Summit explores emerging markets for the next decade

Adele Wolstenhulme

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The second day of the Global Travel Retail Summit examined the forecast growth of travel-retail's "super-regions"

Pacific Asia Travel Association (PATA) CEO Peter de Jong opened the second day of the Raven Fox Global Travel Retail Summit with an informative presentation on changing lifestyles and new opportunities offered by Asian travellers.
 
"Today's travellers continue to segment into increasingly complex clusters," he said. "We run the risk of losing target groups among the travelling millions."

He also urged the industry to speak with a single voice about issues related to bird flu "because when confusion comes, so does speculation". "If bird flu were to be as calamitous as scientists suggest it could be, this industry would be on its knees again," he predicted.
 
Dufry Group COO South America Gustavo Fagundes informed delegates that Brazil receives less than 1% of international tourists. "I'm sure that we can do better than that," he insisted.
 
Fagundes divulged the retailer's strategy for displaying destination merchandise across all categories, formed after a law allowing duty-free stores to sell Brazilian products as well as imported items was passed two years ago. "Tourists are looking for something different-not just the souvenirs that can be found on the high street," said Fagundes. As a result of the new strategy, Brazilian products now account for 20% of departure sales at the nation's Dufry stores.
 
Fellow panellist Retail Management Solutions managing partner Paul Marks delivered a concise picture of the situation in India. "The Indian duty-free market needs a retail defibrillator to shake it into action", he said. Nevertheless, Marks predicted that by 2010 total sales at Indian airports would reach $215.5m.
 
Malaysia airports managing director Dato' Seri Bashir outlined plans to increase commercial revenues at Kuala Lumpur International Airport by 30-50% having appointed designers Pragma Consulting to rethink its retail strategy.
 
Pragma Consulting executive partner Mark Entwistle highlighted the importance as well as the weaknesses of walk-through shops. "Walk-through is the future as long as every category gets exposure and the stores are easy for passengers to return to from the departures lounge," he said.
 
The Summit concluded with two presentations from food and beverage operators, assessing the growth opportunities for catering concepts as a fundamental part of the airport retail mix. Select Service Partner (SSP) CEO Andrew Lynch revealed that the food and beverage sector has penetration rates four times higher than retail outlets.
 
HMSHost managing director Europe Walter Seib said small cosmetic changes had proved vital in boosting revenues. "Good signage will improve sales by 20% overnight," he explained.
 
See DFNI July 15 for a full report.