EDHEC Master Class: Travel Retail at Nice Côte d’Azur Airport with Arnaud Lescut

On November 12th, Arnaud Lescut, Travel Retail Manager at Nice Côte d’Azur Airport gave a master class on the future of Travel Retail. Nice Côte d’Azur Airport is the third airport in France for number of travelers, after Paris Charles de Gaulle and Orly.  In 2014, 11.7 million passengers traveled through Nice Airport, 63% being international travelers.

Travel Retail encompasses the commercial activities (duty free and duty paid) conducted in airports, train stations, ferries, and airlines, as well as sales to travelers in high street boutiques and factory outlets. L’Oreal names this business the 6th Continent. It is a business which increases steadily every year by a minimum of 5%. The perspectives for the next 20 years are positive: Forecasts indicate steady growth; also, although the travel retail business is dependent on international travel, it recovered fast from past financial crises and difficult travelling contexts (such as SARS epidemia, swine flu and ash cloud). Fashion, jewelry and watches represent 34% of the travel retail market (in USD), beauty products and fragrances 28%, Wine and Spirit 16%, the rest being Confectionary & Fine Food (8%) and Tobacco (13%).

The strongest Travel Retail channel is the airport channel. Spendings are influenced by improvement in retail space and navigability, offerings targeting key nationalities and point-of-sales marketing by professional retailers and key brands. By May 2016 for terminal 1 and May 2017 for terminal 2, Nice Côte d’Azur airport will have doubled its commercial space. The new positioning strategy promises an “amazing experience” to the traveler, with a Côte d’Azur “sea and sun” twist. Based on Arnaud’s presentation, we know travelers will have a wow effect. Looking forward…

Thank you to Arnaud Lescut, Travel Retail manager, Nice Côte d’Azur Airport for sharing with BBA 4th year students on Travel Retail pespectives.

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