“Every crisis holds the potential for new beginnings,” says Victorinox Head of Global Channels Thomas Bodenmann as he reinforces the Swiss lifestyle brand’s commitment to the travel retail channel. Despite the current landscape, Victorinox is gearing up to unveil a series of new product innovations, running digital staff training sessions, enhancing in-store safety measures and cautiously preparing to expand its travel retail footprint once the crisis eases.
“It is not a secret that the travel retail business has suffered severely from the current pandemic,” he says. “We see the first signs of recovery and are confident that we can continue where we left off. We still want to grow our footprint in the travel retail business and are willing to invest.”
Bodenmann was appointed to lead Victorinox’s travel retail division in 2018, and helped to double its business from 1% to 2% of total sales in just under one year. He also set the ambitious goal of growing Victorinox’s travel retail business to 5% in five years.
In this interview, Bodenmann outlines Victorinox’s multi-category product pipeline and what industry partners will see at the brand’s booth at the upcoming Moodie Davitt Virtual Travel Retail Expo, where it is a Gold Partner. He also underlines on the growing importance of seizing opportunities amidst a changing travel retail landscape and of constantly perfecting the product offer.
He says, “As global travellers take to the skies once more, we want to ensure they are met with the best possible expression of our brand in travel retail – whether that’s in one of our standalone stores and shop-in-shops or in a multi-category retail offer.”
What is the major focus for Victorinox at the Virtual Travel Retail Expo? What lines, launches or campaigns will you emphasise and showcase?
The major focus for us during Virtual Travel Retail Expo is to reconnect with our retail customers and showcase the latest innovations in our multi-category offering.
As global travellers take to the skies once more, we want to ensure they are met with the best possible expression of our brand in travel retail – whether that’s in one of our standalone stores and shop-in-shops or in a multi-category retail offer.
Perhaps our major news comes in fragrances, where we are re-launching our entire range with new impactful packaging and a more harmonious identity. Introducing a new approach to storytelling, our fragrance range will now consist of two lines: The Victorinox Heritage Collection – including favourites such as Victorinox Swiss Army Classic – and The Victorinox Signature Collection – featuring classics such as Victorinox Rock and Victorinox Steel.
In travel gear we’ll be showcasing the Airox Hardside suitcase, which was recently awarded with the Red Dot Design award. It is the lightest hardside carrier ever produced by Victorinox. Made of 100% pure, resistant Polycarbonate, the Airox Hardside suitcase has passed the highest testing standards within the industry. The Carry-On weighs just 2.3 kg, so it is not only light, but is also stylish and high quality.
For our watches offer, we’re excited to introduce our retail partners to three new models in the FieldForce Collection, which are as durable and functional as its army-inspired name suggests. The popular and classic watches are steeped in tradition and innovative design. With these new models, we are launching a GMT function offering the possibility to follow a second time zone.
We will also be unveiling the Onyx Black Collection in our Swiss Army Knife range. Pursuing the success of previous black Swiss Army Knives, this new collection consists of a Signature Lite, a Spartan and a Ranger Grip 55 pocket knife. A unique polispectral process is used to create exclusive black coloured tools, which perfectly match the shiny onyx black scales.
What are your major targets by geography, channel or retailer type as you seek to tap into a recovering market?
All the early signs and predictions are that Asia will lead the recovery in travel retail, and certainly this is the region which is showing positive signs for Victorinox. Our domestic and downtown duty free business in China is picking up again and our local market business in South Korea is showing signs of a slow recovery. We have already taken appropriate measures to equip our shops with general safety precautions such as plexiglass screens, distance signs, disinfection stations, limiting the number of people in-store, etc. In addition, we are working on signage and messages to welcome customers back as well as special GWP incentives.
Victorinox has invested heavily in expanding its travel retail footprint to almost 50 airports worldwide. How has the COVID-19 crisis affected this expansion strategy?
Well, it is fair to say that, like most brands, the recent period has primarily been about adapting our business and risk mitigation rather than expansion. We used this recent period to position us to better capitalise on opportunities when the world returns to normal. We are running digital training programmes to deepen staff’s product expertise and knowledge of consumer behaviours.
