Sunwear’s Ticket to Ride

Sunglass sales are taking off in travel retail. What can optical learn from this growing category?

By Amy Spiezio Photography by Peter Baker

Like so many other retail segments, sunglass sales hit a speed bump during the recession, forcing eyewear manufacturers to rethink their business plans and consider new selling options.

A big assist in shoring up the sunglass market is a growing silo: travel retail. By building their presence there, sunglass manufacturers have grown their sales and connected with a monied, brand-buying audience.

First launched in 1947, travel retail began as duty-free shops out of Shannon, Ireland, where planes refueled after transatlantic flights. Though cigarettes and liquor were primary drivers, and are to this day, the buying options have expanded worldwide to include a treasure trove of luxury goods, such as sunwear.

READY FOR TAKEOFF

Travel retail can be a sales booster and a brand ambassador for companies dominating the world eyewear scene—and for those hoping to tap into a receptive audience and generate larger product awareness.

“The passenger demographic in airports is, of course, ideal for luxury goods, with a substantial proportion of passengers in the relatively high disposable income category, and many of them are predisposed to shop as they are in an adventurous or holiday mood,” notes TWFA (Tax Free World Association) president Erik Juul-Mortensen.

In 2012, the global duty-free and travel retail industry reached sales of $49.4 billion. “Every product category grew with an average growth rate at 7.5 percent, an excellent year in spite of the challenging economic environment,” Juul-Mortensen adds.

According to Generation Research, fashion and accessories (which includes sunglasses) accounted for nearly 16 percent of global duty-free and travel retail sales, up 11.6 percent in 2011, the highest growth rate in the industry. Aware of this, eyewear manufacturers are catering to these buyers.

“Many prestigious brands, including sunglass companies, use the duty-free and travel retail channel to launch new products and even design lines which are travel retail exclusive. Sunglasses are a perfect match for duty-free and travel retail; and as they are light and compact, they are a popular product to list onboard as a gift or indulgence item,” Juul-Mortensen says.

This expanding marketplace is raising eyewear’s profile throughout the world.

“As the travel retail industry continues to grow, it further builds exposure and awareness for the eyewear category,” says Luxottica’s group travel retail director, Francois Gros. “By tapping into the emerging markets that have not had exposure to Luxottica and our portfolio of brands, this is a huge opportunity for us to get our collections in front of a new consumer and experience them first hand.”

“Duty-free and travel retail is one of the fastest-growing divisions in the Safilo Group at a global level,” says Safilo CEO Roberto Vedovotto. “We are strongly focusing on this channel, investing in first-class teams, delivering ultimate fashion products and retail solutions to engage our final consumers. Our category management strategy regarding this channel includes investments in travel retail exclusive capsule development, store environments, sales staff training programs, and an expanded travel retail team.”

All Aboard

One challenge for eyewear manufacturers striving for success in travel retail is something familiar to other optical professionals: keeping staff trained. Between the sheer variety of products sold and the rate of employee turnover, keeping sunwear in the forefront for those on the sales floor requires strategy and follow through. Getting the point across about the significance of polarized product means that Maui Jim trains often. Notes Giles Marks, director of global travel retail for Maui Jim, “People love Maui Jim because they love the lens technology, and we have to tell it to those selling, getting them excited about selling Maui Jim. It’s important in duty free because they don’t know the brand. We offer training around the world two to three times a year, offering incentives and contests.” Whether on or off site, training is a priority. “We organize in-store training sessions to educate the staff on our brands, products, and selling techniques. We also have training material that we share with our partners when a training session cannot be organized,” says Marchon’s international travel retail director, Erwan LeGuennec. Imprinting brand DNA and corporate history are two foci for travel retail associates. “The staff has to be knowledgable, they have to know what brands are all about and the history of Marcolin,” says Marco Lares, Marcolin’s travel retail/duty free sales manager. He conducts in-person and Skype training regularly. Some manufacturers play on the popularity of their licensed brands to promote their sunwear collections, particularly when there’s a crossover also sold in travel retail environments. “Training, technology, and cross-category projects represent both the present and the future of the approach, and the new license agreement with Bobbi Brown constitutes our strategy to cross-categorize some of our brands also in the travel retail,” Safilo’s CEO Roberto Vedovotto says.

While companies like Luxottica and Safilo dominate the travel retail market, other sun brands are using the silo to build awareness of their products on the global level.

Giles Marks, director of global travel retail for Maui Jim notes, “The company made a very clever decision seven years ago, seeing that the brand had reached a threshold, to enter in the marketplace. We are a good product, and now we are building the brand internationally.”

Even companies not traditionally dominant in sunglasses are finding success in this arena. Says Joel Jelderks, global head of travel retail for Silhouette and adidas Eyewear, “Travel retail, on a worldwide basis, is the biggest single contributor to our sun volume compared with other single countries, including the U.S. I am restructuring our travel retail business in order to be more competitive in this channel and leverage our regional strengths as Silhouette is not known as a sun brand worldwide…yet.”

It’s a new universe of selling sunglasses, one that requires different tacks than traditional optical practices; and one that may provide selling lessons for the three Os.

POWER BY BRAND

Where in the average optical dispensary product is chosen for many reasons, from Rx-ability to niche marketing, travel retail strictly focuses on the names and numbers when stocking up.

“It’s a totally different industry. It’s the strength of the brand more than the quality of the product [to buyers]. Once we have had the opportunity to place the product, the onus is on us to make it work. We live and die by the spread sheet,” Marks says.

Because the buyers for travel retail stores are not optically focused, bottom-line basics drive business and push sunglass manufacturers to fine-tune product selections with an eye on turns.

“Space is limited and this is a very competitive environment. Travel retailers are looking for brands with international potential, given the variety of their customer profile,” says Erwan Le Guennec, international travel retail director for Marchon Eyewear.

This means stocking sunglass styles for everyone in the world, literally. “For the travel retail business, we select specific brands and assortments depending on the region and on specific requirements, as for example the Asian fitting collections,” Safilo’s Vedovotto says.

DISPLAYS AND DRAMA

Small space and a transient customer base make catching the eye key to sales. Marcolin’s Marco Lares, travel retail/duty-free sales manager, says, “The biggest problem we have is space. How do you sell all these brands at an airport?”

While most manufacturers aim for a shop-in-shop or custom displays to grab attention, at the very least, they want to help make every sunglass area visually exciting.

“My biggest challenge, and I am not alone, is getting the travel retail operators to move away from what I call the Sunglass Wall of Shame displays,” Jelderks says. “These are displays where you see 500 models of sunglasses from a variety of brands on a backlit wall.”

Thanks to travel retail, manufacturers are ramping up P.O.P. “We develop tailor-made merchandising recommendations based on the assortment selected by the retailer and the fixtures on which the products will be displayed. We are also developing personalized furniture concepts for travel retail,” Marchon’s Le Guennec says.

“We want to provide maximum accessibility and product interaction, so we look at the characteristics of the environment to address the needs of the traveler and provide them with the appropriate assortment of product. If done right, these displays can provide a huge boost for business,” says Gros. “We recently tested out a pop-up concept at Montevideo’s Carrasco International Airport in Uruguay and saw huge success.” EB