FASHION & ACCESSORIES REPORT


Fashion & Accessories back in growth territory with $9.13bn sales


According to Generation Research global DF&TR sales grew +2.5% to $63.6bn in 2016 with fashion & accessories posting growth of just +1.5%, clearly overshadowed by the beauty category. Still, from a decline of -3% in 2015, growth of any degree is still progress…isn’t it? Charlotte Turner reports.


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n 2015 the fashion & accessories category registered sales of $9bn, representing a year-on-year


decline in sales of -3%; a reflection of an exceptionally challenging trading year. However, in May TFWA President


Erik Juul-Mortensen was able to deliver more positive news via Generation Research’s preliminary sales data for 2016, for all categories including F&A. F&A registered sales of $9.13bn


which translated as a +1.5% increase for the full 2016 calendar year, providing evidence that the category made up lost ground last year. However, as Marco Gadola,


Head of Travel Retail, for Desigual points out, the category essentially still under-performed. “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. “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.” [The full-length interview with Marco Gadola appears on p33]. Gadola believed that one of the


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Accessories sales top $9.13bn in 2016


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naturally more room to grow.” However, where the category is


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afforded a more generous footprint the category is beginning to see its potential reached. “There has also been some


reasons for the underwhelming sales performance may have something to do with the lack of focus and specialism in how the category is managed in travel retail. Paulo Colino, Vice President-


International at Coach believes that the category as a whole is certainly underdeveloped. “I still think the category is underdeveloped in travel retail compared to more traditional ones such as perfumes & cosmetics and wines & spirits, therefore there’s


JULY 2017


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interesting new developments in downtown shops, such as DFS Gallerias in Cambodia and Venice, as well as airport expansions, such as Sydney, which has a good focus on the category. We also see many brands paying more attention to travel retail and this creates more interest from the consumers and expands the market.


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Room for expression... “Fashion and accessories is still under-represented in many airports and cruiseships, especially outside of Asia and there could also be additional space in downtown locations. The category can potentially bring a lot innovation, excitement and different customer experience in the channel. More and better spaces are needed so brands can properly express themselves.”


intercept and deeply understand the customer profile. We know that passenger profiles can vary tremendously from airport to airport, terminal to terminal, even flight to flight, so it’s not always easy. Certainly, sharing data as far as possible with brands can make a


F&A registered sales of $9.13bn which translated as a +1.5% increase for the full 2016 calendar year, providing evidence that the category made up lost ground last year.


TRBusiness TRBUSINESS 35


Furla’s Global Travel Retail Director, Gerry Munday, also believes that sales for the category would be likely to increase in tandem with a more generous allocation of space. “I believe that fashion and accessories will continue to become more important in travel retail with new and refurbished retail spaces giving serious consideration to the part that the category will play. “I think that retailers do need to


Above: Fashion can flourish in the right environment says Coach.


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