SOUTH KOREA. “This kind of disruptive retail builds our brand profile in airports and is key to attracting the attention of travelling consumers.” So says The Glenmorangie Company President and CEO Thomas Moradpour, speaking about the Scotch brand’s Signet boutique at Incheon International Airport T1, the opening of which we reported via a global exclusive earlier today.
The shop-in-shop, a partnership with Shinsegae Duty Free, exemplifies how premiumisation and customer interaction can work hand-in-hand to drive sales in travel retail, if executed well, writes Kevin Rozario, who was on hand for the store inauguration.
The boutique represents the faith that single malt house Glenmorangie, and its owner LVMH Moët Hennessy-Louis Vuitton, have both put into the line. It is also the first time that Moët Hennessy Travel Retail has dedicated a shop-in-shop – large by any standard – to just one expression from a whisky house.
Kevin Rozario speaks to Thomas Moradpour about the opening in this exclusive interview. The CEO explains that it is not blind faith but a deeper belief in “crafting experiences” that drove LVMH to take this bold initiative.
The Moodie Davitt Report: This is a first-ever global concept store for Signet. Why did you choose travel retail to do this and why at Seoul Incheon Airport?
Thomas Moradpour: Travel retail is a crucial channel for Glenmorangie – and in Asia particularly, we’re going from strength-to-strength. As one of the world’s busiest airports – and one with a reputation for premium spirits – Incheon was a natural choice for our first Signet shop-in-shop. It’s a prime location where we can present the delicious flavours and intriguing story of Signet to millions of travellers.
When I see the rich, engaging experience our global travel retail team, and their partners at Shinsegae, have created, I’m confident that this will prove to be a very successful showcase for our brand and a blueprint for future retail experiences in other markets.
Why was Signet the choice among the lines in the Glenmorangie portfolio?
I’m in my first year as CEO of the company and every time I travel I always stop in front of the Glenmorangie spaces at each airport. One thing I noticed with striking regularity was that people picked up a bottle of Signet, and not just in Asia. So we know there is demand for it.
Signet is the pinnacle of our core range – it is a luxury whisky without an age statement. It’s increasingly popular, because it has such distinctive and accessible flavours: coffee, chocolate and really vibrant, sizzling spices. It’s particularly popular in Asia, as more consumers explore the whisky category and seek out new tastes. This is a spirit offering an intriguing innovation – the first Scotch whisky to use ‘chocolate’ malt in its creation, alongside stand-out premium packaging. This makes it doubly appealing.
Sensory experiences can be found in many airport locations today. What is different about this activation?
At its heart, Glenmorangie Signet is a complex liquid, but it was inspired by a very simple pleasure: that of a good cup of coffee.
What has been created at Incheon is a really simple but powerful way for travellers to discover and enjoy the delicious flavours of Signet. The coffee roastery design of the shop-in-shop was inspired by Signet’s intense espresso notes. In the store, people can explore the story of Signet; be immersed in the sensory journey of its creation; and enjoy coffee and chocolate pairings, which complement the richness and intensity of the whisky.
Would you replicate the Signet boutique concept in other locations in Asia – or elsewhere?
First we need to create momentum (with this one) and demonstrate that we can make it work. We have a great design and build that is very inviting and distinctive but it will be successful only if we animate it, if our staff can engage passengers, if it’s a lively experience over time. If we achieve these things then we will scale it. The real job starts after the opening.
Are you setting up Signet to be a flagship line for travel retail or are other brands a focus as well?
I wouldn’t say flagship, but hero for sure. In general the higher expressions do very well in travel retail such as Glenmorangie 19 Years Old [exclusive to travel retail], and Grand Vintage which, this year, will have an expression only for duty free. But the heart of the range is also important as it is a great way to get travellers into the brand.
Is travel retail a critical sales channel or more of a marketing ‘shop window’ for Glenmorangie?
It’s both. Travel retail is an important channel for our brands from a commercial perspective, but it also provides a platform to capture the imagination of travellers, with experience-first offerings, and exclusive products. It’s a very competitive market, which means we are driven to create ever-more appealing and delicious whiskies which can’t be purchased elsewhere.
With Asian travel retail doing so well do you worry that the spirits business in general is less focused in other regions?
At Moët Hennessy we are lucky that the travel retail function is global so we have teams covering all regions and all the key hubs. I personally don’t see any trade off.
Travel retail has seen sustained growth for a number of years, and provides us with great opportunities to engage new consumers. At the same time demand for premium single malt Scotch whisky continues to demonstrate strong momentum globally, so travel retail will continue to be a key focus for Glenmorangie.
I would say we are poised for growth in our category for a number of reasons such as demographics, distribution of wealth and the meteoric rise of Chinese travellers. The number of people today who can afford a €100 or €200 bottle is expanding, not contracting. We are seeing non-stop premiumisation and what we offer is at the top of our category.
Is there a limit to relentless premiumisation?
I don’t believe so. People are being more selective in their choices… they scrimp and splurge. They don’t want the average but spend on the things they care about and cut costs on the things they don’t (care about). It means that what is mediocre tends to do badly and what is very accessible or exceptional does well. We have picked our side! In spirits there is a trend for drinking less but better, with more sophisticated choices – and also seeking taste rather than status and image. Based on all of that I am very optimistic.
How is that optimism expressing itself?
We are putting our money where our mouth is. We are investing to double the size of our Ardbeg distillery [another single malt brand from The Glenmorangie Company] and adding a new still house for Glenmorangie. When we add new stills, build new warehouse after new warehouse and age liquids that we will only sell in 10 or 15 years time, it is because we have a very bullish view of the market and its potential.
