SINGAPORE. Welcome to our day-by-day coverage of the TFWA Asia Pacific Exhibition & Conference in Singapore, which ran from 12 to 16 May.
We feature our choice of the week’s highlights in words, photos and video. The column is brought to you in association with Mondelez International Travel Retail, Elizabeth Arden and Travel Blue.
The Moodie Davitt Report, the world’s leading travel retail title, was out in force at the show, with an 11-strong team hailing from Hong Kong, Hainan, the UK and Ireland.
You couldn’t miss us. We are, after all, ‘The website that never sleeps’. We enjoyed seeing old friends and making many new ones during our time at the show.
16-17 May
Now here was an unexpected treat, writes Martin Moodie. Last night I had the opportunity to dine with the founders of three great entrepreneurial family companies, all of whom I have interviewed over recent times.
Pictured to my left are Andrey and Oxana Zubko, proprietors of Biosota Organics, an Australian company specialising in MGO 2100+ other Manuka honey variations. In the apiculture world, Manuka honey MGO 2100+ is the liquid gold standard. You can meet this remarkable couple at Basement 2, Stand F-02 and read their story here.
On my right is Fabrizio Canal, Founder of Italian gourmet food & drinks specialist Food Accademia (you can see my interview with him here or visit him at Basement 2 2-N02), who brings a world of magical Italian flavours to travel retail.
To his right are Toni Martello and her partner (and soon to be husband) Rob. Toni (Maria Antonietta) is Founder and Executive Director at Azzurra One Enterprise, a successful and much-respected travel retail staffing, promotional and marketing services agency in Sydney, Australia.
Remarkably, this year marks the 42nd anniversary since she created Azzurra One, initially employing two staff to sell cigarettes at Sydney Airport, later adding wines & spirits, wellness and confectionery products to the portfolio. You can read that extraordinary story here.
Andrey and Oxana were our gracious hosts on an unforgettable evening at C’est la Vie in Marina Bay Sands. C’est la vie, of course, translates as ‘That’s life’ and it certainly was as Andrey’s lovely LinkedIn note below reveals.
15 May
Travel Retail update at the Sekonda stand
Sekonda has introduced its latest watch collections, led by CEO Pete Ogley. He said: “The travel retail channel is a really important strategic pillar for us as we go forward.
“As a business, we’ve had very early success, we’ve had great success in Europe – it’s one of our fastest-growing areas as well. And I think that the translation into Asia is one of the biggest opportunities we have.”
The brand new smartwatch range was launched in Europe in October last year.
Currently, the range comprises 25 watch models.
Capitalising on the dwell time opportunity
Pi Insight Managing Director Steven Hillam kicked off the ‘Decoding the Dwell Time’ session this morning by addressing evolving opportunities in airport retail in the Asia Pacific region, amid post-pandemic challenges.
Hillam said: “We are just returning to the airport now following a four-to-five-year break, leading to many travellers being significantly less familiar with the duty-free environment.”
Despite changes, Hillam noted one constant: travellers have ample pre-flight time, averaging about one hour and 50 minutes in the Asia Pacific region, presenting a critical opportunity for airport retailers.
Kearney Senior Partner Siddharth Pathak identified key trends that will shape the industry over the next five years. Economic growth continues to boost the industry, and Gen Z’s preference for travel experiences over material possessions is notable.
Traditional business travel routes between Asia and the West have declined, requiring a strategic shift to cater to new travel patterns. Emerging travel destinations beyond tier-one cities, influenced by social media and economic expansion, necessitate extending business reach beyond major hubs.
To capitalise on these trends, Pathak advocated for industry collaboration. Integrating fragmented consumer data across airports, retailers and airlines could significantly enhance personalised engagement.
During the closing session, Malaysia Airports Holdings Berhad Senior General Manager of Commercial Services Puan Hani Ezra Hussin recognised gaps and opportunities within the travel retail industry, acknowledging that much work remains to be done.
She highlighted Malaysia Airports’ commitment to making airports more than mere transit points, but destinations that offer discovery and delight.
Malaysia Airports’ core strategy revolves around reimagining passenger experiences and optimising efficiency via a three-year digital transformation initiative. This initiative includes systems integration, real-time data analytics and digital currencies to streamline processes and enhance convenience for passengers.
14 May
The Moodie Davitt Report made its way to Cognac house Audry’s stand (2-N14) at the TFWA Asia Pacific Exhibition for a tasting session this evening.
Managing Director Mathieu Vanhalst says: “In the past one year, we have opened a new chapter in the maison’s three-decade-old history. We are establishing a solid distribution network, adding value to the spirits category in travel retail.”
The company has recently launched Collection 78 and Art Audry VSOP in travel retail. Collection 78 (49.4% ABV) features only 288 numbered decanters as a limited edition, each with its own handcrafted ceramic stopper.
Art Audry is an eaux-de-vie Cognac lasting six to seven years on average, aged exclusively in oak barrels in damp cellars. French ceramist artist Anne Lesca created the dry pastel drawing that is now featured on the label.
Vanhalst describes the VSOP expression as “innovative and audacious while staying true to traditional values”. Its UV-light-sensitive label adds to its popularity at social gatherings.
