INTERNATIONAL. Nestlé International Travel Retail (NITR) is this week partnering with The Moodie Davitt Report to share details on the key drivers that can make confectionery a US$10 billion travel retail category.
The confectionery house is reinforcing its messages with details of those drivers in a special makeover of our home page this week, and through a series of stories starting today.
The pledge is a commitment by the confectioner to help double total travel retail confectionery sales to US$10 billion in the next ten years (10 in 10), in partnership with retailers, airports and other brand owners, as revealed by Nestlé International Travel Retail General Manager Stewart Dryburgh earlier this year. This came after Nestlé undertook a major research project and established new drivers for growing the category.
The NITR vision is to focus on consumer-centric, future-focused opportunities that will drive incremental growth in the category over the coming years.
Nestlé has said these drivers will need to be activated with SOUL (stories, occasions, unique products and local atmosphere).
This week, The Moodie Davitt Report will be adding detail about these drivers each day, before releasing a special Spotlight eZine shortly that brings together the elements of the 10 in 10 pledge.
Among the drivers, Nestlé is aiming to encourage year-round gifting and to celebrate the seasons.
The first is designed to capitalise on the ritual of giving chocolates, biscuits or sweets to either impress or as a small token of appreciation after a trip.
It is about driving frequency and/or premiumisation by making confectionery more relevant for more gifting occasions.
For this, Nestlé has said customers are often looking for authentic products that tell a story. It said there is an increasing number of travellers for which gifting expensive products back home is culturally binding, and that consumers seek products that are not available in their local market. Other trends include more people travelling across age groups and social classes, with shorter duration of trips, which restricts time to seek out gifts.
The unmet consumer demand, said NITR, is to deliver an appropriate message, impress someone or to show appreciation.
Solutions can include more products that differentiate from those available in domestic and other duty free, highlighted through bespoke POS; ‘pairing’ assortments and brand collaborations for secondary consumption occasions and till packaging and wrapping that enhances the giver and receiver sharing moments. The aim is to also drive core gifting solutions by occasion-driven missions, from saying thank you to happy birthday to I love you.
Celebrate the seasons is about enhancing seasonal moments with products to gift or bond with friends, family or partners.
It is about making deeper connections through confectionery purchase, by finding solutions that leverage global celebrations and exploit local market opportunities in different places.
Here, strategic initiatives include offering relevant product for the seasonal gifting mission and adapting it with sleeving or other relevant solutions for customers.
This should “assess and exploit where possible, local market seasonal offer and support with the appropriate in-store communication with the lowest degree of complexity,” said Nestlé ITR.
Over the next three days, we will look into other major drivers for the confectionery category.