Philippe Margueritte outlines vision for the future of duty-free industry

Philippe Margueritte, recently appointed as the President of the Tax Free World Association (TFWA), shared his insights on the future of the duty-free and travel retail industry in an interview with Global Travel Retail Magazine. His vision comes at a crucial moment as the industry is projected to double in size over the coming years, yet faces multiple challenges including counterfeiting, regulatory hurdles, and the changing preferences of younger consumers.

In his role, Margueritte aims to inspire creativity and collaboration within the TFWA, working alongside the association’s board, management committee, and dedicated staff. “Our initial reflections have highlighted five key areas,” he stated, outlining his primary objectives for the term. These objectives include enhancing membership benefits, strengthening relationships with all stakeholders, building reliable and actionable data, elevating event experiences, and embracing sustainability.

Margueritte emphasised the importance of addressing the lack of comprehensive sell-out data, which hampers strategic planning in the industry. He is committed to making TFWA a central player in fostering collaboration amongst stakeholders to develop better data resources. “TFWA is well-placed to assume a pivotal role in bringing all stakeholders together to find a solution,” he said.

Regarding the upcoming events, Margueritte expressed a desire to inject exciting content and elevate the overall experience for attendees at flagship conferences and exhibitions. He mentioned, “Our conferences and exhibitions must provide high-quality, relevant, and engaging content.”

With a keen awareness of the pressing need for sustainable practices, he acknowledged the rising demands for environmental responsibility in the industry. Under his leadership, TFWA will take a “pragmatic yet determined approach” to tackle sustainability challenges, aiming to improve practices at their own events significantly. The TFWA Asia Pacific exhibition and conference in May marks the beginning of this sustainable journey.

The evolving preferences of Gen Z travelers also present an opportunity for the industry. Margueritte indicated that younger travellers, who are expected to account for 30% of the travel market by 2030, exhibit significant spending power. This demographic seeks experiences that are authentic and exclusive, and Margueritte plans to address these interests when discussing strategies at the upcoming Singapore conference in May.

Margueritte is optimistic about the industry's resilience. Despite the ongoing economic pressures that weigh on global traveller confidence, he noted a growing appetite for travel, particularly in developing nations where more citizens are obtaining passports. “The appetite for travel hasn’t gone away,” he remarked, pointing out that recent data shows a strong recovery in passenger load factors, indicating a robust return to aviation and travel.

Luxury retail remains a cornerstone of the travel retail sector, with Margueritte observing a shift in luxury consumer behaviour. He noted that younger luxury shoppers are often less brand loyal, and while willing to pay a premium for quality, they may switch brands if they perceive better value elsewhere. This recognition of evolving consumer expectations will drive the need for brands to adapt.

Geographically, regions like India and Africa are emerging as significant growth markets in the duty-free space. Margueritte highlighted the sector's potential in these areas due to their growing middle classes and expanding airport infrastructures. TFWA plans to explore these dynamic markets in depth at upcoming events, including a focus on India at the Singapore event and an examination of African shoppers during the MEADFA conference program.

In summary, Philippe Margueritte is poised to lead the TFWA through a transformative period marked by both opportunities and challenges. He plans to foster a collaborative spirit within the association while driving initiatives focused on data, sustainability, and adapting to the nuanced demands of a diverse and evolving consumer base. As the industry navigates its future, Margueritte envisions TFWA as a pivotal force in shaping its growth and innovation trajectory.