TFWA presses ahead with plans for World Exhibition in Cannes and announces virtual platform TFWA 365

INTERNATIONAL. Tax Free World Association (TFWA) has underlined its commitment to hosting a physical trade show in Cannes in September 2021, saying that its membership has indicated a strong desire to gather again. It plans a hosted buyers’ programme to attract retailers and will offer rebates to exhibitors if certain revenue targets are met.

At a media briefing on Wednesday, TFWA also announced the creation of a new online platform called TFWA 365. This will be launched at the TFWA Asia Pacific Hainan Special Edition digital event on 21-24 June. TFWA 365 is a permanent resource that will provide year-round support and a range of services for TFWA members and industry partners. It will complement its physical events, said the association.

The TFWA Board addressed the hosting of Cannes as a physical event and outlined plans for TFWA 365 at a press event on Wednesday. Top row, from left: Stella Wright, Daisy Fannin, Clare Williams-Fannin (all Templemere PR); second row, from left: TFWA Managing Director John Rimmer, Vice-President Conferences & Research Arnaud de Volontat and Vice-President Corporate Sam Gerber; third row, from left: TFWA Vice President Commercial Donatienne de Fontaines-Guillaume, Vice-President Marketing Aude Bourdier and Vice-President Finance Frédéric Garcia-Pelayo; bottom row, from left: TFWA Marketing Director Cécile Lamotte and President Jaya Singh.

On the planning for Cannes, TFWA Vice President Commercial Donatienne de Fontaines-Guillaume said: “We are acting with agility and humility. We need to acknowledge that there are many things that we do not control. We are trying to take the best decision and to give a response that is appropriate whatever the circumstances are. It is important that we provide the right platform for the industry.

“Cannes is the place where we all want to be at the end of September. We deeply wish it will be possible and we are doing all we can to make it possible. After a wide consultation with our members, we decided together with the board and Management Committee to maintain the 2019 price per square metre for exhibitors. We also committed to provide a rebate to our exhibitors after the exhibition should our revenue be higher than budgeted. So we will give back to exhibitors.

“We are also showing that we are adapting to the situation by investing for the first time in a hosted buyers’ programme. If we have no buyers we have no event. So we want to have the whole industry gathering in Cannes in September and will make sure we provide all of the facilities for that.

“We know everyone is struggling and that our partners and friends have gone through restructuring. TFWA has also had hard decisions to take to maintain financial viability. But that is why we have decided to invest in the hosted buyer programme as priority number one. We are confident that all of our partners will support us in this. Of course we understand and acknowledge that there are different perspectives and points of view. But one thing is sure; there will be something, whatever the circumstances are, around Cannes. We will provide a platform for the industry to reconvene.”

Harbouring hopes of a safe return: TFWA presses ahead with planning for a physical event while investing in a complementary virtual platform (Photo: TFWA)

Noting that the TFWA 365 platform will be used to complement the physical event, President Jaya Singh said: “We at TFWA are a vital hub for the industry and we have a vital contribution to co-create with other stakeholders the shape of this industry, which will be so relevant as traffic returns.

“TFWA has never rested through this. We have invested in new capabilities, with the TFWA 365 platform. It is not just there to host virtual events, but to redefine the future, where we can combine the best of the physical and virtual worlds, and gives us options to be relevant and lead the industry in its recovery. So even in these times where we have to be prudent we are making the necessary investments to emerge stronger.”

Jaya Singh: “Whether we decide to have a physical, virtual or hybrid show, something will happen”

Reinforcing the importance of meeting physically, TFWA Vice-President Marketing Aude Bourdier said: “We all want to meet in Cannes. We will have events but the tone will be different, with less glitter for example. What is important is the great networking opportunities between buyers and brands. The City of Cannes has taken strong health and safety measures and we will do the same with our events.”

On how events around the city of Cannes might proceed, Bourdier added: “Things are changing by the day but we are looking at simple, humble events, possibly outdoors, that can take place. We work with the City closely, are monitoring it weekly and will let members know as soon as we can. We cannot wait to be on the beach in the fresh air at the end of September.

