TFWA's Philippe Margueritte talks primary objectives and future of the industry
New TFWA President Philippe Margueritte
Philippe Margueritte, the new TFWA President, talks passion and teamwork, resilience and fostering new initiatives, and the association’s ability to generate and support industry growth.
Global Travel Retail (GTR) Magazine: The duty free and travel retail industry is forecast to double in the coming years, but at the same time it is beset with an unprecedented number of challenges – counterfeiting, government regulations and lack of trust, online shopping and the lack of interest on the part of the youngest travelers, to name a few! What are your plans to tackle these, and what do you think your role is in tackling these?
Philippe Margueritte: First, let me remind you the duty free and travel retail industry has proven over the years, its strong resilience. It’s one of our characteristics; being able to adapt, reshape, and rebound. Every day a crisis affects our industry somewhere in the world. It’s part of our DNA to be able to react swiftly as an industry and foster new initiatives to generate growth.
We at TFWA are committed to delivering to our members, a dynamic platform to engage with all stakeholders of our industry providing outstanding events where creativity and innovation are showcased to be a source of inspiration for all of us.
In the uncertain world in which we are living today, it is paramount to have robust data on market evolution, shopping behavior or even on technological innovation disruption.
GTR Magazine: As the new and first-time President of TFWA, what are your primary objectives for this term?
Margueritte: As president, I believe my role is to inspire, energize, and encourage creativity within TFWA, working in partnership with our dedicated staff, board, and management committee. It’s still very preliminary but our initial reflections have highlighted five key areas:
1) Enhancing membership benefits – This means making sure that TFWA delivers ever-more value to its members
2) Strengthening stakeholder relationships – While TFWA of course must represent the nearly 500 companies managing thousands of brands that make up our membership, it is my intention to also strengthen relationships with all industry stakeholders within the travel retail ecosystem, including airports, operators and retailers
3) Building reliable and actionable data – Lack of sound, up-to-date data has long been an issue for our industry, which is today one of the only retail channels that doesn’t have a comprehensive sell-out data panel. This limits strategic planning and growth. It’s problematic to make plans based on past experiences, and being able to identify and predict trends is key. TFWA is well placed to assume a pivotal role in bringing all stakeholders together to find a solution which will benefit the whole industry, and which ensures transparency and confidentiality
4) Elevating event experience and content – Our conferences and exhibitions must provide high-quality, relevant, and engaging content, and we’re hoping to bring even more excitement to our hugely successful flagship events
5) Embracing sustainability – We must not only help the industry face the current challenges around sustainability but also review and improve practices at our own events
GTR Magazine: What do you think you uniquely can bring to this position?
Margueritte: I have a vision forged through 30 years of experience in building brands both in travel retail but also in local markets and in digital, giving me a global perspective and an understanding of omnichannel strategies. I also have multicultural sensibility, having mostly lived and worked abroad. Above all I have a true passion for our industry. I have already served it over many years as a former member of both the TFWA management committee and ETRC.
But of course, this role is about working as part of a team. At a pivotal time for the industry and for TFWA, I’m really enjoying collaborating with our talented, experienced and motivated staff, board and management committee.
GTR Magazine: With increasing consumer demand for sustainable practices, what steps will TFWA take under your leadership to promote environmental responsibility within the industry?
Margueritte: Sustainability is rising up the agenda for all our stakeholders. We will be taking a pragmatic yet determined approach to tackling sustainability challenges in our industry, as well as ensuring that our own events are moving quickly to being managed in the most sustainable ways possible. At our TFWA Asia Pacific exhibition and conference in May, we’ll take the first steps to a more sustainable journey.
GTR Magazine: Given that Gen Z travelers are expected to comprise 30% of travelers by 2030, how does TFWA plan to cater to their preferences for experiences, exclusivity and authenticity?
Margueritte: Early 2024 data would suggest that younger travelers (that is, those under 40), are spending significantly more, and that’s definitely encouraging.
