The Trinity Forum: Digital
Where next in digitalisation?
A dynamic panel early on day two at Trinity explored the next frontier in digitalisation and technology in travel retail. It featured Hylink Group Head of Planning Yukun Bi, Purple Communications Director James Brown and Taobao Tmall World Business Director of Hong Kong and Macao Sabrina Yang.
Brown explored how Artificial Intelligence (AI) can enhance human creativity and add fresh impetus to the industry’s advancement. He said: “Having experimented with these tools across our services, it is clear to us that generative AI is a fantastic starting point for research, inspiration and ideation.
“What AI doesn’t have is the nuanced understanding of the specific language (design, written and verbal) that brands employ to engage consumers in the unique travel retail channel – this real magic can only ever come from humans.”
Out of the many AI tools that have been launched recently, Brown highlighted Chat GPT, OpenAI, Bard and Adobe Firefly as the top AI tools that will change the Web 3 landscape.
Sabrina Yang (above centre): The power of digital avatars and livestreaming; (below left) James Brown on the rich potential of harnessing AI in travel retail; (below right) Yukun Bi on creating a seamless travel retail digital ecosystem
According to Brown, the best AI should seamlessly integrate into businesses and functions as an invisible partner.
Yang introduced an AI-generated KOL named Leah and addressed how digital avatars and livestreaming can enhance ecommerce. She said: “Livestreaming is one of the fastest-growing retail sales formats across digital marketplaces. Beyond shopping, consumers want to find a broader range of more diverse content, including shopping-related encyclopaedic knowledge, lifestyle recommendations, and even interactive entertainment. And for sellers, the AI tools implemented can remind sellers to adjust content based on the demographic of audience in real time.
“What we’ve noticed is, more brands are streaming without blatantly selling products, rather placing emphasis on education and entertainment. Last year Kim Kardashian sold 15,000 bottles of her KKW perfume in just a few minutes. All thanks to the tech behind the livestreaming and of course, the purchase power of Chinese consumers.
Addressing the question, what’s next in digitalisation, Yang said that AI is the way forward. “Digital avatars powered with AI knowledge base can be used for customer service and live streaming. And Leah, apart from other commercial engagements, is also doing live stream.”
Yang added: “Ecommerce is about making it easier for consumers to acquire products faster and easier. It’s about payment, it’s about logistics which travel retail certainly has an advantage, for example, Hong Kong International Airport provides services for visitors to order online and pick up offline. This is not a zero-sum game. The learnings from both segments within the retail spaces can be shared to create a well-balanced omnichannel strategy for brands.”
Bi presented Hylink’s insights on digital trends that will transform the industry. She said: “Travel has rebounded but travel retail is not seeing a rebound of consumer consumption to pre-pandemic levels. Only 5-10% of consumers are transacting in airport stores, versus 40-60% transacting in domestic markets.”
The key reason is a change in demographics and the psychology of travellers today. Over 50% of travellers are Millennial and Gen Z travellers who value experience over price. “These consumers are digital natives, omnichannel shoppers who travel more than the generations before them,” she noted.
“We need to go from ‘Share of Wallet’ to ‘Share of Life’. Travel is very intentional so let’s use digital to dial up that intention,” she said.
Bi urged the Trinity partners to create a seamless travel retail digital ecosystem which can inspire and retain digital-native Gen Z and Millennial travellers, integrate with carriers, OTAs and hotels, enable digitally driven POS and offer personalised product recommendations and services.
Bi also underscored the power of AI to fast-track travel retail’s digital transformation. “Using and understanding digital and technology will help us build and scale up our success in travel retail.”
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The Moodie Davitt eZine
Issue 329 | 22 November 2023
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