“As far as events are concerned, we will probably not use titles like cocktail or gala. We need to be more humble. We will provide networking but in a simpler way. We are also monitoring restrictions so we cannot say what will happen but we want events to run every night.”

Vice-President Corporate Sam Gerber addressed a survey of members about the association’s role, saying that the desire to meet physically remained strong and is “part of the DNA of our association”. He added: “We are a people business so the need to meet, to see each other, is hugely important.

“Equally, the need for learning and understanding, these are the elements that can be brought to the audience online via a virtual platform. So we have physical and virtual, and our membership base is right behind this.”

Vice-President Finance Frédéric Garcia-Pelayo said: “We are trying everything. We want Cannes to happen. That is our aim. We lost money last year to the end of April, we will probably lose money this year too. But this is why we have reserves. We must be prudent but our investment in TFWA 365 shows we are committed and we know that one day or another, things will come back.”

Outlining the backdrop for the industry today, Jaya Singh said, “We’ve been through this for a year now and we have learned how to be resilient. We know there are many challenges out there. Governments have yet to announce concrete measures in a coordinated manner when it comes to the opening of restrictions that will facilitate travel, which is the lifeblood of our industry. So uncertainty still prevails.”

Hainan Special Edition: Planning for the conference & workshops programme continues

He added: “We are assured that the guiding principle, whether we decide to have a physical, virtual or hybrid show is that something will happen. We are the vital hub of the industry and something will happen. And this will be our guide: the number one consideration is security and safety. For the time being, it’s in Cannes, but again, we have to be open and sensitive to changes in the environment.”

In addition, TFWA Vice-President Conferences & Research Arnaud de Volontat outlined plans for the Special Hainan Edition of TFWA’s Asia Pacific event. He said a strong conference and workshop event was planned, with speakers such as Dufry CEO Julián Díaz, China Duty Free Group President Charles Chen, Lagardère Travel Retail Chairman & CEO Dag Rasmussen, DFS Group Chairman & CEO Benjamin Vuchot, ACI Asia Pacific Director General Stefano Baronci, plus speakers from IATA, TripAdvisor and Alibaba, among others.

There will be a plenary conference on 22 June, plus workshops on 23-24 June, which will discuss the evolution of the offshore duty free business in Hainan, among other themes.

Q&A: Addressing key questions about Cannes 2021

The TFWA Board addressed questions from the media about its planning for Cannes (26-30 September), with a selection of the Q&A session presented below.

The Moodie Davitt Report President Dermot Davitt: Can you tell us more about the hosted buyers’ programme, and how it will work?

TFWA Vice President Commercial Donatienne de Fontaines-Guillaume: We are working on a mechanic where we would support a certain number of companies’ buyers to come to Cannes; the full mechanism is not yet decided. It will be put to consultation by the MC, to make it the most relevant it can be and that will be revealed shortly. But our message is to put Cannes in your calendar, it is important to be there. Of course there is one thing we do not control and that is the travel situation.

Dermot Davitt: It was early May last year when the decision to cancel Cannes had to be taken. What is the timeline and what are the criteria for deciding on whether the physical show proceeds this year?

Donatienne de Fontaines-Guillaume: First, I can reassure you that all the safety measures will be in place. Cannes is a place where there are many conferences. The film festival is due to take place in July. The Palais des Festivals has received special certification for its health & safety, hotels have taken measures, taxis are disinfected, there are health protocols in place everywhere. We are working closely with all of the authorities, the Mayor and the Palais des Festivals to be at the forefront of keeping our guests safe.

When it comes to deciding whether it can happen or not, be assured that we will do everything possible for it to happen physically. The only thing that can prevent us is the closing of the frontier. We have not yet put a deadline on when we can decide because the situation is evolving all the time. And it can seem difficult when you look today but that may become clarified or get better over the Summer.