It’s true that the Gen Z traveler is looking for experiences, but it’s not necessarily the case that Gen Z isn’t interested in physical retail. Brands that have successfully built experiential and emotionally engaging stores are thriving. As an industry we need to rethink how we present ourselves to younger consumers, and this will be a topic we’ll be looking at in more detail when we meet at our Singapore conference in May this year.
GTR Magazine: The pandemic may be over, and travel may have resumed, but the fallout is far from over, and globally, economies are under considerable pressure. Even in economies that are doing quite well, people are not feeling confident. How does TFWA plan to support its members in navigating such economic downturns?
Margueritte: The appetite for travel hasn’t gone away, and therefore the bedrock of our industry is, as a consequence, strong. Those who traveled before the pandemic are on the move again, while growing wealth in developing nations means that many people across the globe are getting passports and taking to the skies for the first time. In response to growing demand, more airlines are placing orders for aircraft, new airports are being built, and new routes are being launched. By several measures, we are seeing a return to strength. For example, Passenger Load Factor (PLF) reached 83.5% at the end of 2024 – 2.5% up on 2019 levels.
The picture is not universally rosy for travel retail, but while some categories face headwinds, overall spend per passenger continues to increase, with sectors such as F&B performing particularly well.
As a catalyst for innovation and creativity, TFWA is committed to create value for both our members and all stakeholders, contributing to the success of travel retail in times of prosperity as well as the more challenging years. Together, we can embrace change and capitalize on new opportunities, paving the way for a bright future.
GTR Magazine: Luxury has traditionally been a cornerstone of duty free. Do you think this will continue to be the case? Do you see it evolving and if so, how?
Margueritte: Luxury continues to be an important element in the duty free and travel retail mix. We know that luxury shoppers are more likely to visit a retail store, they have more money to spend, and when they get inside the shop, they are more likely to spend it. In addition, two thirds of all luxury shoppers are relatively young (under 40), which bodes well for the future. Younger people, for a spectrum of reasons, may have greater disposable income and they are more inclined to spend that income on luxury items.
The face of luxury is however changing. Younger shoppers for example, will be prepared to pay a premium for quality, but they are less brand loyal and will switch if they feel they can get the same quality more cheaply. Brands therefore can’t afford to rely simply on their status or heritage. We must recognize these evolutions and respond.
GTR Magazine: Asia has been the biggest news of the past few years; while China and the Chinese traveler have been the most important cohort, India is now on the chase. We also are seeing substantial development throughout Africa. Can you discuss the specific challenges of these regions and how TFWA is supporting its members there?
Margueritte: With burgeoning middle classes, young brand-savvy populations keen to see the world, and airport and aviation infrastructures that are currently seeing considerable investment, India and Africa are undoubtedly regions that are evolving into significant forces in duty free and travel retail. The diverse needs of Indian and African consumers, in terms of the value and convenience they seek as well as the service styles that resonate, all need to be carefully deliberated. In the coming months, we at TFWA will be exploring the potential of these dynamic markets in our conferences and as part of our ongoing research programs. India will be a focus at our coming event in Singapore, and Africa will of course feature in the MEADFA conference program, which examines the shopper profile in Africa.
GTR Magazine: As you begin your tenure, what emerging trends do you foresee shaping the future of duty free and travel retail, and how is TFWA preparing its members to adapt to these changes?
Margueritte: The airport landscape is evolving at a blistering pace. Our passengers are looking beyond the purely transactional, and certainly we need to look at how we create a more experiential and appealing environment that tempts a new generation of customer with different needs and expectations.
Artificial intelligence will revolutionize our industry in ways we can barely imagine. It will reshape consumer engagement, store layouts, pricing strategies, product offerings, and overall commercial efficiency. Proactivity in embracing this transformation will be paramount for retailers and brands aiming to stay competitive.
It goes without saying that our research programs, our learning platforms and our events will continue to focus on these and the many other shifts that are affecting the way our customers think and behave, bringing together some of the finest thinkers in the industry to debate real and actionable responses to these trends.
