a global phenomenon according to Ajmal

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Europe. According to Abdulla Ajmal, the company’s General Manager, business has grown by 30% in the last 12 months, driven by both consumer demand and retailers eager to get their hands on new high quality products for a unique point of difference. “Oud mania is everywhere, and while the Middle East has long been a fragrance inspiration, it is definitely very much an important source right now. This has opened us up to an international clientele with a lot of interest from global consumers, not just those here in the Gulf,” he says. Markets with a new taste for Oriental scents include Russia, as he explains: “They are hugely influenced by the Arabic fragrance culture and we have significant presence in the country, and are the number three niche brand there.”

In 2014, Ajmal produced a fragrance collection in the colors of the UAE flag, which was retailed in the Gifts from Dubai section at Dubai Duty Free

Elsewhere, Ajmal is seeing strong sales at Dubai Duty Free and also onboard with Tourvest Inflight Services. “We have also opened in some more unusual locations, such as Larnaca, Cyprus, with positive results, due in part to a high percentage of Russian travelers,” he says. He also attributes year-on-year sales growth to across-theboard interest from the ‘ordinary Joe’. “It’s because we have something new to offer and package ourselves uniquely. We are also seeing international consumer interest in more natural products, especially from Europeans. “Over the years, fragrances have moved away from a luxury indulgence positioning to become something much more functional. Because we are pioneers in Arabic fragrances there is the purity aspect, which, when combined with the indulgence factor, and the ritual nature of applying and enjoying our fragrances, is very appealing.” This has been further boosted by the release of a number of travel retail exclusives, which, says Ajmal, have been well received by operators as well as delivering good margins supported by an active schedule of marketing campaigns. “What we’ve also done is put a lot more of our own staff on the floor, as external beauty advisors, to tell our story and push the brand, and this is especially important for us to grow awareness and compete with the big players in the market,” he says. Taking the brand outside of the region and into new markets presents an ongoing challenge, as Ajmal explains: “We’ve got to work that much harder as we are going global, first with the trade partner and then the consumer. But the ‘newness’ and novelty factor is very attractive, and this is one reason why quite a few operators are taking a chance on us, so to speak. “Our presence in various travel retail channels, and also at annual events like TFWA in Cannes, gives people an additional degree of confidence in realizing that we aren’t industry novices but are a brand that understands retail and the traveling consumer.” Another area in which Ajmal has a unique advantage is its ability to create and deliver tailored products. “Last year, for example, for the Gifts from Dubai section at Dubai Duty Free we produced a fragrance collection in the colors of the UAE flag, which ran for 45 days around the National Day period,” he says. “It simply isn’t feasible for a lot of companies to even initiate anything like this, but this really helps us cement our relationship

Ajmal is boosting its market presence with the release of a number of travel retail exclusives

with the operators, and they are very receptive to these kinds of initiatives,” he adds. This level of market agility is tied into Ajmal’s commitment to remaining a niche brand. Mainstream availability is not an option under consideration, although with the October 2015 launch of the company’s new ecommerce site it is looking to grow its existing customer base. “We did go the online route back in 2000, but this time we have fragmented the operation so that each market will oversee its own ecommerce activity,” he says. “The UAE and Saudi Arabia launched first, with the other GCC markets to follow; and we believe this will be an important move in securing new customers for the brand.”

Abdulla Ajmal, General Manager, Ajmal Perfumes

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

BEAUTY: BEAUTÉ PRESTIGE INTERNATIONAL

A tale of two

fragrances Hitting the right notes in the Middle East with a duo of popular brands, France’ Beauté Prestige International is big on animation as it seeks to secure long term customer loyalty by

CLAIRE MALCOLM

well-established player on the travel retail scene, according to its COO, Eric Henry, Paris-based Beauté Prestige International, has a quarter century of market experience under its belt, and is banking on its reputation as expert animators to secure new success in 2016. “We entered the market 25 years ago with Issey Miyake, back when the industry really started to boom, and for a fragrance company, travel retail is key; not only in development terms, but also for brand building,” he says. Henry believes that this is even more important today than it was in the past, and with fast-moving trends in travel retail putting brands in the commercial hot seat, the company’s growth strategy is all about tailoring to market dynamics. Both Issey Miyake and Narciso Rodriguez are strong performers in the region

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Eric Henry, COO, Beauté Prestige International

As for other fragrance companies, Europe dominates sales, with the Americas its second largest market, as he explains: “It is the Latin American customer who is currently driving our growth due to the high import tax on products in key markets, so this is a big opportunity for travel retail. “Both Issey Miyake and Narciso Rodriguez are strong performers in the region with Issey Miyake L’Eau d’Issey Pour Homme a leader in Latin America.” Global expansion plans are also putting the Middle East under the Beauté Prestige International spotlight. “This is another region that is very important for us, and is where our brands are developing the fastest,” says Henry. “The Gulf is a great destination with an international passenger/traveler base. As well as Dubai, we see huge potential for Abu Dhabi in the future and clearly Doha is also going to be a key location for us. Further afield in the region, Beirut is also a major destination,” he adds. The fact that renowned Lebanese designer Elie Saab is part of the portfolio is adding additional weight to its presence in the Middle East market. “Elie Saab resonates extremely well across the Middle East, and we are also developing some specific products for the region,” he remarks. An icon in the industry, and the region, Lebanon’s Elie Saab is also a forerunner in terms of brand engagement in the digital arena; another area where the company is investing resources. Henry elaborates: “We are dedicating more and more investment into digital activity, and moving away from being TV

Years of Challenges Ans de DĂŠfis

BEAUTY: BEAUTÉ PRESTIGE INTERNATIONAL

The company is also developing a number of exclusives such as the Elie Saab La Collection for Beirut Rafic Hariri International Airport

driven. If you look at Elie Saab, this is one of the most engaging brands in the market today, and one that is extremely interactive when it comes to the consumer. “His online digital magazine, thelightofnow.com, is a fantastic vehicle for digital activity and has a huge following. They are also very keen to develop further in this area and so that presents good opportunities for us as well.” Beauté Prestige International’s strong partnership with Dubai International Airport and Dubai Duty Free, which is home to one of its most high profile—and successful—annual animation campaigns, is a prime example of seizing market opportunity and recruiting new customers to the brand, with the right location and right slot the winning formula. “Elie Saab Le Parfum is the best-selling female line in this part

Elie Saab Le Collection des Essences

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

of the world, but Narciso Rodriguez is also a top performer, and our focus on large scale animations is particularly relevant for these brands as the ROI is extremely high,” explains Henry. He is confident that the company’s track record in creating and implementing successful animations and retail-tainment initiatives is helping drive customer loyalty. “Those customers who buy in a travel retail environment are looking for savings, and we are lucky because we have loyalty already when it comes to our core lines.” “We believe that we have a high degree of customer loyalty as people are addicted to our juice, especially Narciso Rodriguez For Her and Issey Miyake L’Eau d’Issey Pour Homme. The company is also a leader in conceptualizing multi-brand animation, and has executed successful activations in key international airports locations with Heinemann, in which it brings together Narciso Rodriguez, Elie Saab and Issey Miyake in one location by creating a story around the brands. Says Henry: “We are developing our brands while, at the same time, creating stories to engage the consumer and attract new customers to our portfolio. The opportunity to tell the story through a highly visible animation is also resonating with the duty free operators, who seem to like and appreciate our approach. This is obviously to our benefit as then we are more likely to get good slots.” Tough competition means that Beauté Prestige International has to be at the vanguard of animation excellence, and the com-

BEAUTY: BEAUTE PRESTIGE INTERNATIONAL

Elie Saab Le Parfum is the best-selling female line in the region

pany is also developing a number of exclusives for destinations across the region, such as the Elie Saab La Collection for Beirut Rafic Hariri International Airport. The next 12 months will see a sea change in the company’s portfolio with the departure of Jean Paul Gaultier, but as a top-selling brand for a European audience its absence from the portfolio will have negligible impact in other important markets such as Latin America and the Middle East. “In 2016, the global priorities for us are to focus on strengthening Issey Miyake and Narciso Rodriguez. These are our two core lines,” says Henry. “For Issey Miyake, the main focus will be on men’s fragrances, plus we have a new brand advertising campaign for L’Eau d’Issey Pour Homme. Nuit d’Issey, which launched last year, is also doing extremely well,” he adds. With Narciso Rodriguez, the company’s priority is the feminine line, with For Her already in the top ten ranking in many international markets and at major airports. Last year saw the debut of NARCISO to the market, which, Henry notes is doing well, and he confirms that the company has lofty ambitions for the line in 2016. Also still strong on the performance radar for Beauté Prestige International right now is ALAÏA PARIS, which hits the right notes with the high-end audience, and selling extremely well. But the company knows that diversification is key to sustained

success and will launch a more lifestyle-oriented brand next year with the debut of Zadig&Voltaire. Says Henry: “We will be targeting the consumer looking for a less exclusive brand, and a different price range, and this will ensure that we move forward with a more balanced portfolio.” Narciso Rodriguez For Her is one fragrance that enjoys a high degree of customer loyalty

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

10 years

dedicated to caring for your business (2005 - 2015) You have the passion for excellence in duty free and travel retail. We have the means to help you sustain this in the long-term - connectivity, research, advocacy and training. APTRA would like to thank our members for their loyal support over the past decade.

