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“We believe that it is very important to create and develop a ‘duty free culture’. We are looking to develop specific products, new packaging and fresh merchandising offerings suitable for the travel retail channel“ |
Hans-Kristian Hoejsgaard President and CEO Timex Group BV |
US. The travel retail watch sector is about to experience a shake-up – and it starts next week at the TFWA World Exhibition with the launch of Timex Group’s newly formed in-house duty free division.
The new division – the group’s first ever business unit dedicated to travel retail – is the brainchild of Hans-Kristian Hoejsgaard, who was appointed President and Chief Executive Officer of Timex Group BV, one of the world’s top watch companies, in February 2008.
Hoejsgaard, who reports to Timex Group Chairman Anette Olsen, oversees operations in 20 countries and sales in over 70 countries, while also leading over 5,000 employees across the globe in five divisions.
Aged 50, he manages numerous global watch brands – from mass to luxury – including Timex, Versace, Valentino, Salvatore Ferragamo, Guess, Gc, Vincent Bérard, Versus, TX, Marc Ecko, Nautica and Opex.
Just before the dynamic Dane took up his new appointment at Timex Group, Hoejsgaard told The Moodie Report that he was looking forward to the challenge of running such a large American company from his base in Middlebury, Connecticut.
Since joining in February 2008, Hoejsgaard has been busy building the firm’s luxury offerings, raising the company’s international profile and seeking more potential licensors and acquisitions to strengthen the Timex Group portfolio. The Moodie Report saw him give a compelling and thought-provoking performance as a panellist at the FT Business of Luxury Summit in June 2009.
On the eve of the TFWA show in Cannes, Hoejsgaard spoke to The Moodie Report again, to explain his strategy in the travel retail sector. All players in this increasingly fashion-led product category will be watching closely.
THE MOODIE REPORT Q AND A WITH HANS-KRISTIAN HOEJSGAARD
What is the overall strategy for the Timex Group in the domestic market, and travel retail specifically?
The Timex Group has a very balanced portfolio, comprising of five distinct business units and 12 brands. We compete at many price points and our strength is in continuing to engage our consumers across categories.
Our key strategy across our markets is diversification in terms of style and price position. Our key markets remain the US, India, Italy, France, UK, Canada and the Middle East. They are providing solid growth.
The decision to move duty free business in-house, starting with our TX and Timex brands, is the first step to better implement brand strategy and create brand consistency between travel retail and traditional point of sale.
On top of that, we believe that it is very important to create and develop a “duty free culture”.
We are looking to develop specific products, new packaging and fresh merchandising offerings suitable for the travel retail channel.
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TX 830 Linear Duo Chronograph |
What percentage of total turnover are you targeting for the travel retail business and in what timescale?
Today our group duty free business represents about the 8% of the global turnover and we are quite confident of reaching 15%.
What is the current level of distribution for Timex Group products in travel retail?
We are satisfied with our travel retail distribution and we are sure that the new division dedicated to the global duty free market will help us in consolidating and sharpening our business.
We have seen some good successes in the Middle East area at Dubai International Airport and Doha International and we have recently secured listings for TX in China, both Bejiing and Shanghai International airports. In addition, we have just renewed our onboard listings with Emirates and Qatar Airways with the TX brand.
Are you targeting specific regions for travel retail distribution?
As mentioned, we have already, for Timex and TX, an existing presence in many key international locations. We aim to leverage the business in the Middle East, the Far East – where we have already a solid presence – and the next step will be the European airports and airlines and then, of course, the US.
Ideally, how would you like Timex products to be presented at point of sale?
For the Timex brand, our strategy is to offer great design at good value, the perfect gifting watch. Timex is already well positioned and the TX brand fits well with the global traveller, especially our World Time 500 Series.
Your press release mentions that the travel retail channel is “fast growing”. What has been the percentage growth year-on-year for the past two years?
We have seen some encouraging growth in our travel retail sales over the past few years, despite the tough economic conditions, and this is why we are excited about bringing travel retail in-house at Timex Group.
