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The rapid growth of digital technology and its impact on the dutyfree and travel retail market , particularly in the APAC region , should not be ignored .
to expand their business operations in emerging economies by adopting various strategies , such as acquisition and contact / agreement .
Juul-Mortensen added that the rapid growth of digital technology and its impact on the duty-free and travel retail market , particularly in the Asia-Pacific region , should not be ignored .
“ In China , for example , we are seeing the use of smart digital payment solutions that are making it easier and more convenient for customers to shop with duty-free and travel retailers .
Giving what travellers want
TRAVEL retail offers a great distribution channel for brands and Erik Juul-Mortensen , president of Tax Free World Association ( TFWA ), believes this has come from a combination of close collaboration between retailers and brands — by developing excellent retail operations and understanding exactly who their customers are and what products and brands they are looking for .
“ Duty-free and travel retail stores provide an excellent opportunity to showcase a wide variety of products and brands adapted to the profile of the travelling consumer . In the Asia- iShopChangi — the airport ’ s e-commerce portal — offers passengers the convenience of purchasing online between 30 days and 18 hours before their departure flights , and picking up their buys at any terminal .
“ The use of digital technologies to collect and manage data is also giving forward-thinking retailers opportunities to use this information to communicate directly with travellers and to create tailored experiences for passengers , which is further enhancing the travel experience .
“ The thinking about how technology can be used to deliver an even better retail experience should definitely be a key focus for all Asia-Pacific travel retailers ,” he advised .
China has also been cited by Allied Market Research as the major operator in the Asia-Pacific travel retail industry and accounted for around 65 % of the market share in 2016 .
Pacific market , for example , we have been working closely with Asia-Pacific Travel Retail Association ( APTRA ) to gain insight into the shopping behaviour of passengers using , in this case , Hong Kong International Airport .
“ In turn , this helps us to pinpoint which brands and campaigns work well in this specific environment . Brands may compete for market share and retailers for concessions , but our basic interests are fundamentally aligned and we are able to achieve many things when we work together as one industry ,” he said . ra
Travel retail in Asia is set to continue progressing in future and Juul-Mortensen is confident it will continue to grow but it will also have to make some adjustments to keep up with the times . “ Based on current trends and an increase of new travel opportunities in the region , I expect the Asia-Pacific market will continue to grow and further strengthen its position as a dominant force in duty-free and travel retail .
“ However , this growth will not come without hard work and our industry will need to adapt quickly to keep pace with the digital revolution and the rise of e-commerce and m-commerce ,” he concluded . ra
CAG revealed that retail is an important part of Changi Airport ’ s operations , contributing to about half of CAG ’ s total revenue .
18 Retail Asia August 2018