But what makes GTR so special? There are, of course, the great relationships that are developed over many years. More than this, however, the industry has what I call ‘superpowers’ that domestic market channels in which beverage alcohol brands are sold just don’t have. These are the five superpowers that stand out for me.
- Worldwide
It’s fair to say that GTR is the only truly global retail business for alcohol brands. The fact that it has ‘global’ in its name is a bit of a giveaway! Its uniqueness comes from the fact that a number of big global retailers operate stores in multiple countries and regions. This means brand owners’ GTR teams need unique skills and competencies to be able to work with retailers across different countries, from different cultures and nationalities – and all on a global scale.
The worldwide nature of GTR is a huge superpower for brands. In one day at a busy international airport, a brand could be purchased by travellers going to multiple cities across the world. These bottles are then enjoyed and seen by others in countries where the brand may not be available. The brand is being spread across the world and awareness for it grows. This is super-powerful!
- Premium
Many describe GTR as the shop window to the world – and, indeed, it is. It’s hard to find a retail environment domestically anywhere in the world like an airport store where brands are displayed in such a premium way. They also often enjoy more space with multiple facings and, in some cases, personalised displays that bring the brands’ stories to life.
Premium also applies to the brands that are sold in the channel. Standard brands are available, of course, but the sales share of premium-plus brands is higher in travel retail than in domestic markets. Shoppers have a tendency to trade up and treat themselves to more expensive products compared to what they would normally purchase at home.
- Brand experience
Regular readers may have seen me refer to GTR as ‘the on-premise of the off-premise’. By this, I mean that shoppers can experience brands in travel retail stores in a similar way to the on-premise. Brand owners can run promotions that immerse the traveller by bringing the brand to life with experiential activity.
Sampling activity, meanwhile, is an important part of this superpower. Sampling in an airport or on a ferry or cruise line gives a traveller the opportunity to try a brand they wouldn’t necessarily have considered before. A huge sampling opportunity for an alcohol brand is also on a plane via a paid purchase or complimentary drink.
On a recent trip, I purchased a miniature of rum that I was interested in trying, just like I may have done in a bar back at home. I very much enjoyed it and committed to purchasing a full-size bottle. Unfortunately, it wasn’t for sale as a duty-free purchase on board – a missed opportunity!
- Time
Often in GTR, shoppers have more time to spend in the store than in domestic markets. In airport stores, this is especially the case when travellers are transiting and have long wait times between flights. Visiting stores in the airport is an opportunity for them to pass some time and if they’re able to take part in brand experience activities, all the better.
When travellers are on a plane, ferry or cruise line, they’re literally a captive audience for several hours, days or, in some cases, weeks. No other retail channel has this superpower, and it’s one that brand owners should be thinking constantly about, to make the most of it.
- Value
Global travel retail offers the shopper great value for money, especially if they live in countries with high duties and taxes. Indeed, price savings are an important reason why the channel exists in the first place. However, this superpower is turbocharged by other value propositions the channel offers such as travel retail-exclusive products, gift packaging, customer service’, and premium brand and retail environment experiences.
Hopefully these five ‘superpowers ‘provide some food for thought – they’re what make GTR such an exciting channel to work in and for travellers to shop in.
Those working in GTR would do well to think about how to harness these superpowers, because in doing so, their businesses – and the channel as a whole – will continue to flourish and grow.
