BW Confidential - Issue #15 - September/October 2013 - (Page 66)

Shining the light on new ideas Last year’s shock withdrawal by Chanel from inflight retail prompted calls for innovation in the sector. But has the market risen to the challenge? by Tina Milton W ake-up calls can come in many shapes and sizes. But Chanel’s decision last year to pull out of the inflight market was more of a large elbow than a gentle nudge, and concerns grew that other luxury brands would follow suit. Inflight Sales Group (ISG), the inflight concessionaire for 15 airlines, managing director Tony Detter cited the move as a warning to airlines and concessionaires to innovate. The brand said it pulled out because it wanted to operate in an environment where its full product line could be offered. The anticipated domino effect has yet to emerge and since then, there have been no other major brand departures from the channel. However, there is a general feeling that brands are looking more closely at the overall quality of the business and not strictly just at getting their products in front of as many eyes as possible. Detter insists: “I am sure we will see more selective distribution where brands want to more closely match the airline image and passenger profile to their target demographic and brand identity. From the airline perspective, we look to mix the established stable partners with new entrants that are looking to innovate and grow business in new markets.” Inflight concessionaire Tourvest Duty Free, which operates the onboard retail offer on British Airways, Virgin Atlantic Airways, and South African Airways, among others, concurs that there are beauty brands that tend to dictate the look and feel of inflight magazines and the listings they would like inflight. But to boost the market, the inflight retail offer must be kept affordable and retailers should ensure a good spread of products across brands. Tourvest Duty Free chief merchandise officer 66 Anthony Fletorides adds: “Brands need to spend more money on promotions with crew and customers.” Changing practices Inflight retailers have changed how they work with beauty suppliers over the past five years, at least in the UK charter and low-cost market. Independent inflight retail consultant Philip Hadden comments: “From a buyer’s perspective, it has become less about the money that you pay up front and more about how you support the product. Airlines are encouraging suppliers to be more proactive, rather than just writing a check,” says Hadden. Meanwhile, at Lufthansa WorldShop, a subsidiary of German airline Lufthansa, Asian passengers are targeted with individually sourced products that are depicted on specially designed pages in the inflight catalogue. The products are referenced in Japanese, Mandarin and Korean. Lufthansa WorldShop sales and marketing director Brigitte Wolf comments: “We continue to see a trend for luxury brands such as La Mer and La Prairie. Furthermore, niche “ credit: istock Travel retail Inflight sales: channel innovations Airlines are encouraging suppliers to be more proactive, rather than just writing a check ” Independent inflight retail consultant Philip Hadden brands like BioEffect, which are available at selected points of sale only, have ranked among our best sellers within the cosmetics category.” An inflight portfolio with attractive prices, and a procurement team to source products exclusively produced for Lufthansa Worldshop, are also among the key drivers of its growth. Pre-order services, airline showrooms, bespoke products and a targeted approach to consumer profiles are among the innovations that airlines are using to differentiate the inflight offer. It is such advances that will drive the inflight beauty revenues of the future. n September-October 2013 - N°15 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #15 - September/October 2013

Cover
Comment
Contents
Update
Brand & retail news recap
Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Origins, Ojon & Darphin global president and gm Jane Lauder
Insight: Fragrance creation
Category overview
Industry views
Emerging markets
Consumer data
Role of the perfumer
Retail
Store strategy
Store concepts
Digital Beauty apps
Market watch: Chinese consumers
Overview
Shopping habits
Online sales
Radar A profile of six up-and-coming beauty brands
Travel retail: Inflight sales
Sector analysis
Channel innovations
Emerging markets Company profile: Marico
Packaging
Make-up analysis
Make-up innovations
Last word The Young Group’s Karen Young on industry trends and technology

BW Confidential - Issue #15 - September/October 2013