1.All eyes on China for Global Travel Retail
The traditions of Global Travel Retail are in serious flux, not least due to the shift away from Europe to hubs in Asia and the Middle East. Not least in China, where changing regulations are creating a ground-breaking new wave of opportunity for brands in GTR. A good example? Hainan in China: an island tourist hot spot, set to house one of the biggest luxury shopping malls in the world which will be fully duty-free by 2025. Big spirits companies are already building shops on the island, where they will be able to trade without needing a local partner.
2. The Middle East is leading luxury in GTR
The super-wealthy don’t travel first class these days. It’s all about private jets, private yachts and the luxurious products that fit their lifestyle. This trend is driving a new type of experience in airports in the Middle East, where out-of-this-world luxury shopping and dining is available. Opulent airports in Doha, Saudi Arabia and Dubai (plus hubs serving the booming luxury cruise ship market) are leaving their European and US counterparts looking a little tired. For whisk(e)y brands, this is changing the way high-value spirits are brought to market.
3. GTR: still the ultimate shop window
Whatever the location, airports still provide brands with a brilliant opportunity to launch new products and showcase their best to international consumers. This is of particular value for small companies who may not have global distribution but want to get their products into the hands of global consumers to build brand awareness. The key to success in this channel? Tastings win out over presence on shelf – but brands must be prepared to put money behind sampling and promotional activity which comes at a price.
4. Don’t expect a big swing to direct-to-consumer sales
Whisk(e)y isn’t gin – so don’t expect to see too many distillers ramping up direct-to-consumer sales in the year ahead. Social media is important, but traditional shops and bars will hold their own with consumers, who want to shop across the whole whisk(e)y category and not just individual brands. Brexit has made direct-to-consumer sales even less attractive for Scotch whisk(e)y makers, who can’t deliver direct from their distilleries to the Continent any longer. Other whisk(e)y producers are avoiding direct-to-consumer sales in order to maintain their healthy relationships with distributors, especially in the United States’ complex three-tier market.
5. The rise of regionalised packaging solutions
Since packaging trends, rules and regulations are often market specific, more distillers will smooth their routes to market by doing deals with distributors to produce the right packaging for their local market (under a strict approval process). For example, whisk(e)y makers may be under pressure (industry and consumer) to cut their carbon footprint and move away from cardboard boxes and other external packaging, but in some countries those elements are still a big selling point. Giving consumers and distributors that choice is becoming an important part of the process for many distilleries.
