​Heinemann’s Sweet Dreams stores sales soar since reopening

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Each Sweet Dreams by Heinemann store offers its own fun, colorful theme, such as Waterpark Dreamland (shown here), Upside Down Dreamland, Carnival Dreamland and more

Heinemann Asia Pacific opened Sweet Dreams by Heinemann confectionery stores at Hong Kong International Airport in July 2018. As it turned out, this timing was less than optimal, as 2019 would bring large-scale disruptive protests. The company knew its concept was good, however. “Response was strong among those who were traveling, driven by the interactivity of the stores and our efforts to reach out to travelers of all ages,” says Bernard Jugnet, Heinemann Asia Pacific Regional Head of Sales (Greater China and Cruise).

Hot on the heels of that challenging time came the shutting of the borders, with sales grinding to a near halt. Recently, Sweet Dreams stores had all reopened, marking the first time that all of Heinemann’s stores in the region were open for business once again.

Fun, experiential “dreamlands”

“Our Sweet Dreams stores were a key foothold in developing our confectionery business in the Asia Pacific region, and achieving the volumes we needed for a sustainable business,” says Jugnet. “Together with our businesses in Malaysia, Australia and later Macau, we have built up a sizable, multi-market and multi-channel confectionery business. We also saw the opportunity to debut a specialized confectionery concept to showcase our expertise in developing unique, experiential retail offerings specially designed and curated for each airport.”

Bernard Jugnet, Heinemann Asia Pacific Regional Head of Sales (Greater China and Cruise), says the company’s decision to add more premium and local brands was the right one

The original concept was to turn the stores into fun, playful and colorful “dreamlands,” according to Jugnet. Each would have its own whimsical theme, such as Upside Down Dreamland, Carnival Dreamland, Hot Air Balloon Dreamland and Galaxy Dreamland, to draw passengers. “Our design was complemented by great consumer engagement activities, providing passengers of all ages with unique and exciting shopping experiences at each location,” he states.

New brands introduced

Since the pandemic, the renowned travel retailer expanded its premium offering in its Sweet Dreams stores in response to a premiumization trend. “We now offer brands such as Venchi, Neuhaus, Leonidas, Lindt, Peninsula and an expanded TWG range to complement our selection of more mass market brands,” says Jugnet. “Stores that previously only carried mass brands now also stock premium brands to ensure we truly have something for everyone.”

Local brands are also important in the stores, playing a key role in driving penetration, says Jugnet. “We have allocated nearly 20% of our floor area to local heroes such as Hong Kong Little Bear, The Peninsula, and our very own Sweet Dreams private label chocolates. In the coming months, we will be expanding our local range with additional brands, as well as refreshing our Sweet Dreams collection with a new look.”

Premiumization strategy is working

Jugnet says sales at HKIA are promising. Though passenger volumes have not yet fully recovered, sales figures are up compared to pre-pandemic. “Overall, transaction values are up 10% compared to 2019, with South and Southeast Asian passengers such as Indians, Filipinos and Thais in particular buying strongly,” he says.

Souvenir items and premium brands are performing very well at airport, which reinforces the company’s strategy to introduce more premium and local brands to Sweet Dreams. “Also, our Sweet Dreams private label has also been doing very well since the opening, and is our fifth bestselling brand in Hong Kong,” says Jugnet. “Our first priority is to raise awareness amongst travelers that our shops are open for business again – a digital campaign encouraging shoppers to share the news on their preferred social media platforms has been ongoing since the opening.”

The Sweet Dreams Hong Kong mascot helps to create an atmosphere of fun, providing passengers of all ages with unique and exciting shopping experiences

Driving traffic

In-store, Heinemann has reintroduced the popular Sweet Dreams mascot family with engaging activities in the airport to drive traffic into stores, also supported via digital marketing. The company is also working with HKIA to publicize the launch and promotional activities via its customer outreach tools, and will offer selected Sweet Dreams products on HKIA’s online shop to widen its reach.

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Hibah Noor

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