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On Course for Success: The Cruise Industry Is Back in Business

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Shopping on a cruise ship is different from shopping at the airport. Gebr. Heinemann has capitalized on the advantages, making 2023 a successful year.

Full speed ahead! That was the motto of the cruise industry in 2023. After a difficult period during the pandemic, where about half of the industry's employees lost their jobs, cruises are now making a strong comeback. Worldwide, more than 20 million passengers took to the seas again, and the trend is rising. Gebr. Heinemann currently supplies around 170 cruise ships.

Cruise ship and the Heinemann crew on the Icon of the Seas

Shopping on Board: Little Space — but an Ocean of Time

The company can look back on pleasing successes and significant milestones in the cruise business. The key to success has been tailoring the store to the needs of the cruise industry. There are several features that characterize shopping on board, and the differences from the airport are significant. Most importantly, passengers have a lot of time on board, but there is only little space for stores and products. Every square meter has to be used optimally.

The time factor, however, is different: passengers at the airport are usually in a hurry and want to fill their shopping baskets quickly. Efficient self-checkout systems are welcome. On a ship, passengers have time to browse and seek advice. The length of time spent on board allows the sales staff to develop a close relationship with the passengers. This is particularly helpful where impulse purchases are not made, such as in the luxury segment.

There is also time for retailtainment activities on board. Gebr. Heinemann, for example, offers workshops on the high seas where whiskey or watches are presented, courses in scarf tying or hand care, and fashion shows by the pool. These activities should not be mere sales shows, but must meet a high standard to compete with the entertainment on board.

In addition to space and time, there are other factors that influence sales on a cruise:

  • Personal Shopping vs. Gifts: People who shop on board are usually shopping for themselves. At the airport, gifts for family and friends predominate.
  • Logistical Challenges: Ships are only in port for a short time, so deliveries have to run like clockwork and take into account country-specific requirements.
  • Individual Passenger Profiles: Each cruise line and itinerary has a unique passenger profile that must be taken into account when selecting the product range. As a retailer, you need to understand the demographics on board. Families require a different approach than silver-agers. Gebr. Heinemann develops the right sales concept for each individual case.
  • Promotions vs. Port Shopping: Promotional programs must be able to compete with port shopping, e.g., through special offers on the first day.

Regalia Shop on the Icon of the Seas

Kerstin Schepers, Managing Director Heinemann Cruise Liner Global GmbH Retail, says: “At Gebr. Heinemann, we are in an excellent position to serve practically all of these points. We define ourselves as the most human-centric company in global travel retail. Responding to the needs of passengers is therefore part of our DNA; our impressive employees are the key to our success. They do everything to ensure that not only the cruise is an unforgettable experience, but also the visit to our stores.”

Successes on All Oceans in 2023

Among the notable successes in 2023 is the expansion of the partnership with the Royal Caribbean cruise line, one of the largest in the world: Gebr. Heinemann, through its wholly owned subsidiary Heinemann Americas, has partnered to operate 14 travel retail venues on board the new ship, Icon of the Seas. This is the fourth Royal Caribbean ship awarded to Gebr. Heinemann. The company also operates on board Wonder of the Seas, Odyssey of the Seas, and Independence of the Seas. Guests on board the Icon will enjoy a customized, one-of-a-kind retail experience designed to reflect the uniqueness of Icon of the Seas.

Shop with a variety of beautiful watches on the Icon of the Seas

This introduction of new elements to the cruise retail space, spread across four decks, with customized displays and installations will enhance the high-quality and innovative shopping experience, bringing to life the spectacular assortments of perfume and cosmetics, liquor, tobacco and confectionery, watches and jewelry, fashion apparel, accessories, and more. Nicolas Hoeborn, Managing Director Heinemann Americas, says: “We are delighted to continue to expand our trusted partnership with Royal Caribbean, and we look forward to making Icon of the Seas another flagship of our retail activities.”

Shop with watches from Breitling and other brands on the Icon of the Seas

With regard to the partnership with Royal Caribbean, it is important to highlight the success of the Odyssey of the Seas during the summer season. The ship with seven Gebr. Heinemann stores on board recorded an impressive 50 percent increase in sales while cruising in European waters. This is mainly due to the higher proportion of Americans who traveled again in 2023, including in European waters.

Signing the contract (from left): Lars Clasen, CEO Cruise Saudi, Raoul Spanger, Co-CEO Gebr. Heinemann, Kerstin Schepers, Managing Director Heinemann Cruise Liner Global GmbH Retail

A major success of the year was winning the AROYA contract: Gebr. Heinemann will operate a total of seven stores on this new, extremely impressive cruise ship. The AROYA is the first ship of the newly founded Cruise Saudi. At 1,670 square meters, the sales area will be the largest on any cruise ship in the world. FAWJ will be the most important sales category, accounting for around 70 percent of total sales. This new partnership signifies an important expansion of Gebr. Heinemann's presence in the Arabian market. Another milestone of the year was the launch of pre-owned leather from exclusive brands in numerous stores on American ships in May 2023: the market is currently booming. By 2024, pre-owned leather will also be available on European ships. Not only is pre-owned leather popular with passengers, it also aligns with Gebr. Heinemann's commitment to sustainability. By buying a pre-owned handbag, you are discouraging the production of more handbags (i.e., more waste) and extending the life cycle of that particular item.

Oliver Gottschling, Sales Director Inflight & Cruises EMEA and Kerstin Schepers, Managing Director Heinemann Cruise Liner Global GmbH Retail, at the Saudi Tourism Forum in Riyadh

There have also been significant successes in the wholesale segment. The shipping company MSC is on course for significant growth and will continue to be supported by Gebr. Heinemann. The partnership is based on a close personal relationship. When the MSC Euribia was christened by Sophia Loren in Copenhagen in the summer of 2023, Gebr. Heinemann was one of the sponsors of the event. Claus Heinemann took the opportunity to personally congratulate MSC and the ship's captain. Together, Gebr. Heinemann and MSC are already planning the shops for the next ship, which will be launched in early 2025.

An important new deal was negotiated with Harding, Gebr. Heinemann's second-largest customer in cruise wholesale. Heinemann has been supplying Harding+, an operator of stores on cruise ships, on a total of 74 ships. Beauty is the most important category and Gebr. Heinemann now also supplies Dior, one of Harding's best-selling brands.

In summer 2023, Sophia Loren christened MSC Euribia in Copenhagen

Gebr. Heinemann has secured a significant new customer, Costa, a key player in the cruise market. This achievement was realized in record time — just five weeks from the initial contract discussions, creation of master data, to the selection of product ranges and the first delivery. Georg Fleischer, Senior Sales Manager for Cruises Wholesale, says: “By quickly establishing this business relationship, we have solidified our reputation as a dependable and efficient partner, laying a strong foundation for the future in our close collaboration with Costa. It's exciting to see how we are driving the business forward with expertise, a strong customer-centric approach, and a lot of energy.”

Positive Trend Set to Continue

And what does the future hold? Kerstin Schepers and Nicolas Hoeborn are confident that the positive trend in the cruise sector will continue. “Our focus on luxury items and adapting to individual passenger profiles will continue to be key success factors,” says Nicolas Hoeborn. Kerstin Schepers adds: “With our human-centric philosophy, we can inspire passengers on board and offer real added value that promises growth in the future.” For the wholesale segment, Georg Fleischer says: “We are continuously succeeding in expanding our business as a distributor. In doing so, we work closely and in partnership with shipping companies and suppliers.”

Georg Fleischer, Senior Sales Manager Cruises Wholesale (left) and Nicolas Hoeborn, Managing Director Heinemann Americas (right)