Challenging The Future
The 2008 TFWA World Exhibition will urge visitors to guard against complacency and take action to ensure the continued growth of global travel-retail. David Davies reports
It has provided the international duty-free/travel-retail industry with its keynote annual gathering for many years, but still TFWA World Exhibition continues to expand in size, scope and influence. Attracting a grand total of 5,676 people, including 3,876 key visitors (up 8% on the previous year), to the Palais des Festival in Cannes, the 2007 edition continued the event’s upward trajectory, while hopes are equally high for the 2008 instalment. With growing concern about the long-term impact of the global economic downturn and encroaching environmental and health legislation, there is no shortage of issues to preoccupy the sector’s retailers and suppliers. It makes sense, then, that guarding against complacency is one of the motivations underlying this year’s event, set to be crystallised most explicitly during the opening conference.
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“The theme is ‘Challenge the Future’ and that is essentially what we are urging our participants to do,” TFWA president Erik Juul-Mortensen tells Frontier. “The duty-free and travel-retail industry is a very close-knit community. In fact, that provides the strength that has enabled us to overcome enormous challenges in the last ten years from political, health and environmental directions. However, it may also have allowed us to become somewhat complacent and even introverted. I believe that the industry is capable of more: more diversity, more choice for the consumer, and faster sales growth in line with passenger increases.”
In keeping with the conference’s long tradition of tapping inspirational guests from outside the industry, this year’s event will incorporate presentations from two speakers who, says Juul-Mortensen, “will stir the waters with their experience brought in from other industries”. Industrialist and UB Group chairman Dr. Vijay Mallya will address issues including the rapid development of the Indian economy, and the potential this holds for travel-retail. The second speaker, The Skills Exchange founder Hamish Taylor, will summon his considerable managerial experience to encourage suppliers, retailers and landlords to search out practices and methods in other industries that might be applicable to their own businesses.
Throughout Cannes week, there will also be an emphasis on the LAGs issue and, specifically, the fact that only two countries have been recognised by the EU Commision since the original regulation concerning transfer with duty-free purchases was adopted in July 2007.
“Progress is disappointingly slow,” admits Juul-Mortensen, “and part of the problem is a lack of engagement from the industry and their governments. TFWA World Exhibition is a perfect opportunity to givbe a call to action.”
The category mix
As to what delegates can expect to see on the exhibition floor, TFWA reveals that, once again, the largest category is fragrances & cosmetics with 27% of stands, compared to 30% of the global market in sales; followed by spirits & wine (21%); and confectionery & fine foods (11%). Altogether, luxury goods total 37% of stands.
While Juul-Mortensen declares the organisation to be “very pleased with the mix of exhibitors”, there is a trace of disappointment with regard to the prominence of one particular category. “Tobacco is slightly under-represented with 5% of stands vs 8% of the market, but then this sector is dominated by a few very large companies,” he admits. “Even so, we seek new faces on the scene and this year we welcome Silver Base International Development Co. to the show.”
Business as usual
In characteristic fashion, the 2008 Cannes gathering will also feature a comprehensive programme of sports and social events that do so much to give the event its unique, highly inclusive feel. The Sunday sports events and opening cocktail are, again, present and correct, as are the interest-specific workshops.
Changes include a relocated and upgraded TFWA Lounge for members and full delegate buyers. “It will occupy a large area at the front of the Palais on Level 1 and will offer full concierge service, laptop connections, hair and nail services, and a well-stocked bar,” reveals Juul-Mortensen.
Approaching another instalment of the event that, for many, continues to provide a pivot for the annual industry calendar, Juul-Mortensen is hopeful that visitors and exhibitors will take away “a firm belief that in spite of the current economic slowdown in many markets the industry is going well, and secondly, recognising the difficulties we are up against, a determination and agreement to work together to overcome these. Hopefully, the result will also be a fistful of orders and/or agreements for the coming year, a stack of business cards of useful contacts and a new energy to approach the future with vigour, an open mind, a good dose of ingenuity.” n
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