Moodie Davitt NEXUS edition 6: Connecting travel, retail, luxury, brands and beauty : Moodie Davitt Report

INTERNATIONAL. Moodie Davitt NEXUS brings you a curated summary of (and links to) key stories from the related worlds of travel, retail, luxury, brands and beauty. All have been chosen for their relevance to (or repercussions for) travel retail.

NEXUS is available on dual platforms, first via a weekly e-Newsletter and later here at The Moodie Davitt Report.com, which enjoys almost five times the monthly web traffic of its nearest rival.

#01 – Vanity Fair

A click-baity headline, yes, but an interesting piece. Vanity Fair speaks to Samantha Ravndahl, a highly influential beauty blogger who is refreshingly honest both with her opinions on products and about how she makes a living. If she’s received anything in return for a post or review – from cold hard cash to a free lip balm – she’ll tell her fans about it.

The article raises some interesting questions. As influencer marketing becomes more and more prevalent, and the line between sponsored and ‘organic’ content becomes blurred, who holds the responsibility to make sure the audience knows which is which – the brands, the influencers, or an as yet unspecified third party?

Soundbites:

Ravndahl recalled a conversation she had with a cosmetics company last year that told her she didn’t need to say the content was sponsored, and instead, could just use a brand-specific hashtag. She didn’t bite, noting “How does a consumer know the difference between someone who’s using that hashtag for exposure, to get the brand to look at them and see their post versus somebody who’s using that hashtag for disclosure, saying, ‘Hey, I’m paid to post this.’”

#02 – New York Times

We hear a lot about ‘cult’ products these days, from handbags to fragrances, but New York Times may be correct in its suggestion that Away’s colourful carry-ons (equipped with built-in chargers) are the first suitcases to achieve cult status.

Bridging the gap between the mainstream carry-on and the Louis Vuitton trunk, Away has won a devoted fanbase with its mid-range prices and chic design. But more than that, the brand’s success is down to its ability to capture an audience to which stylish and frequent travel – or at least the appearance of it on social media – has become a way of life.

Soundbites:

In December, at an airport in India, I saw a woman fight back tears when a gate agent told her that she might have to check her Away carry-on, owing to overhead compartments that were more compact than average.

“Sometimes, when I really miss my luggage but I have no place to go, I’ll just open up my luggage on the floor and fill it,” – Shelley Bazemore, Away enthusiast.

#03 – WWD

WWD may stand for Women’s Wear Daily but it’s menswear that’s under the microscope here, sales of which continue to show impressive growth across various categories and across the world. Senior Editor Men’s Jean Palmieri analyses figures from various sources and they all agree that men’s apparel sales are on the up.

Palmieri warns, however, that men are highly discerning consumers and that brands cannot expect to win their custom without serious effort. The fashion-conscious gentleman wants something new and different to help him stand out from the crowd, and if he’s shopping in-store he wants an experience, meaning traditional retailers could be set to lose out.

Soundbites:
Greg Petro, President and Chief Executive Officer of First Insight, said that menswear sales continue to accelerate but they’re being driven by brands that are creating unique product. Whether that’s luxury, digitally native or store-based brands, these are all “taking a cut of the business, and men are being better served.”

#04 – Seeking Alpha

Investment community website Seeking Alpha curates content from a network of stock analysts, traders, economists, academics, financial advisors and industry experts – and regularly carries insights and analysis related to luxury goods and travel retail.

Here, analyst Joseph Harry offers his view of Richemont’s diversification into a new category of watches via the launch of Baume (not to be confused with Baume & Mercier). In the uber-competitive world of luxury watches, it’s a move designed to target Millennial watch shoppers, but could it tarnish the group’s reputation at the top end of the market?

Soundbites:
I think that Richemont’s experiment into ‘basic’ watches that aren’t ‘Swiss Made’ might be a good ‘testing of the waters’ idea to try and attract Millennial audiences, but in the end, I fear that it may end up cheapening the name of their higher-end brands like Baume & Mercier instead.

Long-term, I think they should stick to the high-end and prestige categories where they own iconic brands that have way too much history for a start-up company to duplicate. The ‘old world’ charm and craftsmanship of brands like Jaeger LeCoultre and Vacheron Constantin are partially the reason why these luxury brands are so highly valued, after all.

Just because Millennials don’t buy luxury watches now, doesn’t necessarily mean they won’t later on down the road when they can afford to.