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The TX 530 Series: World Time Airport Lounge |
What do you think are the opportunities in the travel retail sector?
As consumers look to tighten their belts, there are some great opportunities for our brands at the mid and opening price points. [TX watches ranges from US$425 to US$775 while the travel retail offering for the Timex brand starts at US$40 and goes up to US$175.]
We also see there is a growth in the number of consumers looking for fresh brands that stand out. We believe that our TX offering, with its unique technologies and strong designs, has a great potential.
What are the challenges?
The challenges for us are to develop our offering to the adventurer and global traveller and to create a clearer brand message for the customer.
We need to offer something new, fresh, appealing and different from downtown offers. In a limited space you have to propose the right offering to capture the attention of business traveller or tourist. Duty free is a kind of “last-minute shopping” and price and product are key considerations.
What do you see are the major trends in the watch category?
Watches are seen more and more as accessories. There are a lot of people who buy watches for the movement and technology, while others want functions that go way beyond timekeeping.
Our Timex and TX watches deliver a fashion and technology concept underpinned by the spirit of America.
Do you have any key messages for the travel retail industry?
We are confident that the industry will emerge from the economical crisis stronger, and even more in touch with the final customers. Timex Group is preparing and positioning itself for the next challenges.
TIMEX DUTY FREE DIVISION DEBUT AT 2009 TFWA WORLD EXHIBITION
The Timex Duty Free division will launch at the TFWA World Exhibition in Cannes, with the TX Watch Company and Timex brand timepieces as the primary focus for this global sales initiative. Both brands are targeted at the “adventurer and global traveller”, the company said.
Nick Green has been named Director of Travel Retail and reports directly to Senior Vice President of International Sales, Scott Wolfe. Green hopes to create a clearer brand message to the customer by developing direct relationships with retailers.
According to Wolfe: “We decided to take a vertical approach to the duty free market and move distribution in-house. This is a strategic decision that will allow us to focus our sales and marketing energies on the growing global duty free market. Nick Green’s experience with the travel retail market and Timex operations made him the perfect choice to head up this division.”
Leading the way on the product side at TFWA (stand number: Yellow Village AA11) will be the Timex Expedition WS4 watch, described as a wrist-top adventure instrument, powered by highly advanced sensors and easy to use. Its wide-screen ‘dashboard’ provides altitude, weather conditions and compass heading at a glance.
The TX World Time collection, incorporating a proprietary World Time movement, displays the time and season for 24 locations around the globe with a provision for daylight savings time, and is available in sport and classic design options.
The TX platform, combining technology and design, is strategically positioned to appeal to the world traveller, according to Timex Group. “Recreating the romance and adventure in world travel is a key brand driver for TX.”
Also on show at Cannes will be the TX 830 Series Linear Duo Chronograph, featuring the only quartz analogue movement to indicate the chronograph minutes on a vertical line.
*Timex is working on concepts for new packaging and products for travel retailers and is hoping to have some available at the TFWA World Exhibition to show key customers for their feedback, the company said this week.
About TX Watch Company
Launched in 2006, the TX Watch Company is described as a fusion of American innovation, German engineering and Italian design. Designed for those with an adventurous spirit, the barrier-breaking technology found in its patented proprietary movements are combined with intuitive, user-friendly design. TX Watch Company is wholly owned by Timex Group.
About Timex Group
Founded in 1854 and sold in 100 countries, Timex Group is one of the largest watch makers in the world. The group has over 5,000 employees worldwide. Its exclusive worldwide brands and licenses include Timex, Timex Ironman, Opex, Valentino, Salvatore Ferragamo, Guess, Gc, Versace, Versus, Vincent Bérard, TX, Nautica and Marc Ecko.
For details, contact Nick Green, Director of Travel Retail, tel: +44 208 326 6992, or e-mail ngreen@timex.com Visit www.timexgroup.com
MORE STORIES ON TIMEX GROUP
Hans-Kristian Hoejsgaard takes top role at Timex – 19/12/07
Timex inks Valentino watch agreement – 02/02/07
Versace/Timex’s watches to move into key airports in coming months – 08/11/05
