TOBACCO: DAVIDOFF
Davidoff posts double-digit growth in Asia; studies cruise business
Despite the fact that cigar regulation has become more ‘stringent’ in recent months and years, Davidoff appears to be thriving, thanks in large part to its superior staff training academy. Jean-Christophe Hollay, Head of Partner Markets & EMEA Duty Free, tells Charlotte Turner that while the company is focused on airport duty free shops, cruise continues to present growth opportunites.
Above: Davidoff says 2018 was a good year, thanks to the launch of long- filler products.
W
e understand 2018 was a good one for Davidoff. Can you tell
us what were the driving forces for growth? 2018 was a good year for us in travel retail. This thanks to the products we have launched over the past two years (in the long-filler segment) and with exclusive products for GTR. We experienced a positive trend and significant growth in Asia Pacific GTR, posting double-digit growth in a number of key locations. We witnessed good performances
“In some regions where Davidoff operates, we have seen the legislation for cigars become more stringent. Of course, this creates complexities in how to manage product visibility from a purely aesthetic perspective. However, our brands have not experienced any negative impact to date.”
Jean-Christophe Hollay, Head of Partner Markets & EMEA Duty Free, Davidoff
108 TRBUSINESS
especially in HK, Japan and Vietnam. Also, we had strong sales in the Middle East, capitalising on the overall category growth in many of the key airports. Performance in Europe has been consistent, while within the Americas region, our aim is on building our distribution footprint in key locations. In addition, we are also further focusing on our brand ambassadors and training through our Davidoff Academy and our close partnerships at international airports.
Can you talk more specifically about any strategic new partnerships you have forged in the last year or so? Towards the end of 2018 we opened the ‘Davidoff of Geneva Since 1911 store’ at Geneva airport in partnership with Lagardère Travel Retail, which has shown consistent performance and growth. Additionally, we supported LTR in the re-opening of the ‘Cave du Cigare’ in terminal S3 of Paris Charles De Gaulle where their cigar expert team is working hard in offering an exceptional sales service. The biggest opening this year, not only for Davidoff, but for travel
retail in general, was the opening of Istanbul New Airport by Gebr. Heinemann in collaboration with Unifree where we have two ‘Davidoff of Geneva since 1911’ stores operating with a team of in-house trained brand consultants. Beyond retail openings and activations at the point of sale, we have been active in training our sales teams and brand consultants with our retail partners, Dufry, Gebr. Heinemann and LTR. This connecting with the staff through experiential learning is having a very positive impact not only in customer relations, but is a proven growth driver in regards to sales.
Obviously airports are an important focus for Davidoff. Which other travel retail channels show great promise for the growth of Davidoff’s business? The growth potential within the cruise ship industry has been rising and it is an area which we will further address with our retailers. However, in our view, the airport business remains the strongest relevant sector in which we are working to ensure optimised portfolios to cater to the needs and desires of end-consumers.
We already know that tobacco in duty free & travel retail stores is a crucial footfall driver. What increasingly are retailers currently demanding from you in order to improve penetration and conversion levels in DF&TR? Travel Retail exclusive products are always highly requested by our partners and very much appreciated by the travelling passengers. Davidoff has consistently brought these to market; last year with the GTR Gifting Assortment, this year
OCTOBER 2019
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