Page 64 - IAADFS Summit of the Americas 2024 Special Edition

INSIDER

Bacardi Global Travel Retail (GTR) used AI technology last October at MIA in partnership with Duty Free
Americas in a Bacardi Rum Tales activation. The activation featured a digital Rum Selector platform, which
travelers could access by scanning a QR code in-store with their smartphones.

How digital tech is transforming liquor promotions

The growing digital toolbox available to duty free retailers has the power to transform the effectiveness of
liquor promotions in the years ahead, writes Joe Bates.

Step back in time two decades the them a more immersive experience travelers. Lotte also installed a cocktail-
typical duty free liquor retailer relied on than a person in the store can provide,” serving robot bartender in its new Lotte
a tried-and-trusted box of promotional he continues. “Moreover, if there is a Duty Free Wines & Spirits at Singapore
tools, whether it be straightforward price sharing element to the activity such as an Changi Terminal 2. Similarly, back in
discounts, gifts-with-purchase, liquid- opportunity to send a video message or 2022, Taiwan’s EverRich Duty Free made
to-lips sampling or more involved prize picture to a friend, the instore experience headlines by releazing a limited-edition
draws and competitions. Today, these can be amplified beyond simply what Year of the Tiger Kaoliang baijiu as a
promotional mechanics remain available is seen instore. For brand owners and non-fungible token (NFT), a unique digital
to retailers but a growing array of digital retailers, the sharing of instore experiences artwork that doubled as a certificate of
options are possible too, from interactive on social media channels is very powerful.” ownership for the purchaser, on the NFT
digital touch screens and LCD video walls platform OpenSea.
to personalized AI brand ambassadors and Americas playing digital catch-up In fairness, many Americas-based
Virtual Reality (VR) headsets. In many ways, the Americas are operators are realising they need to step
It’s a brave new world and a lagging behind other travel retail markets in up their digital game. “Digital technology
potentially complicated one for older their adoption of digital promotional tools while important remains a smaller part of
generations to grapple with but vital to and the digital retail innovations despite the our business,” acknowledges Chris Foster,
master if duty free retail wants to remain U.S. and Brazil having the first and third- owner of Ontario-based border operator
relevant. “Using digital tools in travel retail highest number of domestic e-commerce Queenston-Lewis Duty Free. “We continue
stores is extremely important for retailers sites globally, according to a recent report to offer digital signage throughout the
and brand owners to interact with legal by Markinblog. While online pre-order store. Several suppliers continue to explore
age Gen Z shoppers,” argues Tim Young, and loyalty member apps have become digital options within display fixture
a former Brown-Forman GTR executive commonplace in the Americas travel retail designs. We will be exploring more digital
and now managing director of Young Spirit space in recent years, other regions are options throughout the year and will look
Consulting. “This consumer group expects experimenting with more advanced digital to partner with key suppliers in getting the
to see and use digital technology and, if services. duty free messaging out.”
used correctly, it makes their shopping By way of example, South Korean Keith Gildea, Diageo Global Travel
experience more interesting and easier. operator Lotte Duty Free unveiled an Head of Americas, adds: “It can be argued
“Digital tools are very helpful to online liquor store last year, offering that the Americas’ consumer is less inclined
educate shoppers on brands often giving 1,200 products and targeting local Korean to some digital elements of marketing and

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