BEAUTY: REVLON

The power of

daily ritual US beauty group Revlon has created a short film by First Kiss Director Tatia Pilieva to demonstrate the power of makeup to enhance women’s love lives

erforming a simple daily makeup ritual can enhance a woman’s emotional state and expand her openness to love and romance, according to a new study by US beauty company Revlon and Fordham University. The results of the ritual were so dramatic that Revlon commissioned award-winning Pulse Films director Tatia Pilieva, whose credits include First Kiss, to demonstrate the ritual’s effectiveness in a short film, Love Test, featuring nine women of all ages and walks of life. Revlon partnered with researchers at Fordham University to create the Revlon Love Study, which measured how women – and their partners — reacted after a period of conducting a simple daily ritual, such as using a favorite fragrance or applying makeup. Conducted on hundreds of women, the study findings were powerful, with 97% of participants reporting a significant positive change in them within the first week of adopting the ritual. “Rituals can be powerful – performing them can actually change the way you feel,” said Tracy Rohrbaugh, Vice President, Marketing at Revlon. “Taking the time each day to appreciate yourself,

especially what makes you unique, is a simple but effective way to create positive energy. This daily ritual can manifest more kindness, more affection, more flirting, and more love. Initiating this virtuous cycle helps the doer to both give and receive more love.”

Love is contagious Women in the Revlon Love Study were asked to keep a journal to record the changes they felt after just four days following the ritual: 71% reported an increased desire for romance, 69% were more open to finding love, 77% felt more outgoing and social, and 74% said they were more likely to flirt. The study also found that love is contagious. After the Revlon Love Test, partners were more likely to reciprocate in acts of romance. And 85% of the women in the study noticed a positive change in how others reacted to them, noting an increase in compliments from their partner or date (65%), and more than half (56%) confirming that others flirted with them more frequently. By simply performing various actions in a specific order over time, women could alter their mood and outlook,

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

the study found. The Revlon Love Test showed that women experienced a positive change after including the ritual in their daily routines and proves women are empowered to improve their love lives with a simple shift in mindset. To inspire women worldwide to try the Revlon Love Test for themselves, Revlon collaborated with award-winning director Tatia Pilieva and Mediacom to create Love Test, an inspiring film that portrays eight real-life couples and gauges their reaction to the ritual. In the video, each couple discusses the vulnerabilities, insecurities and joys of romance, both before and after beginning the Revlon Love Test. The Revlon Love Study set out to explore the social and psychological impact of a beauty ritual on a participant’s romantic relationships. The qualitative and quantitative research was conducted by Fordham University in October and November 2014. A series of six ethnographies were conducting among 28 women, ages 21-43, with diverse backgrounds and ethnicities in Chicago and Rochester, while a nationally representative online panel of 710 women who wear makeup were taken through the same process. In both instances, the women were surveyed before and after integrating the Revlon ritual into their daily routines for a minimum of four days. The new film is part of Revlon’s new Love Is On marketing campaign, which aims to celebrate couples, spread love and raise millions of dollars for charities in a Million Dollar Challenge initiative.

FASHION: COACH

Quality in the bag by

The original ‘American house of leather’, the company’s portfolio includes iconic products like the Ace satchel

CLAIRE MALCOLM

New York headquartered accessories brand Coach continues to expand in the region with its Middle East fan base loving the modern luxury meets understated urban style message

F Giorgio Sarné, President Coach International & North America Wholesale

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

or almost 75 years, Coach has been a mainstay of the American design scene with an international remit to take its distinctive craftsmanship to a global audience both via domestic and travel retail channels. In the last 12 months, its travel retail division has secured presence at Seoul’s high profile Incheon Airport, and the brand is looking at other gateway locations in Japan and across Southeast Asia. Opportunities on other continents include positioning Coach as a leader and travel retail pioneer in the US, and the exploration of potential in some more ‘exotic’ destinations. The Middle East is another region where the company sees ongoing opportunity, as Giorgio Sarné, President Coach International & North America Wholesale, explains: “This is one of the most vibrant and exciting regions for travel retail and tourism in general, and is an area where we have seen strong development. “We will soon open a third location at Dubai International Airport and recently renovated our beautiful downtown store in Dubai Mall, which is performing very well. We are also in discussion with Abu Dhabi’s new International Airport as we look to grow further.” In terms of brand recognition, he reports that Coach enjoys valuable presence in the region. “Looking at our results, we are extremely well perceived, and I think that in terms of innovation and tourism development, the Middle East is extremely important for a brand like ours,” he says. “The region has ambitious economic development plans underway, centered on tourism, and I believe that we will be one of the brands in the best position to benefit from these developments,” he adds.

The Swagger bag, which retails at around US$500, is by far one of Coach’s most successful travel retail sellers

With a strong leadership position in key GCC markets including Abu Dhabi and Dubai in the UAE, Bahrain, Kuwait and Saudi Arabia, Coach has its finger on the pulse of regional retail. Says Sarné: “We are also present in the Levant, but when we look at primary locations, the GCC remains the focus for our efforts. Other countries in and around the region hold a lot of interest, like Turkey for example, and to progress we need to remain curious and aware of these markets, but it’s important that we don’t lose focus on where business is actually happening.” He highlights Dubai as a model for regional sector development. “If you look at Dubai’s plans over the next five to six years with their 2020 strategy and tourism projections, then the investment it is making into its airports and carrier fleets are significant. “When we look at the response from the consumer and the results from our travel retail business, as well as the stores that we are opening and the way we handle these openings, then I believe that we have a compelling proposition for this region, and the results will continue to be extremely good,” he notes. Research is also part and parcel of the Coach strategic mandate. “Before entering any new market we conduct a lot of research, and what is important for us is to look at the category driver and gauge what key opinion leaders want to see, review what bloggers and social media platforms are saying, and look at where consumers are shopping, and so on.” “We want to make sure that we are in the right destination, but we also want to deliver the best consumer experience whilst preserving the heritage and craftsmanship; so for us, the number one criteria is that we are able to deliver the definitive Coach experience before committing to a new location,” he adds. As the original ‘American house of leather’, the company’s portfolio is comprised of a collection of iconic products that define and support the brand positioning, and, as such, have international appeal. “What we do for different markets depends on trends and consumer flows, so this means that we can adjust our offer as

required and we have a degree of flexibility; but the elevated products that sell everywhere in the world are also those that sell well in the Gulf,” remarks Sarné. “Today’s consumer is also very well aware of what is happening on a global scale, and they know what they want when shopping as part of their travels; so our iconic pieces remain strong sellers yet we can also implement exclusive collection offers where relevant,” he adds. Stimulating desire and translating this into a sale in the busy travel retail environment is a major challenge for any brand. Says Sarné: “For us, every new retail project should be better than the last. When consumers travel they have the intention to buy, and are inspired by the retail environment. “The difference with duty free is that you have all the most beautiful brands in one place, so we have to ask ourselves, do we have the right products and deliver the right experience and are we speaking to the consumer in the right way? This is key to commercial success.” Coach also places a high degree of importance on staffing and service to help drive sales, coupled with a visibly engaging offering that speaks volumes about being new, fashionable and quality-led, whilst also remaining recognisable and unique. Its Swagger bag, which retails at around US$500, is by far one of Coach’s most successful and iconic products in the travel retail domain. “We have also had huge success with our Nomad Hobo, and are seeing tremendous traction on some of our unique satchels, such as the Ace,” he notes. “What is unique in all this is the craftsmanship and the quality of leather that we use, as well as the other little details. Combined together, this creates something timeless,” he adds. Taking customer service and the quality message one step further, Coach is also in the process of developing and launching a service bar concept for cleaning, repairs etc., although this will remain a domestic value-add for now.

Coach has also had huge success with its Nomad Hobo

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

FASHION: DELSEY

Solid case for

The success of iconic lines like the innovativemeets-timeless Châtelet collection lends itself to international distribution opportunities

category growth by

CLAIRE MALCOLM

Present in the Arab world for over 30 years, Delsey Paris is focusing on regional development as it looks to enhance category opportunities

he long-term support of its key distributors across the Middle East and Africa has been a vital weapon in Delsey’s strategic arsenal for decades, with a strong domestic foothold in numerous gateway cities and a growing travel retail presence. According to Jacques Monmarson, Export Director, Delsey Paris, the company’s 2016 regional priority is Saudi Arabia, where he believes there are a number of untapped opportunities, including tapping into Hajj and Umrahrelated business. “We are already at Jeddah South Terminal, through our distributor, but we are keen to replicate our success there in places like Riyadh, Al Khobar, Dammam, Medina and so on,” he says. Africa, though an unknown entity in many respects, is another area that offers significant potential, as he explains: “With Africa it’s a case of starting from scratch but it’s one of our primary targets. “What we need to understand is that the domestic market can be very difficult to support, for whatever reason, so this means duty free offers a very strong shopping alternative.” There’s also the double-edged domestic sword of the issue of fake products versus the real deal. “Consumers understand and appreciate that the product sitting in duty free is genuine and original. There are lots of fakes in the market in general, so duty free is a very credible alternative for local customers,” he says. Add to this the absence of an existing

reliable network for product distribution in many African countries, and the case for pushing the duty free option is a strong one. “We are in several airport locations in Morocco already, namely Casablanca, Marrakech and Agadir, and in Johannesburg in South Africa; and domestically in Kenya, Uganda, Rwanda and Tanzania. Egypt is also a travel retail market for us with Cairo, and a new Hurghada listing soon,” notes Reine Geneviève, Area Manager Export & Duty Free, Delsey Paris. “So, if you compare Africa to the Middle East, the potential is definitely bigger, especially as the region has a double-digit growth forecast, so despite the challenges there is lots of opportunity,” she adds. Cathérine De Bleeker, the company’s Global Marketing Director, is also looking at it from the outbound perspective, as she points out: “A high percentage of African travelers come to Paris, and we sell a lot to them there. Our product is very visible, and is being transported to other markets, which is a good thing for us, and is also fueling demand.” The success of its iconic lines like the innovative-meets-timeless Châtelet collection lends itself to international distribution opportunities with demand from

