SOUTH KOREA. The Trinity Forum concluded today in Seoul after a strong second morning’s conference proceedings, with much of the discussion around the consumer, the quality of the retail experience and the future of the trade in a fast-changing world.
The event was co-organised by The Moodie Report and Airports Council International, and hosted by Incheon International Airport Corp.
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London Heathrow Airport Director Retail Concessions Muriel Zingraff-Shariff (on large screen) discusses how airports can play a more active role in driving luxury retail sales, during a panel discussion moderated by The Moodie Report’s John Rimmer (top, far left), alongside Montblanc General Manager Travel Retail Frank Passmann and LS travel retail ASPAC Chief Operating Officer Emmanuel de Place |
The role of fashion and luxury in the travel retail mix was discussed candidly in the first session by Montblanc General Manager Travel Retail Frank Passmann, Heathrow Airport Retail Concessions Director Muriel Zingraff-Shariff and LS travel retail ASPAC COO Emmanuel de Place.
In an important message to the trade, Ms Zingraff-Shariff said that BAA was determined to “think more like a retailer and less like a traditional landlord”, saying the company “wanted to be more helpful” to its tenants rather than just “demanding growth”.
Passmann outlined his views on the role of luxury – now a key force in any commercial mix – and de Place underlined his opinion that luxury was the most exciting industry opportunity, but one that demands advances in service and treatment of brands.
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The Mercurius Group Founder Ivo Favotto gave an intriguing address on the need for consolidation in travel retail |
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DKMA Director Damien Kobel mapped out ASQ’s new Retail and Food & Beverage benchmark survey |
The Mercurius Group Founder Ivo Favotto delivered a keenly followed presentation on industry consolidation. He said that retail consolidation was the “missing link” that could redress the economic imbalance within the industry – from one where airports dominate through taking most of the profit but only engaging in a small part of the risk.
He said that retailers needed though to stop complaining about the industry’s business model because it’s unlikely to change – because it is driven by the underlying economic power. Retailers’ main hope is to consolidate, he argued, pointing out that the future of the business model is in their own hands
Damien Kobel, Director of ACI research partner DKMA, then outlined the invaluable work of his company in created ASQ Retail, a new benchmarking study on airport commercial revenues.
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Following yesterday’s landmark donation to the Hand in Hand in Haiti initiative, Dubai Duty Free – represented by President George Horan (top right) – once again demonstrates its generosity by giving away two tickets for its coveted raffle draws: won by Nestle’s Alan Brennan and Christchurch Airport’s Julie-Ann Beattie |
The second panel discussion of the day, entitled “Creating a whole new level of passenger experience”, brought together a trio of senior airport and retail executives from very different markets. Offering a perspective from India, IDFS Chairman Deepak Talwar – whose video presentation, created for Trinity 2012, was a highlight – addressed some of the challenges the Indian travel retail market must overcome if it is to fulfil its promise.
Abu Dhabi Airports Company Senior Vice President Commercial Dan Cappell showed how the Emirati airport has revolutionised its retail offer in recent years. And Schiphol Group Managing Director Business Area Consumers Otto Ambagtsheer argued that airports and retailers must create “much more than just shops” in order to engage today’s traveller.
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Abu Dhabi Airports Co. Senior Vice President Commercial Dan Cappell urged the industry to move with its customers |
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“Try to be different; more of the same is boring”: Schiphol Group Managing Director Business Area Consumers Otto Ambagtsheer argued that passengers expect “much more than just shops” |
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The panel featuring IDFS Chairman Deepak Talwar, Dan Cappell and Otto Ambagtsheer was a highlight of Day 2 |
Among the highlights of day two was the detailed and absorbing presentation by The Shilla Duty Free Vice President Marketing Division In-Jung Whang, who addressed the past, present and future of Korean travel retail, a business worth some US$4.5 billion in total last year.
Shilla itself posted sales of around US$1.3 billion last year, driven by the inexorable rise in the number of Chinese visitors to South Korea and by the increasing power of leading Korean beauty brands.
Ms Whang explained how Shilla is working to increase its brand awareness in China, using social media, advocate groups and tailored promotions. She also addressed the opening of Sweetmay, the skincare outlet developed by Shilla in the Venetian complex in Macau.
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The Shilla Duty Free Vice President Marketing Division In-Jung Whang gave a fascinating insight into the past, present and future of Korean travel retail, with the Chinese traveller playing an increasingly important role |
A fascinating final session of the Forum, entitled ‘The new reality of a virtual world’, covered the growing need for airports, retailers and brands to harness technology and social media more effectively.
The Nuance Group CEO Europe Andrea Belardini revealed how the retailer’s new Duty Free Store concept is deploying interactive technology in-store to educate customers and thus encourage trading up. Nuance is putting the finishing touches to a new consumer-facing website consistent with the Duty Free Store concept, designed to meet the growing consumer need to search for products online before purchase.
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Integrate the virtual and real shopping experience, urged The Nuance Group CEO Europe Andrea Belardini |
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Dubai Airports Vice President – Commercial Eugene Barry illustrated how the new DXB app helps the airport better engage its customers, helping guide them through the airport and thus encourage spend |
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Duty Free Philippines Chief Operating Officer Lorenzo Formoso showed how the retailer has embraced social media in a successful bid to increase spend among Filipino Overseas Foreign Workers |
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Martin Moodie (far left) engages Andrea Belardini, Eugene Barry and Lorenzo Formoso in a topic that is dear to The Moodie Report: the use of social and digital media to drive commercial revenues |
Following Belardini, Dubai Airports Vice President – Commercial Eugene Barry discussed how the new DXB iPhone app is helping the airport and its retailers remain relevant to an increasingly sophisticated and demanding traveller.
And in an enthralling presentation, Duty Free Philippines COO Lorenzo ‘Enchong’ Formoso explained how the retailer’s dedicated Digital Media Department, which it created in 2010, has helped drive sales through the targeting of returning Filipino workers via Facebook, Twitter, YouTube and Skype. Those campaigns will gather further momentum this year as the Manila-based retailer celebrates its 25th anniversary.
Martin Moodie closed proceedings by thanking host Incheon International Airport Corp for its “incredible” backing of The Trinity Forum 2012, before delegates enjoyed a final lunch, sponsored by MCM.
We’ll bring you a full report on this year’s Trinity Forum next week.
For the day one report click here.
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Moodie International SA President Jaclyn Wampler and Martin Moodie present Incheon International Airport Corp’s Mina Choi and Yulim Lee with a token of appreciation of their fantastic efforts in helping to stage The Trinity Forum 2012 |
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The IIAC team, with Dr YG Lee far right, celebrate the success of The Trinity Forum in Seoul |
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Mina Choi and Yulim Lee of Incheon International Airport’s International Relations team with Martin Moodie |
