Lifestyle concept
Sand is still relatively new to travel retail, having started in the channel in 2001. But the success it has been experiencing since then, and the speed at which it has been growing, is impressive to say the least. Sales figures in 2006 increased by 25% over 2005, and Thomas Henningsen, Sand’s travel retail manager, is expecting a further growth of 15% for 2007.
Part of Sand’s success resides in its approach to fashion and to travel retail. “Sand is much more than a fashion house,” Henningsen explains, “it is a lifestyle concept. Personality is an integral part of the business throughout the whole company.”
This Sand personality can be found everywhere, from the way the company deals with business
partners – travelling to meet them and establishing a personal contact – to their marketing campaigns and public relations.
Being a privately owned company certainly helps Sand develop the image and personality it really wants. “Decisions are taken quickly and efficiently,” Henningsen says. The company is also self-financed, thus not incurring any debt, and there are no conflicts within the company – and no shareholders to please.
But fashion is much more than an efficient decision-making process. Customers today are evermore discerning and demanding in terms of quality and price. And this is where Sand shines. “Sand in many ways is affordable luxury in that there is something for everybody,” says Henningsen.
Indeed, Sand could be seen as a total solution fashion house and states that it can dress any man or woman from head to toe, including accessories. With its ranges for men and women cleverly arrayed into categories such as Black Label, White Label, Red Label, Pink Label and SJ Jeans, the Danish company knows how to fulfil the promise for more than just clothes.
According to Henningsen, Sand appeals to “men and women who enjoy the finer things in life. Not luxury in and of itself, but all the little pleasures in life that make it worth living. They are independent-thinking people who like to be different, but not too different. Fashion for Sand is a way of affirming one’s personality without being extravagant.”
It is a meticulously studied approach to retailing, then, that can be found in the company’s tackling of the travel retail channel. When Sand first debuted in travel retail in 2001, the channel was seen as a brand extension project. It was important for the company to showcase the brand, and money-making was not a priority. But the company’s position has changed since then. “Today, travel retail is strategically important to Sand,” Henningsen explains, “not just as a brand extension but also as a profit centre. It is also used as a Trojan horse into new domestic markets.”
It all comes down to understanding customers and clients. The former will drive demand while the latter will ensure that travellers can find what they want and thus be encouraged to buy. “In travel retail, people don’t just buy clothes or fashion,” says Henningsen. “People don’t have the time, inclination or desire to go queue at shops on the weekend to buy clothes. They want to spend them with their families. Duty free
allows them to buy clothes in a relatively hassle-free environment. We sell time. That has become a
commodity today.”
As for retailers, Sand wants to ensure that they have maximum flexibility and adaptability with the company’s full range of products. While there is no specific line for TR, Sand makes the entirety of its collections – five a year, including accessories – available to buyers in travel retail. Buyers can adapt to customers’ needs by choosing items from the whole collection.
This does present certain challenges such as the lack of space and the need to cater to both men and women in this limited environment. To address this particular challenge of space, Sand developed its own concepts for all retail opportunities, from accessories – tailored for small locations and focused on high performing product categories such as shirts and accessories – to shop-in-shop and concept stores, which can display all Sand labels and collections, and allow customers to fully experience the world of Sand.
The emphasis is put on quality rather than quantity. “We would rather have a few shops but be happy with them,” Henningsen points out. The aim is to build a portfolio of clients and establish such a relationship with them that their needs are fully understood. For instance, Sand is looking into the possibility of buying before travelling and collecting later. “Try it and reserve it on the way out,” Henningsen illustrates, “and collect it on the way back. There is no inconvenience in having to carry it around.”
Fashion is not an easy category to present in TR. Space requirements and time constraints all play against the retailer who has to seduce travellers quickly enough to entice them into the store and purchase an item. Adding to this is the difficulty of showcasing an ever-changing product category. Collections are developed all the time and this makes fashion a fast-paced, emotional category that depends on a lot of variables.
But Sand is convinced that travel retail has a lot to offer to fashion houses. Fashion might not be seen as a core category, but it brings that little bit extra to a traveller’s shopping experience that justifies its existence in the channel.
With a presence already established at airports in Copenhagen, Vienna, Helsinki, Keflavik, Oslo, Arlanda, Kiev and Bangkok – including a presence in Downtown Duty Free – and with plans to expand to Amsterdam, Brussels, Frankfurt, Hamburg, Heathrow, Manchester, Malta, Rome Fiumicino, Abu Dhabi, Dubai, Qatar and Hong Kong this year, Sand certainly proves that fashion does indeed have its place in travel retail. n
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