Global Duty Free & Travel Retail Industry on Course for Annual
Sales of 50 Billion US Dollars
PARIS, November 14, 2012 /PRNewswire/ --
"The most recent annual sales figures from Generation showed our
industry reached 46 billion US
dollars in 2011. Even allowing for the positive impact of
exchange rates against the dollar, this was a performance to be
proud of."
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Speaking at the annual TFWA World Exhibition Conference in
Cannes on Monday 22nd
October, Erik Juul-Mortensen,
President of TFWA commented that, "Our brands, resilient and
resourceful, demonstrated growth across all categories, with luxury
goods leading the way."
Highlighting the strength of the Asia
Pacific region he continued, "This 2011 performance was all
the more remarkable given the persistent currency turmoil and the
continued economic gloom within the EU, particularly the Eurozone
countries, a weak US economy and political and social unrest in
North Africa and the Middle East."
Noting the continued growth in 2012, Juul-Mortensen said, "If we
maintain this current direction, and we avoid major crises, we are
on course to achieve sales of over US$50
billion this year. The latest sales growth forecasts see
travel retail potentially hitting $60
billion plus by 2015 and $120
billion by 2020."
Keynote speaker Madeleine
Albright, former U.S. Secretary of State and Chair of the
Albright Stonebridge Group provided an erudite summary of the
current geopolitical situation. She said that there has always been
a trend towards globalisation but it is the pace at which change
happens now that has increased.
She pointed to four realities: the growth of some economies -
China, Brazil, Russia, Turkey - which has changed their economic
leverage; new technology which has fuelled political change with
four governments overthrown in the Middle
East and a fifth under intense siege; the evolution of
security threats which are even more threatening than before; and
religion which is a source of support to millions but whose
doctrines can cause conflict.
"Although we cannot underestimate these problems," she
concluded, "we cannot be panicked by them either."
The Conference, on the theme 'A Brand New Dimension', also
featured presentations by Jean-Charles
Decaux, CEO JCDecaux on new modes of engagement with
consumers and Kjell A. Nordstrom,
Economist, on future business strategies in the face of shifts in
society.
Attended by a record 894 delegates, it set the scene for TFWA
World Exhibition which gave 462 brand-owners the opportunity to
showcase thousands of products before buyers, agents, distributors
and other trade visitors representing airports, airlines, airport
retailers, ferry and cruise line companies and other duty free
outlets. The exhibition occupied 21,000m2, the largest
exhibition of its kind ever.
A record total of 6074 trade visitors flocked to the week-long
show in Cannes, up 4% on 2011, all
keen to update on trends and view the latest products.
Many of the items on display are exclusive to travel retail;
consumers have demonstrated the appeal of products which cannot be
found on the high street. Brands often use travel retail as the
global launchpad for new products and the first place these are
revealed to buyers is at TFWA World Exhibition.
The global duty free and travel retail industry is a dynamic and
prosperous market place. The total sales of US$46 billion in 2011 represent an increase of
nearly 18% on the previous year and for the first time in the
history of the industry, the Asia
& Oceania region outpaced Europe with sales of US$16 billion - up 25% on 2010 - compared with
US$15.6 billion in Europe, the birthplace of duty free &
travel retail, according to Generation Research.
Airports dominate the market with nearly two thirds (61%) of
sales, with airlines 6%, ferries 5% and downtown, cross-border and
military duty free stores accounting for the remainder.
In spite of the current economic problems in global markets,
luxury goods from fashion and accessories to jewellery and watches
are the most popular purchases generating nearly US$17 billion in revenue a year. Fragrances and
cosmetics have traditionally been a great favourite and today they
account for a third of sales (31%). Wines & spirits, a category
which is noted for its innovative marketing techniques such as
travel retail exclusive products and in-store cocktail bars,
generates sales of almost US$8
billion.
In terms of passenger numbers, the future of the duty free and
travel retail industry looks secure however the industry faces many
challenges. Several policies pose a threat to the industry and as
such a threat to the non-aeronautical revenue streams of
international airports.
TFWA World Exhibition provides a window to the world of brands
but also offers a forum in which industry participants can discuss
such concerns and network in pleasant surroundings. The next TFWA
World Exhibition will take place in Cannes from 20th to 25th October 2013.
Before then industry executives will congregate at the MEDFA
Conference on 26th and 27th November in
Dubai and at TFWA Asia Pacific
Conference & Exhibition in Singapore from 12th to
16th May 2013. In
addition, in response to keen interest from the trade in developing
duty free and travel retail in China, TFWA and the Asia Pacific Travel Retail
Association (APTRA) are organising the 'Industry Conference on
China' in Beijing from 5th to 7th
March 2013.
For more information about these events please consult
http://www.tfwa.com.
For further information please
contact
TFWA Press Office
Kate Teagle
Tel: +44-1784-434-666
Email: press@tfwa.com
http://www.tfwa.com
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