We also initiated the ‘Victorinox Travel Retail Group Studies’ where sales staff working with the same duty free operators came together in a virtual classroom and we shared industry knowledge and sales experiences with them. This helped maintain interest and motivation and fostered passion for our brand and products with the sales staff.
That said, expansion plans are not totally on hold. We are fortunate to have strong management backing; Victorinox is a family-owned company with a solid financial basis. So currently we are actively looking at and evaluating new opportunities as we are willing and capable to expand our travel retail presence where it makes sense.
Victorinox has always enjoyed the benefits of a diverse product assortment. Where is this diversification leading the brand today and what are your priority investments by category?
We continue to invest across the portfolio in order to elevate our multi-category status. Clearly our offer is better known in certain product categories – our iconic Swiss Army Knives and travel gear, for example. So, we are definitely trying to raise awareness of our watches and fragrances. Our fragrance relaunch, which we’ll be sharing more details of before the Expo, is all about doing everything in our power to make our fantastic products more attractive and even easier to navigate for consumers.
In a Moodie Davitt Report interview last year, you mentioned that Victorinox’s travel retail business was ‘Europe-centric’ but also noted the growing importance of the travelling Asian customer. In what ways have you tapped into the Asian opportunity and grown your market share with this key demographic?
As of 2019, we started to expand our travel retail footprint in Asia by establishing strategic partnerships with key travel retail distributors and operators. Last year, we successfully opened new travel gear point-of-sales in Shenzhen Airport and Zhengzhou Downtown Duty Free in China. In South Korea, we opened a Victorinox Watch counter in Busan Downtown, Seoul Downtown and Incheon International Airport with Shinsegae Duty Free and Lotte Duty Free.
You set the ambitious target of reaching 5% of company sales from travel retail within three to five years. How close are you to achieving that goal and what of the impact of COVID-19?
It is not a secret that the travel retail business has suffered severely from the current pandemic. Everybody knows that the business nearly came to a standstill. However, we see first signs of recovery and are confident that we can continue where we left off. We still want to grow our footprint in the travel retail business and are willing to invest.
How do you view the continuing impact of COVID-19 on the wider industry?
Coronavirus has immensely impacted the travel retail channel as flights and passenger numbers have dramatically declined. We expect that it will take travel retail a longer time to recover than local markets so we will need to be patient.
The recovery of travel retail mainly relies on finding an effective vaccine for Coronavirus and seeing a decline in infection rates. As soon as this is the case, we are confident that passenger numbers will recover and with this so will the travel retail business. However, we don’t see this happening before the end of 2021 or beginning of 2022.
The whole COVID-19 crisis has led the world economy into a severe recession. People have less money at hand and thus a lower spending power. However, we believe that if the offer is right, they will still be willing to invest in high-quality products such as those made by Victorinox.
How do you think the channel can and should engage with travelling consumers to ensure a sustained recovery?
Shoppers will increasingly look for information online in advance of their trips – so that they spend less time in the shops – before making a purchase. This is certainly an area where the travel retail channel needs to engage more with customers. The channel also needs to look at new offers in the form of click & collect, cashless payment or delivery of the chosen products directly to customers’ airline seats.
I believe that travel retail exclusive products have a key role to play in enhancing the appeal of travel retail as a shopping channel. Perhaps we might also see the introduction of tailor-made shopping offers for passengers when they book their air tickets.
How would you like to see industry partnerships evolve as we enter a new era for travel and travel retail?
Every crisis holds the potential for new beginnings. So far, the travel retail landscape has been dominated by a few big players. This might be an opportunity now to change to a more collaborative approach with more open discussion and information sharing between stakeholders.
Personally, I would like to see concession fees decrease somewhat so that new and innovative brands get the chance to showcase their products at airports. For Victorinox, the current reshuffling of the cards has already brought about some interesting opportunities, underlining that we are perceived as a reliable partner in the industry which makes us very proud.
Victorinox goes for Gold at Moodie Davitt Virtual Travel Retail Expo Victorinox is a Gold Partner at the Moodie Davitt Virtual Travel Retail Expo. The unique 5-day live event, followed by a 30-day showcase, begins on 12 October, just after the conclusion of the Chinese Golden Week holidays. It features a star-studded series of events across the five days, including a Symposium, category workshops and a new consumer research initiative. Registration is free for buyers, exhibitors and preferred media partners (Click here to register). |
