The Internal Consultant - Travel Retail
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The end of the captive audience: why airports need to develop their value chain.

The end of the captive audience: why airports need to develop their value chain. | The Internal Consultant - Travel Retail | Scoop.it
Thank you for a well-written article Martijn. The core issue around the challenges posed to travel retail by the constantly connected customer has suddenly become a hot topic for discussion across multiple forums, particularly since the webinar by AOE (who powered the Fraport/LH/Heinemann solution in the video).

Clearly, the fact that it's the first time that an airport, airline and retailer have decided to collaborate rather than compete, has made a huge impact - huge enough to represent hope for the industry that is otherwise struggling for profitability. It does surprise me however, when I recently learnt of the ambivalence of some airports and retailers (and undoubtedly airlines too) in Asia towards this "solution". Many remain skeptical, and some even want to exercise a form of control or exclusivity on such a collaboration.

It is the same fear and distrust that drives the suggestion that free airport wifi will be cut back; the idea that adopting a walled-garden approach is the safest way to move ahead and prevent competition (particularly e-tailers) from eroding the already thin margins.

My opinion is that this is a mistake. Business success in the new world economy is not going to be driven by trying to exclude competition (nor obviously by enhancing it). It will be driven by *collaboration*. All the efforts and resources spent in trying to create walled gardens in airports will be a waste of time eventually; time, that will meanwhile be spent by consumers developing greater affinity for off-airport shopping. It would be a lot more fruitful to have collaboration between technology providers, airports, airlines, retailers and other service providers to transform the travel experience as a whole into a significantly more personalised one. Travellers will "thank you" with their wallets.
Vimal Rai's insight:
The core issue around the challenges posed to travel retail by the constantly connected customer has suddenly become a hot topic for discussion across multiple forums, particularly since the webinar by AOE (who powered the Fraport/LH/Heinemann solution in the video). 

Clearly, the fact that it's the first time that an airport, airline and retailer have decided to collaborate rather than compete, has made a huge impact - huge enough to represent hope for the industry that is otherwise struggling for profitability. It does surprise me however, when I recently learnt of the ambivalence of some airports and retailers (and undoubtedly airlines too) in Asia towards this "solution". Many remain skeptical, and some even want to exercise a form of control or exclusivity on such a collaboration. 

It is the same fear and distrust that drives the suggestion that free airport wifi will be cut back; the idea that adopting a walled-garden approach is the safest way to move ahead and prevent competition (particularly e-tailers) from eroding the already thin margins. 

My opinion is that this is a mistake. Business success in the new world economy is not going to be driven by trying to exclude competition (nor obviously by enhancing it). It will be driven by *collaboration*. All the efforts and resources spent in trying to create walled gardens in airports will be a waste of time eventually; time, that will meanwhile be spent by consumers developing greater affinity for off-airport shopping. 

It would be a lot more fruitful to have collaboration between technology providers, airports, airlines, retailers and other service providers to transform the travel experience as a whole into a significantly more personalised one. 

Travellers will "thank you" with their wallets.
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L’Oréal: ‘Digital is the only future for travel retail’ | Travel Retail Business

L’Oréal: ‘Digital is the only future for travel retail’ | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
Laroia: 'We believe that digital will be a game-changer but this can only become a reality if we as an industry manage to unite'. L’Oréal Travel Retail has
Vimal Rai's insight:
Love this - 20% sales through e-comm, 50% enabled by direct contact, 100% digitally-influenced.And this mentality can only help us more through collaboration across the entire travel journey amongst stakeholders.
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Duty free gets a reality check at Hamburg GSF event | Travel Retail Business

Duty free gets a reality check at Hamburg GSF event | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
“Airports are not an experience, they’re an annoyance. They used to see other airports as competitors but now everyone is looking for a piece of the pie. Disruption is so fast. There is little incentive to buy anywhere except online.”
Vimal Rai's insight:
Love this bit: "Airports are not an experience, they’re an annoyance. They used to see other airports as competitors but now everyone is looking for a piece of the pie. Disruption is so fast. There is little incentive to buy anywhere except online.” The message is clear - cooperate because someone's stolen your cheese.
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Digitalization: Six Wins for The Future of Airline Duty Free Ancillary Sales

