cannes_2024_WEDNESDAY_ISSUE

Yesterday’s Reimagining Travel Retail Workshop featured insights on the impact of digital trends in daily consumption, studies and analysis of innovative strategies that every stakeholder can adopt to thrive in this dynamic environment, and an update from the Airports Council International (ACI)’s specialist committee on Airport Non-Aeronautical Revenues and Activities (ANARA). Workshop: Reimagining Travel Retail Reimagining the collective journey with tech in mind T he time is ripe for industry reinvention. Last year, Kearney introduced the concept of the ‘Pentarchy’ as a way of reflecting the changing roles of stakeholders in the travel retail commercial ecosystem (airports, brands, retailers, carriers, digital media players). “This year we make the case that to achieve a mutually prosperous future ‘Pentarchy’ players must reimagine the collective journey with tech in mind and agree on a set of individual and joint priorities,” said Alex Liu, Partner and Chairman Emeritus, Kearney. He explained that airports, for example, should prioritise partnering with retailers and tech providers to optimise retail spaces for maximum impact. “For carriers, these new priorities include actively driving new shopping experiences before a passenger’s trip begins by facilitating pre-travel shopping and taking ‘calculated risks’ in terms of collaborating with brands and retailers,” Liu explained. “Retailers face challenges of their own, such as creating unique, immersive, instore environments that positively differentiate their shopping experience. More immediately, they need to face specific tactical issues in certain regions such as prioritising efforts to restore sales in North Asia.” Meanwhile, brands also need to immediately prioritise key issues in this area. In parallel, Liu shared, they need to invest in personalising the customer experience and offering exclusives. “Last, but by no means least, digital and media partners need to prioritise driving awareness of new innovations through targeted, engaging content, while ensuring travellers feel valued, not overwhelmed.” Alex Liu, Partner and Chairman Emeritus, Kearney: “This year we make the case that to achieve a mutually prosperous future ‘Pentarchy’ players must reimagine the collective journey with tech in mind and agree on a set of individual and joint priorities.” M arie Isquenderian, Senior Consultant, Innovation, Euromonitor International, highlighted how digital living is reshaping the travel retail landscape because consumers want to personalise their travel journey through technology. Key themes included the rise of mobile commerce (m-commerce), the ‘phygital’ journey (the seamless blend of physical and digital experiences), and the evolving nature of the Metaverse. “Euromonitor International’s analysis emphasises the importance of adopting a consumer-centric approach to anticipate consumers’ needs and proactively respond to them,” said Isquenderian. “Moreover, an omnichannel presence and cultural localisation will be key success factors in travel retail.” The address featured three recommendations that stakeholders should focus on: Marie Isquenderian, Senior Consultant, Innovation, Euromonitor International: “Euromonitor International’s analysis emphasises the importance of adopting a consumer-centric approach to anticipate consumers’ needs and proactively respond to them.” • Align with travellers’ values through digital tools to build loyalty. • Expand outreach by embracing social experiences, engaging travellers through gamification and virtual experiences. • Build and implement strategies to create a seamless shopping journey where consumers can use digital tools in-store. Retailtainment (introducing entertainment in retail spaces) can also elevate traveller engagement and brand visibility, ensuring a memorable shopping experience. “The major digital trends reshaping daily consumption include the rise of mobile commerce (m-commerce) driven by the widespread adoption of internet and use of smartphones,” Isquenderian added. How digital living is reshaping the travel retail landscape Wednesday 2 Oc tobe r 2024 4 T F W A D A I L Y