Mondelez World Travel Retail (WTR) Managing Director Jaya Singh, who retires in January, highlights the pillars of penetration and conversion, personalisation and shopper value as keys to a strong travel retail future.
As we mark three decades of Mondelez’s presence in travel retail and the end of my tenure as Managing Director, I find myself reflecting on the extraordinary journey we have taken so far. I was honoured to share some of these reflections at The Trinity Forum, hosted by The Moodie Davitt Report, ACI World and ACI Asia-Pacific & Middle East in Ho Chi Minh City, Vietnam.
In the past 30 years, Mondelez has experienced so much, overcoming challenges, seizing opportunities and relentlessly pushing the boundaries of innovation. The global pandemic was a shock to our industry, yet we prevailed and as we continue to lead the confectionery category, I am wary of an emerging change that is set to reshape travel retail, affecting the future of the channel.
The travel retail sector, once a fast-growing and thriving channel, is at a crossroads. While passenger traffic continues to increase and is forecasted to rise by +74% by 2034 (i), the industry is facing a new challenge, namely a slowing conversion rate.
People today are travelling and want to explore the world, but despite the high passenger numbers, fewer travellers are choosing to make purchases in stores. This isn’t a category-specific issue; it speaks to a broader challenge, and it demands our immediate attention.
For decades, travel retail has been a key driver in the global growth of confectionery, one of the most frequently purchased categories in the channel. However, in recent years, we’ve seen the growth of the industry slowdown. Globally, we see a different story in our domestic markets, which show good growth in chocolate, a market that currently sits at US$135 billion (ii).
Clearly, confectionery still holds a strong position today, but if we fail to address the stagnant conversion rate, we may fall further behind and lose relevance with travellers. Our choice is simple – we either continue to do more of the same and risk the industry’s growth, or we rise to the occasion and tap into growing passenger numbers through greater collaboration.
To navigate these changes and pave a positive path forward, we need to focus on three core pillars: Penetration & Conversion, Personalisation and Shopper Value.
Penetration & Conversion
The data is clear: only 1 out of 16 travellers buys confectionery in travel retail, even though confectionery is the most purchased category in the channel. If we want to drive industry growth, these numbers need to change. That means placing more emphasis on penetration and conversion, to turn travellers into buyers.
This is a shared responsibility across the entire industry. The key to this lies in data; we need to share insights, track trends and quickly adapt to what works to ensure we capture consumer interests. At Mondelez WTR, we are already putting these principles into action by adopting a data-driven approach.
We use our findings to refine our product offerings and enhance our pricing to drive conversion. But imagine if we opened the doors of collaboration to our industry peers. We could collectively leverage these insights to find the sweet spots that resonate with passengers to strengthen our offering and ultimately drive conversion.
Personalisation at Scale
It is widely understood that the travelling demographic is changing. Gen Z and Gen Alpha are becoming an increasingly important part of the passenger base, but let’s not forget that Millennials, Gen X and Baby Boomers still represent a significant portion of travel retail income. We need to think holistically as we aim to capture young emerging travellers, while still maintaining relevance and resonance with other age groups. The key to achieving this is through greater diversification to ensure each passenger feels like their needs are being met.
At Mondelez WTR, we’re already advancing into this space by leveraging the iconic Toblerone bar to create connections with travellers. By offering the option to customise the packaging with messages like ‘I Love You’ or ‘Miss You,’ we give travellers more ways to express their emotions.
By focusing on traveller behaviour and purchase motivations, we can tailor our offering to resonate with specific traveller groups, ensuring a personalised and engaging experience for every consumer.
Personalisation at scale is about more than just offering unique products; it’s about creating a shopping environment that feels relevant to every traveller. Whether it’s through promotions, localised offerings or engaging digital experiences, we need to be proactive in crafting a journey that makes shoppers feel seen and valued.
Reimagine Shopper Value
Pricing has traditionally been a big focus in our business, but times are changing. In an environment where global productivity is evolving, we need to evolve with it and accept that competing purely on price is a losing battle. Shoppers today are looking for value that extends beyond the cost of a product. Today, it’s about the overall experience that comes with the purchase, the uniqueness of the offering and the emotional connection formed with the brand.
Added shopper value has been at the forefront of many Mondelez WTR campaigns this year. Our Cadbury 200th anniversary celebrations across UK airports are a perfect example of how we are reimagining shopper value through experiences. These activations enhanced the in-store environment and fostered deeper connections through limited edition products, gaming elements and personalisation options.
This approach allowed us to engage consumers for a longer period and encourage them to explore more of the offering, driving conversion and penetration. The future of travel retail isn’t simply about cutting prices, it’s about innovating a well-loved and well-known portfolio to enhance the perceived value.
The Road Ahead: Collaboration is Key
As I prepare to pass the leadership of Mondelez WTR to a new generation of leaders, I remain optimistic. We’ve built a strong foundation, and our team is committed to driving innovation and growth. But the future of this industry requires all of us to work together. This is not a challenge we can solve alone.
There is a need, now more than ever, to collaborate in a way that goes beyond the surface. We need to share insights and information. Our competition has had its benefits, pushing each of us to innovate more and deliver winning performances, but if we want to witness the continued success of travel retail, collaboration must be key.
Through this, we can focus on driving penetration and conversion, creating personalised experiences that resonate with today’s diverse travellers, and redefining shopper value in ways that go beyond price.
And so, one of my last reflections is a call to the industry – brands, retailers and other stakeholders – there is more success in coming together to build a vibrant and relevant sector than there is in working in isolation. Let us unite in our shared goal of shaping a successful travel retail sector, one that thrives on collaboration, innovation and mutual growth. ✈
[i] Source: ACI Global Traffic 2010-2034
[ii] Source: Euromonitor Passport 2010-2024
