Dynamic Etienne Aigner AG President and CEO Sibylle Schön underscored the power of travel retail partnerships at a celebratory party to mark 30 years of exhibiting at duty free shows.
The event, attended by many of the German fashion company’s key clients and the media, was held during the 2012 TFWA World Exhibition. TFWA President Erik Juul-Mortensen was in attendance at its stand in the Yellow Village, where he thanked the company for 30 years of support.
TFWA hasn’t been the only beneficiary of Aigner’s long-standing presence at exhibitions down the years – the fashion house has enjoyed well-established relationships with many travel retailers as it further builds its presence in the channel.
In an interview with The Moodie Report, Schön emphasised the importance to Aigner of travel retail, which generates some 20% of its total turnover.
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Etienne Aigner’s anniversary motif |
“Travel retail is very important to us. We have a healthy retail business in the market and we have worldwide distribution. We have partners in certain countries who have been working with us for some 25, 26, and even 28 years. We have been coming to Cannes [TFWA World Exhibition] for 30 years, so we have close partners.
“We started our international business very early so we have deep roots; we were pioneers in the duty free business at a time when not many people could afford to fly. Today – and I’ve just been to Asia for two weeks – a lot of our target groups can afford to fly.”
Schön continued: “I see that there’s a lot of traffic in the region – Hong Kong Airport was packed – and people have time to fly, so duty free will be much more presentable than ever before in the next year,” she noted.
Shop-in-shop success at Singapore Changi Airport
Schön singled out operators in Malaysia, South Korea (notably Asiana Airlines), Hong Kong and Singapore for their “outstanding” results. She believes the volume of passengers in the Asian region will change the face of the business. “In Indonesia [domestic market] alone, where there are 280 million inhabitants, we have 12 boutiques. There are a lot of changes, a lot of movement.
“The duty free business will have to see how to take up this challenge. Passengers want to get a piece of luxury. More domestic market stores are demanding our products because customers see the brand in travel retail.”
Schön listed Dubai Duty Free and Gebr Heinemann among Aigner’s major customers. “We have a big focus on the Middle East, where we are very strong, and we do very well with Dubai Duty Free. Also we are sure that Doha International Airport will also have strong sales.
“In Asia, we’re doing extremely well at Singapore Changi Airport Terminal 1, where we have a shop-in-shop at The Fashion Gallery with our partner Lagardère, which opened in January 2012.”
Among the challenges for travel retailers, believes Schön, is to “bring the emotional world” into play in-store in terms of brand presentation. To boost sales, Schön works with partners on a deep retail level to find out what is selling on the shop floor – and to whom.
“We work with the merchandise to see what is moving – what colours and sizes, for example. We want to present the brand very well and really figure out who our target groups are,” she said.
In terms of customers in travel retail, the number one groups for Aigner are Arab and Asian passengers. For example, the Chinese are increasingly visiting locations such as Hong Kong, Singapore, Malaysia and Indonesia, she observed.
“The Chinese prefer logoed products,” noted Schön. “They are focused on our logo. Middle Eastern travellers love our icon [the A-shaped horse-bit]. Our jewellery licensee does very well with the Arab customers.
“In fact, we have just started – from August 2012 – producing Arabic clothing in Qatar.”
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The Art Edition bag prints were created exclusively for Aigner by Japanese artist Shinpei Naito | |
New product developments
Since her arrival at Aigner four-and-a-half years ago, Schöen spent the first two years on what she describes as the “reconstruction” of the brand. “Two-and-a-half years ago I began to see the successes,” she said.
“More than ever, we are building the collection and fulfilling the needs of the market. The duty free business is grab and go and needs easy and lightweight products. Customers want a quick buy. We produce travel retail exclusives such as our inflight Piccolina bag.”
In terms of new product development, Schön pointed to the bags and matching scarves created in collaboration with Japanese designer Shinpei Naito which are now available exclusively in travel retail stores. The design features a vivid horse print, alongside fairytale castles and birds, and the range is expected to perform well particularly with Asian travellers.
Following the success of its licensees for watches, jewellery and sunglasses, Aigner has struck a deal with a licensee for children’s clothing and will be appointing a shoe licensee.
Summing up the Aigner brand, Schön concluded by saying: “Aigner is a niche brand but we work hard to keep close to the requirements of each market, and that is why we are successful.”
And on duty free, she added: “The domestic market is the picture and the frame is duty free. Duty free operators can help bring out our brand message in a clear and global way.”
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The Spring/Summer 13 Piccolina travel retail collection was shown at the TFWA World Exhibition | |