Domaines Paul Mas, exhibiting at the Singapore show in collaboration with CoLab, has unveiled three Astelia travel retail exclusives: Grangette 111 Chardonnay, Tannes 122 Cabernet Sauvignon and Chalamat 178 Syrah Grenache. The numerical values in the names refer to the height above sea level of each wine’s originating estate in the Languedoc region.
Famille Perrin is planning to launch a Dubai Duty Free-exclusive Miraval edition in the third quarter of this year. The French family-run business is also expanding its presence onboard airlines, having recently secured listings with Singapore Airlines and Lufthansa.
The 75ml bottling of its La Vieille Ferme red wine will soon be available to Singapore Airlines economy passengers, while its premium Champagne Fleur de Miraval will be served to first-class flyers onboard Lufthansa.
In Asia Pacific travel retail, Victorinox is focusing on expanding its presence in China, followed by Thailand and Bangkok. The travel accessories specialist is also working on uplifting points-of-sale and bringing its customisation offer to airport stores.
The Victorinox exhibit highlights its ‘Made to be Prepared’ concept with immersive visuals. According to Victorinox Head of Global Travel Retail & Fragrance Sales Gloria Dix, the campaign will be tailored for the Asia Pacific region and brought to life through activations.
Almora Botanica, founded by Deeleep Rout and Ravi Prasad, is showcasing its clean beauty products at the TFWA Asia Pacific Exhibition. As reported, the brand has revealed its Travel Essentials kits, featuring Ayurveda-based products and curated to combat the effects of travelling on the skin.
Almora Botanica Head of Marketing Charlotte Farrar notes: “Almora Botanica products offer natural formulas inspired by nature – the brand is all about clean beauty. Sustainability is a key factor which is reflected in our minimalistic packaging too.”
Shiseido Travel Retail Corporate Communications Director Linda Lee outlined the 152-year-old Japanese beauty giant’s key strategic priorities and its renewed mission to become a personal beauty and wellness company by 2030.
She said: “The beauty world has changed a lot. We want to show you how we are leveraging our 152-year heritage, and how we are merging beauty with wellness. We want our travel retail customers not just to discover our products but each of our brands’ DNA and storytelling. We also want to showcase the ‘culture of beauty’ that our new Representative CEO, Executive Officer, President and COO Kentaro Fujiawa introduced in February 2024.”
Shiseido Travel Retail highlighted active ingredients, skin minimalism, beauty and wellness unity, co-created personalisation, and cultured travels as the five major travel retail beauty trends that will influence its strategy in the near to mid-term.
China Watch Workshop
The China Watch Workshop held on 14 May focused on where China currently stands regarding the latest airport developments and macro trends shaping the offshore duty-free market in Hainan. Topics of discussion also included the latest digital trends and consumption behaviour of the Chinese travelling consumer.
13 May
In 2021, Peuch & Besse launched Wines of Golf Legends, a collaboration between some of the world’s most illustrious golfers and a selection of outstanding winemakers. Travel retail is the primary target market.
That same year, the concept was named as winner of The QDF Factor, an extraordinary industry competition to encourage innovation and differentiation among brand owners run by Qatar Duty Free and The Moodie Davitt Report. The company captured a six-month listing at Qatar Duty Free’s award-winning retail offer in Hamad International Airport, Doha, plus a free six-month US$50,000 multi-media advertising campaign with The Moodie Davitt Report.
Professor Michio Kaku explores the dynamic intersection of technological innovation and the travel retail industry
When asked about how technologies like augmented reality and virtual reality can transform the retail experience, Dr Kaku responded: “Many futurists said this is the end of tourism, because you push a button on your laptop and there’s the Eiffel Tower. You push another button and there’s the pyramids in Egypt. You don’t have to go there. You simply push a button.
“But we’re humans. We have fingers. We love to touch things with our fingers. We like to be there. It’s in our genes. Because we are descendants of hunters. We want to manipulate things rather than looking at it from a distance.
“That’s why the predictions are wrong. The young generations have computers. They can play video games with the Eiffel Tower. But the bottom line is they want bragging rights. They want to say I was there, I touched it.
“The tourist industry is not going to collapse. In fact, if anything it’s bouncing back after COVID-19.”
Professor Nirmalya Kumar on India’s positive economic trajectory
“India will be the third-largest travel market in the world, after China and USA,” says Professor Kumar
When asked about the expected changes over the next five years, and its impact on the duty-free and travel retail sector, Professor Kumar answered: “I did a recent study on duty-free prices in the world. India is the highest in the world – so I don’t think there’s a price issue there. What’s more important is the regulatory environment in India that has been changing for the last decade and is a continuing process. With the new trade agreement that they’ve made with Europe, as well as a new trade agreement with Australia, we are expecting tariffs to come down quite substantially for Australian and European products, especially for things like wine. So I think that this is a positive story.”
The role of Asia Pacific in shaping the global economy
A key session of the morning saw author and economist Dr Keyu Jin talk about Asia Pacific’s economic outlook and her perspective on navigating the macroeconomic challenges. She took a balanced, upbeat view about the continued rise of the China economy, noting that the present slowdown represented the first period of economic crisis there in around 40 years. In the past 60 years, the USA has had around 12 recessions.
