TR Boutique exemplifies the luxury and sophistication of Vietnam’s travel retail sector, enhancing the traveler’s shopping experience at the airport
CEO of IPP Travel Retail Phillip Nguyen’s journey into the travel retail industry is deeply intertwined with his family’s history. “I’m a second-generation entrepreneur. My father, the chairman of our group, has been a mentor to me. Growing up, I was immersed in the duty free world, understanding its significance in our portfolio here in Vietnam,” Nguyen says. His early exposure to the industry, combined with formal training under the DFS Group in San Francisco and Guam, has equipped him with a unique perspective on the business.
A subsidiary of the IPP Group, IPP Travel Retail has established itself as a major player in Vietnamese travel retail. With a rich legacy rooted in the pioneering efforts of Nguyen’s father, the company has grown from strength to strength. IPP Travel Retail operates over 40 stores across Vietnam, including high-traffic locations like airports, downtown duty free stores and luxury retail outlets. These stores offer a diverse range of products from duty free items such as liquor and tobacco to luxury goods and local souvenirs.
Embracing technological innovation
One of the most remarkable aspects of IPP Travel Retail’s recent growth is its embracing of technology. The company has integrated advanced data analytics to understand consumer behavior better and tailor its offerings accordingly. “The world has changed in terms of what duty free means. Today, we see an increasing demand for craft beers, wines and a variety of tobacco products,” Nguyen notes. The digital age has brought about significant changes in consumer habits, particularly among younger generations, and IPP Travel Retail is adapting swiftly to these trends.
Vietnam’s strategic location as a logistics hub has also played a crucial role in the company’s expansion. “Vietnam’s role in the global economy is significant. We are a gateway to many key markets, including the Middle East, Australia, China, and Russia,” Nguyen explains. This geographical advantage has allowed IPP Travel Retail to cater to a diverse range of international travelers, enhancing its market presence.
Viet Nam’s Delights store captures the essence of Vietnamese culture, offering travelers a rich array of local products and souvenirs that showcase the country’s vibrant heritage and craftsmanship
The evolution of consumer trends
Nguyen has witnessed firsthand the evolution of consumer trends in the travel retail sector. The rise of Gen Z, characterized by their tech-savviness and demand for personalized experiences, has influenced IPP Travel Retail’s strategy. “Data consumption is crucial in deciding what the future holds. We have to align with government strategies on e-visas and visa-free entries, ensuring security while catering to the evolving needs of travelers,” Nguyen emphasizes.
IPP Travel Retail’s ability to adapt to these changing demands is evident in its innovative approaches. For instance, the company has pioneered the concept of integrating retail with the hospitality industry. By collaborating with hotel chains and leveraging their guest data, the company offers tailored retail experiences that enhance customer satisfaction and drive sales. “We engage with hotel general managers to understand their operating expenses and how we can alleviate them through strategic partnerships,” Nguyen says.
Kid Stars offers delightful and seamless shopping experiences for young travelers and their families
Strategic partnerships and expansions
IPP Travel Retail’s strategic partnerships extend beyond the hospitality industry. The company has formed alliances with global brands such as Estée Lauder to introduce new retail concepts in Vietnam. “We’re launching the first ever Estée Lauder model in domestic Hanoi, a significant milestone for us,” Nguyen reveals. This partnership is set to revolutionize beauty retail in the country, catering to both domestic and international consumers.
Furthermore, IPP is exploring opportunities in the cruise industry, targeting the 16 million cruise passengers Vietnam welcomes annually. “We see a huge potential in duty free operations at cruise terminals. It’s a different market with unique needs, from replenishment of essentials to luxury goods,” Nguyen explains. This expansion into new segments demonstrates the company’s commitment to diversifying its portfolio and capturing emerging markets.
Phillip Nguyen, CEO, IPP Travel Retail
A visionary leader
Nguyen’s leadership is characterized by a forward-thinking approach and a deep understanding of the travel retail landscape. Despite being relatively new to the role, his vision for the company is clear. “My heritage comes from an innovator who earned the trust of global brands like Moët Hennessy. We are a 49% shareholder in Moët Hennessy Vietnam, and we aim to build on this legacy,” he states.
Looking ahead
The future of Vietnam’s travel retail sector looks promising under Nguyen’s leadership. With ongoing expansions, strategic partnerships and a focus on sustainability, IPP Travel Retail is poised for continued growth. As the company prepares to launch Long Thanh International Airport, with a capacity of 25 million passengers, the emphasis is on building strong foundations for future success.
“We are transitioning from focusing solely on passenger services to developing entire airport cities. The next few months are critical as we finalize key projects and strengthen our current operations,” he concludes. His vision for IPP Travel Retail is one of innovation, resilience, and strategic growth, ensuring that Vietnam remains a pivotal player in the global travel retail market.
