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Global Duty Free & Travel Retail Industry on Course for Annual Sales of 50 Billion US Dollars

PARIS, November 14, 2012 /PRNewswire/ --

"The most recent annual sales figures from Generation showed our industry reached 46 billion US dollars in 2011. Even allowing for the positive impact of exchange rates against the dollar, this was a performance to be proud of."

To view the Multimedia News Release, please click:

http://www.multivu.com/mnr/58643-tfwa-world-exhibition-2012

Speaking at the annual TFWA World Exhibition Conference in Cannes on Monday 22nd October, Erik Juul-Mortensen, President of TFWA commented that, "Our brands, resilient and resourceful, demonstrated growth across all categories, with luxury goods leading the way."

Highlighting the strength of the Asia Pacific region he continued, "This 2011 performance was all the more remarkable given the persistent currency turmoil and the continued economic gloom within the EU, particularly the Eurozone countries, a weak US economy and political and social unrest in North Africa and the Middle East."

Noting the continued growth in 2012, Juul-Mortensen said, "If we maintain this current direction, and we avoid major crises, we are on course to achieve sales of over US$50 billion this year. The latest sales growth forecasts see travel retail potentially hitting $60 billion plus by 2015 and $120 billion by 2020."

Keynote speaker Madeleine Albright, former U.S. Secretary of State and Chair of the Albright Stonebridge Group provided an erudite summary of the current geopolitical situation. She said that there has always been a trend towards globalisation but it is the pace at which change happens now that has increased.

She pointed to four realities: the growth of some economies - China, Brazil, Russia, Turkey - which has changed their economic leverage; new technology which has fuelled political change with four governments overthrown in the Middle East and a fifth under intense siege; the evolution of security threats which are even more threatening than before; and religion which is a source of support to millions but whose doctrines can cause conflict.

"Although we cannot underestimate these problems," she concluded, "we cannot be panicked by them either."

The Conference, on the theme 'A Brand New Dimension', also featured presentations by Jean-Charles Decaux, CEO JCDecaux on new modes of engagement with consumers and Kjell A. Nordstrom, Economist, on future business strategies in the face of shifts in society.

Attended by a record 894 delegates, it set the scene for TFWA World Exhibition which gave 462 brand-owners the opportunity to showcase thousands of products before buyers, agents, distributors and other trade visitors representing airports, airlines, airport retailers, ferry and cruise line companies and other duty free outlets. The exhibition occupied 21,000m2, the largest exhibition of its kind ever.

A record total of 6074 trade visitors flocked to the week-long show in Cannes, up 4% on 2011, all keen to update on trends and view the latest products.

Many of the items on display are exclusive to travel retail; consumers have demonstrated the appeal of products which cannot be found on the high street. Brands often use travel retail as the global launchpad for new products and the first place these are revealed to buyers is at TFWA World Exhibition.

The global duty free and travel retail industry is a dynamic and prosperous market place. The total sales of US$46 billion in 2011 represent an increase of nearly 18% on the previous year and for the first time in the history of the industry, the Asia & Oceania region outpaced Europe with sales of US$16 billion - up 25% on 2010 - compared with US$15.6 billion in Europe, the birthplace of duty free & travel retail, according to Generation Research.

Airports dominate the market with nearly two thirds (61%) of sales, with airlines 6%, ferries 5% and downtown, cross-border and military duty free stores accounting for the remainder.

In spite of the current economic problems in global markets, luxury goods from fashion and accessories to jewellery and watches are the most popular purchases generating nearly US$17 billion in revenue a year. Fragrances and cosmetics have traditionally been a great favourite and today they account for a third of sales (31%). Wines & spirits, a category which is noted for its innovative marketing techniques such as travel retail exclusive products and in-store cocktail bars, generates sales of almost US$8 billion.

In terms of passenger numbers, the future of the duty free and travel retail industry looks secure however the industry faces many challenges. Several policies pose a threat to the industry and as such a threat to the non-aeronautical revenue streams of international airports.

TFWA World Exhibition provides a window to the world of brands but also offers a forum in which industry participants can discuss such concerns and network in pleasant surroundings. The next TFWA World Exhibition will take place in Cannes from 20th to 25th October 2013.

Before then industry executives will congregate at the MEDFA Conference on 26th and 27th November in Dubai and at TFWA Asia Pacific Conference & Exhibition in Singapore from 12th to 16th May 2013. In addition, in response to keen interest from the trade in developing duty free and travel retail in China, TFWA and the Asia Pacific Travel Retail Association (APTRA) are organising the 'Industry Conference on China' in Beijing from 5th to 7th March 2013.

For more information about these events please consult http://www.tfwa.com.

For further information please contact

TFWA Press Office
Kate Teagle
Tel: +44-1784-434-666
Email: press@tfwa.com

http://www.tfwa.com



Video: http://www.multivu.com/mnr/58643-tfwa-world-exhibition-2012

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