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John O’Sullivan says high-end spirits brands, notably in Cognac, should be aiming to compete with other luxury products for consumers’ attention |
Enhancing the in-store consumer experience and raising the level of retail sophistication in the industry are among the targets for Pernod Ricard Asia Duty Free as it seeks to maintain its dynamic growth in Asia Pacific. That’s according to regional Marketing Director John O’Sullivan, speaking to The Moodie Report at the recent TFWA Asia Pacific in Singapore.
“Product innovation and themed activations have been a major focus for us over the past year,” he said. “With Martell we have introduced Chanteloup Perspective, Cordon Bleu Centenary and the Millésimes Collection; from Absolut we see at least two new items each year, and most recently we’ve raised our game in the super-premium segment with Absolut Elyx. Those are two examples among many. Similarly, we have driven themed activations around airports, ranging from Ballantine’s golf to Royal Salute’s polo activities.
“The challenge now is to take these to the next level and develop new experiences for travellers,” he added. “Much of that revolves around creating luxury. With our Martell Boutiques at Hong Kong [with Sky Connection] and Kuala Lumpur [with Eraman] international airports, we have created environments that offer a step change in how liquor is sold. We want to be competing with other categories of luxury goods. And with Cognac in particular, given its rarity and exclusivity, that is possible.”
Where Cognac can maintain a premium price given its tight supply, the way Scotch is sold in the channel remains a challenge in some locations, O’Sullivan noted. “The mindset of three-for-two with the trolley bag or another gwp is still prevalent, but as a category Scotch needs to be promoted. It’s a big risk to take if you want to call a halt to tactical activations.
“Yet we can still reinforce the premium message around Scotch. One of our key messages comes with “˜The Age Matters’ campaign. We want to back up the fact that we house a lot of aged stock and press home the quality message that it sends out.”
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The Martell Boutique at HKIA: Adding a new level of sophistication to spirits travel retailing |
The market in Asia Pacific remains hugely exciting, noted O’Sullivan, with passenger growth rates higher than the rest of the world, and new markets emerging fast.
“We are seeing tremendous growth as an industry in Vietnam, Singapore, Indonesia and of course China,” said O’Sullivan. “We’re in a strong position in Asia because whisky and Cognac are the drivers of regional duty free for spirits. And they follow the great growth of key domestic markets, where we’re also strong.
“For the year ahead we’ll focus on Martell, Royal Salute is a priority brand and we’ll seek to grow sales and market share in our other key brands. We’ll follow the Chinese traveller where they go, we’ll track the increasingly important Indonesians, and focus on the big potential of the Indian traveller. And we’ll emphasise the “˜premiumisation’ message across the portfolio.”
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Martell Chanteloup Perspective: Reinforcing the premium message of the travel retail channel |
