EssilorLuxottica Global Travel Retail Director Alessio Crivelli says that the future for luxury eyewear in Asia Pacific travel retail will be shaped by five key dynamics.
The Asia Pacific (APAC) region is expected to be a key growth driver within the travel retail market over the coming years, according to a report by M1nd-set, writes Alessio Crivelli. This increase in APAC consumers is driven by factors such as increasing disposable income, changing fashion trends, and a rising number of international tourists visiting the region. The luxury segment, in particular, is predicted to expand, with more consumers willing to invest in premium products that they may not be able to find in their home countries.
In a competitive industry, it is crucial for brand owners to stay up-to-date on the latest trends to maintain their edge. This knowledge can also help brands to anticipate the changing needs and preferences of their target audience, adjust their marketing strategies and product development accordingly.
Below are five insights outlining key trends that are predicted to shape the luxury travel retail industry over the coming years, particularly within the APAC market.
Rising demand for luxury experiences: Affluent consumers in the Asia Pacific region are increasingly seeking unique and personalised luxury travel opportunities. As a result, we have seen a number of luxury travel retail brands shift their focusing towards creating exclusive products and bespoke experiences.
EssilorLuxottica has implemented this strategy by partnering with key industry players to launch exclusive travel retail ranges for Bvlgari Serpenti True Colours sunglasses (click here) and Burberry B.Monogram sunglasses (click here). Both projects included a striking pop-up store, eye-catching window displays, in-store visibility and WeChat amplification to connect with traveling consumers both offline and online.
In 2020, EssilorLuxottica teamed up with China Duty Free Group (CDFG) to launch the Ray-Ban ‘You’re On’ campaign in Hainan, featuring China Exclusive frames. As part of the campaign, Chinese key opinion leader, KOL 辰TK (pictured below), took his 800,000 WeChat followers on a tour of the Ray-Ban boutique (click here).
Experiential marketing allows consumers to engage with brands in a more interactive and immersive way. By providing unique and memorable moments as well as exclusive products tailored for specific regions, brands can build stronger emotional connections with their target audience, increase brand loyalty, and showcase their products in a more authentic way.
Looking forward, EssilorLuxottica is anticipating the launch of a new Burberry limited edition later this year, so keep an eye out for exciting things to come.
Growing emphasis on sustainability: Luxury travel retail brands are recognising the importance of a sustainable approach. Consumers are increasingly demanding that brands adopt environmentally friendly practices, such as reducing waste and carbon emissions, and supporting local communities. In response we have seen a number of luxury travel retail brands responding by using sustainable materials, adopting eco-friendly packaging, and supporting local artisans and craftsmen.
This is particularly vital when speaking to a younger audience, specially Gen Z consumers. A study by McKinsey & Company stated that by 2025, Gen Z’s will make up a quarter of the Asia Pacific region’s population, as they mature they will make and spend more money. In order to capitalise on this trend, brands need to invest in innovative designs and marketing campaigns that resonate with this eco-conscious audience.
The Costa Del Mar Untangled Collection is a great example of sustainable fashion. The collection is made entirely from recycled fishing nets, and is part of a broader effort by the company to reduce its environmental impact and raise awareness about the issue of marine plastic pollution (click here).
In 2021, EssilorLuxottica extended the sustainable eyewear offer from its Arnette, Burberry, Emporio Armani and Giorgio Armani brands. The eco-friendly sunglasses were launched worldwide in travel retail as part of EssilorLuxottica’s “Eyes on the Planet” sustainable program. This included Emporio Armani and A|X Armani Exchange eyewear lines, the eyewear models of which were made with eco-friendly and sustainable formulas (click here).
Integration of digital technologies: The integration of digital technologies into luxury travel retail is a growing trend in the Asia Pacific region.
With the increasing availability of mobile devices and the internet, we have seen many luxury brands leverage these technologies to create more engaging and immersive shopping experiences for consumers. Mobile apps are being developed that allow consumers to easily browse products, place orders, and track shipments.
Virtual reality and augmented reality are being used to provide consumers with a more immersive shopping experience, enabling them to try on clothing or view products virtually via brand websites, as well as in-store. This technology allows luxury travel retail brands to connect with consumers in a more personal and memorable way, increasing the likelihood of repeat business. As such, the integration of digital technologies is becoming an essential component of luxury travel retail.
EssilorLuxottica has incorporated this technology by implementing virtual reality try-on experiences in pop up stores. In 2022, Prada launched their Linea Rossa frames using virtual reality goggles which allowed customers to embark on a digital voyage that immersed them in the daily lives of Luna Rossa Prada Pirelli Sailors, whose adventures inspired the designs (click here).
From the Smart Shopper application, which enables consumers to try on sunglasses virtually to Leonardo, a digital training platform for customers and in-store staff, EssilorLuxottica is continuously developing retail designs and digital applications to elevate the in-store experience.
Focus on omnichannel retail strategies: The increasing focus on omnichannel retail strategies is a significant trend in the luxury travel retail industry, brands strive to provide a seamless and integrated shopping experience. Consumers expect to have a consistent experience across online and offline channels, and luxury travel retail brands are responding by offering a range of services, such as click-and-collect and in-store pickup for online purchases. This not only provides convenience for consumers but also drives foot traffic to physical stores.
Furthermore, luxury travel retail brands are using data analytics to provide personalised recommendations based on previous purchase history and customer preferences.
Brand collaborations and partnerships: In recent years, luxury travel retail brands have been placing a greater emphasis on brand collaborations and partnerships as a way to differentiate themselves from competitors and offer unique and exclusive products and experiences to consumers. These collaborations can take many forms, such as partnering with key events, celebrities and designers to create limited-edition collections.
EssilorLuxottica has a strong network of valued relationships with key opinion leaders within the APAC region. Some featured brand partnerships include; Jackson Yee and Emporio Armani (click here), Cheng Yi (click here) and Takuya Kimura (click here) with Ray-Ban, Chris Lee with Versace (click here).
This is a strategy that reaches globally. EssilorLuxottica has just announced an exclusive licensing agreement with Roger Federer for the design, manufacture, and worldwide distribution of eyewear between the Roger Federer and Oliver Peoples brands.
Collaborations can help brands expand their reach and access new audiences, as consumers are often drawn to the novelty and exclusivity of these types of partnerships. By tapping into the creativity and innovation of other brands, luxury travel retail brands can stay relevant and engage with consumers in new and exciting ways.
In addition, EssilorLuxottica has several projects leveraging high profile sporting events, such as Wimbledon, The US Open and the 2023 Asian Game. Ray-Ban will once again be showcasing limited-edition stock keeping units (SKUs) linked to the Formula 1 Grand Prix, as well as featuring its interactive Formula 1 racing simulator in Hainan Island (click here).
At EssilorLuxottica we recognise the importance of keeping up with the ever changing needs and preferences of consumers within the APAC region. By focusing on evolving behaviours and emerging technologies, we aim to drive growth and innovation within the luxury sunglass category of the travel retail industry. ✈