“After the pandemic, the recovery of global trade actually was much faster than what most economists had predicted,” remarked author and economist Dr Keyu Jin.
“But at the same time there is reorganisation and reallocation of globalisation, which I think is an important thing to keep in mind.
“Now after the trade wars – despite US-China tensions, which is a very real thing – trade routes have simply become longer.”
She also emphasised the potential that lies within India in terms of economic growth of per capita gross domestic product.
“India can do it with the proper investment and organisation that we’re seeing evidence of in terms of human capital.
“In the beginning of the 1970s, India and China were on par with each other. India was doing a bit better.
“But through economic reforms, infrastructure investment and a huge push for growth, China has led the way.”
Creating ‘stress-free’ experiences in the Lion City
Minister of State for Trade & Industry, and Culture, Community & Youth, Republic of Singapore Alvin Tan welcomed attendees to the event and talked about Singapore’s role in the duty-free landscape.
He said: “Singapore is pleased to host this event for 25 years, except a few years in between when it was disrupted for a variety of reasons.
“I’m very pleased to announce that we are able to extend this until 2026, so thank you very much for your confidence in Singapore.” Tan also expressed interest in further extending this tenure (there is an option to extend beyond 2026).
‘Stress-free’ was a keyword in his address: “When you hold your events in Singapore, it’s going to be relatively stress-free. we want to give you an experience that combines business with leisure.
“We are planning against the vagaries of climate change, investing billions of dollars on coastal protection and infrastructure – investments that will help us in the new energy world as well as in a world that is plagued by climate change.
“In Singapore we plan 50 years ahead to ensure stability, so we can be stress-free, when there is crisis – which inevitably occurs.”
Sunil Tuli on the changing landscape of Asia Pacific travel retail
Asia Pacific Travel Retail Association (APTRA) President and King Power Group (Hong Kong) Group Chief Executive Sunil Tuli discussed the changing landscape of emerging economies across Asia Pacific travel retail.
He said: “China for two decades now has been the region’s and the world’s epicentre of growth. That role has become hugely challenging.
“The aftermath of the pandemic has created an unprecedented economic downturn, but it is still and always will be hugely important, especially among emerging Asia markets.
Tuli emphasised the need for constant vigilance on government issues, some of which are being impacted by domestic policy and could pose threats to travel retail.
He highlighted rising opportunities in India, where APTRA is encouraging spirits companies and retailers to engage the Indian government to increase arrivals duty-free allowances. APTRA is also supporting the Korea Duty Free Association by lobbying the government to expand alcohol arrivals allowances.
Tuli said: “In cases like India and South Korea, it is vital to assess and demonstrate the broader market value to governments rather than simply stating it would benefit us in travel retail.
“Having them understand the economic impact of private retail in terms of tax revenues contribution to aviation infrastructure, and employment is vital.”
09:00 The Conference begins
TFWA President Erik Juul-Mortensen kicked off the 26th TFWA Asia Pacific Exhibition & Conference, saluting the 40th anniversary of TFWA’s founding – to be celebrated in Singapore and at TFWA World Exhibition in Cannes at the end of September. He also noted that this will be his final year as President of TFWA, with an election to find a successor before year-end.
“On the subject of departures, let me pay special tribute to the CEO of Changi Airport Group Lee Seow Hiang, who steps down on 1 July. Under his leadership Changi has enjoyed remarkable growth, renewed and upgraded terminals, including the magnificent Jewel complex. I wish incoming CEO Yam Kum Weng every success for the future.”
Addressing the performance and potential of key regional markets, Juul-Mortensen said: “Economic conditions today in China are of concern for many duty-free and travel retail professionals. In recent years, the country’s shoppers are understandably cautious when it comes to spending.
“The return to international travel after COVID restrictions has been slow. So far ForwardKeys codes Chinese outbound traffic bookings in quarter one of this year down -32% compared to 2019.
“By contrast, duty-free sales in Hainan rose over +25% last year, but measured against visitor growth of around +60% that equates to lower spend.”
On India, he added: “India currently has 149 civil airports, twice the number it had a decade ago. Nine more are approved for construction while many others are planned. Delhi and Mumbai are both gaining second airports and there’s even talk about a third one for Mumbai.
“India expects outbound international departures by Indian residents to increase from 17.4 million in 2019 to over 50 million in 2013.
On current trends, Juul-Mortensen said: “Travel expectations are continually evolving. The current trend for travel retail-exclusive products, limited editions and specialisation brings opportunities to attract shoppers. Passenger desire for experiences rather than just shopping is key to creating more engaging activations.
He also highlighted the strong performance of the cruise sector. “The cruise industry is achieving impressive growth, albeit at a more modest pace. Asian cruisers are among the youngest, typically under 40 years old, and Shanghai ranks as the sixth largest port globally for cruise passenger visits – receiving about 3.3 million annually. In January this year we saw the launch of the first China-built cruise ship, Adora Magic City.”
12 May
Welcome Cocktail
APTRA Networking Lunch
11 May
