THE PRODUCT GROUPS - THEIR PERFORMANCE 2008
By Doug Newhouse, 10 July 2009
There were good sales increases in all of the main product categories contributing to the $37bn global duty free and travel retail sales total last year, although market shares stayed pretty much the same compared with 2007.
Looking at product groups versus the markets, the luxury goods sector was worth $12.7bn with The Americas accounting for $4.1bn, followed by Asia & Oceania with $4bn; Europe $3.4bn; The Middle East $1bn; and Africa $91.7m.
The second highest category of perfumes and cosmetics accounted for $11.3bn in sales, with Europe accounting for $5.3bn, followed by Asia & Oceania with $2.7bn; The Americas with $2.3bn; The Middle East $636m and Africa with $220m.
This category’s progress was aided considerably by the huge amount of new P&C retail space which came on line in 2008, including new airport terminals at Heathrow, Singapore, Beijing and Shanghai, plus the opening of DFS Group’s Macau Galleria. Equally important was the sales pull through from DFS Group’s earlier renovation and extension of the P&C area at its Hong Kong downtown Chinachem Galleria which services more than 1m mainland Chinese customers a year.
Here, the growth in the beauty department has outpaced that of the store itself and many beauty houses have seen their brand spaces increased, while many newcomers have also been allocated space. DFS’ expansion of its beauty business in Hong Kong and Macau alone certainly contributed significantly to the health of the P&C category as a whole last year.
Meanwhile, in the wines and spirits sector, sales reached $6.3bn last year, with Europe leading the way with $2.8bn, followed by Asia & Oceania with $1.7bn; The Americas at $1.3bn; The Middle East with $286m; and Africa with $98.7m.
At the same time, the confectionery and fine foods category continued to show its resilience, staying ahead of the tobacco category with sales of $3.4bn.
Once again, Europe led the league table with sales of $1.8bn; followed by Asia & Oceania with $689m; The Americas with $653m; The Middle East $252m; and Africa $16.2m.
Last, but not least, tobacco sector sales totalled $3bn in 2008, with Europe heading the regional sales league with $1.7bn; Asia & Oceania with $753m; The Americas $289m; The Middle East $209m; and Africa $84m.
In terms of relative market shares, the respective categories remained pretty much the same as in 2007, although a notable 6% gain was evident in the confectionery and fine foods category at the expense of the others.
In 2008, the respective market shares, with the comparative 2007 market shares shown in brackets were as follows: Luxury Goods 34.5% (35.5%); fragrances and cosmetics 30.8% (30%); wines and spirits 17.1% (17.2%); confectionery and fine food 9.4% (8.8%); and tobacco goods 8.3% (8.5%).
While it is not possible to list all of the brand rankings here for obvious reasons, the top 10 brands in the perfume and cosmetics, wines and spirits, confectionery and tobacco goods' sectors last year makes interesting reading.
The top 10 brands in perfumes and cosmetics in global duty free and travel outlets last year were (in order): Chanel; Lancôme; Christian Dior; Estée Lauder; Giorgio Armani; Clinique; Calvin Klein; Yves Saint Laurent (YSL); Clarins; and Dolce & Gabbana. Challengers just outside the top 10, included Guerlain; Biotherm; Givenchy; Ralph Lauren; and Boss.
The top 10 in the wines and spirits sector were: Johnnie Walker; Chivas Regal; Rémy Martin; Ballantine's; Absolut; Hennessy; Bailey's; Martell; Jack Daniel's; and Piper Heidsieck. Challengers just outside the top 10 in wines and spirits were: Glenfiddich; Bacardi; Smirnoff; Camus; and Jameson.
In the confectionery category, the top 10 brands were: Toblerone; Cadbury; Lindt; Mars; Butlers; Kit Kat; Smarties; Celebrations; Ferrero Rocher; and Quality Street. The next top five challengers in confectionery were: M&M; Snickers; Bounty; Guylian; and Godiva.
Meanwhile, in the tobacco goods sector the top 10 brands were: Marlboro; Camel; Silk Cut; B&H; Mild Seven; Dunhill; Gauloises; Davidoff; Golden Virginia; and Prince. The next five brand challengers were: John Player; Barclay; Benson & Hedges; Lambert & Butler; and Winston.