One thing sure is that the Summer season is coming, that the whole European Commission is committed and the countries are committed to go full speed with vaccines so that the season can be saved. So we hope that we see improvement but at the moment I cannot give a date. We will try to push it as far as possible.

The Moodie Davitt Report Chairman Martin Moodie: The buyer support programme is a smart move and Plan B to go virtual or possibly to supplement Plan A is also smart. But smart doesn’t give clarity. I just wonder, given the health issues that are so serious in our world… plus budgetary concerns, perception issues about travel, and the many people who have lost their jobs, why must you do everything to make Cannes happen physically? We would love to get back to physical meetings, but in 2021 it’s going to be difficult to have people gather en masse in a single environment.

Jaya Singh: You make a very good point Martin, and I want to assure you that we continue to address all these points together not only as a Board but also as a Management Committee. The desire rather than the demand is there for physical.

That desire for physical face-to-face meetings is the feedback that we have heard from many parties and we are taking that into consideration. As we evolve the new culture at TFWA we are taking a lot of feedback from people of different points of view and really finding out what it is that they truly want. And this move is the product of feedback.

But yes, there are safety concerns. That is totally the top priority, and there is no compromise on safety. And if people do not want to come to Cannes, we offer the TFWA 365 option, of which more will be revealed later, but it will offer the ability to meet as well.

If we look at a scenario when nobody wants to come because of safety concerns, or we have another major outbreak of COVID, and governments shut down altogether, then we have a plan for that eventuality in the virtual 365 platform. So what we’ve tried to do from a planning and approach perspective is adopt the principle of flexibility and agility, catering to every possibility in terms of security needs, in terms of people wanting to have physical, of people wanting to have a virtual alternative. And then we will be in a position to exercise the right option, which is not the perfect option, because there are different perspectives, but the optimal option we can achieve.

Aude Bourdier: We sell brands, we sell products, we rely on smell, taste, senses. Our members want to meet again. We want to get together but do it in the right way. 

Sam Gerber: What was paramount [from TFWA’s research] was the need to see each other, the human interaction. Virtual has its limits. No matter how, we have to get in touch again to keep that human connection. Without that travel retail becomes just retail and we should not allow that to happen. It is fundamental.

BW Confidential Editor Oonagh Phillips: What commitments have you had from exhibitors this year?

TFWA Managing Director John Rimmer: We have been spending quite a lot of time consulting with the Management Committee and beyond in terms of defining our policy so we are just starting our commercial campaign for that. We will have a much clearer picture in the next few weeks. What I can say is there is a clear desire to come to Cannes, to be present physically, and that applies to the majority of companies we speak to. None of us knows exactly what the situation is going to be with health and travel restrictions, but we have to plan for the best and be ready for the worst. One strong feedback we have had is that if the buyers are there the brands will invest. So that’s why the MC has [approved] the hosted buyers’ programme, to help them to commit.

It’s difficult to give exact numbers and we know that this year there is no way we’ll go from we left off before, but we are confident that we can hold a viable event and the feedback we have had has been very encouraging.

TRBusiness Deputy Editor Luke Barras-Hill: How would the mechanics of the rebate to exhibitors work?

TFWA Vice-President Finance Frédéric Garcia-Pelayo: The commitment from the MC today is that whatever [revenue] we make that is better than expected will be redistributed to exhibitors who take part. We cannot say how much and there is no number yet. I wish I could say, as budgeting is the most difficult thing to do today. It will be whatever is better than plan and agreed by the MC.

DFNI-Frontier Editor Kapila Ireland: Having decided to move the Asia show to Hainan for this year [since moved online-Ed], was any consideration given to moving the Cannes show to a location that might be easier for travel, where perhaps vaccinations are rolled out, maybe even the UK?

TFWA President Jaya Singh: First, Hainan was never intended as a replacement for Singapore this year, it was a short-term move. The same applies to moving Cannes. We see strenuous sanitary measures in Cannes today and the number one consideration is security and safety. But the guiding principle will be that something will happen. Today the event is happening in Cannes and there are no plans to shift it at this stage.

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