Industry Analysis

After two years of disruption, uncertainty, and endless shouts of ‘you’re on mute’, the duty free and travel retail industry was finally able to reunite at TFWA Asia Pacific Live last week.

Industry colleagues had the opportunity to interact and discuss business matters in-person once again, and learn about some of the most important elements as the industry in the region continues in its recovery.

Templemere was of course in attendance, and whilst it was truly fantastic to be able to meet face-to-face after so long a time, the event also provided a number of key insights and discussion points for the duty free and travel retail industry moving forward.

Asia Pacific is on the (long) road to recovery

The recovery in APAC is going to take time and those looking for a quick solution should quickly revise their thinking. Many international borders have still yet to reopen, and once they do it could still be some time before the travel industry shows significant signs of recovery. The correct mindset moving forward is to think longer-term and use this time to plan how to make the biggest impact when travel returns in full force.

However, the industry is recovering and is on an upwards trajectory once again. It’s also certainly worth noting that APAC is an entire region, not just China, and whilst China is not forecasted to recover any time soon, other markets such as India are on the rise.

Experience is everything

No, this is not a new concept, but it has arguably never been more relevant. The new generation of consumers has indeed arrived and they expect the digital elements which now exist in day-to-day life to be a part of their duty free experience. The comfortable, ‘business as usual’ way of doing things will simply not work in the modern world. Customers want new, engaging concepts and, as travel continues in its recovery, the industry will have to provide them.

The power of social media must not be underestimated

Whilst most organisations appreciate social media has a place in the industry, many don’t fully consider its scope.

Social digital outreach is essential for companies who truly want to engage with and attract new customers. The industry in Asia Pacific has still not fully capitalised on these new developments, and opportunities are there for those willing to grasp them.

The time for sustainable action is now

Sustainability is no longer a bolt-on. Consumers are placing increasing importance on sustainable practice, and the industry needs to stop talking about sustainability and take serious action. Greenwashing helps no one, and neither does ticking enough boxes to meet the minimum expectation. The industry will need to make a conscious effort to work closer together in order to create a more sustainable model and make a real change.