 |
Christian Strang: An astute individual, well-respected by his peers |
 |
Roberto Graziani: “We need to get closer to our customer and to our consumer needs – this structure will allow us to do that.” |
 |
John Moore will drive the creation of a new business development unit out of Asia |
AUSTRALIA. The Nuance Group has restructured its Asia Pacific operations into two sub-regions in a move that it says will better meet the demands of the region’s different markets.
Nuance said it has “significant operations” in Asia Pacific but that they span markets in contrasting phases of their respective life cycles. In order to meet the demands of these different markets, it has created The Nuance Group Australia/New Zealand and The Nuance Group Asia.
With immediate effect, Christian Strang becomes CEO of the newly-created region, Australia/New Zealand. And John Moore, CEO Asia Pacific, is leading the implementation of a new Asia structure “aimed for growth”.
As the changes were made, The Nuance Group CEO Roberto Graziani told The Moodie Report: “We’re trying to be close to the needs of those different markets. From an Asian point of view it’s very significant because we are investing in a new structure to invest in new business, particularly in China and in India. In Australia and New Zealand we needed our team to focus on specific issues. We need to retain our business across five main airports and improve our performance. And we need to get closer to our customer and to our consumer needs – this structure will allow us to do that.”
In Australia and New Zealand, the group said it recognises the challenges of being the leading airport retailer in a “mature and increasingly competitive market”. Nuance said it will continue to strive to deliver innovation and value to its customers and in strengthening its organisation Christian Strang has been named CEO for the new region.
Strang was formerly Business Development and Corporate Relations Director for The Nuance Group Asia Pacific – and an influential and respected figure in the new Asia Pacific Travel Retail Association. Nuance said he “brings a high level of industry experience to the new role and becomes the leader of a team responsible for The Nuance Group’s biggest single market” [in sales terms – Ed].
With its Hong Kong and Singapore-led joint venture with AS Watson developing well, the group said it has a solid foundation in Asia. It will boost that presence by introducing a new structure based on driving regional growth in partnership with AS Watson.
A Nuance-Watson business development unit – including a New Business Development Director – will be put in place in coming months and will spearhead the partnership’s growth. John Moore, as CEO Asia Pacific, will co-ordinate the implementation of this structure.
Graziani said in a statement: “These changes introduce a new phase in the development of The Nuance Group in two very distinct and valuable markets. We look forward to working closely with all our business partners to realise our common goals for future growth. Christian Strang’s appointment signals our long term commitment to the Australia and New Zealand region through a period of dynamic change and strategic development. Our simple aim is to serve more customers more often.”
COMMENT: Roberto Graziani is sending out some strong messages to the travel retail industry with this restructure. He is not alone in seeing Asia Pacific as the engine room of future growth but Nuance is particularly well-placed to seize opportunities in the region thanks to its partnership with the powerful Hong Kong-based domestic retailer AS Watson.
The Nuance-Watson joint venture has worked well as a corporate chemistry and its Singapore and Hong Kong operations are acclaimed industry success stories – the latter in difficult conditions over recent years. Australasia – particularly Australia – is a more problematic business, mainly due to the impact of traffic-linked concession fees on margins at a time when spending remains weak in many locations, and the Australian Dollar continues to discourage duty free spending in the country by Australians and foreigners.
The Australasian business brings important critical mass though and some high-prestige locations, such as Sydney and Auckland airports. The region accounts for over 30% of group sales but profitability – due to the concession structures in locations such as Melbourne – has been a major issue, as well-documented by The Moodie Report in the past. Nuance remains committed to Australasia but it requires a different approach and, most importantly, dedicated focus, if it is to become a healthy business.
Strang’s appointment will lend that focus. He’s an astute individual, well-respected by his peers, and he will relish this opportunity. Similarly John Moore is excited by the future of Asia and its new business development potential and he will now be able to focus on delivering that.
While much of Nuance’s management effort has recently gone into cutting costs and improving operating margins, Graziani is sending out a carefully-considered statement today that growth – in the right locations and under the right conditions – can still be had. But it will be married to a more localised management structure, more on the ground retail savvy and strict financial discipline.
NOTE: This story was originally published by The Moodie Report VIP News Alert, an e-mail service sent free of charge to all 6,500-plus readers of The Moodie Report weekly e-newsletter and pdf. It is devoted to stories of major interest only and is sponsored by BPI.
THE NUANCE GROUP ASIA PACIFIC FACTFILE – STORES BY LOCATION
AUSTRALIA
Airport shops:
– Adelaide International Airport
– Brisbane International Airport
– Cairns International Airport
– Darwin International Airport
– Melbourne International Airport
– Perth International Airport
– Sydney Domestic Airport
– Sydney International Airport
Downtown Shops:
– Adelaide
– Alexandria
– Canberra
– Melbourne
– Perth
– Sydney
NEW ZEALAND
Airport shops:
– Auckland International Airport
– Christchurch International Airport
Downtown Shops:
– Auckland
– Christchurch
ASIA [WITH AS WATSON]
– Hong Kong International Airport
– Singapore Changi Airport
MORE STORIES ON THE NUANCE GROUP
Stefanel pours cold water on claimed interest in acquiring Alpha Airports Group – 02/08/05
Nuance and TAP open new Azores store – 12/07/05
Nuance and Copenhagen Airport unveil ‘dazzling’ new-look duty free store – 24/06/05
The Nuance Group brings Bijoux Terner value concept to Manchester and Bristol airports – 10/06/05
