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Insight of the Day: Why global travel retail is important for the drinks sector

Findings:

  • The drinks industry is focusing on global travel retail (GTR) as a key growth area, driven by rising traveller numbers post-Covid.

  • The TFWA World Exhibition in Cannes emphasized the importance of creating immersive brand experiences for consumers in travel retail, moving beyond traditional sales.

Key Takeaway:

  • Brands in the travel retail sector need to offer immersive, personalized, and experiential offerings that resonate with travellers' lifestyles and values, such as sustainability, wellbeing, and individuality.

Trend:

  • A shift from merely selling products to offering personalized, exclusive brand experiences in travel retail, with an emphasis on storytelling and authentic experiences that travelers can relate to.

Consumer Motivation:

  • Travellers seek brands that reflect their personal values and experiences. They are looking for immersive, authentic, and memorable moments in the products they purchase during travel, particularly as travel becomes a more emotional and experience-driven activity.

What is Driving the Trend:

  • Rising traveller numbers, changing consumer behavior post-Covid, and technological advancements such as virtual reality (VR), augmented reality (AR), and artificial intelligence (AI), which are transforming the travel retail sector into a more experiential, immersive environment.

People the Article Refers To:

  • Key figures in the drinks and travel retail industries, such as Erik Juul-Mortensen, former president of TFWA, and Giacomo Marzotto of Ca’ del Bosco, along with professionals like anthropologist Sam Rad and managing director Anthony Budd.

Description of Product or Service:

  • Drinks brands are offering personalized, exclusive products designed for the travel retail sector, emphasizing the uniqueness of each product, often tied to the consumer's travel experience or specific destinations (e.g., Cape Town or Tokyo).

Conclusions:

  • The travel retail space is evolving into an arena for experience-driven sales, where brands must connect with travelers through personalization, storytelling, and authenticity, supported by technology such as VR and AI.

Implications for Brands:

  • Brands in the travel retail sector must focus on personalization and exclusivity, offering unique products that travelers can associate with their journey and experiences. Embracing new technologies and tailoring products to the travel environment will help them stay relevant.

Implications for Society:

  • As travel rebounds, there is a renewed focus on creating meaningful, authentic experiences. This shift could encourage more thoughtful and emotionally driven consumption, with travelers opting for products that reflect their personal stories and values.

Implications for Consumers:

  • Consumers are now more inclined to seek unique, personalized products that resonate with their travel experiences, as well as items that represent sustainability and wellbeing. This presents new opportunities for discovery and connection in travel retail.

Implication for Future:

  • The future of travel retail will see continued integration of technology, such as VR and AI, into consumer experiences, while brands will need to adapt by offering more tailored, authentic products that align with travelers' expectations for personalization and value.

Consumer Trend:

  • Personalized and experience-driven consumption in travel retail, where consumers seek exclusive products that enhance their travel memories.

Consumer Sub-Trend:

  • Increased demand for products tied to specific travel destinations, as consumers look to recreate memorable experiences through the brands they purchase.

Big Social Trend:

  • Experiential Consumption, where consumers prioritize immersive, authentic experiences over simple transactional purchases, particularly in the context of travel.

Local Trend:

  • In regions like South Africa and Japan, tourists are heavily motivated by the unique cultural and natural experiences they encounter, which drives their desire for destination-specific products in travel retail.

Worldwide Social Trend:

  • The rise of travel as an experiential journey, with brands offering products that reflect the values of sustainability, individuality, and wellbeing, augmented by technological innovations.

Name of the Big Trend Implied by the Article:

  • Immersive Travel Retail – A shift towards offering tailored, memorable brand experiences for travelers, combining personalization with technology.

Name of Big Social Trend Implied by the Article:

  • Experiential and Authentic Consumption – Consumers increasingly value products that provide authentic experiences, particularly during travel, where the focus is on memory creation and personal connection with brands.

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