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

The real issue for Delsey, moving forward, is to drive more interest in the category in general

In new markets like Africa, duty free has a distinct advantage with consumers understanding and appreciating that the product is 100% genuine

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FASHION: DELSEY

The company’s 2016 regional priority is Saudi Arabia, where Delsey is already present at Jeddah International Airport’s South Terminal

the Middle East, and mega hubs such as Dubai, a natural brand fit. But Delsey is now focusing on widening its offering so it can address each and every one of its eight distinctive traveler types in each location. Business items including the reporter bags, backpacks and computer bags, and then the smaller pouches and vertical pouches popular with travelers are in high demand, and are now an intrinsic part of the Delsey travel retail portfolio. Color is also part of the Delsey DNA, and De Bleeker says the brand is able to work on the double-link premise by blending a functional product with design innovation and quality, while also playing on impulse purchase desires. “There’s the emotional element and the practical element and, today, luggage is an extension of our personality, with the look becoming ever more important. And we sell more color luggage than our colleagues do,” she notes. “The real issue for us, moving forward, is to drive more interest in the category in general, and prove that we can do sizeable numbers so that operators give us more space,” says Monmarson. Thankfully, Delsey’s longstanding regional popularity continues to stand it in good stead, as he clarifies: “Operators cannot live without having Delsey Paris listed, but with the priority always perfume, alcohol and tobacco, this is the biggest obstacle to our future growth.”

Color is also part of the Delsey DNA, uniting function with design innovation

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

FASHION: MCM

MCM’s largest and best-performing store is at Haitang Bay in the Chinese resort of Sanya, which celebrated its first anniversary on September 1, 2015

Capturing the zeitgeist by

MARY JANE PITTILLA

ith a new travel retail chief at the helm, German luxury leather goods brand MCM has embarked on a fresh strategy for the channel. Aside from its huge, multi-million dollar business in Seoul Incheon Airport, where MCM is among the top three fashion brands at the US$7.9 billion duty free powerhouse, the Korean-owned brand has ambitious plans. “We’re targeting key locations, key airports and key hubs, including downtown,” Travel Retail Director Nicolas Roptin tells Gulf-Africa Duty Free. “We already have strong brand awareness in Asia, where we’ve had faster development, and now we are targeting Europe, Middle East and Americas. “We’ve had a couple of openings since the 2014 TFWA World Exhibition in Cannes, in Hong Kong International Airport, Singapore Changi, and we’ve just opened in Osaka, Japan.” Airport shop openings in the pipeline this year will include Taipei; Los Angeles Tom Bradley International Terminal; and Bangkok Suvarnabhumi next year. “By next year, we will already be in all key cities in Asia. In the coming months we will have more strategic openings in Europe,” asserts Roptin. Sales over the past year have been “very good”, says Roptin, with likefor-like growth across the board in all locations, though he declines to give percentage figures.

German luxury brand MCM is determined to follow its globe-trotting customers around the world with key travel retail openings in strategic locations

The brand’s largest – and bestperforming – store is at Haitang Bay in Sanya, China, which celebrated its first anniversary on September 1, 2015. Over the past year, MCM has opened pop-up shops in key locations, notably with DFS at the T Galleria Singapore and at Munich Airport with Eurotrade, but with the travel retail strategy now firmly in place, temporary stores will no longer be utilized as a key travel retail brand awareness tool. The best-selling products are large leathergoods, small leathergoods including belts, and charms. “All product categories are growing,” he notes. The brand’s best customers are the Chinese, though Roptin is observing more customers from the Middle East, South East Asia and the Americas. In July, MCM unveiled its Autumn/ Winter 2015 campaign, titled “We are the Futurists”. Shot by the Munich-born photographer Daniel Sannwald, the campaign features talents from the worlds of art, design and culture, including Chinese supermodel Ming Xi, New York-based artist Tali Lennox, and Korean tattoo artist Noma Han. Each Futurist is paired with a bag from the Autumn/Winter 2015 collection, including the Milla, Berlin, Heritage Weekender and Munich models. Roptin describes the outlook for the coming year as “very good”. “We have a lot of openings planned in key locations, and as our brand awareness is growing, travel retail will follow.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

“Over the past year, MCM has opened a flagship store in New York, and stores in other US cities will open soon, so we are achieving good brand awareness. This will translate into travel retail development.” Chinese supermodel Ming Xi is one of the stars cast in MCM’s Autumn/Winter 2015 advertising campaign, titled “We are the Futurists” and shot by German photographer Daniel Sannwald

EDITOR’S PICKS

Little luxuries

Indulge your desire for the finer things in life with this season’s must-have items 2

5 4

1. Victoria’s Secret Forever Sexy: Dubbed provocative and playful, this fragrance is pretty in pink, with delicate tulle and black corset lacing up the back, inspired by the brand’s lingerie. It contains an exclusive golden amber note for sultry warmth 2. Ray-Ban Havana Collection sunglasses: For Spring/Summer 2016, the Havana Collection in the Icons range pays tribute to four of Ray-Ban’s most famous shapes, the Ray-Ban Aviator, Shooter, Outdoorsman and Caravan, featuring classic havana acetate details 3. Braun Series 9 shaver: Intelligent SyncroSonic technology delivers 40,000 cross-cutting actions per minute for a thorough shave and skin comfort, offering much more cutting power than before

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

4. Chupa Chups Sweet Magnet by Perfetti Van Melle: These travel-related packs contain fridge magnets with different messages, such as “Love You.” Each box comes with eight mini fruity lollipops and an over-sized magnet 5. Maui Jim Blue Hawaii collection: Perfect for extra-bright days, the blue flash mirror coating creates one of the most protective lenses on the market, combined with Maui Jim’s proprietary PolarizedPlus2 lens technology

10 9

6. Original Penguin Original Blend: The fifth scent in the brandâ&#x20AC;&#x2122;s exclusive menâ&#x20AC;&#x2122;s fragrance collection introduces a fresh packaging design in the series, making it unique to the assortment

9. Happy Plugs Lightning and Micro to USB Charging Cables: Supplied by Travel Retail Innovations and packed in attractive boxes, these brightly colored cables connect the latest smartphones to a laptop or other power supply

7. Dyrberg/Kern Louise crystal earrings: New this year comes this line of trendy retro watches with matching bracelets. Developed exclusively for travel retail, the watch and jewelry sets offer functional and stylish accessories

10. Ampfly battery-free speaker: Combining the best of British engineering and amazing entertainment, this new battery-free speaker from the UK brand is fitted within an iPhone case

8. Love is On by Revlon: This fragrance sees the brand widening its product offer globally, taking Revlon from its position as a high quality, yet affordable cosmetics brand to an all-round beauty company

11. Valrhona Grands Crus chocolate squares: The new high-end and elegant packaging highlights the gourmet features of the chocolates, and the exceptional chocolate recipes remain unchanged

www.dutyfreemagazine.ca GULF-AFRICA DUTY FREE & TRAVEL RETAILING

FASHION: DESIGUAL

“Changing from the

inside” Desigual pays tribute to Barcelona with its Spring/Summer 2016 “Learn” collection

esigual presented its Spring/ Summer 2016 collection of women’s apparel and accessories, called “Learn,” at the TFWA World Exhibition in Cannes. With this new collection, Desigual goes back to its roots and reinvents itself, drawing inspiration from the vibrant, fun and multicultural city of Barcelona, where the brand’s story first began in 1984. “Learning is the key to growth, and at Desigual we are learning from ourselves and changing from the inside,” Desigual Head of Travel Retail Marco Gadola explained. “With ‘Learn,’ we revisit our Barcelona origins to create our freshest and most Mediterranean collection— one that blends the pure designs, freshness and originality that are so characteristic of Desigual.”

