INTERNATIONAL. The Moodie Davitt Report is pleased to unveil a new reader platform, Moodie Davitt NEXUS, in which we bring you a weekly quickfire summary of (and links) to key stories from the related worlds of travel, retail, luxury, brands and beauty. All have been chosen for their relevance to (or repercussions for) travel retail.
“Nexus means a connection between things,” said The Moodie Davitt Report Founder & Chairman Martin Moodie. “Travel retail is fundamentally entwined with parent and sister industries and sectors and cannot exist in isolation from any of them. Nor should it be viewed through a mono-lens. It’s that convergence of worlds, just as airports (and therefore travel retail) serve as a convergence and crossroads of humanity, that has inspired the new column.”
NEXUS will be available on dual platforms, initially on The Moodie Davitt Report.com, which enjoys almost five times the monthly web traffic of its nearest rival, and on a weekly e-Newsletter to be launched soon.
A. WASHINGTON TIMES (ASSOCIATED PRESS) – ANNE D’INNOCENZIO
Department stores making themselves over in beauty battle
It’s the beauty aisles themselves getting makeovers now, writes Anne D’Innocenzio as she describes how department stores are being forced to rethink how they sell higher-end makeup and perfume as competition intensifies from, specialty chains such as Sephora and Ulta and online brands. Salient lessons for travel retail here?
Soundbites: Saks Fifth Avenue aims to offers an over-the-top beauty experience, with large shops devoted to brands like Chanel and Gucci, something that hasn’t been seen before in the beauty departments. It’s a mix of technology and serious pampering. There’s even a florist shop with matching fragrances. [Also see: https://www.prnewswire.com/news-releases/saks-fifth-avenue-unveils-new-beauty-floor-in-new-york-flagship-300652597.html]
Read the article online from The Washington Times
B. JING DAILY – Christine Lee
Wise Up: The Big Mistakes Luxury Brands Are Making With China’s Gen Z
A typically insightful article from the indispensable China luxury and travel title Jing Daily (a Moodie Davitt Report information-sharing partner). By 2020, Generation Z consumers (or Z-lennials) – those born in this century or just before – will make up 40 percent of all consumers, according to some industry estimates. That makes it critical for retailers to successfully connect with and engage this generation now to ensure lifelong and profitable relationships. Mandatory reading for anyone interested in Chinese consumers and millenials. And who in travel retail isn’t?
Soundbite: “I’d estimate my time being on the phone for around five hours a day,” Yifei Du, a Chinese Gen Z, said. “I also use social media to chat and follow up, subscribe to influencers and get shopping tips from them. Sometimes I will generate my own content on Xiao Hong Shu(Red Book).”
Read the article from Jing Daily.
C. CNET.COM – Mark Serrels
Use Bitcoin to buy your duty free at this airport
Travelling overseas with different currencies and credit cards can be a hassle – maybe airport payments is the first true use case for cryptocurrencies, this article contends. As first revealed by The Moodie Davitt Report, Brisbane Airport now offers 30 stores where consumers can use Bitcoins and multiple other cryptocurrencies to pay for goods.
Soundbite: “Bitcoin is perfect for travel, there’s no exchange rate issues or risk of credit card fraud.”
Read the article from C.Net.com
D. PITCHBOOK – Sean Lightbown
How Natalie Massenet’s new VC firm sees the future of retail
A fascinating interview with Natalie Massenet, Founder of fashion site Net-a-Porter (since merged with Yoox as Yoox-Net-a-Porter, now owned by Richemont), who this April launched Imaginary Ventures, a new firm with a US$75 million debut fund aimed at retail tech. “I started watching the evolution of how consumers were discovering new brands, buying into new brands, and the speed with which brands could go from zero to US$100 million without using traditional marketing channels,” she says.
Soundbite: “It became clear to me that there was a real opportunity for new players to come in and that you could have big businesses with new people. As a multi-brand retailer, I learned you have to offer newness to the consumer. The same applies to brands—the consumer wants newness.”
Read the article from Pitchbook
E. THE BUSINESS OF FASHION (BOF) – Andrea Felsted
Op-Ed: Richemont Is Quietly Becoming a Luxury Internet Powerhouse
In case you weren’t paying attention, Richemont is turning itself into a luxury internet powerhouse.The freshest evidence of this is in the latest reshuffle of its jewellery box. Out goes French handbag maker Lancel, in comes Watchfinder, a seller of second-hand watches it is acquiring for an undisclosed sum.
Soundbite: The Watchfinder deal is small — Richemont said it won’t have a material impact on its assets or operating profit this year. But it is a significant step forward toward winning the battleground of online luxury. For all its historic Maisons, Richemont is not marking time.
