A look at Latin America through the eyes of Motta Internacional
Through duty free stores and specialized boutiques, Attenza Duty Free offers a comprehensive multi-category product assortment that includes perfumes and cosmetics, spirits and tobacco, leather goods, confectionery and electronics
Providing a closer look at the travel retail landscape in Latin America, Motta Internacional Vice President Ignacio Lasa, sat down for an exclusive interview with Global Travel Retail Magazine. Under the commercial name Attenza Duty Free, the retailer is on schedule to open three more stores by the end of this year, bringing the total to 53. With a team of over 1,000 employees, it currently operates at six airports in five countries. Through duty free stores and specialized boutiques, Motta offers a comprehensive multi-category product assortment that includes perfumes and cosmetics, spirits and tobacco, leather goods, confectionery and electronics.
According to Lasa, Attenza Duty Free’s position at Tocumen Airport (PTY) in Panama City is “fairly good.” He said the retailer is always looking for new opportunities to grow and that whenever there is an airport opening or bidding process it is interested in participating.
As a state-owned airport, the recent change in leadership in Panama is due to impact upcoming plans for Tocumen Airport. With empty space on display at PTY, Lasa is interested to see how it will be used in the future and what categories will be represented.
Speaking about the tender for duty free operations at Santiago Airport in Chile, Lasa shared while legal issues arose during the initial bidding process regarding competitive commerce, he expects resolution by October. By then, Motta should know when the tender will reactivate and under what conditions.
The retailer currently operates at six airports in five countries
The next generation of hires
On the next generation of travelers, a central theme at the ASUTIL Conference last month (at which Lasa served as a panelist), it became clear that the past and current generations are still top of mind for Motta. “While it’s important to start preparing for [Gen Z], the reality – at least in the region that we operate – is Gen X is still key and our main customer,” he stated.
Lasa noted that Millennials are “coming in strong” and in the short and mid-term while it’s important to keep an eye on Gen Z, it’s necessary to cater to Millennials and Gen X. “We don’t see major changes in category selection between age groups, but we see important trends that we can respond to based on how they buy,” he said.
Echoing m1nd-set owner & CEO Peter Mohn’s remarks about the next generation (12 to 27 years old) versus Millennials, Lasa described Millennials as more digitally connected and well-informed compared to the generation before. Seemingly one evolution behind, he also referred to Millennials as more likely to rely on peer reviews when decision-making and more willing to spend money on an experience rather than a tangible product in order to create memories.
“We’re trying to reach [Millennials] digitally, more than ever before. Once they’re in the store, the sales force changes slightly,” he explained. “One thing that we have not seen change – even though there was talk during the pandemic – is the desire for human interaction. Even though we adapted and looked for different ways to attract consumers, we’ve seen in our stores that people of all generations still appreciate human interaction.”
During our conversation, Lasa made a point that the industry has failed to shed light on. He commented, “As an industry while we’re focusing on Gen Z as customers, what is even more interesting, is that people within this age group are the ones being hired to assist Millennials and Gen X.” Because some different values and perspectives exist between the groups, Lasa said this kind of interaction is very interesting to watch – and that there is common ground when it comes to human interaction no matter the age. “You have to be transparent, kind, informative,” he stated.
Perfumes and fragrances continue to lead sales in the duty free channel
The beauty category
When asked about what trends he sees evolving across categories in duty free, Lasa said perfumes and fragrances continue to lead the channel. In line with beauty, the category is “growing aggressively.” Niche brands that cater to consumers with specific environmental, social and ethical values are on the rise. Plus, shoppers in general have greater knowledge when it comes to ingredients, partnerships and methods of production.
“We do our best to work closely with brand partners to see what is trending – not only in the category worldwide, but also in the regions where we tend to be – and to be objective in our decision-making,” he said. “What makes it more complicated is that the [beauty] category is growing, but with limited space. Our supply is growing aggressively, and it’s hard to manage with limited space."
