1.
October
2014
Pop
It
Up!
What:
Traveler
retail
sales
are
a
large
percent
of
airport
revenue
and
strategies
for
many
brands.
Pernod
Ricard
and
L’Oréal
consider
the
travelling
audience
and
the
duty
free
environment
the
equivalent
of
a
“sixth
continent”
of
sales
revenue
potential
for
their
brands.
Luxottica
calls
its
airport
sales
“the
Formula
1
of
retail”.
In
2013
travel
retailers
sold
around
$60
billion
of
goods.
Cosmetics
and
perfumes
have
now
overtaken
alcohol
and
tobacco
as
the
biggest-­‐selling
categories.
Airport
retail
sales
are
expected
to
grow
73%
by
2019.
As
their
fees
from
landing
fees
and
passenger
charges
have
been
squeezed
by
regulators
and
budget
airlines,
airports
have
responded
by
boosting
its
“non-­‐aeronautical
income”
from
shop
rental
and
commercial
activities
inside
their
facilities.
At
Frankfurt
International
Airport,
56%
of
all
revenue
comes
from
areas
not
directly
attributable
to
the
planes;
at
London
Heathrow
Airport,
this
is
49%.
So
what?
At
the
largest
airport
media
concession
in
the
world
–
London
Heathrow
–
advertising
accounts
for
(only)
6%
of
non-­‐aviation
commercial
revenue.
This
figure
is
said
to
be
typical
for
media
concessions
worldwide.
In
contrast,
revenue
derived
from
Duty
Free
sales
comprises
27%
of
non-­‐aviation
revenue.
Non-­‐
Duty
Free
retail
is
also
quite
important,
comprising
20%
of
overall
non-­‐aviation
revenue.
Retail
is
also
what
travelers
seem
to
want:
JCDecaux
found
that
96%
of
airport
travelers
interviewed
agreed
they
enjoy
shopping
en
route
to
an
overseas
destination,
and
83%
consider
shopping
an
important
part
of
their
journey.
This
makes
the
in-­‐airport
retail
opportunity
real:
not
only
do
airport
authorities
love
airport
retail
-­‐
after
all
they
take
a
piece
of
the
action
-­‐
marketers
claim
very
favorable
return-­‐on-­‐investment
results.
And
not
just
from
larger
airport
retail
stores,
but
also
from
shorter-­‐term
pop-­‐up
outlets.
For
example,
L’Oreal
found
that
its
in-­‐terminal
pop-­‐up
vending
machines
sold
9
x
as
much
as
inventory
sold
through
traditional
retail
channels.
In
another
study
62%
of
brands
received
$2
for
every
$1
invested
in
experiences
&
events.
A
pop-­‐up
execution
can
save
on
overhead
expenses
and
these
executions
allow
brands
to
test
ideas
and
brand
variants.
“Pop-­‐ups
offer
the
ability
to
provide
seasonality
and
variety
to
passengers
and
the
opportunity
to
test
new
concepts
and
brands”,
said
Hazel
Catterall,
Heathrow's
Head
of
Fashion.
Now
what?
In
an
attempt
to
take
advantage
of
the
overall
retail
and
particularly
the
pop-­‐up
trend,
Kinetic’s
Aviator
has
been
working
hard
on
developing
a
global
in-­‐airport
retail
solution:
Aviator
360.
With
this
proposition,
Aviator
will
manage
the
ideation,
planning
and
execution
and
project
management
of
new
airport
retail
experiences.
When
developing
these
solutions,
Aviator
will
draw
from
a
wide
variety
of
suppliers
from
inside
and
outside
Tenthavenue
(content,
mobile
activation,
staffing
firms
etc.).
condensed innovation

2.
The
Aviator
360
solution
is
multi-­‐purpose:
in
addition
to
developing
successful
retail
solutions,
this
very
same
framework
can
be
utilized
to
develop
“in-­‐airport
experiences”.
In
other
words,
Aviator
360
sets
Kinetic
up
nicely
to
fully
take
advantage
of
the
general
trend
towards
more
in-­‐airport
activations.
Help
in
retail
is
clearly
needed:
future
success
in
airport
retail
will
require
successful
adaption
of
the
actual
offer
to
‘match’
a
traveler’s
profile.
Less
than
20%
of
all
Duty
Free
customers
visited
on
impulse
and
only
5%
of
all
travelers
visited
the
duty
free
store.
Airport
retail
browsers
will
need
to
become
buyers.
Aviator
360
is
designed
to
help
marketers
accomplish
this.
What
sets
Aviator
360
apart?
In
addition
to
our
deep
knowledge,
understanding
of
the
environment
and
the
key
partners
we
can
bring
to
the
table,
our
solution
has
data
at
its
core.
Aviator
has
access
to
unique
data
points
that
can
help
tailor
strategy
and
messaging.
World
Duty
Free
already
uses
flight
departures
and
arrivals
information
to
set
the
language
of
its
loudspeakers
and
to
adapt
the
sales
strategy
of
its
in-­‐store
sales
force.
Aviator’s
APEX
takes
this
multiple
stages
further
and
can
identify
who
is
departing,
to
what
city,
from
what
terminal
and
at
what
time.
These
insights
allow
us
to
develop
pop-­‐up
stores/experiences
in
the
most
relevant
airport
terminals
and
concourses
worldwide,
and
also
helps
us
optimize
our
messaging:
why
not
run
Korean
ad
copy
at
2PM,
EST
in
our
Pop-­‐Up
at
Terminal
1,
JFK
if
we
know
Korean
Air
is
scheduled
to
depart
with
an
Airbus
A380
at
3PM
on
every
weekday?
That’s
close
to
500
potential
luxury
goods
consumers
from
Asia-­‐Pacific
region.
“Pop
it
Up!”
we
say.
A
Luxottica
Group
pop-­‐up
airport
execution.
But
are
they
in
the
right
concourse?
Do
they
have
a
relevant
&
optimized
pitch
for
air
travelers?
Is
their
ROI
as
good
as
it
can
be?
Contributor:
Erik
Bottema,
Aviator
Sources:
Generation
Research,
Compass
International
Media,
Moodie
Report,
Adweek,
the
Economist,
Forbes,
Airline
Passenger
Experience
Association,
Arthur
D.
Little,
JCDecaux