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July 24, 2015

Harvey Nichols Promises Botox, Champagne and Massages in Exchange for Loyalty

Rob WalkerAnalyst Insight by Rob Walker - Contributing Analyst

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Harvey Nichols, the fourth biggest luxury goods retailer in the UK by retail sales value, has launched a state-of-the-art loyalty app that will reward customers for every pound they spend in its stores, its online platforms or in any of the brand’s upmarket bars and restaurants (including the famous OXO Tower on London’s South Bank).

Rewards will range from Champagne dinners to Botox and luxury massages. “We want to give our customers more than just pennies for points”, says Shadi Halliwell, Group Marketing and Creative Director at Harvey Nichols. The rewards are more luxurious than most loyalty schemes on the market, but the rationale behind the strategy is the same. It is about driving up sales.

Loyalty programmes and luxury goods are not obvious bedfellows, but there are a number of reasons why this type of scheme could soon become the norm. Firstly, money saving and deal culture has gripped UK retailing for some years. Luxury retailers have kept their distance for fear of diminishing their cachet, but this has not stopped a torrent of heavy discounting across the industry. Secondly, apps are at the forefront of retail digital innovation and are identified as key to attracting “internet junky” millennials. Thirdly, the UK’s luxury retail market has never been more competitive, so coming up with clever ways to attract customers is a key battleground.

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July 22, 2015

Multi-Channel: The Future for Electronics and Appliance Retail

Alexander GoranssonAnalyst Insight by Alexander Goransson - Lead Analyst

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The retail industry is rapidly evolving. The rise of internet retailing is forcing store-based retailers to quickly adapt by adopting multi-channel strategies, such as click and collect. Considering the nature of technical consumer goods (TCG), often big ticket items necessitating advice or delivery and installation, as well as after sales service, the changing retail environment will have a particular impact on consumer electronics and appliance specialist retailers.


Source: Euromonitor International

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July 21, 2015

Apple Pay Enters the UK

This week, Apple Pay entered the UK after initial roll-out in the US. Though Apple holds a smaller share of the smartphone market in the UK than in the US, the UK's contactless network is more established. With this payments behavior laying the groundwork, Apple Pay will face lower barriers to adoption. Watch the video for complete insights.

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July 15, 2015

Grexit or Not: The Future of the Greek Travel Industry, In or Out of the Eurozone

Wouter GeertsAnalyst Insight by Wouter Geerts - Travel Analyst

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Greece’s future in the Eurozone is on a knife-edge. Recent developments seem to secure Greece’s position in the Eurozone, but the future remains extremely uncertain. This uncertainty, combined with other volatility like the tragic events in Tunisia, greatly impacts the travel industry. According to the World Travel and Tourism Council (WTTC), the wider tourism industry in Greece accounted for 17.3% of GDP in 2014, meaning that any impact on the tourism industry will have a significant impact on the wider economy of Greece.  

Here, I will discuss two scenarios for the short to mid-term future of tourism in Greece, taking into account the correlation between GDP and arrivals performance, and the benefits of the “should I stay or should I go now” options. Future scenarios of the Greek economic outlook by Euromonitor International’s Economies team provides a useful framework to assess the different possible outcomes for tourism demand.  

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July 10, 2015

An Interview with Comeos, Belgian Trade Association


The Belgian trade association Comeos recently unveiled the results of its fifth study on e-commerce. The study focused on consumers’ perceptions and habits as regards the Internet retailing and revealed several positive trends for the Internet retailing in Belgium: more consumers are buying on the Internet, more frequently, and are spending more as compared to 2014.


Q: One of the most interesting elements in Comeos fifth e-commerce study is that it is fact those same products that Belgians were already accustomed to buy online in the past (apparel, shoes and books) that grew fastest in 2015. How important would you say elements such as habits and trust are in shaping consumers’ attitude towards Internet retailing? Do you see other product categories (electronics, home and gardening, furniture, food) increasing their popularity in the next five years?

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July 9, 2015

German Pet Population: It is Bigger than you Thought

Nicole LuckettAnalyst Insight by Nicole Lukett - Contributing Analyst

It is a known fact that pets play an increasingly significant role in German society. This is partly due to ongoing growth in the number of single-person or small households. In 2014, the number of single-person and 2-person households grew by 2% and 1% respectively over the previous year. In addition to ongoing growth in internet usage and digitalisation, this is an indicator of the increasingly isolated lifestyles led by many Germans.

Pets are often welcomed as providing balance to these consumers’ hectic and career-focused lives and sometimes even viewed as taking the place of a partner or child. They are considered beloved companions that enhance their owners’ wellbeing and quality of living. Dogs are also viewed as supporting their owners’ fitness and health and as helping them to reconnect with nature on their daily walks. As a result, the German pet population is growing at rates almost parallel to the number of small households.

