cannes_2025_TUESDAY_ISSUE_DIGITAL

“When Shannon’s first duty free store opened in 1947, the total world population was less than a third of what it is today, at just under 2.5 billion people. A hundred years later, we will reach approximately 10 billion.” What’s important isn’t just the acceleration of growth but the fact that this hundred-year span marks the peak of worldwide population. “We have lived with the assumption that population would continue to grow; the reality, however, is quite the opposite,” Margueritte explained. “For decades, birth rates have been falling below 2, the minimum needed for population replacement. More and more countries are dropping below the ‘2’ threshold. Today, the top 20 most populous countries, which account for two-thirds of the world’s population, already have a birth rate of 1.97.” But this isn’t the only important data point. Margueritte highlighted that the other key element is the upcoming decline, which will likely be as rapid as the recent growth was. “It won’t be a soft landing. Japan serves as a good example, a nation leading the way with an increasingly aging population. In 2024 alone, Japan lost 900,000 citizens. Of course, we’re not the only industry affected, but we must prepare for a decline in travellers that could match the speed of past growth. We can debate endlessly whether it will happen in 25 years, maybe sooner, or a bit later, but what we can’t deny is that it will definitely happen. This inevitably means that one of our key growth pillars will soon diminish – possibly even within 25 years. It might seem like a long way off to some, but it’s been 13 years since I joined this industry, and I hardly feel the time has passed.” Consequently, to secure future growth, Margueritte noted the need to address two longstanding issues that have been unsuccessfully discussed for decades. “One is having reliable market data to build our strategies, and the other is the conversion rate, which means being able to deliver the excitement that the new Gen Z expects in our shops in the short-term.” TFWA takes the issue of data and business intelligence very seriously. Indeed, Margueritte shared that early next year TFWA will begin discussions with brands, retailers and landlords to sketch out the framework for what could become its next step-by-step business intelligence tool. “Of course, we will need to do this in a way that does not interfere with our current way of doing business while also considering lessons from how the high-street accomplished it 50 years ago – considering the industry as a whole and recognising the growth benefits to everyone.” Scan the QR code to share your feedback on yesterday’s TFWAWorld Conference. The survey only takes a few minutes to complete. Innovation was a key theme of TFWA President Philippe Margueritte’s address to yesterday’s TFWA World Conference. In a spectacular finale that embodied the spirit of innovation, Margueritte welcomed a surprise ‘guest’ to the stage – Ameca, the most advanced human-like AI robot ever built. Developed by UK- based Engineered Arts over two decades, Ameca engaged in a thought-provoking exchange with Margueritte, offering a glimpse into a future where human and machine might collaborate more closely than ever before. Margueritte also addressed the topic of conversion rate. One of the biggest lessons learned post-Covid is the loss of correlation between passenger growth and retail sales growth. The latest Kearney study for TFWA shows that since 2019 spend per passenger declined by 4% on average during the last five years. “Of course, Daigou management partially explains those figures, but we all feel that what we thought was conjunctural, turned out to be quite structural in our business,” said Margueritte. “And this is where population decline takes a particular significance as if passenger numbers eventually decline, then a drop in conversion rates would lead to an even more impactful business recession. Of course, building our business intelligence tool will be very helpful, and probably fundamental to our strategies, but that isn’t enough – we need a retail revolution.” Indeed, a great deal of effort is now being made to create a stronger sense of place, more excitement, and more hybrid propositions. “However, it remains challenging to truly move the needle when it comes to improving the conversion rate,” Margueritte explained. “This requires a constant data feed on traffic, actualised profiling of travellers, and permanent agility in our product offerings. Today, our systems are not capable of delivering these needs.” Seizing the extraordinary opportunity represented by AI Innovation is the theme running throughout this year’s edition of TFWA World Exhibition & Conference and was the final topic of Margueritte’s address. “Pushing boundaries, sharing knowledge or best practices, and showcasing new developments are exactly how to move forward in travel retail,” he said. “It’s time to break routines, surprise our audience, and reimagine what the travel experience can be: more agile, more dynamic, more connected, and more inspiring than ever. Cannes is an invitation to seize the opportunity and lead with imagination.” TFWA is contributing to that movement by giving visitors and exhibitors a particularly robust learning program. The brand-new Innovation Square here at TFWA World Exhibition & Conference, for example, is a 400sqm space dedicated to innovation, leadership in technology, retailtainment, sustainability, science, and more. “We aim to make Innovation Square the lighthouse of our industry innovation,” Margueritte shared. “We are doing a lot, investing heavily, and we should share, inspire, and push our limits together.” Margueritte concluded by emphasising the importance of seizing the extraordinary opportunity Artificial Intelligence (AI) represents for the industry. “As we speak, AI is already everywhere. AI is not tomorrow; it’s today.” In a spectacular finale that embodied the spirit of innovation, Margueritte welcomed a surprise ‘guest’ to the stage – Ameca, the most advanced human-like AI robot ever built. Developed by UK-based Engineered Arts over two decades, Ameca engaged in a thought-provoking exchange with Margueritte, offering a glimpse into a future where human and machine might collaborate more closely than ever before. This symbolic interaction served as a powerful reminder of the pace of change facing the travel retail industry – and the potential it holds. As innovation continues to shape both consumer expectations and industry capabilities, TFWA’s commitment to driving progress was made unmistakably clear. The message from Cannes: the future is here, and it’s time to lead it. Tuesday 30 September 2025 6 T F W A D A I L Y