Dutch travel retail electronics and lifestyle company Capi has big ambitions to expand in the channel, with a focus on differentiation in its assortments, store design and service. That’s according to Peter Wiggers, Managing Director of the Royal Capi-Lux division, speaking to The Moodie Davitt Report last week in Cannes.
Capi was acquired by retail to distribution group B&S Global in 2012, though the biggest impact on the company’s recent history came four years before that, says Wiggers. “I joined the company on 1 October 2008, in the same month as Lehman Brothers collapsed and the world changed. The financial crisis caused us to look deeply at our concept, which was not perfect for a new world and new consumer, and meant we accelerated changes much faster than if there had been no crisis. That pressure turned out to be a benefit.”
The strategy and concept that was newly created at that time still resonates today.
“Electronics are high involvement products for people,” says Wiggers. “They feel a close connection to their tablet or smartphone or camera, yet the way they are still sold is very much driven by discounts, in masculine environments. But people shop and act differently in this environment than they do elsewhere. There are different mindsets.
“We felt we had to find a different way, one that stood apart from the domestic market. So we created The Travellers Electronics Company brand, fully focused on travellers in this niche world of travel retail. We decreased the ranges to make them simpler. We focus on the leading A brands in each category from Apple to Philips, we have premium niche brands too such as Bang & Olufsen or Leica, and we also have a private label collection with items such as MiTone and Clöudz. That gives us diversity.”
Wiggers worked previously in food and fashion retail, segments where strong visual merchandising and category management are key. Capi’s store concept draws on these segments, delivering certain important benefits.
“We now attract may more women into the stores, around 40% of people who enter, and we’re proud of that. Previously these were shops for boys’ toys. We investigate our shoppers closely and we find that the real experts on technology already have bought the latest items. It cannot be about tech specifications any more, and in any case people trust in names like Bose or Apple and they also trust Capi. It’s about talking up consumer benefits.
“Our designs are like fashion or lifestyle stores, with fixture on the walls offering people the chance to see and touch. Also, we don’t have discount sales.”
With a network that spans Amsterdam Schiphol, the Nordic states, South Africa and China (the latter through a franchise at Haikou Meilan Airport), Capi has a solid global base, but it continues to seek expansion.
“We are moving into new markets through our B2B department Capi Global, with airport and cruise the focus. We opened last year at Copenhagen Airport and we’ll open at the new Muscat Airport with ARI too.
“It is exciting. Our advantage is that when you work with A brands, those are international and they don’t need advertising. You don’t need to conform to local sizes: everyone owns a smartphone for example. That means our concept can translate to new markets well.”
That can only happen with the right product range, and that has changed with the times too, says Wiggers. “The once core products are not as important as they were. Digital imaging items such as camcorders or cameras were once one-third of our turnover but is not so important any more. Nor are MP3 players or DVDs. It’s about accessories such as headphones or even smart home appliances connected to your phone, plus personal and health care, from shavers to beauty technology.
“We don’t worry too much about waiting for the next trend. Once we see something we think will be interesting for customers, we go out and get it. Sometimes it works, sometimes it doesn’t.
“Impulse and gifting are other drivers. We package up nice power packs with accessories for men or women that can be an alternative gift from a perfume or chocolate. That is also why we offer a table in the store with gift options at various price points for all ages.”
On partnerships within travel retail, Wiggers says: “Those airports where we are present have a good understanding of the category and what it brings. Some others take a different approach. Take Schiphol or the big Nordic airports: we are located in the centre of the shopping areas because they took the view that people expect electronics at the heart of the offer alongside news & books, liquor & tobacco and beauty. It’s an important category.
“In some others we have only a gate store and it works less well. Our job is to convince these airports that we can generate substantial volumes through our lifestyle stores.
“Looking ahead, we want to add new business at airports or in other channels. The B&S ownership means we have a better network and more opportunities to grow. Ultimately we are positioning ourselves as the leading company in travel retail electronics, but to achieve that you have to be different and you have to be a trend-setter. That’s what airports expect from us.”
