The Moodie Davitt Report is pleased to introduce the latest in our series of Curated Newsletters with Gifting Curated, in association with Lindt & Sprüngli. To mark the launch of this new regular series, we feature this commentary courtesy of our Curated partner.
At the beginning of Love Actually, we’re treated to a succession of scenes of emotional reunions and an iconic voiceover which reminds us of the very human nature of travel: “Whenever I get gloomy with the state of the world,” says Hugh Grant, “I think about the arrivals gate at Heathrow Airport.”
So many of our journeys revolve around people: loved ones, clients, colleagues, friends or family. And so often everyone shows their appreciation for those people through the timeless act of gifting. If travel is about human connectivity, then gifting is travel retail’s ultimate expression of that dynamic.
A year-round powerhouse in travel retail
With this in mind, it should be no surprise that gifting in travel retail goes well beyond the typical seasonal occasions Lindt might have in mind. Yes, people often travel at key periods, but research has shown that gifting is a truly year-round act, with 90% of these purchases occurring outside of traditional festive seasons.
Unlike many holidays or celebrations, gifting is not specific to a particular culture, but is a universal act of kindness and appreciation that can take place at any time. It also represents a hugely important sales driver across all categories, locations and shopper profiles.
So how do they – regardless of category – ensure that they capitalise on gifting’s enduring popularity? Lindt believes there is huge potential to drive growth by ensuring that gifting is a core consideration for retailers, not just an occasional or seasonal focus. There are a number of rituals and reasons which need to be addressed in order to ensure a robust, diverse and appealing gifting offer.
Sharing insights from a gifting icon
Clearly, given chocolate’s status as a go-to gift, this subject is very close to Lindt’s heart and one in which it has a great deal of insight to share. In its recently launched Category Vision, backed by research covering over 65,000 consumption occasions, gifting or ‘Delight’ is identified as a key growth pillar. While the research is naturally focused on chocolate, there are a number of findings which the company says have genuine cross-category relevance.
At a fundamental level, it is important to understand that shoppers are looking for something to give to others as a way of making them feel special and thought of, be it to say ‘Thank You’, ‘I Love You’, I Missed You’ or simply ‘I’m Thinking of You’ to name just a few. The Lindt study highlighted three key gifting occasions:
- Gift To Impress: A high-quality gift, made by experts, that looks impressive and feels premium.
- Everyday Thoughtful Gesture: A practical, thoughtful everyday gift as a gesture of appreciation and love to make someone feel happy.
- Considered Gifting: A gift that demonstrates understanding of the recipient – showing consideration of their needs and likes.
Ensuring that across all categories, retailers are able to cover these three occasions that will provide options for the broadest possible range of shoppers (and recipients) at a variety of price-points, helping to drive conversion.
Premiumisation an opportunity
The beauty of gifting is that no matter the occasion, many shoppers will be willing to spend more to make the right impression, particularly in the Gift To Impress segment. This naturally plays perfectly into the premiumisation drive across the industry. This is potentially even more true at a time when many are struggling financially and having to budget even more tightly: shoppers do not want to disappoint the recipient when gifting, so they will inherently look for something high quality and special.
In order to push shoppers towards more premium products, certain gifting cues and elements in terms of format, packaging and all-important personalisation and Sense of Place is key. Whether it’s gift boxes or sleeves with specific messages, personalised gift-tags or other forms of personalisation, these additional touches only serve to increase the perceived value of the product.
Lindt has recently executed its most ambitious HPP ever in travel retail, focused squarely on the gifting opportunity around their iconic Lindor tubes, building in many of these cues and elements.
The company will share more details and learnings from this activation in the next edition of Gifting Curated. This is such a dynamic part of the travel retail offer, and Lindt is fully committed to developing gifting and driving confectionery growth together with its partners. ✈