Digitalization: Six Wins for The Future of Airline Duty Free Ancillary Sales | The Internal Consultant - Travel Retail | Scoop.it
Have questions? Want to Stay tuned to our news? Sign up through the link here — http://eepurl.com/cl3mb1
Vimal Rai's insight:
Another technology solution that aims to promote cooperation between airports, airlines and retailers towards achieving higher ancillary revenues all around in Travel Retail.
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Is passenger data gathered through WiFi qualitative? | Travel Retail Business

Is passenger data gathered through WiFi qualitative? | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
It is a hard fact that many airports could increase revenue through better and more timely communication with passengers – before and after their trips – and
Vimal Rai's insight:
Some interesting perspectives around understanding and engaging the customer, albeit through the lens of "loyalty" schemes at airports (or the lack of them). I can't help but feel we need to strike a balance between narrowing the focus to the core problem, and widening it just enough to remain relevant to the overall issue. So, it needs to be narrow enough to implement specific solutions aimed at traveller tribes (business, leisure, family, groups, first-timers etc.) but it also has to be wide enough to understand the importance of technology in enabling all this. Tech has to provide the platform and there absolutely has to be collaboration between airport, airline and all other stakeholders in the travel chain. 
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‘Focus on Millennials but plan for Gen Z’ says CiR | Travel Retail Business

‘Focus on Millennials but plan for Gen Z’ says CiR | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
Can the industry handle rapid change? At TFWA’s second Research Workshop in Cannes earlier this month, travel retail analyst, Counter Intelligence Retail,
Vimal Rai's insight:
Pax numbers have been on the up for the last couple of years and they look to be accelerating in terms of growth, in tandem with GDP growth especially in Asia. The trouble is this is not translating into spend per pax in TR, which is declining. 

So the underlying basis is there, and clearly TR needs to up its game in terms of engagement and conversion.
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Luxury brands turn to in-store tech to boost fashion retail

Luxury brands turn to in-store tech to boost fashion retail | The Internal Consultant - Travel Retail | Scoop.it
Data-collecting displays and smartphone signals help Parisian outlets track what tempts customers
Vimal Rai's insight:
We are just now scratching the surface of using digital to bridge the physical and online worlds, particularly in the area of analytics and understanding customer behaviour and preferences. The IOT is going to enable so much more. Watch this space.
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What Samsung needs to do next to restore trust in its customers after the Galaxy Note 7 debacle

What Samsung needs to do next to restore trust in its customers after the Galaxy Note 7 debacle | The Internal Consultant - Travel Retail | Scoop.it
Vimal Rai's insight:
"Samsung needs to make sure the problem doesn’t cascade to its other product lines. " Too late in my opinion. I've had a bit of a history personally disliking Samsung. Mind you, it was never always that way. Things were fine (even when I didn't particularly enjoy using the Note series phones or the Tab) until the time came when my TV started "clicking" and one day clicked-to-death and never came back on. Multiple calls and some thorough research and multiple product reviews later, I came to understand the following: (a) Samsung's design thinking and ability to build electronics is well, less than spectacular, and I'm being really nice; (b) their customer service is neither about service nor about the customer; (c) unless required by law, they will do all in their power to ignore or deflect responsibility for design or build issues. In HKG, unlike in the UK, there is no consumer law compelling manufacturers to fix design and build defects beyond the warranty period. So while people in the UK received new TVs or refunds from Samsung when they had the exact problem I had here in Hong Kong, I spent multiple hours and effort trying to get something, anything from Samsung for my GBP3k TV that clicked to death 3 months after the 2 year warranty. It's only when I threatened to bring them to Consumer Court that they offered to refund me the cost of getting a serviceman to my house just to check the TV (GBP80). BY that time I had had it, and decided I would make it my mission (for some of my life) to dissuade everyone possible to stay away from the brand. Funny now, so many people who hear this can recount similar experiences with their refrigerators, laptops, TVs etc. It just goes to show how deep the rot is in the company, across its product lines.
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Why Brands Like Chanel Aren’t Touching e-Commerce - Power Retail

