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Shopper marketing for luxury brands in travel retail

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My personal view on current shopper marketing trends and luxury shoppers in airports. I believe a hugely under exploited opportunity in travel retail to link online and real world brand offers

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Shopper marketing for luxury brands in travel retail

  1. 1. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Airports are important for studying the potential of luxury brands and shopper marketing WHY? Philip Slade T: @piehead sources & credits at back 1 1
  2. 2. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Airports provide unique opportunities to engage shoppers with new ideas High dwell times, 140mins+ Airport retail design no longer dominated by discount tobacco but led by luxury fashion trends International travel increases a sense of personal achievement, better attitude for experimentation Prime shopper mission; gifting, which results in a higher spend per item Tighter hand baggage control forcing a rethink on tacky gift bag with purchase offers Growing numbers of passengers from emerging nations keen to acquire luxury brands while travelling 2 2
  3. 3. The environment of airport shopping has changed* * with the exception of the liquor area, which remains, in general, fixed in traditional dull high street retail norms Paul Smith London Heathrow Terminal 5 3 philip@homeslade.co.uk where possible all images credited other than authors own. CC on words 3
  4. 4. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Key themes for 2012 Bespoke luxury retail environments The Johnnie Walker House : Shanghai : lovecreative.com -not actually in an airport but in theme to activity in the more progressive airports building store in stores. 4 4
  5. 5. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Key themes for 2012 Location specific experiences The World Class cocktail bar : British Airways Business Lounge : London Heathrow Terminal 5 5 5
  6. 6. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Key themes for 2012 Retail excellence Status updates Personalised Mix & Match 1. Retail excellence. There is an expectation of not only luxury but bespoke shopping experience when travelling. 2. Status updates (remember the first mobiles? 'I'm on a train' has been replaced by 'Facebook -I'm at the airportʼ London 3. Personalised. Passengers know we have all their data. Won't be surprised if we do something with it 4. Mix & Match. Budget airline & boutique hotel or Business class & couch surfing 5. London. More passengers want/have to travel to/through than any other global city 6 6
  7. 7. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words What’s interesting now in 2011 The mainstream take up of location based services like Facebook places and Foursquare in airport is quite low at present but set to change. Benefits such as at gate delivery and linking rewards to check-ins should see greater travel use. I am very interested by the maturing of the pop-up concept and can see the potential for innovation in concourse activity. Finally I have highlighted a superb example of a random act of kindness, but in truth this is also an example of what can be done creatively with the data that exists on all passengers in the public domain 1. Location services 2. In airport Delivery 3. Brand partnerships 4. Random acts of kindness 7 7
  8. 8. IMAGES www.sita.aero www.silicon.com Location aware Lots happening in the world of location aware apps. Wayfinding within airports being the focus with the aim of not only getting more passengers to the gate on time, but spreading their spending throughout the terminal. The current test in Copenhagen of a AR based Wayfinding app is interesting. I really like the way it seamlessly links to retailer & brands sites as well as showing you when your flight is due and where the gate is. Worth noting the rise of online deals linked to location – Groupon was the standard bearer but Facebook have a trial underway at the moment that links your friends buying patterns & location specifics to offer you a deal. Passengers in airports are driven by herd behaviour, groups created by occasion or day of week, intrigue . 8 8
  9. 9. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Location aware mobile apps : Lots happening in 2011 my current favourite TopGuest.com What is it? Middleware. An application that sits between location based check-in services & existing loyalty schemes How does it work? Check-in at specific locations and receive points from loyalty schemes you are already a member of Opportunity? Partnership with Airline/hotel to reward DF activity Why is it important? Opens up the possibility of using airline & hotel points as a reward without any on the ground admin What could it be? Potential for rewarding at all levels; concourse browsing 1pt, Photo of brand 5pt, Fixture purchase 10pt, joint purchase 15pt 9 9
  10. 10. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words In airport delivery: What is it? We are beginning to see delivery services to passengers waiting at gate, in bar or lounge. How does it work? Online to microsite or existing portals. Order and pay, product gets delivered to you Opportunity? Rich media product story, Trade-up, gifting and access to lounge dwellers Why is it important? Offers real value to the passenger while at the same time giving us a new touchpoint What could it be? Personal location aware shopping assistance linked to social media info – remembers birthdays & business events 10 10
  11. 11. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Brand partnerships: Liquor & Fashion Malibu + Fakebake + GHD + Nails Inc. What is it? Pop-up pampering zone with bar How does it work? Engages shoppers with top-up style & pampering goodies with opportunity to sample a Malibu (rum) cocktail Opportunity? In this case getting shoppers to associate getting ready with a Malibu moment Why is it important? Getting to the large numbers of shoppers who have already deselected liquor What could it be? Not only concourse but in-shop activity across other retail outlets with a similar premium value connection 11 11
  12. 12. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Random acts of kindness: SPANAIR Unexpected Luggage What is it? One off PR stunt that spread across the web. Turning around the impersonal nature of the airport experience How does it work? Personalised gifts placed on luggage carousel for passengers on a Christmas eve flight Opportunity? One off PR event that produces content for both trade and consumers – the unexpected nature of a brand speaking as a human voice Why is it important? Passengers know we have shed loads of data about them, but all they normally see is poorly targetted sales messages. Kindness in the face of stress (travel) gets you into moments when normal brand messages will just wash over. Keeps thinking fresh and beyond standard shopper marketing touch points 12 12
  13. 13. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words A new direction for shopper marketing? 13 13
  14. 14. philip@homeslade.co.uk where possible all images credited other than authors own. CC on words Airports provide unique opportunities for cutting edge shopper marketing Shoppers have the time to engage They have the aptitude to experiment They are carrying multiple devices/screens They are seeking information There is a lot of their data available They want to mark their travel with indulgence They are on a shopping mission to gift Unfortunately too much marketing seen in airports takes the form of lazy price offers, something luxury shoppers from BRIC nations actively reject 14 14
  15. 15. I am Philip Slade, a Creative Strategist, who still gets way over excited by air travel Desk research and personal observations; T: @piehead W: homeslade.com • Sita.aero • Topguest.com • hmshost.com • delta.com • apps.facebook.com/malibutique • spanair.com • Skytrax / Airportquality.com • Moodie Report • Robb Report • Travel Trends Survey • JCDA Luxury Panel 15 15

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