Flemingo's PK Thimmayya talks navigating the evolution of travel retail
PK Thimmayya, CEO ISC ME & Africa, Flemingo Duty Free
The travel retail industry has undergone a significant transformation in recent years, driven by changing consumer behavior and global economic shifts. In this dynamic environment, Flemingo Duty Free has positioned itself for continued growth and innovation. The company’s focus on consumer-centric strategies, digital engagement and sustainability cements its role as a leader in the industry.
Flemingo Duty Free has a robust presence in several regions worldwide. The company operates over 68 stores across high-traffic locations such as airports, downtown duty free stores and luxury retail outlets. This extensive network enables Flemingo Duty Free to serve a diverse international clientele and capitalize on the growing demand for premium shopping experiences in travel environments
“We are continuously reinventing our strategies to keep passengers engaged,” explained PK Thimmayya, CEO ISC ME & Africa, Flemingo Duty Free. He emphasized the importance of understanding and adapting to new consumer trends. “This involves refurbishing stores and introducing new product categories that resonate with the current generation of travelers. The focus is on creating an enhanced shopping experience that not only meets but exceeds customer expectations.”
New travel patterns
The pandemic significantly altered travel patterns, leading to a shift in consumer behaviors and preferences. Flemingo Duty Free has been quick to adapt its strategies to cater to these changes. Thimmayya noted a significant increase in first-time flyers, particularly from Tier 2 and Tier 3 cities. “Educating new travelers about the benefits of duty free shopping is crucial,” he emphasized.
The sleek design combined with premium skincare and cosmetics featuring globally renowned brands such as La Mer, Estée Lauder, Jo Malone, Tom Ford and MAC, offers travelers an elevated shopping experience, catering to their desire for high-end beauty products in a refined and elegant environment
The company is also observing a shift towards more informed and socially conscious consumers who prioritize experiences over material possessions. “Todays travelers are more experience-driven and sustainability-conscious, which is shaping our approach to product offerings and customer engagement,” Thimmayya added. The company is observing a shift toward more informed and socially conscious consumers who prioritize experiences over material possessions.
The company is focusing on creating value propositions that appeal to both new and seasoned travelers. Thimmayya highlighted the importance of balancing commercial interests with customer experiences. “We have to keep a balance in terms of what we do and how much money we make,” he said.
To attract younger customers, Flemingo is leveraging digital solutions. Thimmayya acknowledged the challenges in this area but emphasized the importance of a multi-touchpoint approach. “We aim to engage travelers at every stage of their journey, from planning to the completion of their trip,” he said. This involves collaborating with brand partners and utilizing digital media to influence consumer behavior. “It’s not just about doing one thing; there are various touchpoints to engage with our audience,” Thimmayya noted. The company aims to create a 360-degree experience for travelers, influencing them before, during and after their journey.
Performance and strategies
Discussing the company’s sales performance, Thimmayya shared that the first half of 2024 has shown promising signs of recovery compared to 2023. “We are on track to reach pre-pandemic levels by the end of this year,” he said. Flemingo’s operations in both duty free and arrivals have seen a steady uptick, reflecting the business’ resilience and adaptability. “Our recovery is a testament to our ability to innovate and meet the evolving needs of our customers,” Thimmayya remarked.
Flemingo Duty Free's arrival store welcomes travelers with an expansive selection of exclusive products and premium brands. The modern and inviting design and team of professional customer service executives ensures a seamless shopping experience, setting the tone for a luxurious journey from the moment of arrival
Flemingo Duty Free operates in various regions worldwide, each with its unique challenges and opportunities. Thimmayya pointed out that Africa presents significant growth potential. “Despite the economic challenges, the aspirational young population in Africa is a key growth driver,” he explained.
In India, the market is buoyed by a robust economy and a young affluent population. “India’s stable economy and burgeoning middle class provide fertile ground for growth,” Thimmayya said. Flemingo tailors its offerings and marketing strategies to cater to the diverse preferences of different regions, ensuring a personalized shopping experience for travelers.
Strategic partnerships
One of the significant developments for Flemingo has been its partnership with Adani Airport Holdings to operate Mumbai Travel Retail. Thimmayya described this partnership as a North Star operation that sets a benchmark for other Flemingo operations. “Our partnership with Adani Airport Holdings has been pivotal in setting new standards in the travel retail space,” he noted. He also highlighted the importance of staying competitive and innovative within the Indian market amidst increasing competition. “We continuously strive to bring differentiated customer experiences,” Thimmayya stated.
Fashion Café offers travelers a stylish shopping environment with a curated selection of luxury goods from brands like Swarovski, Luxottica and Nappa Dori. Designed as a destination for fashion-conscious travelers, the café blends retail and relaxation, providing a chic space to explore premium accessories and gifts
Understanding the customer profile and category mix is essential for success in travel retail. Thimmayya described the typical Flemingo customer as diverse, with significant growth seen among younger travelers. In spirits, preferences are shifting toward single malts, tequila and premium wines. Flemingo also plans various brand activations and promotions to engage customers and enhance their shopping experience.
Commitment to sustainability
Sustainability is gaining traction globally, and Flemingo is committed to contributing to environmental and social responsibility goals. Thimmayya shared that the company has eliminated the use of plastic bags and supports brands with sustainable products. “There is much more we can do, but we are making conscious efforts to support sustainability initiatives,” he said. Additionally, Flemingo is exploring ways to reduce waste and promote eco-friendly practices across its operations. “Our goal is to integrate sustainability into every aspect of our business,” Thimmayya added.
Innovation and expansion
The company’s expansion into new segments, such as border shops and the cruise industry, demonstrates its commitment to diversifying its portfolio and capturing emerging markets. “We see a huge potential in duty free operations at cruise terminals,” Thimmayya explained.
As Flemingo Duty Free navigates the post-pandemic travel retail landscape, its focus remains on innovation, customer experience and sustainability. The company’s strategic initiatives and partnerships highlight its dedication to providing an exceptional shopping experience for travelers worldwide. By continuously adapting to changing consumer behavior and leveraging technology, Flemingo Duty Free is well-positioned to meet the evolving needs of travelers and continue its growth trajectory in the global travel retail market.
