Interview: Travel Blue on leading the charge for travel accessories

Travel Blue has established itself as a powerhouse of the travel accessories business in recent years, with a strategy built on product innovation, people and strategic partnerships. The company, which now has sales in 110 countries, wants to be seen as the ‘one-stop shop’ for the category, and a partner that can drive strong profits per square metre for retailers.

Travel Retail Director Jonathan Smith tells The Moodie Davitt Report: “We have developed a very strong presence in travel retail over the past 30 years, and in the past four years in particular we have grown and grown as our partners have come to see us as the solution for their accessory needs. We offer coherence in what was a very fragmented, cluttered category. We work with most of the leading travel retailers and that has helped us become the number one player in our segment of the market.”

Smith credits Managing Director Avi Levin with the foresight to “over-invest” ahead of the growth curve, notably in regions where the company had yet to make its mark. “He made a strategic decision a few years ago that we needed to look after our business ourselves, through in-house resources,” says Smith. “That meant opening up offices before we had a lot of business in some places, but that laid the platform for support both in travel retail and in local markets.”

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Wider portfolio: Travel Blue has built a network across well over 100 countries, with impressive showcases in airport locations such Beijing (pictured)

That investment in people and in a strong support network has been a key feature of Travel Blue’s expansion in recent years. Smith says: “Take China as an example. We have gone from 50 to around 350 doors in China duty free and duty paid, and that coincided with the period in which we opened an office in Shanghai.

“Our India and Middle East business is thriving, we have a healthy South American presence and we are growing in Europe and in the inflight sector. One of our weaker areas used to be south-east Asia so we opened an office in Singapore to bolster our support for that region. We’ll continue to expand in Asia as that market grows.

“In all of these regions we have warehouses too so our distribution base has grown, with teams to provide support for our network and our partners.”

 The net result of that investment is seven subsidiaries and ten logistics centres across five continents, from which Travel Blue supplies 11 of the top 15 travel retailers. It has global agreements with Dufry, DFS, Gebr Heinemann and most recently WHSmith, among others.

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Travel Blue has a global agreement with partners such as Dufry (Zürich Airport pictured)

“Being a preferred supplier to some of the big players in the industry is important to us, but we believe we have a great story to tell,” says Smith. “We offer the highest sales per square metre in travel accessories of any brand in major airports.”

And in an era of consolidation, the strategic global partnership approach is a smart one, says the company. “Many duty free retailers do not want to deal with too many brands,” notes Smith. Some want to work with a partner that can offer everything in a single category. We offer that and we will continue to provide new solutions and ranges that meet consumer needs.

“That also means recognising that space is at a premium. We must make sure that what goes on the shop floor is the right product. Some years ago we had a very wide accessories range but we have pared that back now. The days of big ranges are over. It’s about being focused and targeted.”

Staying ahead of the game in a highly competitive segment is no easy task, but Smith embraces the challenge. “Competition keeps us on our toes. Other people have seen what we have achieved in this business and want a piece of it. That’s natural. To remain number one, we will reinforce our credentials as the one stop solution, and we have many more initiatives in the pipeline.”

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Pillows are a fast-growing part of the sales mix for Travel Blue today

 The business today has a number of strands, with neck pillows – a hugely popular purchase in the airport channel – and travel adaptors at the core of the offer. Loudspeakers, headphones, phone covers, power banks, chargers and cables are part of an expanded selection, while other products that play a role in the mix include ‘ever greens’ such as security locks and luggage straps.

“Innovation has to be at the heart of all we do,” notes Smith. “Pillows are a growth area. We are the only ones to do two sizes for our Tranquillity pillow, and we have the core pillow range with the cooling gel embedded in it, among many other items in the range.  

“Beyond that our in-house technology ranges have helped us build our presence. Our adaptors, cables and power banks have really driven sales. With these and the pillows there is a sea change in the accessories offer. It’s all about comfort and connectivity today. The future will be about these things, but also about how you charge on the go.”

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Jonathan Smith (left) and Klaus Mellin mark the partnership between Travel Blue and Braun (during this year’s TFWA Asia Pacific show)

 Travel Blue has added other pillars to its strategy in the past year. Since October 2015 it has had a distribution partnership with Oral B, Braun and Duracell for certain locations in travel retail.

Smith says: “We began with entry point items for impulse purchases and we are looking at expanding into other products going forward. With these branded goods from the P&G range it has been a very positive start. People instantly recognise the packaging and trust these brands.”

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Travel Blue counts King Power Duty Free in Bangkok among its key Asian partners

 Crucially, with its wide portfolio and established status, Travel Blue is now seen a brand in its own right. Smith says: “What is encouraging over the past number of years is that we are being offered brand-identified corners as Travel Blue. We were once a company that offered accessories, now we are an accessories brand.”

Although principally a travel retail brand, domestic markets also represent a “substantial” segment of the business today, one that is emerging fast. “Wherever people are thinking about their next journey, that can be a target for us. We have a big range and in travel retail we only sell a limited portion of it due to space requirements. But in all of our regions we look at what the customer wants, whether that is in travel retail or local markets.”

Finally, I ask Smith how Travel Blue management would like the company to be perceived?

He replies: “Within the industry I’d like to be seen – and I think we are – as honest, decent partners, people that really support those that we work with.

“There’s much more to do yet. We are represented among the top operators but there are many others out there. Also, we know that over half of passengers never buy anything. That’s an important message for all of us. We need to tap into their need for impulse, affordable, attractive purchases. Among consumers, we’d like to be seen as the number one travel accessories brand. That’s our game plan.” 

 

 

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