Trends in airport retail - International Airport Review · Trends in airport retail December 5,...
Transcript of Trends in airport retail - International Airport Review · Trends in airport retail December 5,...
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Trends in airport retailDecember 5, 2017
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Marnix (Max) Groot
Manager Business DevelopmentIATA Consulting
Key projects:• Beijing Capital Airport• Seoul Incheon Airport• Shenzhen Bao’an Airport• Tokyo Narita Airport
Johan Schölvinck
ConsultantNon-Aviation BusinessIATA Consulting
Key projects:• Istanbul New Airport• Amsterdam Airport Schiphol• Moscow Domodedovo Airport• Taiwan Taoyuan Airport
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Trends in Airport RetailDecember 5, 2017 Consumer
trends
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Global spend per head evolution
CAGR 2005-16 2005-10 2010-16
Pax +5.2% +4.1% +6.1%
Sales +8.5% +10.6% +6.8%
SPH +3.1% +6.2% +0.6%
Source: Dufry, ACI, Generation Research
DUTY-FREE
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Shifting behavior
In China
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LUXURY BRANDS
remain in top demand
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AFFORDABLE PRODUCTS are essential
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POP-UP stores
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CHINESE travelersShare of total retail e-commerce sales, worldwide
Source: Forrester Research
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Retail operator trends
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Operator-driven trendsEntertainment
Celebrities
Seductive layouts
Memorable experiences
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Airport retail…
sunset?
• Non-aviation revenues are falling
• Security checks are increasing
• Duplication of shops
• Frequent travelers spend less
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Airport retail…
sunrise?
• Over 3bn people in the middle class
• 140m/year increase of middle class
• 90% of this growth is in Asia
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US $60B IN GROSS SALES
- Integration
- Joint ventures
- Abundant threats
RISK REDUCTION
ECONOMIES OF SCALE
DUTY-FREE
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Trends in airport F&B
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Operator-driven trendsCelebrity chefs
Pop-up restaurants
Knowing customer behavior
Food trucks
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Operator-driven trends
Draw attention away from price Duty-free retailers moving into F&B
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Consumer-driven trendsControl
Affordability
Low-cost airlines: More F&B
Experiences and trueness
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Logistics trends
Tablet ordering
App ordering
Supply management
Waste management
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Layout trends
More F&B
space
Vending
machines
Mixed with
retail
Food carts
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Innovative passenger
services
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Premium services
Fast-Track
Premium
lounges
Personal
shopper
Exclusive
parking
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Service innovations
100% Digital
advertising
Valet
parking
Limousine
service
Trolleys with
wayfinding
Copenhagenisthefirst100%digitaladver singairport
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Airline-Airport cooperation
B.A.R.T.A. Five players, new revenue, PAX data
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The future
of airport
retail?
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Brand worlds
Tech giants
Electronics
Sports
Charity
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The Future
of Airport
Retail?
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DO’s
and
DON’Ts
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The AMS example
Retail mixed
with F&B
Genuine
market squares
Icon
features
Sense of
place
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The bottom line
21% of revenues
create 47% of
operating result (2016)
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The wrong exampleLondon
Luton
Chengdu,
China
München,
Germany
Pyongyang,
North Korea
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Do’s and Don’ts
RETAIL
• Address the digital
consumer
• Combine luxury brands
with affordable products
• Increase your commercial
space
• Develop the right
partnership/contract
• Be a very active manager
• When you can measure it,
you can improve it
• Develop an airport
shopping brand
FOOD & BEVERAGE
• Make it the new rock star:
it is a magnet
• Mix grab and go, food
courts and full-service
restaurants
• Don’t put it on a
mezzanine
• Try food trucks and other
experiences
• Develop combined
Retail/F&B concepts
PASSENGER SERVICES
• Map the customer journey
• Serve every passenger
segment
• Exaggerate your sense of
place
• There’s a market for every
premium service
• Learn from the world’s
best
• Airports are in the
hospitality business
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