FASHION & ACCESSORIES REPORT: DESIGUAL Fashion needs more focus


Marco Gadola, Head of Travel Retail for Desigual tells Charlotte Turner that he believes fashion & accessories is not reaching its true potential due to a lack of specialist knowledge and a unfocused approach from some retailers. However, Desigual is prepared to help the industry reinvigorate the category through innovative new strategies.


July 2017 20


YEARS 1997-2017


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ast year the fashion & accessories category was able to increase year-on-


year sales by +1.5%; a good improvement on the prior year where most categories saw sales declines. Can you tell us why you think this category as a whole was able to make up some ground in 2016? With total travel retail sales growing +2.5% in 2016, according to Generation, it demonstrates that the fashion & accessories category technically under-performed in 2016. However, total travel retail sales


were dramatically distorted by the phenomenal performance of the beauty category in Asia Pacific. Let’s be honest; in 2016 cosmetics sales in Asia really made the year for the global industry. Not even global passenger traffic


growth of +5.5% in 2016 (according to ACI) buoyed the travel retail industry or the fashion & accessories category. These are challenging times which are not helped by geopolitical crises and currency fluctuations.


Despite the challenges you’ve mentioned, which regions have been the most fruitful for the company this year and why? The best performing markets for Desigual in travel retail are in North America, despite the strength of the dollar and our Latin America business is expanding with new openings in Rio de Janeiro and Bogota this year. Our home market of Spain,


including both our directly- run operations and wholesale operations, are also performing well especially in the Canary and Balearic Islands. In addition, recently we were


incredibly proud that our Desigual standalone store was awarded ‘Best Retail Team’ by Tallink-Silja Line, showing that fashion and ready-to-


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Fashion &


Accessories sales top $9.13bn in 2016


Service boosts


sales of sunglasses in DF&TR


Gustavo Fagundes ASUTIL confirms LATAM +30% sales recovery... p25 Desigual store at Rio Airport’s Terminal 2. Also inside


wear really can perform on cruises and ferries.


CITY PLUS | SAMICK | DOOTA DUTY FREE | ASUTIL 2017 REVIEW | M1ND-SET | DESIGUAL PAUL & SHARK | COACH | FURLA | DIESEL | MAUI JIM | SWISS EYEWEAR GROUP | MARCOLIN SCORPIO WORLDWIDE | LUXOTTICA | WILLIAM GRANT | PEOPLE NEWS | NOW & THEN


penetration and conversion. Perhaps we are already


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Which territories have proved more challenging for DF&TR sales this year and why? We continue to experience challenges in locations affected by terrorist attacks, while a big market for us is Brazil, which is still coming out of economic turmoil. Generally we see that the external challenges that are beyond our control have the biggest impact on our business. Unfortunately this is the nature of global travel retail.


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What do you consider to be the biggest threat to the DF&TR industry? In the short-term, the uncertain geopolitical landscape and terrorism threats in Europe are hugely destabilising for travel and will affect shopper moods and consumer confidence. In the long-term, the change


of shopping habits due to new technologies is a major threat, with the repercussions being a gradual reduction in spend per passenger,


witnessing this effect today? Clearly the industry is being challenged and it’s up to us to reinvigorate the channel with fresh ideas, greater innovation and an offer that is specifically tailored to what travellers want, not what we hope they might want or have wanted in the past. My biggest concern remains margin pressures within the ‘Trinity’ [relationship between airport, retailer and supplier], which detracts from the industry performing at its best. Herein lies the opportunity when


the partners work together, fully aligned and sharing risk and reward to provide unique shopping experiences and therefore making travel retail a destination for shopping.


“I think we have to ask ourselves why fashion & accessories is under- performing in the channel.”


Marco Gadola, Head of Travel Retail, Desigual


TRBUSINESS 33


Desigual has launched a new shopper magazine.


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