Introduction: “Our longevity is a credit to both the team’s passion for the market and a dedication to staying on top of the evolving nature of travel retail.” So says 2.0 & Partners Senior Executive Vice President Marco Passoni as he looks back on the biggest milestones and learnings from the last ten years for the consultancy firm which began its journey with the promise of ‘fast-tracking brands into airports’.
The last decade has certainly come with many changes and as the channel evolved, so too has 2.0 & Partners. The company has moved away from being a pure consultancy firm, towards becoming holistic strategic partners for many luxury brands including Moncler and Dolce & Gabbana.
In conversation with The Moodie Davitt Report Brands Director Hannah Tan, Passoni and 2.0 & Partners CEO Fabio Bernardini share their insights on how the luxury landscape has transformed in the channel. They also highlight the importance of collaborative ‘win-win’ partnerships in elevating the passenger experience as they look back at their transformation from a company that offers ‘brand aid’ to one that offers ‘brand experience management’.
Looking ahead, Bernardini and Passoni also outline key strategies – including training, coaching and mystery shopping – to help travel retail players stay competitive amid evolving consumer demands and a dynamic luxury retail landscape.
What does this ten-year anniversary milestone mean to you?
Marco Passoni: We are delighted to be marking the anniversary. Our longevity is a credit to both the team’s passion for the market and a dedication to staying on top of the evolving nature of travel retail. For a business such as ours, focused on retail development, the three years of the pandemic were incredibly challenging and to still be here now, I believe, makes this anniversary even more special and remarkable.
Fabio Bernardini: This is an important moment for us. The transformation we have undergone over the past decade, from a brand consultancy to strategic partners in travel retail, has been both exciting and challenging. Over the years, our focus on innovation and holistic support has positioned us as trusted advisors deeply invested in our clients’ success, and it is this dedication which allows us to be standing here today and looking ahead to an exciting future.
Ten years ago, we introduced 2.0 & Partners to the travel retail world as a consultancy agency offering ‘brand aid’ and ‘brand experience management’. How has your role and business evolved in the decade since?
FB: In the last ten years, 2.0 & Partners has broadened its focus from ‘brand aid’ and ‘brand experience management’ to encompass consultancy and customer experience enhancement across travel retail. We’ve expanded our services to include support for brands, airports and operators, and this evolution has seen us become strategic partners, deeply involved in shaping client success.
We’ve integrated technology to enhance the retail experience, fostered stronger collaborative relationships and established ourselves as trusted advisors driving industry innovation. Later this year, we will unveil our newest tool and service, which will be a real gamechanger in the support we can offer partners in the travel retail market.
MP: We have seen significant development in the travel retail market over the past decade and it has been vital that our business and offer has evolved to reflect that.
The market has matured considerably, from a greater understanding of travellers’ preferences to a willingness to incorporate new brands into the retail offerings. On top of this, there is a heightened awareness of the importance of both assessing and enhancing service levels and providing tools to empower sales staff to perform at their best. Passenger experience is paramount in meeting travellers’ expectations; with our services tailored specifically to this market, we are perfectly placed to assist our partners in the new normal.
2.0& Partners was named as such, suggesting a better way to make and foster meaningful partnerships in travel retail. In your view, in 2024, how should travel retail partnerships evolve to better meet the demands of the evolving consumer?
MP: Partnerships have never been more crucial. We firmly believe that genuine success for businesses and genuine excitement for consumers can only be achieved through collaborations which include both flexibility and a true win-win mentality. Partners should be able to depend on each other, sharing both risks and rewards. The era of rigid, purely financial contracts should be a thing of the past, although some still linger.
Most importantly, partners need to leverage their special knowledge. Brands should have the freedom to operate directly and leverage their expertise. However, if granted this freedom, they must innovate and bring something truly groundbreaking to the table. Looking ahead, there needs to be a heightened emphasis on novelty. Genuine innovation arises from collaboration and a commitment to breaking new ground.
FB: For me, in 2024 travel retail partnerships should evolve to prioritise seamless integration of online and offline experiences, personalised services, and sustainability initiatives. Embracing emerging technologies such as AI [artificial intelligence] and AR [augmented reality] can enhance customer engagement, while a focus on eco-friendly practices aligns with shifting consumer values. Collaboration should centre on agility and innovation, adapting swiftly to changing consumer preferences and market trends.
In 2017, 2.0 & Partners’ main mission was to ‘fast-track brands into airports’. Can you give us the biggest milestones in this regard?
FB: Since 2014, we have seen significant milestones in fast-tracking luxury brands into airports. Our strategic collaborations, innovative marketing strategies and seamless brand integrations have consistently elevated the airport retail experience, fostering mutually beneficial partnerships and driving substantial growth for luxury brands in this dynamic market.
MP: Unfortunately, due to strict confidentiality rules, we are unable to mention brands’ name. However, we are incredibly proud of the achievements we’ve made in collaboration with all the brands we’ve had the privilege to work with, particularly one of the first to believe in us. We began our partnership with them in 2015 when they had just four airport stores. Despite the disruptive effects of the pandemic over the past three years they now boast 32 airport stores, a testament to their inherent appeal as well as the support provided by 2.0 & Partners.
