ELECTRONICS REPORT


Necessity purchasing bodes well for duty free electronics in post-coronavirus era


The electronics category has long been in the shadow of its more illustrious core category counterparts, but some industry observers believe electronics may finally be able to hold its own in the post-coronavirus (Covid-19) era. Andrew Pentol reports.


S


am Gerber, Managing Partner, Skross, has long been aware of the various challenges


associated with electronics, but he makes a strong case for the category in conversation with TRBusiness. “People have realised how critical


their personal electronics devices have become during the pandemic. “Governments and news portals


communicate with individuals on a permanent basis and many of us use an energy-draining Covid- tracer app on our smartphones. Our smartphones in particular have become a critical lifewire.” Electronics could also benefit from


the fact it will take some time for intercontinental travel to recover. “More revenue in the channel


might be generated from commodity items such as electronics than from luxury gifts,” explains Gerber.


Pushing the category Gerber says strong global players such as Lagardère Travel Retail, WHSmith, InMotion and Capi are pushing the electronics category. “This is probably because they


realise younger generations are more familiar with it,” he says. Gerber, who believes future


travellers will consider electronics ‘an absolute necessity’ instead of a ‘nice-to-have’ like previously, believes resistance from operators and airports will be the biggest challenge for the category. He says:


“The category offers less luxury appeal and margin opportunity compared to the classical travel retail categories. With electronics being less attractive margin-wise, the category might be considered less relevant, especially during a period when all stakeholders are burning cash.” Sven Olschewski, Senior Market


Strategy Manager, Braun believes the conversion rate associated with all categories will change once Covid-19 has passed, with less people entering stores. That said, Olschewski does not expect shoppers to be more or less open to purchasing electronics than in the past. He went on to say: “Braun and Oral-B have the


advantage as the new packaging generations are extremely self- explanatory, meaning staff interaction is not always required.” Travellers’ mindset towards the


electronics category might well depend on the respective region. He explains: “In Asia, buying electronics in travel retail is based on trust and authenticity, whereas in South America it might be triggered by high local taxes which can be avoided by purchasing in duty free.” Swedish beauty brand Foreo remains a big footfall driver in Asia


DECEMBER 2020


and a prime example of consumers’ placing trust in a brand. Recently, the firm launched its new FAQ ‘powerful anti-ageing brand’ with Korean travel retailer Hyundai Duty Free. As electronics brands worldwide


position themselves for the recovery, Braun and Oral-B in particular have various other advantages, according to Olschewski. “These include the play in the


hygiene/personal care category, the fact they are known globally and their strong growth throughout the pandemic due to e-commerce activities in domestic markets.” “The travel retailers we work with


know and trust the brands. Other retailers have even started with the category during Covid. InMotion Entertainment, for instance, a US retailer with more than 140 airport


“More revenue in the channel might be generated from commodity items such as electronics than from luxury gifts.”


Sam Gerber,


Managing Partner, Skross


TRBUSINESS 35


Above: The new Braun packaging generation can convey all product benefits without utilising plastic windows.


Below left: Future travellers will consider electronics ‘an absolute necessity’, says Skross.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50