cannes_2024_TUESDAY_ISSUE

The industry’s immediate and long-term future during a time of considerable change Yesterday morning’s Conference was opened by Erik Juul-Mortensen in his final state-of-the-industry address as TFWA President. He shared his perspective on the industry’s immediate and long-term future during a time of considerable change. E rik Juul-Mortensen has served Tax Free World Association (TFWA) for many years, initially as Vice President – Marketing Communication on the first Management Committee, before becoming President for the first time in 1997 and playing that role for around 22 years over two periods. 2024 marks the 40th anniversary of the founding of TFWA and before turning to the industry’s current state and future prospects, Juul-Mortensen looked back briefly at its origins. “TFWA was the brainchild of two bright, ambitious men who decided to replace an existing commercial exhibition and shape the future by creating the Tax Free World Association on a not-for-profit basis,” he said. “Its ethos was, and remains, ‘by the trade, for the trade’.” Those two men were Patrick Moniotte who worked for Parfums & Beaute International, part of L’Oréal, and Jean-Philippe Haumont of PPI. “Patrick and Jean-Philippe shared their vision with others in the industry and the first Management Committee was formed, representing the different product categories,” Juul-Mortensen explained. “The Committee members became ambassadors, persuading brands and retailers to participate in TFWA’s first trade event, that 1985 exhibition in Nice. So strong was their belief in this venture that six of them gave personal financial guarantees to allow the formation of the Association.” Four original Management Committee members are here in Cannes this year – Ian McLuskie representing A.T. Cross, who later became Vice-President; Alain Bonardo of Nestlé; Massoud Esfandiary of RJ Reynolds; and, of course, Erik Juul-Mortensen. Over the last 40 years, duty free and travel retail has grown its turnover from US$5 billion to over US$60 billion. “It has weathered financial crises, armed conflict, volcanic eruptions, hurricanes and pandemics – SARS and COVID – while helping to build a more connected world,” said Juul-Mortensen. “Our industry has been boosted by waves of tourism as the Japanese, the Koreans and then the Chinese discovered travel. But it has also been driven by socio- economic change – the first package holidays, TFWA President Erik Juul-Mortensen: “Beyond accessible pricing and promotional discounts, shoppers may also perceive value in qualities like functionality and convenience. Personalisation, on the other hand, resonates especially with younger travellers whose rising individualism and self- oriented lifestyles make customised products extra-appealing. These are just some of the conclusions from a new TFWA-commissioned study by Euromonitor International.” the opening up of travel to the masses by low-cost airlines, and the popularity of cruises for the old, the young and everyone in-between. We have seen Silver Surfers and Baby Boomers, Millennials, Gens X, Y, and Z, and now we are preparing for Gen Alpha.” Air passengers are the lifeblood of duty free and travel retail, and Juul-Mortensen highlighted optimistic recent figures published by Airports Council International World. The data foresees total passenger numbers rising by 11.5% this year versus 2023, putting passenger traffic above 2019 pre-Covid levels. Tuesday 1 Oc tobe r 2024 12 T F W A D A I L Y