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July 7, 2015

French Minister Puts Spotlight on Sustainability

Alex RownanAnalyst Insight by Alan Rownan - Ethical Labels Analyst

France’s Ecology Minister, Ségolène Royal, has apologised for her recent comments castigating Nutella over its use of palm oil and calling for people to stop eating the popular chocolate hazelnut spread altogether. The comments aired on French television channel Canal+ and immediately gained widespread traction across international news outlets and social media. The palm oil industry has long been a target of criticism from conservation groups for its lack of standardised and sustainable production, which has led to widespread deforestation across Malaysia and Indonesia – these two countries accounting for around 90% of global palm oil production. A number of organisations have been established to offer recommendations on how these issues can be proactively tackled, RSPO (Roundtable on Sustainable Palm Oil), CSPO (Certified Sustainable Palm Oil), and ISPO (Indonesian Sustainable Palm Oil), to name a few.

Nutella, part of the Ferrero Group, enjoyed a massive 83% value share of chocolate spreads in France in 2014, and despite criticisms from the Minister, has historically been a pacesetter in the race to 100% RSPO sustainable and segregated palm oil – a target it achieved ahead of schedule in several countries in 2013, ironically; France being one such country. Italian chocolatier Ferrero has also committed to establishing a Palm Oil Charter in partnership with non-profit organisation TFT (previously The Forest Trust) in an effort to catalyse the transformation of the palm oil sector toward a fully sustainable model, a goal that stretches beyond its remit and represents genuine engagement with the ongoing debate.

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The Most Likely Scenario for Greece


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With Greece voting “no” on July 5th, Greece now defaults on all of its debt. Although the Greek government states that the vote strengthens its position to bargain with the rest of the Eurozone, the Germans are unlikely to make further concessions. In order to keep funding their government, Greece may have to reintroduce the Drachma or some form of I.O.U.’s.

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July 6, 2015

Will Graphic Health Warnings on Cigarette Packages Dissuade Lithuanian Smokers?

Georgij-GrebinskijAnalyst Insight By Georgij Grebinskij - Research Analyst

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Recently the Lithuanian Government agreed that in autumn cigarette packages sold in Lithuania will need to be marked with graphic pictures showing the dire health consequences of smoking. This is assumed to dissuade people from smoking.

Generally speaking, there is no clear evidence that graphic health warnings, however ugly, have a significant discernible impact on the behaviour of smokers. Taking into account that such law on graphic health warnings came into force in the neighbouring Latvia in 2010 it is likely that the potential effect of this law in Lithuania might be similar.

According to Eurobarometer research on Tobacco Packaging Health Warning Labels that took place in 2012,  a number of respondents in Latvia agreed that textual warnings without graphical health warnings have much less impact. Reports also find that in Latvia, respondents talked about turning the pack over to avoid the shocking images. According to the same report, some respondents in Latvia find graphical health warnings less provocative over time.

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July 4, 2015

Cider/Perry: Adapting, Evolving and Growing

Amin AlkhatibAnalyst Insight by Amin Alkhatib - Alcoholic Drinks Analyst

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Cider/Perry has witnessed phenomenal developments in the last 10 years, making it now the fastest-growing alcoholic drinks category, in volume terms. In Cider/Perry: Outlook and Opportunities, Euromonitor International looks at some of the dynamics that are currently supporting its strong growth, and will continue to do so in the next five years.

One of the defining features of the category has been the internationalisation of cider/perry brands that have driven expansion beyond the UK and other markets that have historically consumed the tipple. The market has been segmenting and opening up to a wider consumer spectrum, from value-seeking to quality-pursuing drinkers. In addition, demand for “craft” in beer has spilled over into the cider/perry category, expanding the premium offerings. Cider/perry makers are also taking to the approach of product sophistication by positioning the tipple as a suitable alternative to wine, as observed in the US. The category is also witnessing the next stage of its evolution as it shifts towards niche areas covering white spaces such as “light cider” and “spirit-cider”, otherwise promoted as “spider”.

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Recent Posts

Harvey Nichols Promises Botox, Champagne and Massages in Exchange for Loyalty

Multi-Channel: The Future for Electronics and Appliance Retail

Apple Pay Enters the UK

Grexit or Not: The Future of the Greek Travel Industry, In or Out of the Eurozone

An Interview with Comeos, Belgian Trade Association

German Pet Population: It is Bigger than you Thought

French Minister Puts Spotlight on Sustainability

The Most Likely Scenario for Greece

Will Graphic Health Warnings on Cigarette Packages Dissuade Lithuanian Smokers?

Cider/Perry: Adapting, Evolving and Growing