Nordic working group builds on seminar

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At a meeting of travel-retail executives in Copenhagen, delegates indentify pricing, communications, and consumer perception of the industry as the key issues facing travel-retail operators in the region.

Following groundwork laid at the Nordic Travel Retail Seminar last month, a working group of regional executives met in Copenhagen this week to discuss the key issues facing duty-free and travel-retail in the region. Sixteen travel-retail industry executives representing all industry sectors covering Denmark, Sweden, Norway and Finland met to discuss the key issues that arose in the seminar, organised by the Danish Duty Free & Travel Retail Association.

The meeting in Copenhagen concluded that the key issues to be addressed are: the price proposition post-1999; the consumer perception of the tax- and duty-free and travel-retail concepts; customer communication to deal with the widespread confusion among travellers; and ultimately a discussion on whether the business model is still viable in the post-abolition market situation.

Among the outcomes was a decision to initiate a Nordic-wide research project into consumer-perception. A research group was formed and will shortly be contracting a market research company to undertake the study. The Danish Duty Free & Travel Retail Association has undertaken the task of coordinating the project.

The meeting also discussed the idea of testing a series of loss leader products to influence consumer perception of the value of travel-retail items. A further meeting in January will finalise the research project and carry this week's discussions forward.

Danish Duty Free & Travel Retail Association chairman Alan Bork said: ?Considering that this industry is not only still dealing with the aftermath of the duty-free abolition in 1999 but is also burdened by the global crisis in the travel industry, it is relieving to see how the various players in the industry can set aside their narrower business interests and take part in a broader discussion on how to deal with the problems facing the industry. In the Danish association we are particularly happy to see that not only are all sectors  represented, but also people from all the Nordic countries participate in these discussions. Only together will we be able to re-build this business to its former greatness.?