#05 – South China Morning Post

In an interview with the group’s Chief Sustainability Officer Marie-Claire Daveu, South China Morning Post explores the programmes and partnerships that aim to turn luxury powerhouse Kering green. In the luxury business, says Daveu, sustainability should be second nature. That’s a sentiment that we believe each and every company in travel retail should applaud.

Soundbites:

Kering Chief Sustainability Officer Marie-Claire Daveu: “When [CEO Francois-Henri] Pinault decided to go on this journey, it was very clear that it wasn’t about selling more products. When you buy a luxury product, it’s not just for two months, so the idea of sustainability is already ingrained within the DNA of the product itself.”

#06 – Jing Daily

A month ahead of Golden Week, KOL agency ParkLu has released a report suggesting that Chinese influencers are moving away from WeChat in favour of smaller social media platforms.

As The Moodie Davitt Report’s business information partner Jing Daily suggests, those with interest in the Chinese market may have to adjust their influencer strategies accordingly…

Soundbites:

Chinese outbound travellers usually look for destinations that are WeChat-worthy to impress friends, but according to the latest travel influencer marketing report from key opinion leader (KOL) agency ParkLu, that’s changing. Based on social media content distribution from May 1, 2018 to July 31, 2018, covering more than 30,000 influencers, KOLs are favoring Weibo, followed by smaller rivals Little Red Book and Douyin, with WeChat lagging far behind.

#07 – Express.com

Does travel retail, faced by an onslaught of online competition, make enough of the fact that it only sells genuine product? We think not, and a barrage of headlines last week about counterfeit (and often downright dangerous) cosmetics available online reinforced the point.
Express.com (the online version of UK newspaper the Daily Express), reported that fake copycat cosmetics worth hundreds of thousands of pounds had been seized by trading standards officers, including perfumes, mascaras, lipsticks, lip and eyebrow pencils purporting to be from genuine Benefit, Chanel, Dior, Nars, Kylie Jenner and Mac ranges.
Never was the old adage, ‘You get what you pay for’ (or don’t) more appropriate. Perhaps travel retail should take a more proactive approach to the authenticity it offers. A standard guarantee of origin perhaps?

Soundbites:
According to a report by the Local Government Association (LGA) many of the counterfeit versions contain dangerous substances including lead, mercury, cyanide, arsenic and paint-stripper which can have toxic effects on vital organs. One lipstick even contained rat droppings.
The fakes pose serious risks including chemical burns and skin rashes, says the LGA. Exposure to mercury can damage the nervous system, digestive and immune systems, lungs, kidneys, skin and eyes. Many illegal counterfeit products are made overseas, especially in China and Hong Kong, and are sold over the internet, so there is no way of ensuring all the ingredients are safe.

#08 – Vogue Australia

An easy read, but a significant one in travel retail terms. It may be an advertorial, or a brand partnership, or however we’re labelling these not-quite-editorial-not-quite-advertisement pieces these days. But nonetheless, a full feature guide to the joys of an airport – in Conde Nast’s flagship fashion publication to boot – says a lot about the way perceptions are changing. No longer is the airport just the place you have to be before you fly. Now, says Vogue, it’s the place you turn up to an hour early to ensure you make the most of it.

Vogue is treating Sydney airport as a destination in its own right. And why not? Music undoubtedly to retail boss Glyn Williams’ ears.

Soundbites:
Sydney Airport has managed to make that pre-flight wait exciting — even if you don’t have the luxury of an airline lounge to go to. Here, we’ve compiled our Little Black Book of where to eat, drink and shop at Sydney Airport, because visiting an airport shouldn’t mean you have to sacrifice the glamour. Jet set, go!

#09 – The Moodie Davitt e-Zine

Don’t forget to read the latest issue of The Moodie Davitt e-Zine – Travel Retail’s Lookbook. Inside, we take a look at some of the most vibrant and ambitious travel retail campaigns of the summer, exploring the new and exciting platforms brands are using to snare the attention of today’s travellers.

You’ll also find coverage of indigenous art at Sydney Airport, a celebration of all things Scottish at Glasgow International, a profile of PeriscapeVR’s airport virtual reality offerings, and much more. Our spectacular new full-screen format allows us to highlight the industry through words, pictures and video like never before.

Soundbites:

From extraordinary levels of social media engagement to compellingly immersive experiences, brands and retailers are finding new ways to snare the attention of today’s travellers.