Rolex boutique at London Heathrow
As Deloitte?s latest Global Powers of Luxury report found, the world?s 100 largest luxury goods companies generated only $212 billion in 2015, down 4.5 percent year-over-year. Half of these luxury purchases, however, are made by travelers, a number that rises to 60 percent for those coming from emerging markets.
On the other hand, travel retail overall accounts for $63.5 billion in total global revenue and is expected to grow to $85 billion by 2020. Consumers from Asia are the driving force behind this trend, accounting for $24 billion of that number.
According to luxury and retail sources, the growth opportunity here is huge ? seen as a potential lifeboat for prestigious brands whose relevance is waning with the rise of digitally-native, direct-to-consumer brands. ?Travel and experiences are the fastest growing sectors within luxury, and product-led luxury brands ? including jewellery, watches, apparel, and beauty ? want to piggyback off of that growth,? said Tammy Smulders, the global executive director at Havas LuxHub, Havas Media Group?s luxury consultancy. As per capita spend increases, so do the upscale offerings at airports, she said, citing London Heathrow airport?s Terminal 5 as a prime example. ?People show up at the airport an extra hour in advance just to shop.?
?They?re catering to customers who are bored,? said Deborah Calmeyer, the founder of RoarAfrica, a luxury safari company. ?Airports don?t create environments that peo...