Change is in the air Change is in the air for Desigual with the Spring/Summer 2016 collection, updated with new fabrics and finishes such as blonde lace and the combination of knits and wool. The color palette of green, blue, yellow, red, black and white evokes the Mediterranean and Barcelona’s traditions. The aesthetic of the ‘60s and ‘70s features heavily this season, bringing with it fun pinafore dresses and folk-style ponchos. Sophisticated details like broach buttons or jeweled collars add a touch of glamour to coats and dresses, which range from lingerie-inspired styles and watercolor-effect floral prints to chic kaftans. Also new is a range of prints inspired by the geometric compositions of the

Change is in the air for Desigual with the Spring/Summer 2016 collection, updated with new fabrics and finishes such as blonde lace and the combination of knits and wool

tiled floors in Barcelona. The Exotic Jeans offering—comprising pants, jackets and skirts—is given a makeover with details such as sequins, beads and mirrors, as well as brushstrokes that characterize urban art and dripping effects. The epitome of cruise ship elegance, the Spring/Summer 2016 Desigual by Monsieur Christian Lacroix collection is marked by white, black and pearl grey colors, with a focus on minimalist offerings such as plain basics, prints against a monochrome background, and black and white combinations.

Exploring new patterns Desigual has also been exploring new patterns, designs and fabrics for the Spring/Summer 2016 accessories collection, which includes bags, wallets, belts, scarves and jewelry—with special attention paid to the intricate details that enhance the pieces. Natural shades of cherry, leafy green,

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

sandy yellow, deep blue, and pure black and white make up the color palette this season, and this is complemented by a whole new generation of materials. Natural fibers like ramie cotton (for foulards), or technological ones like neoprene enhance items with sophisticated textures.

Organic inspiration This season’s jewelry offering draws heavily from nature, capturing the spirit of summer with two collections— a ‘Tutti Fruitti’ range of necklaces, bracelets and earrings, designed with natural desiccated fruit and refreshing colors, and an ocean-inspired line in iridescent and coral tones.

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CONFECTIONERY: MARS INTERNATIONAL TRAVEL RETAIL The Galaxy Jewels casket is a popular choice with travelers across the region

A gift for growth One year on from the launch of the ‘Power of a Smile’, the global confectionery giant is taking its category vision to the next level

wo years of intensive research and insight from 9,000 travelers moving through nine major international hubs persuaded MARS International Travel Retail (MITR) that the simple act of leveraging the gift of confectionery to make people smile was the way forward in 2014/15. “The cut-through we’ve had with the industry since last year has been fantastic. We believe that a smiling traveller is a spending traveller and The Power of a Smile has driven strong double-digit growth both for Mars and the category,” says Craig Sargeant, General Manager, International Travel Retail. The challenge of converting an increased passenger profile into actual buyers is an industry-wide concern, and the team at MARS has drawn on six years Craig Sargeant, General Manager, International Travel Retail, MARS

The relaunch will be underpinned in ITR with a number of exclusives

of fundamental research on how to grow brands to power it through uncertain times. “We call it the ‘Laws of Growth’ and this is what we are using to underpin the next phase of our growth journey. Essentially, it’s all about penetration and getting people who aren’t buyers to buy. And in terms of how we are pitching it, we think it’s extremely timely,” says Sargeant. He says that retailers believe portfolio differentiation is key to growth, which is understandable as it clearly has a strong role to play. In order to turn growth around, however, it has to be a perfectstorm combination of portfolio, activation and display. “The main driver here is that we need to keep it really simple. Looking at it in practical terms, you’ve got to take the bestselling SKUs in the industry, give them more space to breathe and use the distinctive assets of the brand, like the M&M’S characters, for shopper recognition and to add value,” he notes. But there’s also a pressing need to ensure that existing physical space is used more efficiently, as he explains: “Our first job is to improve the productivity of the space we have, but we also believe that confectionery is under-represented as a category, with only nine per cent of people who shop in the travel retail environment making a purchase. “From our research, we know that to optimize category opportunity you need to have presence at both entry and exit. The entry point brings people in as they usually expect to see something more premium, so it activates interest; plus as the most impulsive category, on the way out you’ve also got an opportunity to get incremental sales.” A number of retailers are already using confectionery as a beacon, according to Sargeant, and MARS is already working

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

with its partners on implementing the Laws of Growth. “We feel we have a role to play as part of the retailer strategy and the feedback so far has been really good. We expected resistance, but we seem to have more curiosity,” he says. The Middle East remains a critical area for the company, as the only region where MARS ITR is market leader in the category, thanks to the strength of Galaxy in particular, and also Snickers. “We still see heaps of headroom in other global markets, such as Africa. What we’ve embedded in our strategy is that it’s all about the top 10 travelling nationalities, so it’s more focused on who is traveling to Africa and what they’re looking for when they travel; and this is key to unlocking the region,” he remarks. “There’s no doubt that travelers want their favourite brands, and what they like is that combined with a special twist, whether that’s packaging or promotion; but we don’t want to play around too much with the formula,” he adds. MARS’ product focus at Cannes this year was the relaunch of Galaxy, which has undergone a major revamp in the last 18 months, with ITR leveraging this through the development of a number of travel retail exclusives. Concludes Sargeant: “The branding is the same as what you would see in a domestic environment, but the portfolio is unique to travel retail. We already have our handle pouches and the Galaxy Jewels casket, but as an exclusive to the channel we are launching a new six-block multipack.”

What’s your favourite

Break?

Have a break, have a KitKat.®

CONFECTIONERY NEWS

Lindt & Sprüngli release two new travel retail exclusives from Lindor Lindt & Sprüngli launched two new Lindor tubes exclusively to travel retail at the Tax Free World Association World Exhibition and Conference in Cannes last month. The eye-catching orange Limited Edition 400g tube builds on the strong track record of the Lindor limited editions. This latest addition features the on-trend color of 2016, and includes a selection of what Lindt describes as “irresistibly smooth melting” Lindor truffle flavors to suit a range of tastes. Among these are two new flavors, cappuccino and almond. Lindor limited editions have always been stellar commercial performers according to Lindt. A Lindor promotion at Copenhagen in 2014, for example, prompted a sales increase of over 200%, with the number of tubes sold measuring three times the height of Mount Everest. Lindt states that the success of its limited edition ranges has also demonstrated a demand for more variety, and in response it has also launched a new Flavour of the Year to complement its highly successful golden tube. A snowy-white 400g tube will feature the most popular Lindor flavors—strawberry, coconut, milk and surfin. The two new tubes are accompanied by a POS toolkit and promotional mechanism to highlight the flavor variety of Lindor. With an additional Lindor Mix & Match Bag, customers are invited to select three Lindor tubes of their choice presented in a coordinated carrier. The new selections will be available from February 2016. Peter Zehnder, Head of the Lindt & Sprüngli Global Duty Free division, said: “Orange is the new black, and these new products bring a much loved range bang up to date. Our Lindor tubes make

Following the success of Godiva’s initial limited edition Coeur Iconique launch in June 2015, this second prestige collection features two new and exclusive vintage-chic designs

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

The recently released eye-catching orange Limited Edition 400g tube builds on the strong track record of the Lindor limited editions

an ideal gift, particularly for women. They are easy to pop into a bag to carry home, and the exclusivity to travel retail adds extra appeal.” He continues: “Our Lindor balls with their smooth melting center are a special treat for all chocolate lovers. In this new premium and appealing packaging, these new editions will add fresh excitement to the Lindor experience. We are certain they will prove equally as popular as our previous travel retail exclusives, and will add incremental sales for a much-loved best-seller.”

Godiva launches new prestige collection Coeur Iconique Prestige chocolatier Godiva recently shared the love and showcased its Coeur Iconique Travel Exclusive Edition 2016 at this year’s Cannes TFWA Exhibition and Conference. Following the success of its initial limited edition Coeur Iconique launch in June 2015, this second prestige collection features two new and exclusive vintage-chic designs. The heart-shaped boxes in elegant colors are inspired by 2016 fashion color trend predictions. The combination of the die-cut effect and soft touch matte packaging creates an irresistibly eye-catching and tactile effect. Coeur Iconique is one of Godiva’s best-loved and best-selling lines. Each box contains six exquisitely formed Godiva praline or ganache hearts, two of each of milk, white and dark chocolate. A perfect gift for a loved one, the box can be treasured as a delightful keepsake box long after the chocolates have been enjoyed. Leen Baeten, Senior Marketing & Business Development Global Travel Retail commented: “Coeur Iconique makes a delightful and thoughtful gift for travellers to take home to loved ones. Exquisite chocolates are a beautiful gift, appreciated the world over.” The limited edition Coeur Iconique Travel Exclusive 2016 collection will be launched in airports worldwide on January 4, 2016.

THREE NEW WAYS OF SAYING THANK YOU NEW

YOU CAN NEVER BE TOO GENEROUS

CONFECTIONERY NEWS

Leonidas launches 12-piece Chocolate Pearls Assortment Premium Belgian Chocolatier Leonidas has launched an exciting addition to its newly re-launched gift box collection. The 12-piece Chocolate Pearls Assortment (140g) is presented in a travel-exclusive dark brown gift box with a vibrant purple sleeve for excellent visibility on shelf. Inside, nestled like jewels, are three different Chocolate Pearl varieties: Pistachio Pearl, white chocolate filled with pistachio chocolate cream; Coconut Pearl, milk chocolate filled with white chocolate cream and decorated with coconut flakes; and, new this year, Raspberry Pearl, milk chocolate filled with creamy raspberry ganache. The Pearls will join the recently launched Leonidas Truffle Assortment, delicious cocoa-dusted truffles in a special gift box with a pink sleeve that is exclusive to travel retail.

