TFWE Cannes 23 October 2012 - sunglassescategory.com€¦ · Top Categories –Evolution 2011 vs...
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Transcript of TFWE Cannes 23 October 2012 - sunglassescategory.com€¦ · Top Categories –Evolution 2011 vs...
TFWE Cannes 23 October 2012
Yngve Bia, President Generation Research
Sweden
LUXOTTICA Category Workshop
SUNGLASSES IN DUTY FREE & TRAVEL RETAIL
An Overview
Top Categories – Evolution 2011 vs 2010% Sales Change 11vs10
Source: GENERATION Research, Sweden
27.7% 27.3% 26.7% 26.1%
17.9%
1. Cognac 2. Leather 3. Sunglasses 4. Watches 5. AverageGoods all categories
Global Duty Free & Travel Retail Sales 2011
Share by Product Group
Source: GENERATION Research, Sweden
Wines & Spirits 16.6% (+14.0%)
Fragrances & Cosmetics
31.0% (+18.8%)
Tobacco Goods 7.2% (+15.5%)
Watches & Jewellery
11.0% (+19.7%)
Sundry Goods 9.9% (+12.2%)
Confectionery & Fine Food
8.8% (+13.1%)Fashion &
Accessories 15.3% (+23.2%)
Fashion, Accessories,
Scarves, Ties, Leather Goods 72.5% (+22.5%)
Sunglasses 18.0%
(+26.7%)
All Merchandise Total Sales: US$ 46.0 billion
( ) = Sales % Change 2011 vs 2010
Fashion & AccessoriesTotal Sales: US$ 7.1 billion
Wines & Spirits16.4% (16.6%)
Fragrances & Cosmetics
30.7% (30.8%)
Tobacco Goods7.0% (7.4%)
Luxury Goods37.6% (36.0%)
Confectionery & Fine Food
8.4% (9.1%)
8.6% 8.8%
5.6%
12.9%
4.6%
16.0%
1H2012 vs 1H2011
Global Duty Free & Travel Retail Sales: US$ 24.4 billion (+9.6%)
Share by Product Group Statistical change 1H2012 vs 1H2011 in US$
( ) = 1H2011
Source: GENERATION Research, Sweden
W&S F&C Tobacco Luxury Conf. &
FF
Sunglasses
CAGR 1990 – 2011
Sunglasses: 15.2%
DF & TR Industry: 5.5%
65
155
275299
474
571
777
1,004
1,273
0.4% 0.8%
1.4% 1.5%1.9% 2.0% 2.1%
2.6% 2.8%1.4%
2.3%
3.6%
4.1%
5.2%5.5%
6.1% 7.1%
7.6%
1990 1995 2000 2002 2004 2006 2008 2010 2011
Share of global DF&TR sales Share in group Luxury Goods
SUNGLASSES
Evolution 1990 - 2011
Source: GENERATION Research, Sweden
Source: GENERATION Research, Sweden
Sunglasses0.4%
Global Sales99.6%
1 9 9 0 2 0 1 1
Share of Global Sales
Share of Luxury Goods
Share of Global Sales
Share of Luxury Goods
Sunglasses1.4%Luxury
Goods98.6%
Sunglasses7.6%
Luxury Goods92.4%
SUNGLASSES
Evolution of Market Share %
Sunglasses2.8%
Global Sales97.2%
2011 Change 2011 vs 2010
Rank Sales in Market Statistical Real in
11 10 Product Category US$ millions Share in US$ LCU
1 1 WOMEN'S COSMETICS 6,264 13.6% 23.1% 19.3%
2 2 WOMEN'S FRAGRANCES 5,341 11.6% 17.2% 13.6%
3 3 CONFECTIONERY 3,135 6.8% 12.6% 8.8%
4 4 CIGARETTES 2,814 6.1% 16.3% 12.4%
5 5 MEN'S PRODUCTS 2,662 5.8% 12.7% 9.2%
TOTAL TOP 5 20,216 43.9% 17.4% 13.5%
6 6 SCOTCH WHISKY 2,368 5.1% 17.8% 13.8%
7 7 ACCESSORIES 2,359 5.1% 18.1% 14.1%
8 9 LEATHER GOODS 2,324 5.1% 27.3% 23.0%
9 8 JEWELLERY 2,245 4.9% 15.1% 11.3%
10 10 WATCHES 1,821 4.0% 26.1% 21.9%
TOTAL TOP 10 31,333 68.1% 18.5% 14.5%
11 12 SUNGLASSES 1,273 2.8% 26.7% 22.5%
12 11 STILL WINE 1,210 2.6% 19.5% 15.5%
13 14 COGNAC 1,163 2.5% 27.7% 23.4%
14 13 ELECTRONIC EQUIPMENT 1,124 2.4% 17.3% 13.4%
15 15 FASHION & CLOTHING 1,101 2.4% 22.5% 18.4%
TOTAL TOP 15 37,203 80.9% 19.1% 15.2%
The World’s Top Product Categories
in Duty Free & Travel Retail 2011Sales in US$ millions.
