Page 16 - The Summit of the Americas 2021

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