Research
July 17, 2015
Affluent consumers spend when they travel; image courtesy of Michael Kors
By Sarah Jones
The number of outbound international travelers is projected to reach 1 billion by 2018, creating an opportunity for luxury brands to reach a global audience through airport retail placements, according to a report by Conlumino.
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Interesting analysis but I respectfully question Conlumino’s ‘captive audience’ quote. Sarah rightly emphasises the importance of digital communication and today’s 24/7 connectivity means no-one is captive at an airport (even if so many airports are short-sighted enough to charge huge fees for wifi!). The challenge is for brands to engage consumers at points all along the communication chain – from pre to post travel – to drive footfall (a majority of travellers don’t even step into the stores, conversion rates of 15% aren’t unusual). Value messaging is often useful but it’s not a long term platform for optimal performance – airport exclusives and ‘see it here first’ airport launches are much more crucial eg in Liquor, Bacardi has a constant stream of innovations (Grey Goose VX, exclusive single malts, TANG green tea spirit (specifically targeted at Chinese consumers) etc – all exploiting the consumers’ wish to discover something NEW and feel it is reaching their needs.
It’s brand power, innovation and differentiation of the offer that gives airports the core tools to fully exploit the audience – they\re not ‘captive’ but with those tools in place they can be captivated.