The Leonidas Truffle Assortment (140g) consists of three truffle varieties: Truffle Classique, rich ganache made from a subtle blend of milk and dark chocolate; Truffle Noir, intense dark chocolate ganache made even more luxurious with the addition of chocolate from São Tomé, known for the depth of its flavor; and Truffle Speculoos, milk chocolate ganache with “speculoos” gingerbread spiced biscuit, a delicacy that is typical of Belgian confectionery. The Leonidas Chocolate Pearls and the Leonidas Truffle Assortments are packed in “fresh-packs,” sealed with foil to guarantee maximum freshness and enjoyment of the truffles upon consumption. All Leonidas confectionery is manufactured in Belgium with 100% cocoa butter and other natural, fresh ingredients under the ethos “Premium Quality – Affordable Luxury.” The 12-piece Chocolate Pearls Assortment (140g) is presented in a travel-exclusive dark brown gift box with a vibrant purple sleeve

Valrhona Grands Crus Chocolate Squares launched in new elegant packaging

The new high-end and elegant packaging of Valrhona Grands Crus Chocolate Squares highlights the gourmet features of the chocolates housed within

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Valrhona re-launched its line of Grands Crus Chocolate Squares (carrés) in September 2015 to the delight of the most discerning gourmets. The new highend and elegant packaging highlights the gourmet features of the chocolates housed within. It offers a better understanding of its contents thanks to a clear color code system, also communicating the number of different flavors included. Valrhona’s exceptional chocolate recipes remain unchanged. The company’s range of Gift Boxes Grands Crus Chocolate Squares include: Collection, featuring 66 Squares and 6 different Grands Crus Dark Chocolates; Découverte, with 52 Squares and 4 different Grands Crus Dark & Milk Chocolates; Intense, containing 52 Squares and 2 robust Grands Crus Dark Chocolates; Origine, featuring 52 Squares and 3 Grands Crus Dark Chocolates from Ecuador, Madagascar and the Dominican Republic; Dégustation, with 32 Squares and 6 Grands Crus Dark & 2 Grands Crus Milk Chocolates; and Dégustation, with 32 squares of 2 Milk Grands Crus for milk-chocolate lovers. Valrhona has been purveying exceptional products since 1922 and make each taste an exceptional experience.

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UNLOCKING SNACKING CREATING EASE OF SHOP MAXIMIZING IMPULSE

LIQUOR NEWS

Stoli unveils new design For the first time since it came into existence in 1938, Stolichnaya is changing its packaging design, though clearly with the understanding of the brand’s iconic image. The new design highlights Stoli’s premium quality, featuring a tall, elegant bottle shape and non-slip neck, making it easier for bartenders to pour. The revised front and back labels emphasize the excellence of the liquid within, with a new “craft” label texture, refined medals and a beautiful, bold upgrade of the main logo. The labels also feature Stolichnaya’s use of Certified Alpha Grade spirit – the highest quality level a spirit can reach. While its bottle has changed, the vodka remains the same. Three times distilled Alpha Grade spirit blended with artesian well water and four times filtered – the award winning liquid serves as the benchmark for premium vodka. And consumers are assured of getting the real deal; the new bottle contains a state-of-the-art cap with anti-counterfeit and anti-refill technology. Stoli® will roll out this striking new design across the assortment, which includes Stolichnaya® Flavored Premium vodka, Stolichnaya® 100 Proof and Stolichnaya® Gold. The new bottle will be on shelves and available during end of 2015 and early 2016.

Stoli’s redesigned bottle retains the brand’s iconic look while emphasizing its premium attributes

Patrón and Lalique: beautiful collaboration Luxurious tequila has now been married with exquisite crystal in an exclusive collaboration to create the limited edition Patrón en Lalique: Serie 1. This special series is limited to 500 bottles worldwide. Extra añejo tequila is exceedingly rare, and this tequila is remarkable; aged for at least four years in a combination of new American oak and new and used French oak barrels to achieve the right balance of agave and oak notes and creating the unique color. The design of the decanter, handmade by Lalique’s master artisans, was inspired by Mexico’s famous Weber Blue Agave plant, the foundation of tequila. The amber-colored crystal bottle stopper is shaped to represent the piña, the heart of the agave, which is roasted, pressed and fermented. Lalique’s signature technique of contrasting clear and frosted crystal finishes showcase and enhance the unique amber color of the tequila, created by blending the oldest and rarest Patrón tequilas, hand-selected from Patrón’s barrel aging room at the Hacienda Patrón distillery in the hills of Jalisco, Mexico. This creation is the latest extension of Patrón’s “Art of Patrón” platform, described as “a unique collection of experiences that reflects artists’ uncompromising commitment to their craft.” This is the first time Lalique has collaborated with a tequila brand and the first time Patrón has worked with a crystal maker to reimagine its classic bottle. Each of the 500 individually numbered and hand-polished bottles of Patrón en Lalique: Serie 1 is placed inside a handmade leather display case, elegantly adorned with gemstone detail. A leather-bound book and video that document the historic collaboration are also included. Patrón en Lalique: Serie 1 (750ml) will retail for US $7,500 at fine spirits retailers and in select duty free stores. The landmark collaboration has produced an incredibly beautiful and sophisticated marriage between superior tequila and exceptional crystal, presented in an exquisite box

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

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LIQUOR NEWS

Diageo unveils three GTR exclusive variants of The Singleton of Glendullan Diageo Global Travel and Middle East (GTME) has announced the release of three variants of The Singleton of Glendullan. The three variants of The Singleton of Glendullan – Classic, Double Matured, and Master’s Art – are available exclusively in travel retail. The Singleton has long been a staple in airport commerce and is a favorite among travelers who enjoy high-quality single malts. The Singleton of Glendullan is known for having layered flavors, leaving it smooth, rich, and balanced. The first variant available in travel retail is The Singleton of Glendullan Classic, which has the fresh flavors of green apples and pears. The second is The Singleton of Glendullan Double Matured, which is matured in European and American oak casks before being married to other special casks. This special maturing process gives Double Matured a rich and refined taste. Finally, travelers will be able to enjoy the Singleton of Glendullan Master’s Art, a unique small-batch Scotch whisky. Finished in oak casks conditioned with Muscat, Master’s Art is smooth and sweet. Global Marketing Director of Diageo Global Travel and Middle East Peter Fairbrother is excited about these travel retail exclusives reaching travelers. He says, “We are expanding our footprint to meet global demand so that consumers can pick up at least one expression of The Singleton, no matter where they are.” These new variations are all bottled at 40% ABV and are available in 1-liter editions.

THE SINGLETON GLENDULLAN RANGE exclusive to travel retail

Marie Brizard shakes up travel retail with new release In a bold and daring move, Marie Brizard Wine and Spirits has released a true stand-out spirit to travel retail. SHOTKA is a premium vodka with the flavor of cannabis (though without the effects of the drug). SHOTKA stands out on the shelves and stands out as a product. This new vodka is targeted at two core groups, the ”fun seekers” and the ”impulse actives,” mainly under 25 years old, both when they have fun, lively events in the house an when going out. SHOTKA was first launched in Spain, in a strategic partnership with The Matinée Group, a prestigious nightlife company. This brand will be promoted through a targeted activation program running until the end of 2016. Hundreds of SHOTKA parties will be held throughout Spain as the initial stages of a roll-out plan that includes the US, Canada, Poland, Denmark, Bulgaria, France, Lithuania, Estonia, Georgia and Ukraine, and a SHOTKA video teaser by the famous Rossy de Palma has been produced. Parties feature daring promotional games, supported by extensive social media activations via Instagram; Facebook groups and other online social media and blogs. Packaging offers high shelf stand-out visibility with a silver opaque one-litre bottle for travel retail (700ml for domestic) with a dragon-style motif and the words “Promise you won’t shoot me down if I ask your name. Let’s dance first. Call us Mary & Jane. SHOTKA” in black and green. Marie Brizard is launching this bold and daring new flavored vodka targeted at fun seekers

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

LIQUOR NEWS

Jameson introduces the Deconstructed Series Jameson Irish whiskey, well known throughout the world, has just launched its first-ever travel retail-exclusive range. The three super-premium whiskeys were officially presented at TFWA WE in Cannes, with a spectacular party and tasting event. As its name suggests, the Jameson Deconstructed Series deconstructs the key notes that make up Jameson’s famous taste, and uses them as the base for three new whiskeys: Bold, Lively and Round. Bold is influenced by pot still whiskey. Initially sweet and creamy with an abundance of soft fruits, the taste evolves as the pot still spices develop, to bring a perfect balance of rich barley notes and mellow baked apple. This is an intense, flavorful whiskey. Lively, influenced by grain whiskey, offers an elegant floral taste combined with a citrus lightness. Its soft taste reminiscent of turkish delight combines with citrus to balance the sweetness. A little chili oil brings a prickle of spice to the mouth. Round, influenced by the wood contribution, is a balance of rich and plump charred tones. A perfect harmony of sweet vanilla fusing with soft ripe fruit and rich pot still spices on a firm foundation of toasted oak. By highlighting the three key notes, Jameson Master Distiller Brian Nation has amplified the whiskey’s individual characteristics in each of the three new expressions, creating new taste experiences that are at once familiar and unfamiliar, potentially creating brand new favorites for long-time Jameson aficionados and a new taste experience for all. The inspired tasting of the Jameson Deconstructed Series at TFWA WE in Cannes highlighted the different flavor notes of each expression

