CRUISE: THE AMERICAS
“This is our first foray into the American [cruise] duty free market and we hope to have many more relationships like these in the future.”
Nadine Heubel, Heinemann Americas
compared to the airport model, we need to create new and exciting daily experiences. We look forward to sharing more specifics about these plans in the coming year.”
Known for its ‘world-class’
logistics system across the airport business, which has been honed and perfected over the last 140 years, the Americas cruise market should not represent too much of a challenge. Heubel says: “As first in class in this space, we are able to meet the sophisticated general needs of the cruise market.” Pressed as to whether its
burgeoning relationship with Carnival Cruise Line could lead to further cruise expansion in the region, she adds: “Absolutely. We already have a strong relationship with MSC and Harding in addition to our new, promising relationship with Carnival Cruise Line. This is our first foray into the American [cruise] duty free market and we hope to have many more relationships like these in the future.” In order to succeed in the
Americas cruise retail arena, or any other for that matter, Heinemann must create the same seamless onboard experience combing food & beverage, entertainment and retail onboard as it does in airports. She explains: “Because you have customers for so many days
Capturing attentions For cruise lines such as MSC, which acts as a retail and distribution partner for Heinemann Americas, capturing the attention of passengers on board for substantial periods is the biggest challenge. Currently operating two ships –
MSC Divina and MSC Seaside (the latter of which launched in December) – out of Miami, it also has two vessels in Cuba, one in the South Caribbean and four in the South American market (three in Brazil and one in Argentina). Retail spaces across its fleet vary in
size with the flexibility to adapt based on the scenario. Product categories include premium watches, custom jewellery and classic duty free (cigarettes, classic cigars, fine wines and spirits and confectionery). Beauty labels such as Armani,
Gucci, Versace and Lancôme are also available within the La Profumeria retail concept, with the overall retail offer also consisting of sunglasses and designer clothing tailored to the region of cruise. MSC Cruises Head of Corporate
Retail Adrian Pittaway points out that the company has only really been present in the Americas cruise market for around three years. He tells TRBusiness: “If you are doing
travel retail in an airport, you have a consumer who is generally there for one minute. In an airport, you have plenty of space and lots of opportunity for people to spend, but a shortage of time for them to do so. It is all about immediate conversion. “On a cruise, you are high in reach,
but poor in space. You have people on board for seven days and many different things coming at them during that period.” Pittaway knows it takes something
special to get passengers to spend on a cruise ship despite them being on board for long periods. “In order to get them to want to
spend and actually spend, ourselves, Starboard, Harding and Heinemann look for magic ingredients. Each will approach this slightly differently. We use our own techniques.” MSC is used to selling to
passengers on board for three, four or even seven days. But MSC Magnifica, which sets sail on a round-the-world cruise spanning around 140 days in 2019, represents a different challenge. The ship will sail west across the
Atlantic Ocean to the Caribbean islands of Saint Lucia and Grenada, before visits to Aruba and Colombia and transiting to the Panama Canal. After an exploration of Central America, it will head to the US with stops including San Francisco and the Hawaiian Islands. One thing is certain. MSC will need all its retail know-how and knowledge of the different American markets to succeed on the retail front. Pittaway comments: “The key
is to not think too much about the 140 days and take it down to three, four or seven. Then, it is about thinking specifically how to make products sell.” Selling on a cruise line as a static
traditional, downtown or airport retailer is not the answer. In an airport, it is all about immediacy which is not the case on cruise ships. The idea of ‘retailtainment’ may therefore catch the eye of consumers at airport, but it will not necessarily work in a cruise ship environment. Creating something people
Tom Ford, Bulgari and Marc Jacobs are among the brands offered in MSC Cruises’ P&C boutiques. 74 TRBUSINESS
will actually be attracted to using various forms of ‘retailtainment’ and creating a concept that will end up as
MARCH 2018
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