Sunil Tuli, President of APTRA and Group CEO, King Power Group (Hong Kong).

As the industry meets this week in Cannes for the 40th anniversary of TFWA and the World Exhibition, Sunil Tuli, President of APTRA and Group CEO, King Power Group (Hong Kong) shares his perspective on why understanding the economic evolution of Asia is essential to future-proofing the growth of travel retail.

“Spending by Asia’s middle class is greater than Europe and North America combined. By 2030, Asia will be home to two of the world’s top three largest economies, China and India, with India outpacing Japan to take the number four position by 2025 (source: IMF). The axis of world economic growth is shifting east and that’s tremendous news for travel retail.  It’s also a crucial imperative that every business needs to prioritise.

“The dynamic progression of the region’s emerging markets and subsequent growth in consumer wealth heralds unrivalled prospects for brands willing to invest in a deep understanding what this means for their travel retail business.

“If you think you know your ‘Asian’ consumer, think again. There is no place for a one-size -fits-all-strategy. Consider the nuances of market forces in a region of 48 countries and vastly different governments; the myriad of cultures; the growing dominance of youthful populations; changing geopolitical sentiments; consumer attitudes to pricing and value for money – yet still with the spending power to make extravagant purchases if the product appeals.

“Are we as an industry really doing everything we can to ensure we appeal to these consumers, that travel retail is relevant to them? Personally I believe we have some way to go.

“Understanding these dynamics is at the heart of how APTRA operates to serve our members and their commercial ambitions. It’s why, in 2025, we’re hosting the second APTRA India Conference, next February in Mumbai, with Ospree as platinum host partner. We are also investing in advocacy to increase arrivals allowances in South Korea and India, working closely with in-market specialists, together with travel retail operators and brand partners.

“We also plan to launch relevant consumer and market insight reports to provide insight and analysis of key markets, helping the industry understand, evaluate and capitalise on this rich and complex region. As a not for profit organisation, our ethos is always to offer accessible pricing, across membership, events and research, ensuring inclusive access to value-added assets.

“Next year sees the 20^th anniversary of APTRA and it’s my pleasure to have served as its President for 10 years of that time, currently for my fourth term. Now, like TFWA, in my own 40^th year in the industry, I’m certain, without a shadow of doubt, that Asia is the over-riding impetus for the future of this industry.

“The region is the springboard for the profitable long term growth of the industry and APTRA is fully committed to supporting the industry in exploring and realising this extraordinary opportunity.”

This comment first appeared in the October 2024 issue of TRBusiness magazine.

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