Retail inMotion (RiM) has been appointed as Cathay Pacific’s onboard retail and technology solutions provider.

The inflight retail arm of LSG Group will manage the boutique and duty free programmes for Cathay Pacific and Cathay Dragon, taking over from long-term incumbent Inflight Sales Group (ISG).

The contract covers product procurement, management, warehousing, distribution, crew training and engagement, catalogue design and customer service.

RiM will utilise its in-house proprietary retail platform Vector In-Flight to handle payment processing and fulfilment alongside other backend systems such as reconciliation, inventory and warehouse management.

LONG TENDER PROCESS

The airline told TRBusiness in October it was deep into a tender process for an inflight and technology solution partner.

Its onboard retail programme has been operated by ISG for a number of years, who is understood to have supported Cathay throughout the process while it undertook a study of its business and technology functions.

A Cathay source said at the time that the traditional ‘bricks and mortar’ style of selling was not sustainable in the long term, with the carrier seeking a partner to provide a 360-degree service; from technology, to inventory management to duty free.

This is designed to provide a targeted retail offer to passengers pre-trip and during the journey for pre-order and home delivery.

The chosen partner would also be responsible for streamlining efficiencies in payment processing, particularly as momentum for digital wallet services such as WeChat Pay and Alipay continues.

Ronald Lam, Cathay Pacific’s Director Commercial and Cargo said: “Retail inMotion and the LSG Group impressed us with their in-depth understanding of the travel retail industry and ability to leverage on technology to improve our customers’ shopping experience.

“We look forward to building a strong partnership with Retail inMotion to take our travel retail business to new heights.”

Stefan Patermann, CEO, RiM called the deal a ‘very important milestone’ in the Dublin-headquartered firm’s development.

He added: “We feel honoured by Cathay’s decision and are now preparing intensely for the successful launch of a market-leading and ground-breaking programme for customers’ shopping pleasure, whether on the ground or in the air.”