Our shoppers in travel retail have changed, did you know? It seems to be all we talk about a lot of the time. I certainly spend plenty of my time hearing and reading about new shopper demographics and needs. That, surely, must mean the market, offer and approach from brands and retailers has changed too – though there is less evidence of that as I look around airport stores.
In recent months, talk of changing shoppers has got even more intense after China began to reopen its borders, unlocking a group of shoppers who led the way in spend for both travel retail and luxury before the pandemic. Do these shoppers mean we need a complete overhaul of our approach? Actually, no. Not only are these shoppers not the ones who we rebuilt travel retail on in the wake of the lockdowns, they are also not going to suddenly become the dominant force again. Economic, practical and political challenges will mean the Chinese shoppers cannot immediately be the market’s golden goose once more.
However, and to my mind more importantly, these Chinese shoppers are not a completely unique demographic. They have many specific demands and preference, but so do all of our other shoppers – and the overarching themes are the same. As I have argued before, if you are not ready for the return of Chinese shoppers, then you are not properly serving your current shoppers.
If you look around travel retail today, ask yourself a simple question: Is the offer as different from the pre-pandemic era as our shoppers apparently are? The answer is no.
If you are not ready for the return of Chinese shoppers, then you are not properly serving your current shoppers
The dominant demands from shoppers today are for digital engagements, seamless omnichannel journeys, frictionless transactions, personal service, exciting engagement, unique experiences and a blurring of the traditional boundaries in the retail sector. It sounds like a lot, and it is, but it is also what they have come to expect.
A look at the domestic market gives a clear idea of what is possible. Food and retail collaborations such as Christian Louboutin’s Loubibar, Prada’s Harrods café, or Lego’s Botanical Café are capturing shoppers’ attention; Louis Vuitton has created bookshops as just one more example of brands breaking out of their traditional moulds to create something engaging and exciting. I argued months ago that 2023 should be the year of the pop-up and I still believe that is true.
Such concepts are beginning to make an appearance in travel retail. Hamad International Airport is an excellent example, where Qatar Duty Free have worked with leading brands to secure the opening of a Fendi bar, Ralph Lauren’s first travel retail Ralph’s Coffee outlet and Louis Vuitton’s first airport lounge and restaurant.
Is the offer as different from the pre-pandemic era as our shoppers apparently are? The answer is no.
But these are standouts and the lack of eye-catching and ground-breaking activations and concepts in travel retail demonstrates that our market has not kept pace with the change we all talk about so much. Too often we are guilty of trying to pass off simple developments as ground-breaking evolutions. Our shoppers are not falling for it and we must stop kidding ourselves: To stay relevant, our industry needs to step up.