Training, coaching and mystery shopping were key components of your business in 2014. Is this still the same in 2024?
FB: Training, coaching and strategic mystery shopping remain pivotal to our business, especially post-pandemic, with retailers urgently hiring new staff. Recognising this critical need, we’ve intensified our investment in these activities to ensure world-class service delivery. Amid evolving consumer expectations, particularly in the travel retail sector, these initiatives play an even more crucial role in maintaining competitiveness and fostering sustained growth for both brands and retailers.
MP: As Fabio says, training, coaching and mystery shopping have remained integral to our business and play an even larger role today due to heightened consumer expectations. To this end, we have expanded our services to include a comprehensive Customer Experience Management (CXM) solution, which focuses on optimising every customer touchpoint to drive satisfaction and loyalty.
Our client portfolio has also grown within airports and brands, with new contracts reflecting our commitment to delivering tailored solutions and our ability to adapt across various sectors.
What do you see as the current state of the travel retail market in 2024? What are the main challenges and threats to the industry?
MP: The main challenge is to overcome scepticism about the competitiveness of travel retail and to regain the trust of travellers. There are so many distractions for shoppers in this market and travel retail must clearly define its place. Our market’s key pillars of experience, innovation, price and exclusivity must be allowed to coexist and be fully leveraged. That means having contracts and ecosystems where that can happen.
Let’s be clear: travel retail isn’t the most comfortable place to shop for several reasons. Our consumers are stressed, in a hurry and already carrying bags. Either we make this market highly appealing, or the passenger will simply shop elsewhere. The travel retail sector is facing an amazing opportunity. Coming out of one of our toughest periods we have a great potential for growth and newness, but we must be willing to think and act in a new way and rediscover our origins.
FB: The travel retail landscape certainly remains complex in the wake of the pandemic, and while recovery is underway, numerous challenges remain, including evolving health and safety protocols, supply chain disruptions, and addressing sustainability concerns. But there are also incredible opportunities in digital innovation, personalised experiences and the rise of domestic travel. Success will hinge on agility, innovation and collaboration across the industry to meet evolving consumer demands and rebuild confidence in travel retail.
In your ten years in the travel retail industry, what do you think has been the biggest shift in the luxury world?
MP: Actually, it’s been 32 years in travel retail, only the last ten spent immersed in the incredible journey that is 2.0 & Partners. But luxury in travel retail a decade ago is incomparable to today’s market. There has been a monumental shift, particularly in terms of presence and diversification. The most significant change has been the shift from a wholesale to a direct business model in running stores.
Today, the focus is on creating immersive experiences, storytelling and direct engagement with the community. The emphasis is less on selling products and more on enhancing the overall experience. This is why airports should prioritise and encourage this business model. Brands need direct access to consumers and control over their retail spaces, as they excel at understanding and catering to their audience better than anyone else.
FB: When it comes to luxury in travel retail, there are many different categories. But the biggest shift over the past decade has been the accelerated digital transformation. Luxury brands have increasingly embraced ecommerce, personalised marketing and virtual experiences to engage with consumers. This shift reflects changing consumer behaviours and preferences, necessitating a seamless integration of online and offline channels to create immersive brand experiences.
If you could give yourself one piece of advice when you started 2.0 & Partners ten years ago, what would it be?
FB: It would be to prioritise adaptability and embrace change. The business landscape is dynamic, especially in travel retail. Being open to evolving trends, technologies and consumer preferences has proven crucial for sustained success. Despite this, I have no great regrets so far, and we are happy with where we are today, continually striving to evolve and innovate in the ever-changing world of travel retail. It’s a journey marked by learning, growth and resilience, and we’re excited for what the future holds.
MP: I believe that, fortunately or deservedly, there have been more right choices than wrong ones. But if I must pinpoint some mistakes from which to learn, I wouldn’t spend so much time trying to convince potential brands of the merit of embarking on a development journey in travel retail, despite clear signs of their lack of commitment. This market is not for everyone, so perhaps I would have been more discerning in the initial assessment of potential partners.
What do the next ten years hold for 2.0 & Partners?
FB: In the next decade, 2.0 & Partners aims to further solidify its position as a leader in travel retail consultancy. We’ll continue to innovate, adapt to industry trends and expand our service offerings. Strengthening partnerships, embracing technology and prioritising sustainability will be key focuses as we navigate the evolving landscape. Our goal remains unchanged: to drive success for our clients while remaining at the forefront of industry innovation.
MP: I am rather confident that over the next ten years, we will witness the growth of new markets, especially in American airports where traffic maturity warrants much better environments and travel retail offerings. This presents a tremendous opportunity not just for 2.0 & Partners, but for the entire industry. Personally, I would like to persuade a few luxury brands, which I consider very promising, to overcome their hesitance and make their debut in the market. I am certain this would enhance the experience for travellers and stakeholders alike.
Finally, if I may express a personal wish for the wider industry, over the ten next years I would like to see our sector less influenced by the lobbying of usually the same actors. We would all benefit from being more attentive in discouraging conflicts of interest and nepotism to create a more meritocratic future. ✈
