Pernod Ricard at the Virtual Travel Retail Expo: Winning with digitalisation, powered by consumer insights

INTERNATIONAL. Platinum Partner Pernod Ricard Global Travel Retail (GTR) made a dual appearance in the Knowledge Hub sessions at last week’s Moodie Davitt Virtual Travel Retail Expo, sharing its strategy around data and digitalisation amid the changing world of travel retail. Themes included the rise of ecommerce, how physical experiences can complement online interaction and innovation, such as a world-first airport robotic bartender (see below).

In a compelling one-to-one session, Pernod Ricard GTR Strategy & Insights Director Anuj Roy discussed with The Moodie Davitt Report Chairman and Founder Martin Moodie how the company is “staying ahead of the curve” to prepare for the future of travel retail in the face of the global pandemic.

The ‘Martell Perfect Door’, an experience wall devised by Pernod Ricard GTR as a digital touchpoint providing travellers with an engaging brand experience

Roy revealed that by staying true to its core business model and using a consumer-centric approach – drawing on multiple data sources – Pernod Ricard has been able to map the industry’s recovery and establish a closer connection to travellers, creating products and solutions aligned to evolving expectations.

Pernod Ricard GTR’s most recent research – led by Roy – involved over 10,000 travellers across nine nationalities and used social media monitoring to track recovery. This included monitoring the status of the virus, the levels of lockdown and mobility in the domestic market, as well as airline capacity, bookings and passenger traffic.

Roy noted that while consumer confidence in travel has shown signs of recovery in recent months as a new reality of life around COVID-19 sets in for many people, the fast-changing nature of the pandemic presents continued uncertainty. However, he said: “We believe in the transformational power of travel. It fulfils an intrinsic human urge to get out, connect and explore the world. International travel will rebound and with it, travel retail.”

The entrance to Platinum Partner Pernod Ricard GTR’s virtual suite at the Moodie Davitt Virtual Travel Retail Expo

Roy and Pernod Ricard GTR predict a major transformation within the travel retail space, driven by the rapid adoption of digital during the pandemic. This was the topic of a panel discussion in a separate session hosted by Pernod Ricard in the Virtual Expo Knowledge Hub. Speaking on behalf of Pernod Ricard GTR was VP Marketing Craig Johnson, who was joined by industry leaders Cameron Worth, Founder of SharpEnd; Mudit Jaju, Global E-commerce Head at Wavemaker; and Charlie Merrells, Head of Strategy at Molzi and former Head Buyer BWS at Amazon UK.

The panel was chaired by Doug Newhouse, Retail Editor at Drinks Intel, with questions also put by Martin Moodie in this key session.

Duty free ecommerce on the rise

As a result of the pandemic, consumer awareness of ecommerce in duty free is emerging, the panel noted, accelerated by consumers having to embrace online shopping in an unprecedented way. As Merrells pointed out, educating consumers around online services, and making these services as accessible as possible, will be essential for travel retail brands to make an impact in the future.

Digital simulations – here featuring Pernod Ricard GTR’s robot bartender – will be a key element in promoting alcohol beverages in the new world of travel retail

He said: “Right now, it’s important to get back to basics and offer travellers a compelling reason to purchase products within the [travel retail] channel. There are huge opportunities to provide convenient offers, and convenience is critical when you talk about the ecommerce journey. Education around services such as click and collect and making these transactions as frictionless as possible will be key to reaching consumers at various pick up points along the traveller journey.”

Johnson agreed: “A frictionless journey will, now more than ever, become absolutely critical. Airports are some of the most dynamic environments in the world, so the question is now: how are we going to leverage the digital experience to really add to this?”

Meanwhile, Jaju noted the rising importance of social media channels: “We’re consuming more media than ever before and one of the outcomes of that is the purchase journey becoming more omnichannel. We’ve already seen, particularly in some markets in Asia over the past few years, the evolution of social platforms into ecommerce channels. Facebook, Snapchat, and even Pinterest are starting to become meaningful front ends. Brands now have this unprecedented opportunity to bring themselves to life on digital platforms, and the platforms are really leaning in.”

Digital solutions to combat physical problems

A key challenge addressed by the panel was how to engage consumers when they are hesitant to handle product in duty free. Pernod Ricard GTR consumer data reveals that of those feeling less confident about shopping in duty free, 66% fear touching or picking up items that have been handled by other people. But, as Johnson argued: “At some point in the future, people will want to go in-store and connect with brand ambassadors for that human interaction again. What we’ll need to do in the meantime is add richness to products in a different way.”

Worth echoed this, also pointing out that “whether it’s through digitalisation, by way of connected bottles for spirits, or through other unique digital touchpoints in order to provide consumers with that wealth of data, brands need to be creative in how they get consumers to engage with product once more”.

The Martell Perfect Door is activated by motion sensors, giving travellers access to product information

Physical experience meets online interaction

While all panellists agreed that retail theatre remains essential, Johnson explained the need for these spaces to become more engaging. In doing so, he revealed a preview of upcoming store innovations. Pernod Ricard GTR is exploring one example of these innovations through its new ‘Martell Perfect Door’.

A GTR-specific feature, the Perfect Door is an experience wall that has been designed as a digital touchpoint providing travellers with an engaging brand experience. Activated by motion sensors, travellers will have access to the world of Martell via product details and brand heritage, all of which can be initiated using touchless technology.

Johnson explained: “The Martell Perfect Door is just one of the ways we’re looking to enhance the in-person experiences that travellers will have as they move through the airport. We’re conscious that when travelling, people may be trying to cut down on the number of interactions they’re having. The concept of the experience wall realises that and aims to provide the traveller with the information they need, while still having a shopping experience that feels as comfortable as possible.”

World’s first robotic airport bar in duty free

Johnson also revealed details around a world first for duty free, Pernod Ricard GTR’s new conceptual bar space equipped with a robot bartender. To be introduced into the channel soon, the space supports the group’s vision for the future of retail while addressing heightened expectations around hygienic and contact-free tastings with the AI bartender – the very first time a tasting robot will be used in travel retail.

The robot bartender will enable brand consultants to better understand traveller needs and suggest products accordingly. It also meets consumer demand for greater sustainability in the channel; the space’s branding can be changed instantaneously thanks to its digital screens, removing the need to produce additional POS assets.

Though industry regrowth may prove to be gradual, Johnson said Pernod Ricard GTR is turning the disruption caused by the pandemic into an opportunity to steer the group in a new and unique direction underpinned by data and digitalisation. With uncharted territory undoubtedly ahead, keeping open minds and open discussions across the sector will prove more important than ever, he noted.

Inside Pernod Ricard’s virtual suite at the Moodie Davitt Virtual Travel Retail Expo

View the sessions in full here (Anuj Roy) and here (panel discussion).

Visit the Pernod Ricard GTR virtual stand here. It remains open for 30 days following the conclusion of the ‘live’ event.

 

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