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

The rare PORT ELLEN™ 33 Years Old has become one of the most exclusive and sought after Single Malts in the world today

Diageo unveils three rare single malts, two exclusive to travel retail Recently, Diageo Global Travel and Middle East (GTME) unveiled three new exclusive single malts, all single cask releases perfect for collectors of the finest single malts.. Two are travel retail exclusives, Port Ellen 33YO and Cragganmore 43YO. Royal Lochnagar 36YO will be available mainly in GTR, with a small number of bottles available outside the channel. ROYAL LOCHNAGAR™ 36 YEARS OLD is one of the oldest crafted by the original distillery. Only 174 bottles were produced. This1978 single malt pays homage to the robustness and vibrancy of former years. This whisky, which was granted a Royal Warrant in 1848, has a distinctive Highland profile, deep, rich character and an abundance of fruit and spice. RSP US$5,550 PORT ELLEN™ 33 YEARS OLD. Whiskies from this distillery, closed in 1983, have become among the most sought after in the world today. This well-structured, oncein-a-lifetime island malt is robust and complex, an intensely smooth, sweet-centered whisky, with gentle spice notes. Only 210 bottles exist. RSP US$7,020 CRAGGANMORE™ 43 YEARS OLD. Just 474 bottles of this whisky were produced. This unusually spicy single malt has great depth, a long, dry finish and pleasingly charred warmth. Diageo believes this to be the oldest distillation to be released by Cragganmore as a single malt. RSP US$3,800.

LIQUOR: BROWN-FORMAN CORPORATION

Diving deeper The Gulf region is showing robust growth for Jack Daniel’s Tennessee Whisky maker Brown-Forman, as it seeks to build visibility for its premium brand portfolio by

WENDY MORLEY

rown-Forman, the US supplier of Jack Daniel’s Tennessee Whiskey among other premium brands, is building on the momentum it has achieved in the Gulf region, where new opportunities still remain. “Much like the rest of the world, the Gulf region has embraced North American whiskies in a major way,” says Marshall B. Farrer, Vice President, Managing Director, Global Travel Retail, BrownForman Corporation. He notes that sales of Jack Daniel’s Tennessee Whiskey are up 24% in Gulf duty free in 2015 versus 2014 and that Dubai International Airport is the top-selling travel retail outlet for the iconic brand. The rest of the portfolio has also seen sales up 17% in Middle East/ North Africa travel retail. So why the popularity of North American whiskies in this region? “We knew that would be the case, because international travelers through the Gulf are insistent upon brands that are authentic in their heritage and premium in nature,” says Farrer. Flavored whiskies are also gaining favor in the region, he observes, driven by Jack Daniel’s Tennessee Honey.

Africa and Asians traveling westward. The Gulf is certainly one of the top regions to reach African passengers, which is helping fuel our surging business there, and of course it’s critical in reaching the subcontinent passengers, especially India, for our brands.” Special travel retail packaging has also played a part in boosting sales. Several years ago the company launched a Gentleman Jack Pack, which contained two bottles of Jack Daniel’s Old No. 7 along with a free 37.5cl of Gentleman Jack. Brown-Forman relaunched the pack last year and has enjoyed a 15% growth in the entire Jack Daniel’s family. Going forward, the company aims to secure in-store visibility. “Several years ago we increased our investments, highlighted by Jack’s Bar & Grill in Dubai Airport, and with the provision of special packs, which sent the brand soaring. Our visibility throughout the region hasn’t quite kept pace and we hope to work on this going forward,” says Farrer. The company’s activities in Africa will center on its key markets for Jack Daniel’s, including Nigeria, Kenya, and Tanzania. Old No. 7 and Single Barrel are proving its most important offerings.

Diverse and varied nationalities

Special travel retail packaging

The portfolio’s success in the Gulf can also be explained by the diverse nationalities of travelers. “The Gulf region is a wonderful environment for premium brands like Jack Daniel’s and Woodford Reserve because they gain exposure and trial with travelers going to Asia from Europe and 94

In October 2015 the company began launching Jack Daniel’s Sinatra Century in travel retail. Jack Daniel’s Sinatra Century is a collaboration between the Lynchburg distillery and the Sinatra family to celebrate the day that Frank Sinatra, a Jack Daniel’s fan, would have turned 100 years old, this year. A one-liter bottle

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Sales of Jack Daniel’s Tennessee Whiskey are up 24% in Gulf duty free in 2015 year-on-year, with Dubai International Airport the number one outlet for the iconic brand

Jack Daniel’s Sinatra Century is a collaboration between the Lynchburg distillery and the Sinatra family to celebrate the day that Frank Sinatra, a Jack Daniel’s fan, would have turned 100 years old

of 100 proof Sinatra Century retails at US$499.99. Over the coming year, Brown-Forman expects the Gulf region to remain a robust and growing market. “Clearly, the Gulf region is growing passengers faster than any other region right now and that brings shopping opportunities for our brands,” he says. “We are seeing strong investment in infrastructure with Abu Dhabi’s Midfield Terminal Complex amongst the largest. Of course, Dubai is now the largest airport in the world and Doha has done an outstanding job building their position in their region. I think many of us are excited to see Amman at the upcoming MEADFA conference as well and dive even deeper into the Gulf regional opportunity.”

LIQUOR: DIAGEO

Bringing joy

This Dubai edition of the Johnnie Walker Blue Label Cities Collection was created in partnership with the artist Jeff Nishinaka, and is an exclusive to Dubai Duty Free

to the Gulf John Kelly, Diageo GTME’s General Manager in the Gulf region, explains how the drinks giant is focusing on differentiation, the shopping experience, and gifting in challenging times by

MARY JANE PITTILLA

iageo Global Travel & Middle East (GTME) is on a mission to “bring joy back to the journey” for travelers in the Gulf region, in line with the spectacular launch of its new global marketing campaign for the Johnnie Walker Scotch whisky power brand. Trading has been good if challenging in the Gulf region, according to John Kelly, General Manager, Diageo GTME, Gulf Region. “Business is very good and we’re happy with the growth we’ve been seeing over the last few years,” he says. “Confidence throughout the industry remains high, and we share that positive outlook.” But he adds with a note of caution that Diageo has operated in a challenging environment in the past 12 months. The decline in Russian passenger numbers and the devaluation of the Euro have attracted tourists to Europe rather than the Middle East. Issues facing the petroleum industry and the ongoing conflict also remain, dampening enthusiasm for travel locally.

John Kelly, General Manager, Diageo GTME, Gulf Region, has a positive outlook for business in the region

To continue growing its market share, Diageo has focused on the shopper experience to provide engaging and memorable experiences.

Whisky and vodka Whisky remains the number one category in the Gulf region and Johnnie Walker is “by far” the category leader, Kelly says. Diageo will continue to invest in the brand as a priority this year. In the last year Diageo has substantially grown its market share in whisky, thanks to new promotional mechanics, an increased focus on its brand ambassadors, and product innovations. Particular success has come from providing travelers with unique products they cannot buy elsewhere, such as its Johnnie Walker Gold Label Reserve Dubai Duty Free Exclusive and the Johnnie Walker Blue Label Cities Collection – Dubai Edition, also exclusive to Dubai Duty Free. Vodka has also been a growing category in recent years, thanks to the ongoing strength of Smirnoff and the emergence of Cîroc as a key player. Cîroc has enjoyed great success in the domestic market for several years, and the company’s investment in prominent visibility in key bars and nightclubs has translated to success in travel retail. With increased visibility and shelf space for the brand, Cîroc is gaining market share at an impressive rate, says Kelly. Blended whisky remains king, but Diageo is also seeing the emergence of single malts as a real contender in the whisky category. “We’re predicting strong growth in malts in the Gulf region, with a big focus on Singleton as our power brand, and continued support for our timeless classics such as Talisker, a brand that has

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Johnnie Walker Gold Label Reserve - Dubai Duty Free 30th Anniversary

always performed well in the region,” he notes. A significant proportion of Diageo’s customers come from the Indian subcontinent, and the company has created relevant activations—a recent Diwali promotion for example —and has made sure the product range and displays reflect the nation’s love of the color gold.

The gift of giving Diageo aims to make gifting easy through differentiated offerings such as its Gentleman’s Wager II-themed Johnnie Walker Blue Label gifting activation featuring premium gifts, gift wrapping and an engraving machine, which will roll out over the coming months. Amid a competitive travel retail liquor market, Diageo is firmly focused on bringing joy back the journey for travelers, through working closely with its customers. “I look forward to continued growth in the coming years,” Kelly enthuses.

Oriental Group offers a wide international market access where in our products are already being distributed in more than 40 countries in Africa, Middle East, South East Asia and Europe as on date. Oriental Group provides an exceptional variety of Superior Chinese Tobacco and Finest Chinese Alcoholic beverages products to its growing client base.

