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The Silja Symphony: Powerhouse of the company’s Helsinki-Stockholm cruise ferry route |
 Baltic bonanza |
| If you want to witness first-hand the amazing pulling power of tax free shopping, and a market where virtually every traveller makes a purchase, I urge you to take a trip on an overnight cruise ferry in the Baltic Sea |
| The Moodie Blog |
BALTIC REGION. Emerging consumer groups and new technology are set to play key roles in driving growth in the travel retail business of Baltic cruise ferry powerhouse Tallink Silja. The company, which ended its latest financial year with sales of €435 million (up around +5% on a year earlier), is the world’s leading cruise and ferry travel retailer.
Tallink Duty Free Sales Business Development Director Magnus Skjörshammer told The Moodie Report: “We are now seeing the emergence of non-traditional passengers on our ships, including many more Russians but also Asian passengers, including Mainland Chinese. How we understand them and serve them will have a big impact on our business in the future. Although we still rely heavily on the dominant Scandinavian passenger base, mainly Swedes, Finns and Norwegians, we are seeing new passengers enter this market and we have to cater for them.”
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Magnus Skjörshammer: Facing up to the challenge of new consumers and new technology |
On the Stockholm-Turku route, which accounts for the company’s highest retail spends, Russians are already 9% of passenger numbers and rising, with a knock-on effect on average store sales.
Technology is also set to play an increased role in targeting consumers, added Skjörshammer, with the Tallink website a vital tool in building awareness of the offer before passengers travel.
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The Galaxy plies the Stockholm-Turku route, which accounts for the highest spends of all Tallink routes |
The company has just launched a new online test around the wine category for Finnish passengers. Customers are invited to discover how the wine offer will match with certain foods or occasions. The retailer suggests wines that match their needs according to the occasion or meal, at a range of prices. It’s a move the company believes will help raise average spends. Wines accounted for 6% of the business last year.
The company’s own in-house information channel, which features strong brand promotions and shopping offers, is also being rolled out across the 19-ship fleet. The channel will eventually appear on the TV in every cabin and is also displayed on screens around each ship, with advertising for brands such as Absolut, Courvoisier, Bottega, Escada’s new fragrance, Toblerone and Chocolat Frey among those currently being featured.
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Tasting bars are a prominent and vital feature of the travel retail environment onboard |
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Fazer plays a big role in driving sales of confectionery, a high-profile category in this region |
Tallink-Silja operates around 12,000sq m of retail space across its 19 ships, which handle around 9 million passengers a year. Its tax free business accounts for over half of the group’s total turnover.
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The Famous Grouse is the leading Scotch brand on Tallink’s Swedish-dominated routes |
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Swedes’ taste for single malts makes this a key category, and Glenfiddich a key brand |
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Vodka sales are led by Pernod Ricard-owned Swedish brand Absolut but there’s also a healthy contribution from Russian brands such as Russian Standard and Koskenkorva from Finland |
The key categories for the business are spirits, wines and beers (with a combined share last year of close to 40%), tobacco (17%), confectionery (13%), fragrances, cosmetics and skincare (a combined 20%) and fashion & gifts (10%, including destination goods).
The Moodie Report travelled on several of the company’s key routes earlier this week to discover more about its business, and we’ll bring you full details in a special report in our July/August Print Edition.
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The well-merchandised and personalised fragrances & cosmetics store on the Baltic Princess |
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The Body Shop is one of a number of new brands that have just joined the perfumes & cosmetics portfolio |
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The Kanebo brand, so popular in Asia, is one of a number of lines that attract spend among passengers from that region |
