Travel Retail Anaysis
Travel Retail Analysis
The Travel Retail industry can be defined as the sale of services and products trough channels such as airport stores, airlines, cruise lines, downtown duty free stores or any other related to travel environment. Even tough these retail stores have to pay for concession fees; they are exempt from the payment of certain taxes that make the product very attractive to the final customer.
I believe the Travel Retail is very susceptible to the economic variations and political instability of all countries, having a direct influence in the annual growth of the industry. Statistics indicates that the international travel has increased approximately 10% annually since 20101, meaning not only a recovery but also profits to those brands that sale their product in the travel retail channels.
Furthermore, the growth in travellers from BRIC emerging markets has a positive impact in travel business forecast, expecting the success of sells to continue. For the America’s travel retail industry, the economic development of Brazil has helped increasing profits and generating optimistic forecasts.
Having said all these, we know that the travel retail industry is growing and for some brands could become one of the best performing in retail. Therefore, if the global economic and political situation is helping companies to increase their sells in the travel retail channel, what are the other factors to take into consideration in order to add value and increase sells?
The following analysis of factors and recommendations will be made thinking about the performance of beauty and fragrances products in the travel retail industry; and more specific in cosmetic and skin care products sold in Duty Free stores at the airports in Latin America and North America.
Definitely, is essential to know the market. Airports concentrate travelers from several countries, different customs, ages, gender, etc. These people have limited time to spend
The Travel Retail industry can be defined as the sale of services and products trough channels such as airport stores, airlines, cruise lines, downtown duty free stores or any other related to travel environment. Even tough these retail stores have to pay for concession fees; they are exempt from the payment of certain taxes that make the product very attractive to the final customer.
I believe the Travel Retail is very susceptible to the economic variations and political instability of all countries, having a direct influence in the annual growth of the industry. Statistics indicates that the international travel has increased approximately 10% annually since 20101, meaning not only a recovery but also profits to those brands that sale their product in the travel retail channels.
Furthermore, the growth in travellers from BRIC emerging markets has a positive impact in travel business forecast, expecting the success of sells to continue. For the America’s travel retail industry, the economic development of Brazil has helped increasing profits and generating optimistic forecasts.
Having said all these, we know that the travel retail industry is growing and for some brands could become one of the best performing in retail. Therefore, if the global economic and political situation is helping companies to increase their sells in the travel retail channel, what are the other factors to take into consideration in order to add value and increase sells?
The following analysis of factors and recommendations will be made thinking about the performance of beauty and fragrances products in the travel retail industry; and more specific in cosmetic and skin care products sold in Duty Free stores at the airports in Latin America and North America.
Definitely, is essential to know the market. Airports concentrate travelers from several countries, different customs, ages, gender, etc. These people have limited time to spend