LIQUOR: VINPROM PESHTERA

vinprom peshterA

Vinprom Peshtera is seeing great success by marketing Flirt as the party vodka. At TFWA WE in Cannes the company will introduce more flavors

PARTY ON! Vinprom Peshtera is seeing big success with its Flirt Vodka in the Gulf region, and is forging ahead with plans for more products in travel retail WeNDy MoRley

t’s officially party time for leading Bulgarian liquor producer Vinprom Peshtera, which has witnessed aboveaverage growth in the Gulf region, buoyed by its hero brand Flirt Vodka. The company is expanding its distribution of strategic brands such as Flirt, both regionally and globally. “We have further increased our presence in the Middle East and Africa, and with every day we are getting closer and closer to becoming the favorite vodka for the world party culture,” enthuses Zhelyaz Koliovski, Marketing Manager for the company, which is well known in Eastern Europe and growing in the rest of the world. According to Koliovski, Flirt is performing “outstandingly” in several markets across Africa, mostly in Kenya and the Middle East, and in the UAE. “Without doubt our primary regions to focus on are the Middle East and Africa. In these regions there is increasing demand for Western-looking, good products at a fair price.”

Party time This year the company has developed a brand-new party communication platform called “Flirt Party University of Ibiza,” supported by a limited edition SKU called Flirt Ibiza. The above-the-line and below-the-line program seeks the wildest party people to form the Flirt Ibiza Party Team and conquer Ibiza’s biggest clubs. Vinprom Peshtera has sponsored a variety of party events globally, namely in the Netherlands, Kenya, Czech Republic, UAE and Ibiza itself. “We are excited that this year we managed to introduce the Flirt party

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

concept on the biggest international party scenes,” says Koliovski, excitedly. “We screamed ‘Flirt party vodka is here!’” The company developed the Flirt Ibiza Limited Edition for high-end hotels, restaurants and cafes, as well as travel retail. At the TFWA World Exhibition in Cannes, the main focus will be the party vodka Flirt and its new flavors. “We will have a stand representing the world and the personality of our brand. We will introduce the whole new flavor variety, which currently counts for 22 SKUs both in the party and Flirty style of the new generation,” explains Koliovski.

More in the pipeline Looking ahead, Vinprom is working on a new Scotch proposition, which will be introduced globally in a few months. Koliovski describes the product as a “perfect blend of unique design, perfect quality and appealing brand personality for the rising number of entry-level Scotch consumers worldwide.” The company is also developing several activations for airports, but the details will be revealed later on. Koliovski explains a key to Vinprom’s success: “What makes us unique is that that we can add more layers to the consumer value proposition—conceptual products speaking the language of the category, and yet with a unique twist that makes them distinctive and appealing. And finally we bring the whole brand idea with consistent activations, continually telling the brand story to the consumer.”

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COMPANY NEWS: JT

JT purchased NAS outside the US because of its unique brand and premium status, with environmentally conscious and socially responsible production and marketing strategy

A natural

addition

apanese tobacco giant JT Group is set to add to its portfolio the Natural American Spirit (NAS) business outside the US. The Japanese company announced in September 2015 that it had entered into an agreement with the Reynolds American Inc. group of companies (RAI) to acquire the Natural American Spirit business outside the US, which includes the trademarks and all outstanding shares of RAI’s subsidiaries outside the US that sell the brand. The transaction is expected to be completed by early 2016. The acquisition has not yet been finalized, but JT is clear about why it is interested in the brand, which was launched in the US in 1982 by Santa Fe Natural Tobacco Company Inc. “NAS has a unique brand offering with premium status. It is additive free and has a distinctive brand concept with a marketing platform that is environmentally conscious and socially progressive. We are confident that the brand will strengthen our portfolio,” says a JT spokesperson.

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Japanese tobacco giant JT explains the reasoning behind the planned acquisition of Natural American Spirit, the fastgrowing American natural tobacco brand by

MARY JANE PITTILLA

NAS carries on the tradition of growing tobacco without chemicals, and then drying the tobacco naturally as whole leaves and processing minimally, if at all, before wrapping or tying. There are no artificial flavors, preservatives, moisturizers or other additives. Farmers who grow the tobacco must convert to using fertilizers and pesticides that are biodegradable. The company plants sunflowers with its tobacco; these flowers attract ladybugs, which in turn eat the tobacco pests. NAS products are not all certified organic, but they are all produced in a way consistent with organic practice. In addition, everything possible is recycled. NAS exhibited at the 2015 TFWA Asia Pacific show in Singapore in a very striking booth – even the chairs were made from recycled material – and it seems JT plans to keep the same look and style for its new acquisition. “Although we still have to finalize the transaction, it is our intention to maintain the brand’s unique and exceptional sales and brand activation activities. We can create many synergies by merging

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

their uniqueness with our geographical reach,” the spokesperson says. Likewise, the company’s extremely environmentally conscious approach will continue under its new owner. “It is important for us to maintain NAS’s unique brand concept.” The sales potential of NAS was another factor behind the proposed acquisition. “NAS’s recent growth with a unique product, of which natural tobacco is an important aspect, was a contributing factor to our decision to buy this brand outside the US. We will enhance NAS’s presence and portfolio in existing markets such as Japan, Germany, Switzerland, Italy, Spain and the UK. As the JT Group is very experienced at successfully entering into new markets and NAS already has international awareness, many new markets will be explored.” The transaction has not yet closed and therefore JT has not yet started its commercial plans, but the company looks forward to growing this brand even further.

TOBACCO NEWS J. Cortès has invested in a number of initiatives to enhance its growing travel retail business, including the creation of modular, easily tailored floor displays

J.Cortès renews commitment to travel retail with new displays J. Cortès Cigars, the most important cigar producer in Belgium and one of the largest family businesses in this trade worldwide, has made a determined, renewed focus toward travel retail. The company launched new in-store retail floor displays at several locations around the world in October. This multi-brand floor display is a creative solution to present the company’s top brands Neos and J.Cortès in the travel retail channel. Made from high-quality wood measuring 120 x 60cm in its basic state, this modular system can be tailored to customer requirements. “The touch and feel of the floor display in a warm but no-nonsense wood finishing reflects the values and principles of our brands J.Cortès and Neos,” says Export Manager and Travel Retail Coordinator Thomas Gryson. J.Cortès has also invested in two other areas to support its travel retail business: training staff and telling its story. This year the company is investing in training sales staff of WDFG at Queen Alia Airport, Jordan and also with DFS at Changi and JFK. The new website, meanwhile, not only reflects the brand but also tells the company story. Says Gryson: “The website is a reflection of who we are, what we do and what we stand for. We invite you to have a look and explore our Cortésien Community, which is based upon these two simple but pure key values: family and craftsmanship. We invite you to enter our world and become part of our family.”

Habanos presents new releases Habanos is releasing its new Ediciones Limitadas selections in addition to this, the new Partagás Maduro No.1, first in the Partagás Maduro series

Each year Habanos releases its Ediciones Limitadas, or Limited Editions. Aficionados await this release each year, because the vitolas and leaf selection for wrapper, filler and binder do not exist in the regular range. Coming from the highest levels, these shadegrown leaves are aged for at least two years. The wrapper used for this special edition is also darker than that of the regular range. The first Ediciones Limitadas is Magnum 56 of H. Upmann (56 ring gauge x 150 mm length), this is also the first launch in the Línea Magnum since 2008, a Línea characterized by its blends of elegant character with light to medium flavour. H. Upmann Magnum 56 features the biggest ring gauge introduced by H. Upmann brand up to now. This Edición Limitada is presented in the classic slide-lid box of 25. The second selection is Ramón Allones Club Allones, characterized by an intense and complex flavour. Club Allones offers an opportunity for smokers who enjoy full-flavored Habanos the chance to taste them with the characteristics of the Ediciones Limitadas. Habanos, S.A. also presents Partagás Maduro No.1, the first release of the new Maduro series launched within the Partagás brand. This cigar is characterized by its dark shade maduro wrapper, the result of an extra fermentation period, which enhances its full-flavour blend and a new 52 ring gauge x 130 mm length. This release will be launched in a Semi Boîte Nature presentation of 25 Habanos. All Habanos of the Partagás brand and all Ediciones Limitadas are made “Totalmente a Mano con Tripa Larga” (totally handmade with long filler) with selected leaves from the Vuelta Abajo* zone, in the region of Pinar del Río (D.O.P.—Protected Denomination of Origin), Cuba.

