Frontier Magazine
February 2009

Dynamic days

Bang & Olufsen and Harman Kardon are among the high-end brands represented by PASCO GmbH in worldwide travel-retail. David Davies finds out the latest from general manager Robert Suter (pictured)

Earphones, headphones, headsets, digital cameras and MP3 players are among the many items to be performing strongly for PASCO, an electronics supplier based in the German town of Sandhausen.
Established in January 1982, PASCO has developed an extensive portfolio of brands that now includes Bang & Olufsen, Harman Kardon, Philips and Sony. With such an extensive roster of highly-rated brands within its reach, the company is well-placed to capitalise on the increasing prominence of the electronics category within the overall travel-retail mix.

And, according to PASCO general manager Robert Suter, this is a great time to be plying your trade in TR. “The main trend is positive indeed – buyers are more open to electronics than they have been in the past,” he tells Frontier. “We depend on the manufacturers to come up with the right products, but have found that especially unique products are often bought on impulse by travellers.”

Working alongside worldwide sales manager Jack Horrey, Suter has grown the PASCO business by focusing on the delivery of the right offer, with the right specification, at the right price tag.

The company’s most successful products in travel retail at present include Sony Cybershot digital cameras and Bang & Olufsen’s Ear Set 2. The latter is particularly noteworthy: currently listed onboard British Airways, Lufthansa and SWISS International, it’s a Bluetooth headset that can be utilised with all Bluetooth-enabled mobile phones.

The Ear Set 2 is also a product that complements PASCO’s emphasis on products with a strong relevance to everyday life. “Interest in electronics will increase further as there are more gadgets and devices out there which enable people to do things,” believes Suter. “This will lead to more new products being developed and brought to market.”

Headphones, headsets and MP3 players have also been performing well for PASCO throughout the duty- free and travel-retail channel.

While clearly optimistic for the future growth of the electronics category, Suter acknowledges that challenges do remain for any supplier looking to establish – and maintain – a presence in this competitive market segment.

“The biggest challenge for electronics in this channel has to be the margin issue, followed by the packaging of products,” he explains. “Airport shops want something catchy and not too small, whereas airlines insist on the smallest packaging possible to save space on the trolleys.”

Nonetheless, Suter is well- aware of the advantages intrinsic to the captive travel-retail environment, and is determined that PASCO will go on making the most of them by strengthening its existing presence in the channel, and working for expansion by engaging with new customers.

“It is important to remember that travellers – especially the coveted ‘road warriors’ who have a natural affinity for electronics – have time to look at products which interest them at airports or while flying,” he observes. “These same folks are usually starved for time when they aren’t on the move because they lead very busy lives.

“As far as PASCO is concerned, our priorities are to further build the business by both adding new customers and getting existing ones to take on additional products.”

Delicious    Digg    StumbleUpon    Facebook

Wednesday 11th, February, 2009

Author: David Davies

Click here to go back