Introduction: In this guest column, drinks specialist Tipple Co-Founder Eoin Bara discusses what travel retail can learn from the direct-to-consumer channel. He also explores how spirits brands can go above to meaningfully engage with consumers well beyond the point of sale.
Travel retail offers a unique opportunity to reach a diverse and global customer base, but direct-to-consumer (DTC) infrastructure is key to maintaining that post-journey engagement, says drinks specialist Tipple Co-Founder Eoin Bara.
Airports, duty-free shops and other travel hubs provide brands with the chance to expose their products to a wide range of potential customers who may not have encountered them otherwise. Travellers are often in a mindset of exploration and indulgence, making them more open to trying new products and brands.
Furthermore, travel retail provides the opportunity for brands to showcase their products in an experiential manner. Unlike traditional retail settings, travel retail often includes interactive displays, product demonstrations and expert staff who can provide recommendations and assistance.
This immersive and personalised experience helps customers form a connection with the brand and its products, ultimately leading to customer acquisition.
Lastly, travel retail offers the advantage of international exposure. With travellers coming from various countries, brands have the opportunity to reach potential customers on a global scale.
But what happens when that customer goes home? Loves the product but can’t get it in their own country?
The shift from mere acquisition in travel retail environments to sustained engagement through DTC channels is critical. According to data from Tipple, a leader in providing direct-to-consumer (DTC) infrastructure for the alcohol industry, brands using Tipple concurrently with their travel retail strategy are experiencing an average increase in customer retention rates by over +30%. This statistic underscores not just the efficacy but the necessity of integrating DTC capabilities into a brand’s overall sales strategy.
“Travel retail serves as a high-visibility touchpoint for brands,” says Tipple Co-Founder Eoin Bara. “But the real challenge – and opportunity – lies in maintaining that connection once the customer has ended their journey. DTC is not just a sales channel; it’s a relationship-building tool.”
In the context of the alcohol industry, this approach is particularly potent. Alcohol brands face unique regulatory challenges that can complicate cross-border sales. DTC models, supported by robust platforms like those provided by Tipple, navigate these complexities by localising operations and ensuring compliance with regional regulations, all while maintaining a consistent brand presence.
For instance, leveraging data analytics to understand the preferences and buying behaviours of international customers acquired through travel retail can tailor the DTC experience. This targeted approach not only enhances customer satisfaction but also boosts repeat purchases.
Tipple’s platform enables brands to deploy these strategies seamlessly, integrating everything from localised marketing tactics to logistics and legal compliance.
The financial implications are equally compelling. A DTC model that incorporates a well-considered strategy can be extremely lucrative for brands as they receive increased profit margins. More importantly, it provides brands with direct insights into consumer behaviours, which are invaluable for refining product offerings and marketing strategies.
“Direct feedback and sales data from DTC transactions are gold mines for strategic planning,” adds Bara.
The true measure of success for brands in this arena isn’t merely capturing the traveller’s attention – it’s securing their loyalty.
Leveraging travel retail as a launchpad for DTC sales is more than an expansion tactic; it’s a critical component of explosive global growth. Integrating DTC capabilities allows brands to harness the initial excitement generated in travel retail, transforming it into enduring brand loyalty through personalised engagement.
This is where the power of direct-to-consumer comes into play, especially once customers return to their home countries.
You can visit the Tipple platform here. ✈
*This article first appeared in Category Insight, a supplement to The Moodie Davitt Magazine for May. Click here and go to page 20 for that version.