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TOBACCO: BAT

A display allows legal-age travelers the chance to experience what makes the difference between the three variants in the Premium Shuang Xi range

The beautiful and sophisticated Chinese-inspired display attracts travelers to learn more about CTBAT International’s premium selection

Chinese tobacco brand plans further expansion Together, British American Tobacco and China Tobacco are bringing a dominant Chinese brand plus a new premium Chinese tobacco range to global duty free by

WENDY MORLEY

ctober 2015 marks 10 months since the launch of the new premium Shuang Xi tobacco products, a range that offers both international and Chinese consumers products that are inspired by Eastern Asia. Since its launch in various European, Asian and Middle Eastern airports, the range has gone from strength to strength, offering consumers three distinct variants that each delivers a unique taste. Each of the three variants—Bright & Fresh, Crisp & Delicate and Soft & Fragrant—has a different tobacco blend to provide a cigarette unlike others on the market. The packaging of the range echoes the ideals of fine Chinese-inspired craftsmanship. All three variants have performed strongly in Paris CDG, Munich and Doha airports since early 2015, and the three have also become available in additional 102

airports in recent months, including Amsterdam and Hong Kong. On the back of this promising start, further expansion to major airports around the world will continue throughout the rest of 2015 and into 2016. The origin of this range is a joint venture set up in recent years between British American Tobacco and China Tobacco, called CTBAT International (CTBATI). CTBATI owns the rights to Shuang Xi outside of China, and the global rights to State Express 555, a dominant tobacco brand in Asia. CTBATI, in conjunction with its shareholders, has developed the range to tap into the trend of travelers looking for unique products with modern luxury cues. “We’re very proud of the success of this Shuang Xi range in travel retail,” says Brendan Brady, General Manager, CTBAT International. “It has exceeded expectations in such a short period of time, and we’re enthusiastic about the future plans for expansion.” The success of the new Premium Shuang Xi range with both international and Chinese consumers outside of China (it is also a popular domestic brand) follows the emerging trend of luxury travel-retail goods among legal age Chinese smokers. “We are seeing a large

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

number of Chinese smokers purchasing domestic premium and super premium tobacco brands at more affordable prices in duty free which, in turn, is driving increased availability of these brands,” says Christian Löwe, General Manager, BAT International. “In saying that, we are also seeing these products appeal more and more to a broad base of international travelers looking for differentiated products. We expect that trend to continue as the brand expands its footprint. CTBATI is an exciting addition to the global tobacco world. The new Premium Shuang Xi range and the results to date help elicit that excitement.”

A customer learns about the differences between the three variants in the new premium Shuang Xi range

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TFWA WE REVIEW

October on the Riviera Despite the devastating and tragic floods that hit the city mere days beforehand, Cannes was beautifully ready for the thousands of duty free professionals in time for TFWA World Exhibition 2015

Guests enjoyed Le Premium Evening with exciting entertainment provided by Cirque Eloise, from Montréal

PHOTOS COURTESY OF TFWA

“T

here has been a tremendous buzz around the exhibition this year in spite of the difficulties prior to the event both in Cannes itself and in the industry as a whole,” commented Erik Juul-Mortensen, TFWA President. “The fact that TFWA World Exhibition & Conference opened on schedule just two weeks after the appalling flooding in the city, with virtually all facilities in the Palais des Festivals and at our other venues provided as planned, is testament to the hard work and commitment of all our partners in the city. “The slight reduction in the total number of visitors compared with last year’s record figure bears witness to the difficult economic and geopolitical climate in the world today. However, I am delighted to report that our key visitor category—landlords, duty free & travel retail operators—was extremely well represented with a 2% increase in delegates and 4% rise in the number of companies over 2014. Agents and distributors also arrived in greater numbers than last year, which is very pleasing.” A total of 6,558 visitors from 3,026 companies attended TFWA World Exhibition & Conference 2015, which ran from Sunday 18 to Friday 23, October, compared with 6,701 visitors (-2%) from 3,105 companies (-3%) last year. Of the total, 2,183 people (33%) were key buyers—duty free & travel retail operators and landlords of airports, airlines, ferry, cruise, border and downtown concerns—up +2% on the previous year’s figure of 2,132, from 643 companies vs 618 in 2014 (+4%). Adding the 2,401 agents and distributors (1,145 companies) to this figure produces a total of 4,584 (1,788 companies) of the most influential trade executives in the industry who were present at this year’s event. On the 21,500-square-meter trade floor were 482 exhibitors (475 in 2014), including eight luxury yachts in the Harbour Village, 48 of the exhibitors were new or returning after an absence. 104

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Cutting the ribbon Monday morning to officially open TFWA’s 31st World Exhibition

Between them they showcased thousands of products in the fragrances & cosmetics, wines & spirits, fashion & accessories, jewelry & watches, confectionery & fine food, gifts & electronics and tobacco categories. The TFWA World Conference, which set the scene on Monday 18 October, attracted 1,504 delegates, who were rewarded for their early start with thought-provoking analysis of the current business environment from the three speakers—Rudy Giuliani, former New York Mayor, Peter Long, CEO TUI Group and Erik Juul-Mortensen, President TFWA—under the watchful eye of moderator Stephen Sackur, BBC HARDtalk. 145 delegates turned out at first light on Tuesday 20 for the Market Watch Workshop on South Korea, 169 attended the Inflight Focus workshop on Wednesday and nearly 90 stayed on after a busy day at the show that evening for the first-ever TFWA Research Workshop.

Peter Long, Joint CEO of TUI Group was the first keynote speaker Monday morning

New York City’s former mayor Rudy Giuliani was the final keynote speaker of Monday morning’s conference

The cocktail party on Sunday evening at the Carlton Hotel was well attended

While overall attendance was down slightly and despite challenges in much of the world, buyer and retailer attendance was up, and most vendors were very pleased with the business environment

Networking is always a priority at this annual summit for the global duty free & travel retail industry. In spite of the rain, 140 sporty delegates took part in the TFWA Charity Run on Sunday 18, each of whom donated €15(US$16) to the good causes supported by TFWA Care. The charitable Heinemann/Estée Lauder Golf Tournament was keenly contested by nearly 100 players and, across the city, 87 delegates defended their honor in the annual TFWA Petanque Tournament. Nearly 2,000 guests donned party attire for the ever-popular Welcoming Cocktail at the Carlton Hotel on Sunday evening with fabulous fireworks organized by the City of Cannes. The Scene, after-hours venue at La Gare Maritime, was packed with revellers each weekday evening, chatting and dancing to music mixed by some of the best DJs on the Côte d’Azur. The dazzling climax of the social agenda for over 1,000 guests was Le Premium Evening at Port Canto on Thursday 22nd with

an elegant “Cucina Pop” dinner prepared by award-winning chef Davide Oldani and a scintillating acrobatic display by the Cirque Eloize from Montreal. At the closing press conference, Erik Juul-Mortensen was delighted on behalf of TFWA Care to present to M. Christophe Visentin, Founding Director, and M. Bernard Brochand, Deputy & Honorary President of SAMU SOCIAL, which provides assistance to homeless people, funds that will be used to purchase a service vehicle. The van will replace one originally purchased by TFWA ten years ago, which was destroyed in the recent flooding. Erik Juul-Mortensen concluded, “TFWA is pleased to report that the 31st TFWA World Exhibition & Conference has been completed successfully. Initial feedback from visitors and exhibitors has been very positive and we will endeavour to rectify any issues which have come to light in time for next year. We look forward to meeting colleagues at our next industry event, the MEADFA Conference in Jordan, on 23 and 24 November.” The drizzly chill in the air couldn’t stop the runners from getting out and supporting TFWA Cares on Sunday morning

QUESTIONNAIRE

ALL ABOUT

Saboohi Khan, Marketing Manager, Qatar Duty Free Where were you born and raised? I was born and raised in London, UK.

Your favourite drink? Ice-cold Piña Colada that’s served on a beautiful beach somewhere.

If you attended post-secondary school, what did you study? I did my undergraduate degree in Business and Marketing in London, and then went on to complete a Masters in Digital Marketing.

Do you have a dream in your life (or more than one)? Ahhh there are lots! To be in a position in life where I have the time and financial capacity to help more people from underprivileged societies and empower more women in these societies.

Are you married? Do you have children? I’m a single parent with a sixyear-old son, Daniyaal. What is your favorite movie? Love the movie Pursuit of Happyness. It gets you motivated and the at the same time makes you feel humbled and grateful for the opportunities that have come your way. The sheer drive and passion that is shown in the movie by Will Smith’s character is inspiring. What is the last book you read? Unleash the Power Within by Anthony Robbins. He is simply a mind-blowing mentor. What would you choose as your last meal? I am a big meat eater, so it would have to be an Iranian or a Turkish kebab with rice.

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Do you prefer country or city? The country is a place you aspire to go and cities are places attached to beautiful memories. What is your favourite place to vacation? If I want to sit and do nothing and just relax, then there’s no place like the Maldives. For a vibrant, fun and shopping-filled holiday then I love Istanbul. What’s the first thing you do in a new place? Get connected to WiFi then look for the good places to eat and shop. If you could choose any place in the world to live, where would it be? Where the sun shines every day.

Which living person do you most admire? Sheryl Sandberg, COO of Facebook. Super smart self-made woman.

GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER 2015

Which historical figure do you most admire? Mahatma Gandhi. He devoted his life to peace and unity. Where and when were you happiest in your life? When my son was born six years ago, the happiest time of my life in every aspect. What in the world would you most like to change? Poverty and the extreme inequalities in today’s world. What about yourself would you most like to change? To slow down and to try not to achieve everything at the speed of light. What is the most important piece of advice anyone ever gave you? Always remember to take care of yourself and love you; only if you are in a happy healthy place in your life can you give others love and happiness. What is something about you that most people would find surprising? I’m petrified of dogs. Can’t do pets.

Transforming Travel Retail.

Wherever you go with Dufry, you have a world of shopping in your hands. The best brands and the best prices with the largest variety. Today a world made up of more than 2000 shops, in 64 countries and close to 440 locations all around the world. Dufry, the true global travel retailer.