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INSIDER









          Planning ahead for a post-COVID-19 world: what it means for
          the economy and TR in 2021



              With a wide ranging career in travel retail that spanned sales, business development and marketing for premium brands in beauty,
          luggage/travel accessories and fashion accessories, Panos Argyros has experienced many ups and downs in the industry over the past
          two decades. The current COVID-19 pandemic has brought its own, unique challenges to the channel, however. TMI asked Argyros to
          assess the impact of the crisis and discuss how he sees a recovery emerging.






          Financial outlook                 est growth rates globally, and containment
              The year 2020 was probably the worst   measures will continue to hinder the recov-
          downturn since the Great Depression, in   ery in the first half of 2021. Fiscal support
          terms of magnitude, shock and time period   will not be enough for a fight against unem-
          combined. Headwinds to robust near-term   ployment and bankruptcies. In addition,
          growth include COVID-19 related lock-  the euro will appreciate vs the dollar. Pre
          downs in early 2021, lingering consumer   pandemic levels could be reached in early
          and business caution and rising public and   2023.
          private debt.                         APAC / China will see accelerated
              Yet, the reopening of economies and   and strongest growth vs prior years. The
          the availability of vaccines will gradu-  rebound will be subdued compared to what
          ally unleash a new wave of spending on   we have experienced in the past, however.
          travel and services. In 2020 we had a 4.2%
          decline, however, global world GDP is   Travel Retail                     Panos Argyros
          projected to increase about 4.6% in 2021.   Some people have called it “the lost
          The US dollar is expected to weaken as a   year,” 2020 has been the most difficult
          response for monetary accommodation and   year for the travel retail industry and 2021   Digitalization of the offering is again
          a widening trade deficit.         will not be far behind it. Nevertheless,     the single most important (and now urgent)
                                            companies in the industry have acted with   element that the trifecta of airports, conces-
          Supply and demand                 tremendous resilience during the most   sionaires and vendors have to nail and
              The pendulum of supply and demand   challenging time and should be applauded   execute with excellence in 2021. This alone
          will keep shifting sides for a while and   for the spirit, the effort and the results in   will change the name of 2020 from a “lost
          until it finds balance, fiscal volatility and   what could be the most shocking  year ever.   year,” to a “pivoting and spring forward
          rising inflation should be expected as a   Companies are planning for an increased   year.”
          result.                           1st half, followed by a strong Q3 and
              Commodity prices rose sharply in the   accelerated growth in Q4 as a result of an   Most recently, Panos Argyros was the
          2nd half of 2020 as the global economy re-  ambitious global vaccination campaign.  VP Sales for Travelpro Products and Kor-
          bounded; these cost increases have started   Traditionally, TR has been fol-  res in North America. Panos has expanded
          to directly affect supply chain, pressuring   lowing local market trends, lagging in   distribution, increased revenue and profit,
          margins and leading to higher prices for   experimentation and prioritizing profit and   built strong teams and brand equity in all
          finished goods in 2021.           exposure over “the new consumer.” Home   of the brands he has worked for --Clinique,
                                            has always been a sacred and safe place   Origins, MAC, Korres, Bijoux Terner,
          Regional trends                   for the consumers, and travel has always   Travelpro. With established relationships
              In the Americas, DTC (direct to con-  been business or fun. Now, it’s a unique   with all of the major retailers and airport
          sumer), environment and sustainability will   opportunity to use TR as a canvas for the   landlords, he is available to engage with
          rise stronger than ever before. A weaker   global citizen, find and adopt to brand and   select companies and assist their growth in
          USD will drive demand in the U.S.  merchandising trends and utilize technol-  Travel Retail.
              The EMEA region will show the slow-  ogy as part of the “contactless sale.”  panos.argyros68@yahoo.com









          The Virtual Summit of the Americas Issue April 2021                 16
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