CIGARS: HUMIDORS Justifying the humidor experience


Walk-in humidors can represent a certain luxury veneer for retailers, but like all executions, positioning and return on investment is key. Luke Barras-Hill asks the industry for its views on cigar’s long-standing display phenomenon.


F


or category loyalty reasons alone, tobacco remains a critical footfall driver for DF&TR.


According to *research provided


by m1nd-set, a staggering 86% of adult cigar consumers pre-plan their purchases, with more than half (53%) opting to buy unique products with an overall motivation geared towards self-purchasing (51%). With that in mind, it’s largely


unsurprising that housing a well- appointed selection of cigars within temperature-controlled walk-in humidor environments can act as a draw for consumers. However, allocating space needs


to make practical and financial sense for stakeholders. One tobacco source that asked not


to be named admits that ten years ago, cigar display areas were much larger than they are today, where space is squeezed to give way to other categories – predominantly due to regulation. “I think (humidors) add to the


industry as you are able to display in a different way and you need them for the handmade cigars,” explains the source. “You need to have a big turnover to justify investment in an airport humidor as you need to sell many cigars to get the [return on] investment.”


Is accessibility key? Meanwhile, another


source


told TRBusiness that while walk- in humidors look great, wallbay versions are more effective when unlocked to allow the adult tobacco consumer accessibility to certain products while browsing in store. Notwithstanding these points,


it has been proven that humidors can yield benefits, as evidenced by Oettinger Davidoff’s long-standing relationship with Dufry. The supplier recently opened its


newest ‘Davidoff of Geneva – since 1911’ walk-in humidor at Zurich


SEPTEMBER 2018


Airport Departure Level 1. The 18sq m humidor boasts an


elegant, yet contemporary interior design comprising fine timbers and natural materials in earthy tones that resemble the hues of the cigars. Optimal humidity conditions


preserve the quality of a substantial range of Davidoff products, including Avo, Camacho, Griffin’s and Zino, alongside other Cuban specialities and exotic skus. Heidi Köpple, Head of Commercial


Centers at Zurich Airport comments: “The new generation of the Oettinger Davidoff humidor is an exceptional execution of a walk-in humidor. “It is not only about a purchase


it is also about retail innovation and product discovery combined with excellent customer service. With these characteristics the new humidor reflects the values we care for in order to create a premium shopping destination at Zurich Airport.” Dufry declined to comment


directly on the performance of the location since its opening , nor how humidors in general can help to drive both tobacco and cross- category sales. A spokesperson merely states:


“Customers are looking for experiences when they shop, rather than to simply buy a product. “We therefore design our stores to


deliver these ‘experiences’ – be it via the inclusion of digital technologies, in-store events...or an offer of a walk- in humidor in the tobacco area.” The tobacco category remains a


top three growth driver for Dubai Duty Free (DDF), with cigars generating 13.4% of the retailer’s total tobacco business. “Cigars grew by 19.6% in value


and 3% in unit (terms) from January to July 2018 versus 2017,” comments Saba Tahir, Senior Vice President – Purchasing, DDF.


Asked to comment on the efficacy


of cigar humidors in increasing sales, Tahir says they form ‘an integral part of any cigar shop’. She continues: “Walk-in humidors


also ensure that all cigars are at optimum quality when handed over to the customers. “The feel and environment inside


the walk-in humidor gives the cigar aficionado confidence in buying cigars in which the staff can capitalise to upsell. “The


combination of


knowledgeable staff and world-class customer service is the correct recipe in increasing cigar sales.” «


*Data obtained from m1nd-set’s


Business 1ntelligence Service (B1S) from a survey among its unique database of international travellers in 2017-2018.


It is not only about a purchase it is also about retail innovation and product discovery combined with excellent customer service.”


Heidi Köpple,


Head of Commercial Centers, Zurich Airport


TRBUSINESS 55


Above: Davidoff of Geneva - Since 1911 walk-through humidor at Zurich Airport.

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