Page 28 - TFWA World Exhibit 2024 Special Edition

INSIDER

Heinemann Americas runs the retail concesions onboard Royal Caribbean’s Icon of the Seas, the world’s largest cruise ship.

distribution supply and our own retail brand and consumers are asking for it. So it “Diversification gives you that
business, we see both worlds. We know all makes sense.” resilience, that stability that you need,
what’s going on in retail and we know Hoeborn says that Heinemann works especially after the experience that we all
what is going on with the 50-plus ships we with capsules when it comes to logo had over the last couple of years with the
supply. We are extremely sensitive with branded merchandise, which gives them pandemic. Over the mid-term, Heinemann
our customer data. We don’t share anything a lot of flexibility: “We have a vintage Americas will definitely achieve this
except for our category knowledge, or capsule, an inaugural capsule, a capsule for within the cruise industry, because we
market knowledge. But these consumer kids – you name it. It’s like a fashion store, already have several channels: our own
insights benefit everybody, including our with the addition of logo cups and magnets cruise retail, our distribution into retail,
customers.” and other souvenirs. It’s a huge trend.” and now distribution into F&B, which is
Hoeborn confirms that access to data Luxury goods, like fine watches, and one of the main growth areas. And we see
allows the company to be very dynamic, pre-owned vintage leather and handbags other potential channels within cruise for
and adjust merchandise according to is another big trend. They get their own growth—for example, port shopping and
itineraries, passenger mix and consumer boutique on every ship now, and the retail on the private islands or the private
trends. category has become a big part of the beach clubs.. These are all part of the cruise
“We need to be very agile -- the revenue. “Especially when you have ships environment.
product mix is always evolving,” he out of Miami, where you have a big Latin “We want to increase our cruise retail
stresses. American clientele, you can sell high, and strengthen our distribution business
high price points. We are not seeing this with our existing and new clients. We want
Trending onboard category go down. It’s a trend; people like to be the cruise partner of choice and this
Following the data, Heinemann is to spend and indulge themselves,” he says. means that we need to do a great job on our
tracking three main consumer buying A third trend is the impact of social existing business, so other cruise lines &
trends this year. media on assortments, and the need to react partners reach out to us when opportunities
Logo or branded merchandise is quickly to adjust the assortment to meet arise. For Heinemann, the business model,
one of the biggest revenue categories for the consumer’s demand for the latest viral besides the financials, only makes sense if
Heinemann Americas Retail. sensation. it is a true partnership, so we want to grow
“We are particularly proud of this “As a retailer, reacting to trends means long term partnerships.”
category because our inhouse developed we need to find space in the store, we need For the near term, Hoeborn says that
product range really set a new bench mark to buy the product, and get deliveries. For the company decided not to pursue airport
for the industry, in terms of style, quality this we need support from the brands, from concessions but rather focus on the cruise
and most importantly PPD ,” says Hoeborn. marketing adjustments to getting the old channel which is working for them.
“Logo has gained a lot of momentum, stock off of the shelves. So the speed just “We will revisit this topic in a few
and the cruise lines realize the potential. got faster; and you need an agile team that years, but for now Heinemann Americas
We have the biggest logo store ever for knows what’s going on in the market.” is focusing on diversification within the
Royal Caribbean on Utopia of the Seas. cruise. We want the industry to see that we
We actually switched the P&C area into Looking ahead are here to stay, that we are diversifying
the logo store because we can drive more Looking ahead, Hoeborn says that and growing within all available cruise
revenue with it. Plus apparel and souvenirs Heinemann’s vision for the future is all channels. We want them to think of us
have a healthy margin. In addition, logo about diversification, on a global scale, not as first choice in cruise, as retailer or
merchandise helps the cruise line build its just for Heinemann Americas. distributor!”

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