Why Brands Like Chanel Aren’t Touching e-Commerce - Power Retail | The Internal Consultant - Travel Retail | Scoop.it
While the world of retail is transmuting into the digital era and more and more brands uptake or launch e-Commerce platforms, Chanel is taking a stance.
Vimal Rai's insight:
The headline is almost misleading. Almost because short of the "transaction" Chanel is enacting a careful strategy leveraging the power of the internet. Clearly they believe in webrooming as a means of building brand engagement, and they have embraced uniform pricing, thereby getting around the pesky problem of "price comparison" that the internet so loves to democratise. The question in my mind is - how many other brands are iconic enough to follow such a strategy?
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What can Travel Retailers learn from Discounters? - Inside the Cask

What can Travel Retailers learn from Discounters? - Inside the Cask | The Internal Consultant - Travel Retail | Scoop.it
Discounters, especially hard discounters such as Aldi and Lidl, have a very different business model to retailers in the Global Travel Retail (GTR) channel. However what can travel retailers learn from Discounters? This was one
Vimal Rai's insight:
Fabulous application of discount-store-thinking to GTR. An essential read if you're serious about changing the game and dealing with the current challenges facing all of us in the GTR industry. It's not difficult to do - you just need the will to execute.
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Changi Airport places third in the world for shopper spend

Changi Airport places third in the world for shopper spend | The Internal Consultant - Travel Retail | Scoop.it
It is not uncommon to see avid traveller Cara Lee lugging numerous shopping bags up the aeroplane - not on her way back from her travels, but at Changi Airport on her way out.. Read more at straitstimes.com.
Vimal Rai's insight:
Great coverage about tax free shopping at my home airport - Changi! As airport shopping gets better, what do you think is happening inflight?
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What young Chinese luxury shoppers want - Inside Retail Asia

What young Chinese luxury shoppers want - Inside Retail Asia | The Internal Consultant - Travel Retail | Scoop.it
Young Chinese luxury travellers list Japan as their top destination for shopping, according to a Hurun Research Institute report.
Vimal Rai's insight:
What do young Chinese luxury shoppers want? Personalised experiences, wifi, services through smart devices and apps...oh and they are willing to pay!
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Duty Free Shopping in the Age of the Shopper and Amazon

Duty Free Shopping in the Age of the Shopper and Amazon | The Internal Consultant - Travel Retail | Scoop.it
I have attended a Kantar Retail event this week on Amazon in Europe. It was a fascinating insight into online shopping and the long term vision of this company: a technology company first, retailer
Vimal Rai's insight:
Thought-provoking post on travel retail shopping in the Age of Amazon. The trouble is we tend to see things in black & white, whereas much of the world is uncomfortably grey. Amazon cannot and will not be able to fulfill all shopping needs; neither can travel retail. But there will be domains in which either will rule. 
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How Those Kids Will Save Your Company

How Those Kids Will Save Your Company | The Internal Consultant - Travel Retail | Scoop.it
Vimal Rai's insight:
The RM idea is a brilliant one, if only it is taken seriously and implemented. It will take guts and may be seen as a "challenge" by the more established and experienced members of a team. On another note, I believe "digital" is not well-defined enough in terms of an actual strategy, tactic and execution on a "real" basis. It's one of those things that we all know when we see it, but can't quite define where it begins and just how far it should go or where it stops.
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Internet of Things in Retail

Internet of Things in Retail | The Internal Consultant - Travel Retail | Scoop.it
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The Internet of Things (IoT) in Retail; examples of how and where it comes into play and what some of the obvious benefits are.
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The four most innovative ideas that will shape the future of Retail.

The four most innovative ideas that will shape the future of Retail. | The Internal Consultant - Travel Retail | Scoop.it
Curate - Innovate - Elevate - Congregate. Read about the 4 ways to improve the retail experience in the future.
Vimal Rai's insight:
Curate - Innovate - Elevate - Congregate. Read about the 4 ways to improve the retail experience in the future. 
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What makes a Chinese millennial tick? CiR research reveals key insights | Counter Intelligence Retail

What makes a Chinese millennial tick? CiR research reveals key insights | Counter Intelligence Retail | The Internal Consultant - Travel Retail | Scoop.it
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Important insights about Chinese consumers particularly for travel retail.
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Exclusive Interview: Dufry’s Julián Díaz (Part II) | Travel Retail Business

