Why is Travel/Airport Retail So Important For FMCG Brands?
Written by: BD Team | Published a year ago
In the world of consumer goods, one avenue stands out as a unique and thriving marketplace – travel retail. From bustling airports to duty-free shops, the travel retail space has become a dynamic arena for Fast-Moving Consumer Goods (FMCG) companies looking to not only sell products but also create a global impact. In this blog post, we'll explore FMCG in travel retail and unveil the strategies that not only boost sales but also elevate brands on a global scale.
The travel retail sector has undergone a remarkable transformation, evolving from a convenience stop to a strategic marketplace for FMCG. The growth of international travel, coupled with expanding airport infrastructures, has turned these spaces into hotbeds for consumer activity. Duty-free shops have become more than just departure gate stopovers; they are now key hubs for discovering and purchasing FMCG products.
Credit: Google
We can't start a conversation about travel retail without understanding the behaviour of consumers in this environment. Travelers, often pressed for time and motivated by the excitement of their journey, exhibit a unique penchant for impulsive purchases. Gift shopping and leisurely exploration characterise this retail experience, making it a playground for brands seeking to capture attention in a limited timeframe.
Strategies for Success
- Create Global Visibility: Leverage the international footfall at travel retail locations to create global visibility for FMCG products. Strategic placement, eye-catching displays, and marketing campaigns targeting a diverse audience contribute to global brand recognition.
- Increase Sales through Impulse Buying: Design products and promotions specifically tailored to the impulsive nature of travel retail shoppers. Limited editions, exclusive travel retail bundles, and time-limited offers can encourage spontaneous purchases.
- Increase Customer Loyalty: Implement loyalty programs or exclusive perks for frequent travelers. Rewarding repeat customers builds a sense of loyalty and encourages them to choose your brand when shopping at duty-free stores.
- Gain New Customers in Different Countries: Tailor marketing strategies to resonate with the cultural preferences of various regions. Engage in localised marketing campaigns to attract and connect with new customers from different countries.
- Build a Premium Image: Elevate the brand image by offering exclusive products available only in travel retail. Premium packaging, unique formulations, and limited-edition releases contribute to the perception of exclusivity and luxury.
- Sustainability Takes Flight: Highlight the commitment to sustainability as part of the premium brand image. Eco-friendly practices in packaging and production not only appeal to environmentally-conscious consumers but also enhance the brand's premium positioning.
Credit: Google
What Are The Leading Airport Retail Markets?
- North America (United States, Canada, and Mexico)
- Europe (Germany, UK, France, Italy, Russia, Turkey etc.)
- Asia-Pacific (China, Japan, Korea, India, Australia, Indonesia, Thailand, Philippines, Malaysia and Vietnam)
- South America (Brazil, Argentina, Columbia, etc.)
Travel retail remains a great space for FMCG companies. The intersection of global commerce and consumer experience demands agility, innovation, and an unwavering commitment to meeting the ever-evolving needs of the modern, on-the-go consumer. From the duty-free aisles to the in-flight shopping experience, the journey of FMCG in travel retail is an exciting one, promising new horizons, boundless opportunities, and the creation of a premium global brand presence.
–Mirfat Khamis, Digital Marketing Specialist, Imagine