INTERNATIONAL. The most important vendor practices have been revealed in Advantage International Group’s annual travel retail survey.
‘Having brands and products that provide adequate margin levels’ was regarded as the most critical factor among retailers. The practice had an importance rating of 85 out of 100.
“The consistent number one priority may come as no surprise, ‘margins’,” said Advantage. “We find this practice not only critical to the retail operators in travel retail; in most countries around the world where we run the programme for the local domestic market, we find it is a top priority there as well.”
The top three factors in Advantage’s ‘Top Priorities in the Travel Retail industry’ survey, which asks retailers to evaluate vendors on a set of 30 distinct practices and assess the level of importance of each, remained the same as last year.
In second was ‘ensuring good stock availability/minimal out of stocks’ (with an importance rating of 81), and in third was ‘delivering orders at the date and time requested’ (with an importance rating of 78). “Simply getting the basics right by delivering at the time requested, and maintaining stock availability will help build favourability,” said Advantage.
‘Collaborative joint business planning’ was one factor that made a significant leap in importance, going from number 22 in 2015 to the top ten this year. “This is significant and perhaps not a shock,” commented Advantage International Group Senior Manager, Global Business Development Nestor Sanajko.
“The macro and micro economic challenges both vendors and operators are facing highlight the value of close partnerships and the need to create those synergies together, especially through troubling times.”
Sample commentary from operators around the world features below. Advantage asked the question, ‘How well are your teams executing their joint business planning with your operators and could they be better?’.
