LEADING AMERICAS OPERATORS: INTERNATIONAL SHOPPES
International Shoppes to enhance digital footprint during store expansion drive
International Shoppes may have various bricks and mortar store projects in the pipeline, but this has not prevented it from focusing on digital through a pre-order website and harnessing mobile payment services such as WeChat Pay and Alipay. Andrew Pentol reports.
the payment provider offers some sort of promotion, which we never get involved with,” he explains. “Customers can enjoy an interface
they know and avail whichever promotions
the companies
are offering.” As part of its digital strategy,
International Shoppes is also partnering with The Estée Lauder Companies, which has launched a WeChat Mini Program. These are sub-applications within
Above: The iS Duty Free store at New York JFK Terminal 1.
I
n recent years, US travel retailer International Shoppes has invested significantly in enhancing
and upgrading its store portfolio. Last year for example, it
completed a large scale renovation and expansion of its Terminal 1 duty free store at New York John F. Kennedy International Airport. The year prior, it removed the beauty category from the store and opened a separate shop. The retailer is now beginning work
on new and existing retail units, such as renovating the JFK T1 beauty store, opening the first YSL Americas airport store, along with implementing a new duty free store at Boston Logan International Airport Terminal B. But it is also focused on enhancing its digital footprint. Matthew Greenbaum, Vice
President, International Shoppes tells TRBusiness: “In 2017 or early 2018, we launched a pre-order website. The
“In 2017 or early 2018, we launched a pre- order website. The goal was to develop a concept that was functional, customer-friendly and technically sound.”
Matthew Greenbaum, Vice President, International Shoppes
34 TRBUSINESS
goal was to develop a concept that was functional, customer-friendly and technically sound. “We now see it is working and that
customers are actually seeking us out and transacting on it. “As a result, we are investing a
lot more on the marketing side with our own resources and through collaborations with some of our key brand partners to drive traffic to the site and have people transact before they get to the airport.”
Citcon partnership International Shoppes has also developed a strong partnership with mobile payment and marketing solution leader Citcon. This enables the retailer to process payments on WeChat Pay, Alipay and China Union Pay. “In late 2017, we deployed the
terminals required to process these sorts of payments through our network of stores,” says Greenbaum. “It seems that the majority of
Chinese nationals do not seem to be using credit cards or cash, but either WeChat Pay, Alipay or China Union Pay.” In doing so, customers can take
advantage of various promotions provided by these companies. “We transact at full value and then
the WeChat ecosystem that enable customers to make transactions, among other things. “It is basically WeChat’s answer
to pre or remote-ordering,” says Greenbaum. “People can transact on the WeChat interface and collect merchandise in our store, or have it delivered at the gate. “The Estée Lauder Companies
has invested significantly with us to deliver this WeChat Program at our JFK Terminal 1 duty free store.” At present, the WeChat mini site
is functioning with a limited selection of best-selling Estée Lauder- branded products. But the plan is to introduce some of its other brands such as Clinique, Mac, Jo Malone London, La Mer, Origins and Tom Ford in the coming months. Regarding the spending habits of
Chinese consumers, the relationship between the US and China was far from ideal in 2018 due to the trade war, which perhaps affected their motivation to shop. Greenbaum, who reveals the
retailer has Mandarin-speaking staff in its stores, says: “They seem to be buying a little more conservatively than they have in the past, but the positive is that there is more of them coming than ever. “Even if spend per passenger is
down, overall take from Chinese customers is up because the volume is so great.” «
MARCH 2019
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