Source: GENERATION Research, Sweden
Thank you!
SUNGLASSES IN TRAVEL RETAIL
THE JOURNEY SO FAR
SUNGLASSES SALES IN TRAVEL RETAIL
Ranking Sales Share
1987 N. 35 $25m 0.2%
2008 N. 16 $777m 2.1%
2011 N. 11 $1.27bn 2.8%
2015 (Forecast) To be revealed later…
THE PAST
• Sunglasses had no category status
• Stand alones were unthinkable
• Poor supply chains
• Low level of staff product knowledge
• Low level of customer insight
• Massive unfulfilled potential
A PRE-PLANNED PURCHASE
Impulse
40-50%
Pre-
planned
50-60%
THE FIRST STEPS:
2009
CATEGORY MANAGEMENT
The disciplined way to optimise sunglass presentation:
• Segmentation
• Assortment
• Display environment
• Communication
• Empowering sales staff
• Promos & events
SUNGLASSES CATEGORY MAP
THE REWARDS OF CATEGORY
MANAGEMENT FOR THE CUSTOMER
• Easy to find
• Easy to choose
• Easy to buy
SOME MILESTONES ALONG THE WAY...
2010 CASE-STUDY 1:
SEGMENTATION – DFA AT MIAMI
In all stores: Ray-Ban and Dolce&Gabbana
Then, different approach by store
D&G
Vogue
Colours
Masks
STORE 703:
“American Airlines Terminal”
North Americans / Canadians
Satellite Store
Fragrances and Liquors
Category specific stores
Ralph
Prada
Polarized
Tech
Dolce&Gabbana
Prada
Bvlgari
Special editions
STORE 727:
“Luxury”
Luxury brands
Luxury shop in shops
Much higher hand
presentation
STORE 725:
“Brazilian”
Brazilian PAX
Branded Leather accessories
Entry price luxury
Fragrances
2010 CASE-STUDY 2:
HIGHLIGHT SEGMENT AT POS
NUANCE AT ZURICH
Sales
+26%during
communication
First
category-wide
promo
2010 CASE-STUDY 3:
ASSORTMENT – DUFRITAL AT MILAN
• Review and optimized clients assortment
per SKUs / brands
• Building a planogram per SKUs/brands based
on client selection and brand guidelines
x2Sales
since set-upSales staff
more involved
in the category
2010 CASE-STUDY 4:
MERCHANDISING DISPLAY
DUFRY AT SAO PAULO
Before
Sales
+80%since installation
SHOWING TEMPLES
PROMOTIONAL SPACE INFO ON DISPLAY
2010 CASE-STUDY 4:
MERCHANDISING DISPLAY (AFTER)
2010 IN‐STORE ENVIRONMENT
IOSC - BUENOS AIRES/PUNTA DEL ESTE
Buenos Aires Punta del Este
No. of units sold +90% +94%
Sales (sell-out) +96% +107%
2011 SEGMENTATION & PROMOTIONS
ALDEASA - MADRID
No. of units sold +324%
Sales (sell-out) +350%
Average unit price +6%
2011 STANDALONE CONCEPTS
EVERRICH AT TAIPEI
Sales (sell-out) +200% (incremental)
2012 STANDALONE CONCEPTS
AELIA - NEW CONCEPT STORE
EYE LOVE PRAGUE
2012 BRAND PERSONALISATION
NEUTAX – RIO BRANCO, ACEGUA
RIO BRANCO
ACEGUA
2012 BRAND PERSONALISATION
HEINEMANN – MUNICH (RAY-BAN/OAKLEY)
SALES AFTER SET-UP: +150% ON RAY-BAN VS L.Y.
