Introduction: In this guest column, Victorinox Head of Global Travel Retail & Fragrance Sales Gloria Dix explores how brands can unlock new opportunities in cruise retailing by embracing a more purpose-built approach to offer, merchandising and communication.
The cruise channel, which Dix describes as ‘the sleeping giant of our industry’, is evolving to deliver more premium journeys and to cater to younger travellers. As this evolution takes shape, brands like Victorinox have a prime opportunity to recruit customers and stand out at sea.
If I was asked for my key takeaways from 2023, there is a clear one that would be near the top of the list: the cruise channel is the sleeping giant in our industry. Attending various conferences this year and hearing the perspectives from fellow brand owners, operators and retailers, it’s clear this is a sector of global travel retail which is on a hugely exciting trajectory.
The allure of the cruise retail environment is clear – it doubles down on all the key elements that have historically made airport retail so appealing and profitable, namely dwell time and passenger profile. Not only is there a clear match between each cruise ship and certain passenger profiles, but those passengers have a dwell time measured in days, not hours.
With an approach focused on the right operators, ships and routes, the cruise channel offers brands the opportunity to target specific shoppers multiple times over the course of their journeys. In terms of brand building and storytelling, that opportunity is gold dust.
However, this opportunity does not come without challenges – quite the opposite. As a brand just beginning its voyage in this space, the Victorinox team listened to feedback from leading figures at the major players in this sector, and realised we needed a purpose-built strategy for the channel.
We honed in on five key dynamics, which we feel are the keys to success for bringing Victorinox to life for cruise passengers and which are particularly exciting for a premium brand with major aspirations in this channel.
Differentiation
Differentiation not only excites customers but is especially important in cruises where it is possible to mitigate against price comparison versus other channels, particularly when passengers are able to easily explore shops during shore excursions. We get a real sense from retailers that they are looking to avoid cookie-cutter retail offers with over-familiar brand mixes: they want to make sure that shoppers engage and purchase with new and exciting brands.
For brand owners and consumers, this approach will be a breath of fresh air. Travel retail should be exciting and surprising, not over-indexed on the same familiar names. As a well-known brand still building momentum in travel retail and looking to make its mark in the cruise channel, Victorinox is exactly the kind of brand which is established and proven, but not over-familiar to shoppers.
Dwell Time
Dwell time is an opportunity but also a challenge: shoppers may make multiple visits but how do you create a retail offer that remains fresh and rewards them for doing so? It’s our belief that this dynamic offers a chance for brands with strong storytelling to not only drive sales but also enrich the retail experience.
From its heritage with the Swiss Army KnifeTM, to the premium multi-category portfolio, Victorinox is a brand rich with stories. From materials and durability through to unique design features, Victorinox encourages and rewards shoppers who are looking for brands that are innovative and want to explore our heritage and design excellence. We are looking forward to making this a reality at sea.
Premiumisation
One look at the new ships at sea, as well as the entry of brands like Ritz Carlton into this space, tells you everything you need to know about the premiumisation of the cruise market. We also know that at least 50% of cruise passengers are celebrating some sort of milestone. This means they may be looking to make a special purchase and have the time to consider carefully what to buy without being rushed or pressured.
At Victorinox we quickly saw a clear fit for our brand: in watches, for example, our portfolio spans a sweet-spot to drive trade-up from mass-market and fashion watches, while delivering the hallmarks of Swiss-made quality. This is a story we can bring to life over the course of a trip, providing reassurance that a shopper is getting a step-up in quality as well as price.
POS Excellence
As one cruise retailer said during DFNI’s Cruise Conference earlier this year – ‘this isn’t an easy channel for brands’. It has its own set of requirements from a supply-chain perspective, while the importance of staff training and merchandising cannot be understated. Time-rich cruise passengers want to explore broad ranges with help from expert sales staff and may well seek alternative options over the course of a cruise if their preferred model or choice isn’t available. We know as a brand owner, we have to get this right.
We’re fortunate to have very robust supply-chain capabilities – thanks in part to our investments in our European distribution centre, which centralises 17 different warehouse locations across Switzerland and the rest of Europe. We’ve also ensured that our online training platform C.A.R.L integrates with Talent LMS and other systems used by cruise retailers. Additionally, we’ve invested in creating a range of merchandising solutions tailor made for the cruise ships and perfectly suited to the flexibility and space requirements of the channel.
Engagement & Activation
Travel retail is famous as a playground for experiential retail. While the cruise channel is playing catch-up, the environment offers a wealth of opportunities.
At the TFWA Conference & Exhibition in October we presented a number of bespoke shopper engagement concepts to cruise retailers, leveraging our brand as well as the different ways in which cruise shoppers can be targeted in the wider onboard environment, including in-room and around the communal ship areas. There are some natural synergies with cruising and travel, which we are keen to bring to life through concepts including the ‘Onboard Adventure Concierge’ and fun, travel-themed selfie stations.
Looking Ahead
2023 has been an enlightening year – one which opened our eyes to the potential of cruises but also to the need for bespoke strategies and concepts to really deliver what retailers and shoppers want. As cruise bookings are on the rise and different customer types, including Millennials, are getting onboard with cruise holidays, it’s now full steam ahead for an exciting 2024.
With the introduction of wellness and lifestyle-themed sailings as well as itineraries, amenities and staterooms that allow multigenerational families to sail together in comfort, cruises offer a plethora of opportunities for lifestyle brands to thrive in this environment.
Next year, through our new ‘made to be prepared’ concept, Victorinox is ready to enhance the cruise retail offer and support global travellers with our products that are always smart, carefully thought-out and the very definition of preparedness. We are certain that the ocean is the gateway to endless opportunities. ✈
