AFFORDABLE LUXURY: SUPPLIERS Unlock the full potential...


discoveries in airports” people could begin to feel ambivalent about travel retail, he says. Dharmender Parmar, Business Development Manager


Karen Durban- Villeval, President, Inflight Sales Group Europe.


at


Bommidala Enterprises comments: “Affordable luxury is something


which is working well as it is showing signs of growth.” Across inflight, the same situation


prevails, as evidenced by Inflight Sales Group. “Affordable luxury is growing as


the real luxury brands have recently pulled out of the inflight industry,” comments Karen Durban-Villeval, President at Inflight Sales Group (ISG) Europe. “Accessibly-priced ranges can pick


up the mantle. Affordable luxury simply depends on the airline and on our perception.”


“Until recently, the talk within the industry was all about ‘luxury’, conveniently forgetting that a significant percentage of travellers are unable to afford luxury or anything like it.”


Gerry Munday, Global Travel Retail Director, Furla


Creating conversation So what can travel retail do? According to Furla’s Munday, the industry must assess “what passengers actually want from an airport retail environment”. “We could offer a better mix of


brands and products that appeal to all passengers, not just those who we believe to be spending the most money at any one time.” Nontheless, the overriding opinion


is that the need is there. “If retailers only cater for


the premium category they are alienating the customers who are looking for excellent quality and good value,” says Rebecca Harwood Lincoln, Director, Travel Retail at Swiss Eyewear Group. Munday adds: “Airports, operators


and brands need to work closer together to be more innovative and create more interaction; this should not be left solely to the brands alone. However, it is not only about in-store penetration, the emphasis should be more on conversion.” As a result, the tides appear to be


changing in the way people purchase and brand owners and retailers are required to adapt accordingly. Affordable luxury plays an important role in this regard. “We’ve long talked about travel


Affordable luxury buyers ‘more price sensitive’


Drawing on in-depth industry insight from Swiss business intelligence and data firm m1nd-set, TRBusiness discovers that nearly two thirds of affordable luxury buyers (62%) compare prices.


price compare. “This is much higher compared to


Interestingly, of that percentage, 25% of buyers who compare prices choose to do so downtown, while 19% compare at the airport and 17% explore prices online. The remainder (38%) do not


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the average shopper, which means they are very price sensitive, especially the millennials,” comments Peter Mohn, CEO, m1nd-Set. Overall, 34% of DF&TR shoppers


saw as clear price advantages. Elsewhere, 29% of buyers selected


noticed touchpoints regarding affordable luxury products before they entered the store, with a substantial 93% engaged through online. When it came to key purchase drivers,


products they were unable to source at home, with 23% identifying products that were different from what they usually purchase. Delving deeper into that segment, a


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mere 5% of senior purchasers favoured a specific or exclusive edition, versus 20% of millennials buyers.


*Source: m1nd-set Business


1ntelligence Service B1S based on 2,700 interviews with travellers in 2016/2017 who purchased affordable luxury products at DF&TR in airports.


40 TRBUSINESS FEBRUARY 2018 This content is for subscribers only.


36% of buyers viewed affordable luxury products as good value for money, equally pertinent among millennials (37%) and senior buyers (37%). Meanwhile, 30% enjoyed what they


Affordable luxury is now more and more in demand, says Coccinelle.


retail being a global shop window for a brand and that’s as true today as it has ever been, but equally, we all know the high operating costs of the travel retail footprint for a brand particularly at the airport,” comments Munday. “An empty travel retail shop with


no sales can be a very high price to pay for image awareness. We need to focus on the travelling consumers for whom shopping is because of want, rather than need.” «


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