Exclusive Interview: Dufry’s Julián Díaz (Part II) | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
In part two of an exclusive video interview with TRBusiness, Dufry CEO Julián Díaz says an $8bn sales forecast for 2016 could be realistic for the company,
Vimal Rai's insight:
Always interesting to listen to the leadership of the world's largest Travel Retailer! What I took away was the fact that the industry seems to be coming to a consensus on how much more cooperation is needed to fully leverage the growth in pax numbers.
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Philippe Schaus weighs in on concession model debate | Travel Retail Business

Philippe Schaus weighs in on concession model debate | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
“The excitement costs money,” he said. “If you want to create excitement, it costs money and you have to invest. But if you have to pay crazy rents you’re not going to invest. So that’s where it’s going to reach a limit.”
Vimal Rai's insight:
“The excitement costs money,” he said. “If you want to create excitement, it costs money and you have to invest. But if you have to pay crazy rents you’re not going to invest. So that’s where it’s going to reach a limit.” Well said.
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Frankfurt Airport Omnichannel E-Commerce Launch

Watch how AOE & Magento turned Frankfurt Airport, Europe's largest travel hub and one of the largest shopping malls on the planet, into the mos
Vimal Rai's insight:
Travel retailers out there - particularly inflight - this is true disruption of our traditional model. This is what "travel retail" really needs to look like, with the traveller front and centre of the entire experience. Ignore at our own peril.
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Exclusive: Dufry’s Julián Díaz video interview | Travel Retail Business

Exclusive: Dufry’s Julián Díaz video interview | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
In an exclusive two-part video interview the CEO of Dufry, Julián Díaz told TRBusiness that he believes industry consolidation is inevitable, but this doesn’t
Vimal Rai's insight:
We are overdue for a more integrated, value-based business model in travel retail. Putting the customer front and centre means: a new strategy for governance, customer engagement, and alignment of interests between all the stakeholders (including airlines, suppliers, travel agencies etc.) We need to adapt to new type of consumer AND new technology.And a realisation that we need to up our game in the delivery of "value" to the customer which has to come not only from price savings but from other areas as well (the shop, the offer, the service etc.). Timely!
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Terminal Turbulence (in Travel Retail)? - Inside the Cask

Terminal Turbulence (in Travel Retail)? - Inside the Cask | The Internal Consultant - Travel Retail | Scoop.it
The latest issue of The Spirits Business magazine, reviews the recent up-and-down journey in the travel retail world this past year, whilst also revealing some sunny patches among the clouds, by Kristiane Sherry. The latest printed edition of the magazine is now
Vimal Rai's insight:
An interesting perspective on the impact of the last 18months or so, on alcohol  in GTR.
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Are low spending Chinese shoppers a new normal? | Travel Retail Business

Are low spending Chinese shoppers a new normal? | Travel Retail Business | The Internal Consultant - Travel Retail | Scoop.it
There are stark differences in August tax-free sales, largely because of the beneficial 'MERS effect' in Korea. August shopping data from tax refund
Vimal Rai's insight:
Passenger numbers up but average ticket size is down. Aside from blaming this on the Chinese spending less, is GTR over-discounting? Are retailers not communicating relevant value? A deeper dive is warranted.
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Guess who's shopping at dollar stores? Well-to-do millennials

Guess who's shopping at dollar stores? Well-to-do millennials | The Internal Consultant - Travel Retail | Scoop.it
Victoria Marin, a 35-year old author and educator, used to spend hundreds of dollars at large party-goods retailers on supplies that ended up in the trash can.
Vimal Rai's insight:
Hmm. This should scare the living daylights out of many brands, particularly those with products that can become commoditized. On another note, I wonder how many of us might be pleased to see a Dollar store at airports?! What do you think of that?
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Dior's CEO on the value of talking to seatmates

Dior's CEO on the value of talking to seatmates | The Internal Consultant - Travel Retail | Scoop.it
Most fliers ignore their seatmates, perhaps to avoid hearing someone's life story. Or because they'd rather read the latest whodunit. But what if that life story is fascinating and the seatmate is
Vimal Rai's insight:
I have to admit that more often than not, I'm private. But on (all) the occasions I have talked with my seatmate, it's been a great conversation!
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