ASUTIL 2005 off to lively start

John Rimmer

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Day one of the 2005 conference in Buenos Aires proved a fitting start to the Latin American trade association's tenth anniversary celebrations

The conference's first keynote speaker, celebrated Argentinian economist Carlos Melconian, delivered a detailed and wide-ranging presentation on the political and macro-economic factors influencing growth in Latin America. Melconian argued that volatility and a lack of sustainable growth would continue to make the future hard to predict, but he forecast a positive short-term future for the region provided that upcoming elections in Brazil and Mexico did not cause radical change.

In the first of three panel discussions on day one, Bright Star Duty Free general manager Nicolas Urioste, Duty Free Uruguay general manager Martin Leal and London Supply commercial director Paco Heredia addressed how best to capture spend from passengers in the airport, inflight, border and ferry retail channels. Urioste explained how his company revolutionised inflight retail onboard fast-growing airline TAM Mercosur by introducing improved incentives for cabin staff and focusing more closely on the beauty category. At an average transaction value of $41.91, sales are now 2,900% higher than when Bright Star took over the concession.

Duty Free Uruguay's Leal explained how his company had improved penetration rates at Montevideo Carrasco airport by repositioning its stores in departures and arrivals and creating an entirely walk-through concept, introducing a loyalty card for its repeat Uruguayan customers and aiming to improve sales to customers on low-yield flights using specific discounts and special promotions.

London Supply's Heredia gave an entertaining and amusing presentation in which he explained the role of marketing in travel-retail. Citing his company's airport business in Punta del Este, downtown store in Ushuaia, border store at Iguazu and ferry operation on the River Plate, he showed how different approaches are appropriate for different sales channels.

In a panel discussion dedicated to the beauty category, Essence Corp president Jean-Jacques Bona and Parbel general manager Milos Djuric gave their view on the future for Latin America's leading product sector. Bona argued for the preservation of travel-retail as an market for high-end items, and insisted that stand-alone stores interrupted passenger flow.

Djuric outlined Parbel parent company L'Oreal Luxury Products Division's plans to develop its premium luxury brands, and gave a number of intriguing examples of how L'Oreal is building brands such as Viktor & Rolf, Shu Uemura and Kiehl's.

The final panel discussion sparked the liveliest debate and brought together Zeinal Hermanos director Martin Laffitte, Longchamp managing director Arnaud de Volontat and Aldeasa head of international business Daniel Montero. Laffitte explained how Zeinal Hermanos has improved its stores onboard River Plate ferry operatr Buquebus, encouraging "the magic of duty-free" through offering top brands in a high-quality environment.

Longchamp's de Volontat used his presentation to argue against the adoption of low-priced, high-volume retail concepts, insisting that "a mass approach" would lead to the death of the industry. "The continued existence of our industry depends on a qualitative approach," he told delegates. De Volontat's presentation prompted a lively debate on the conference floor, where some countered that duty-free should not be the exclusive preserve of prestige brands.

The final presentation of the first day was made by Aldeasa's Montero, who gave an insight into the Spanish retailer's plans for the new terminal under construction at Madrid Barajas airport. Among the new concepts Aldeasa is to trial is Thinking Espana, a store offering modern destination merchandise beyond merely crafts and trinkets. The retailer also plans new areas for children's items, sports and electronics, while the general merchandise outlet in the new terminal will bring together all product categories under a bright new retail fascia.

After the conference's first morning Zeinal Hermanos hosted delegates for lunch at Puerto Madero's prestigious Yacht Club before the networking session sponsored by Bacardi and Diageo.

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