The head of Global Travel Retail at Diageo, Andrew Cowan, believes that the potential for growth in the travel retail channel significantly exceeds current industry forecasts. Speaking at the Tax Free World Association (TFWA) Exhibition & Conference in Cannes, Cowan emphasized the importance of rethinking passenger engagement and integrating brands into the travel experience.
Cowan pointed out that even amidst geopolitical issues and economic challenges, the annual influx of 2.3 billion international travelers presents a substantial opportunity for growth. Stressing that Diageo converts about a third of these travelers into buyers, he argued that even a tiny increase in foot traffic could lead to meaningful growth, claiming that growth is a conscious choice rather than a mere trend.
During the panel discussion, Cowan highlighted the parallels in ideologies between Diageo and confectionery giant Mondelēz, with both companies focusing on experience-led retail and category strategies. He cited the need for retailers to create emotional connections with travelers, using specific examples of successful activations, such as the engagement around Tequila at Heathrow.
The discussion also touched on the competition from entertainment and social media platforms like Netflix and Instagram, which engage consumers post-duty-free. Cowan acknowledged the difficulty in translating pre-trip engagement into store footfall and noted that while spirits foot traffic has historically stayed around 12%, there remains an opportunity to enhance customer interaction and brand-building in travel retail.
Overall, the conversation hinted at innovative approaches to elevating the retail experience in travel settings and expanding the potential for both Diageo and its partners within the industry.