Before After
2012 REFURBISHMENTS
DSA – BUENOS AIRES EZEIZA AIRPORT
STORE 22: #1 IN SALES, 55% OF BA AIRPORT DOORS
2012 COMMUNICATION
DSA – MONTEVIDEO AND PUNTA DEL ESTE
Punta del Este Airport, Uruguay Montevideo Airport, Uruguay
Departures Store
2012 COMMUNICATION
DFS – CHINACHEM, HK
2012 TRAINING
TRAVEL RETAIL TRAINING – FEEDBACK
Over 600 evaluation forms gathered
• 94% Satisfaction with the trainer
• 98% Satisfaction with the program
• 90% Learnings to apply in your role
• 100% Value to the Business
Manila
2012 TRAINING
TRAVEL RETAIL TRAINING
First Training Module developed specifically
for Travel Retail
EMPOWERING
YOUR STAFF
THE NEXT GAME CHANGER
FROM SEGMENTATION
TO MULTIPLICATION
BRANDS – RETAILERS – AIRPORTS
THE ROAD MAP FOR THE NEXT STAGE
IN THE JOURNEY TO 4%
We need more:
• Focus on consumer: Passenger data/understanding
• Supply chain: Perfect just-in-time deliveries
• Staff training: Deeper engagement with customers
• Multi-format presence: Close involvement with airport
• Digital engagement: technology-friendly category
IF WE GET ALL THIS RIGHT,
THE IDEAL AIRPORT
SUNGLASSES OFFER
WOULD LOOK LIKE THIS
SUNGLASSES PRODUCTIVITY:
UK example
6%5%4%3%2%
1.0
Spend/ dep.pax ($)
1.5
1%
0.5
0%
2.0
0.0
7%
Share of
space (%)
98%
Maturity
Level
SPACE and SPEND/PAX
Airport
Share of space
(%)
Spend/dep. pax
($)
Gatwick
Heathrow
Madrid
Barcelona
Atlanta
3.1%
1.9%
1.1%
0.9%
0.7%
1.1
0.7
0.3
0.1
0.1
~5x ~10x
CASE STUDY: Gatwick airport
• Walkthrough environments
• Wide assortment
• Personalized displays
• Sales staff
Good
spaces
Proper
execution
High
turnover
• Sunglass share of space: 3.1%
• Spend per pax: 1.1$ / dep pax
Diverse
formats
• Multi-category, promotional pop-ups,
stand alone, ...
FORECAST - Sunglasses
Sales in US$ millions.
Source: GENERATION Research, Sweden
Challenges:
1) Why will Sunglasses continue
to outperform all other categories
in the years ahead?
2) How successful will the
Sunglasses category be in
capturing the dollar spend of
emerging travelling nationalities –
the Chinese, the Brazilians, the
Russians ...?
3) What kind of continued
creativity and innovation will we
see in the Sunglasses category:
• Travel retail exclusives?
• Store environments?
• Staff training programmes?
• Travel retail team
expansions?
A = Actual F = Forecast
(A)299
1,273
2,800
4.1%
7.6%
10.0%
1.5%
2.8%
3.9%
2002 2011 2015
Share in group Luxury Goods Share of global DF&TR sales
(A)
(F)
