Page 76 - BWConfidential19_2

Travel retail Europe: top airports High fiers An analysis of the top fve EU airports by passenger numbers by Tina Milton London Heathrow No of passengers 2013: 72, 368, 061 (+3.3% vs 2012)* Terminals: T1, T2 (the new Queen’s terminal) T3, T4 and T5 Passenger profle: China continues to be an area of signifcant growth. Chinese passengers have a strong interest in premium brands, especially in the liquor and skincare categories. As a destination, China has grown over the last few years, together with Russia and the Middle East. Retail analysis: Duty-free operator World Duty Free Group’s strategy focuses on premium beauty brands and in-depth service, according to a spokesperson. Recent brands launched include SK-II, GlamGlow, Smashbox and Ciaté, with more new products to come in some of its redeveloped stores later this year. Key business areas include travel-retail exclusives, such as multi-packs, bigger sizes and bespoke products. It secured worldwide exclusives ahead of UK high streets, such as Boss Jour in 2013 with Boss Ma Vie in 2014 and more to follow. Beauty’s performance: Beauty is the largest category for WDFG UK and it has witnessed strong growth, driven by fragrance and color in particular. Paris Charles de Gaulle No of passengers 2013: 62, 052, 917 (+0.7% vs 2012)* Terminals: T1 and T2 (ABCD-EF) international and Schengen traffc; T3 handles charter and low-cost carrier traffc Passenger profle: The buying nationalities for fragrances are from France, Maghreb, China, Russia and the US; for make-up, it is travelers from Russia, China, Japan and France. For skincare, it is Chinese passengers, followed by those from Russia, the US and France. Retail analysis: Aelia, a subsidiary of LS Travel Retail EMEA, adapts the offer at each terminal to passenger profles and highlights newness and travel-retail exclusives. The product mix features emblematic French brands, combined with international labels. Frankfurt No of passengers 2013: 58,036,948 (+0.9% vs 2012)* Terminals: Terminal 1 and 2—numerous connections to the BRIC markets Passenger profle: Frankfurt is Europe’s biggest transfer hub, with 53% of passengers on routes between Germany and the BRIC nations traveling via Frankfurt. The average amount spent by Chinese travelers on tax-free shopping in Germany was €575, while 39% of all tax- free sales in Germany with Chinese tourists are made in Frankfurt, according to Global Blue. Retail analysis: Concessionaire Gebr Heinemann places a strong emphasis on exclusive promotions and service. It singles out the Boss Bottled world premiere and the cross-category promotion “A party in Paris” with Guerlain’s La Petite Robe Noir EdT and Moët Rosé Impérial by Moët & Chandon as particularly noteworthy. The company is focusing on exclusivity, premium fragrances, luxury skincare and natural brands.” Beauty’s performance: Heinemann reports that the segment has shown a slight decline in 2014. The results have not been as high in previous years due to a number of factors, including European passengers showing a preference for luxury accessories and fashion brands, discounting in the domestic market and a drop in Chinese and Ukrainian passengers. 76 September-October 2014 - N°19 - BW Confidential