INFLIGHT: HANSE DISTRIBUTION


“In the airline sector, we are getting better and stronger. For example, Berlin-headquartered Germania increased their listings with us from two to eight, and we’re also now supplying promotional branded items, such as coffee cups, to Etihad.”


Nikolas Hogrefe, Managing Director, Hanse Distribution


Fine Deodorant Vetiver Geranium Tube has become a successful travel essentials item.


that massage your toes, are one of our bestsellers.” The list of items goes on and


includes a gale force wind-resistant Doppler carbon steel pocket umbrella that Hogrefe says is selling ‘like hotcakes’ onboard Lufthansa. Accompanying this is a successful


travel essentials organic cream deodorant from Fine, which he originally scoffed at as a non-user- friendly item and now retails at an impressive €29 ($36). Hogrefe continues: “These are all


things that, in general, aren’t known by the consumer. As a travel retail exclusive or unique offer it engenders that mentality of ‘I have to buy it now or else I’ll miss out’.” There’s also a new willingness by


some of the really big airlines to be more open to discussing conditions, especially if it’s a product they see as flying off the page or trolley. As such,


Hogrefe is hopeful that other carriers will follow suit. Another Lufthansa onboard high


flyer is Biotulin skincare cream, which was already a bestseller in the German market thanks to celebrity endorsements by the likes of Michelle Obama and Kate Middleton. It’s airlines like Ryanair and easyJet


that Hogrefe believes are the most proactive with regards to the active selling of duty free, as he explains: “Look at how aggressively they are


selling; it’s a case of food, drink and duty free all in one-and-a-half hours. “And legacy carriers like KLM


are also very strong when it comes to crew retail training, so it’s also about re-energising the cabin service experience and the crew motivation has a huge role to play.” Challenges aside, Hogrefe has a ‘good feeling’ about 2018 prospects,


following a positive 2017. He adds that reports of the death of inflight retail are also greatly exaggerated. “In the airline sector, we are


getting better and stronger. For example, Berlin-headquartered Germania increased their listings with us from two to eight, and we’re also now supplying promotional branded items, such as coffee cups, to Etihad.”


Reacting flexibly He sees Hanse Distribution’s flexible approach to customer requirements as a requisite advantage going forward. This is set firmly in a context of tight margins, high logistical costs and fast product turnaround times that contribute towards squeezing the business bottom-line. With over 140 airlines on its books,


the company is spreading the risk, but it seeks to do so in a way that does not simply place all its ‘eggs’ in one geographical basket. However, with Hogrefe estimating


a reduction in overall product assortment retail prices of up to 70% over the last five to six years, it’s still a ‘crisis mode’ situation. “The goal for us in 2018 is to


break through to the other buyers in other markets. If we take the UK for example, as a brand and distributor it’s extremely difficult to break into,” he comments. “Looking at our portfolio, over


Lufthansa remains an important customer for Hanse Distribution. Source: Lufthansa 24 TRBUSINESS


90% of our products are almost completely unknown brands but some of these are bestsellers, with KLM and Aeroflot just two airlines on which we have top-ranked products; so there is definitely a world of opportunity out there as long as we continue to work with flexible and open partners.” «


FEBRUARY 2018


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