CIGARS: OETTINGER DAVIDOFF
DF&TR ‘more than just a channel’ for Oettinger Davidoff in 50th anniversary year
The Swiss cigar supplier has been part of the DF&TR market for 25 years and the aim is for the channel to eventually comprise 20% of its total business, as Andrew Pentol discovers.
T
his year is a special one for everyone associated with Swiss cigar company
Oettinger Davidoff. The company celebrates its 50th
anniversary and has launched five iconic cigars reflecting key milestones of the last 50 years since 1968. It will also host a series of special events to mark this significant milestone. Each cigar
features a
commemorative white ring and is available from Davidoff depositaries and flagship stores worldwide for a limited period. Oettinger Davidoff is also re-
releasing its popular Diademas Finas limited-edition cigar. First launched in 2006 to commemorate what would have been Zino Davidoff’s 100th birthday, the cigar will be available in four different 10-count porcelain jars, each numbered and containing a humidification device.
TR exclusive range Present in DF&TR for 25 years, the segment is extremely important in terms of overall business, according to Martin Kaufmann, Senior Vice President Europe and Global Travel Retail. He tells TRBusiness: “It is more than just a channel. It has its own ecosystem and dynamic and is clearly an area of business with stronger growth than domestic markets. There is a lot going on there.” Product launches are an important
part of the key business drivers Oettinger Davidoff is focusing on,
emphasises Kaufmann. “When I talk about Oettinger Davidoff as a family company, the pioneering and innovation in any kind of area is a very big part of that.” The importance of the travel
retail assortment must not be underestimated and Kaufmann believes it is important to differentiate between what consumers can buy in DF&TR and elsewhere. “By the end of the year you can expect to see a Davidoff travel retail exclusive range.” Outlining the company’s DF&TR
objectives Kaufmann, says: “Overall, when I look at travel retail specifically the aim is to get to a total of 20% of total business. We are currently around 13% or 14% so there is clearly big potential to grow.”
Growth in Asia The Asia market and evolving Chinese consumer in particular is driving the company’s DF&TR efforts, says Kaufmann. “The Chinese are a developing
market in the sense of discovering cigars. There is no long-standing cigar culture. It is coming through to the benefit of Asian travel retail because Chinese travellers go to the likes of Japan, Taiwan and Vietnam. They play a major role.” It is more about a consumer
traveller versus a region and where they go, he goes on to say. “Obviously, the Chinese are also
influencing positive growth in other regions such as the Middle East and Europe.” Europe is the company’s strongest
DF&TR region because it is a ‘mature, stable and high-level’ market. “This is why we are focusing on Asia and the Middle East”, Kaufmann asserts. The role of staff in-store is
Oettinger Davidoff has launched five iconic cigars with commemorative white rings reflecting key milestones of the last 50 years.
SEPTEMBER 2018
another of the company’s key business drivers. Staff must be well informed about products, brands and their history, and be excellent
at connecting with different types of shoppers. “It is definitely not a hard-selling
job”, states Kaufmann. “It is about trying to understand what customers are open to and what consultation they require and applying it effectively.” An average +5% pax growth may
be expected in DF&TR until 2025, but this will not necessarily translate into one-to-one sales and shopping in every category. Oettinger Davidoff, which opened
a new walkthrough humidor at Zurich Airport in June, still sees continued growth, some of which will be driven by further openings. Kaufmann concludes: “This year, we are opening a number of new stores and shops in airports. Geneva will open in October and we have new openings planned for Q4 in Asia in places such as Guangzhou and Hong Kong.” «
“It is more than just a channel. It has its own ecosystem and dynamic and is clearly an area of business with stronger growth than domestic markets.”
Martin Kaufmann,
Senior Vice President Europe and Global Travel Retail, Oettinger Davidoff
TRBUSINESS 61
Above: The company opened a new walk-in humidor at Zurich Airport earlier this year.
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