COVID-19 A New World for Airports€¦ · Airports “crisis game plan” - 1: ACT NOW - Govern -proactively- the situation • Set-up an intelligence task force and dashboard –

Control what you can. Quickly. Start preparing for the “New World”

COVID-19

A New World for Airports

Updated on April 8th

2Airports Covid POV1_vsentSAOThis information is confidential and was prepared by Bain & Company as a summary of best practices in response to COVID-19. It has not been tailored to any specific situation and may therefore not be relied on

COVID-19: Control what you can. Quickly. Start preparing for the “New World”

• COVID-19 is unlike any previous crisis, a “blink” on the long term growth of the Aviation industry– This time traffic recovery will be hard and long-term, there will be permanent impacts, non aviation will be very different (different

categories/ brands client preferences, …)

• After crisis competitive scenario will be radically different: less Airlines, most of which state-subsidized, less Travel

Retailers, many privately-managed Airports state-subsidized, less secondary Airports?

• To face this, you need to proactively govern the situation, act fast to protect cash as much as you can, proactively

manage 10s of different stakeholders, start putting the basis for the transformation to be ready for the “New World”

• To try and help Airports on this impossible task, we have put together 10 pages to collect experience we are getting from

talking to many players in the industry (Airlines, Airports, Travel Retailers, Brands, Governments) and our Point of View– At the end of the document you can find, as a reference, similar “game plans” we are discussing with Airlines and Travel Retailers/ Brands

• You most likely have already activated most of the measures and reflections contained here, but we hope you will find these

elements and game plan useful to complement your and your team own actions. We are at your disposal to discuss

and provide further depth

• This is a “living” document, we will issue new versions as new relevant elements come in


COVID-19 crisis is different form all other epidemics

2003 2009 2010 2014 2017 2020

SARS H1N1 H7N9 COVID-19

Confirmed

cases

Mortality

~8.000 ~60.000.000 ~1.600 >1.350.000(2002-2003) (2009-2010) (2014-2017) (# as of April 8th,

still ramping up)

~800

~9,6%

~18.000

~0.03%

~600

~40%>80.000

~4%(# as of April 8th,

still ramping up)

Source: National Health Commission of the PRC; WHO; Lit research

Epidemics

Rate close to

common “influenza”


COVID-19 will not be a “blink” as 9/11, SARS or Financial Crisis

Source: World Bank

Global Air Traffic – Billions of Passengers Carried

1970 1980 1990 2000 2010 2019

1

2

3

4

9/11

SARS

COVID-19?

Financial

Crisis

Traffic recovery will be not be a

simple “V shaped” bounce

back

A number of factors will

conjure to prevent it

• Travel restrictions going on

in different part of the worlds

• Travel health risk (real and/or

perceived)

• “Doom” attitude linked to

high death toll from COVID

• Deep Global recession


Air Traffic recovery will likely be only in the mid-long term

Demand suppressed during

outbreak, to recover to pre-COVID-

19 level

• Transportation & tourism

• Restaurant & food service

• Entertainment & education (offline)

• Real Estate

• Auto

• Household appliance

• Grocery

• Telecommunication

• Apparel

• Insurance

• Entertainment & education (online)

• E-commerce (demand spiked,

fulfillment partially constrains in

short-term)

• Healthcare

Demand suppressed during

outbreak, to bounce back to even

higher consumption level because of

“revenge buying” or mindset

change

Demand stimulated because of

panic stockpile and staying at

home, to return to normal level

and stabilize after outbreak

Demand stimulated because of

treatment need and staying at

home, may keep growth momentum

because of mindset and behavior

change

Hit in short-term,

recover in long-term

Hit in short-term,

bounce back or grow

faster in long-term

Spiked in short-term,

stabilize in long-term

Spiked in short-term,

keep growth

momentum in long-term

Definition

Industry

examples

1 2 3 4

Source: Lit research, Bain analysis

Actual behaviour will strongly differ by Airport (Region/ Country, type of traffic, major Airlines, …)

We have tools to help you forecast scenarios specific for your Airport(s)

plus a Macro-surveillance website constantly updated with our latest intelligence


Scenario for key Travel Retail categories more positive…Key Travel Retail categories – all channels

The next 18-24 months

Key Travel Retail categories – all channels

Mid-term growth

• Based on the available data and foreseeable evolution 2020 will report a

strong contraction in global luxury goods purchases, with a likely

reverberation over 2021, which could take different patterns by region/country

• Mid terms growth driver remain confirmed

Younger customers

Digital channel

@

YZ

• Chinese middle class to increasingly

become luxury shoppers (more locally) and

driving overall growth of the market

• New generations (Y and Z) recovering

their dynamism and willingness to buy

luxury, delivering all market growth and

compensate for the slow down of older

generations

• Online to continue represent the largest

growth pool and influence 100% of luxury

purchases

Rising Chinese middle class

2020 2021 and beyond…

Rapid stabilization

Dip and rebound

China

RoAsia

Japan

Americas

Europe

Luxury market next

18-24 months

evolution by region


…but with very different categories/ brands mix

…rise in health concern(in general, not just about luxury)

…acceleration of share

of digital shopping (driven by brands)

…confirmed advocacy

for environment (possibly

boosted by “champion” brands)

…higher expectations

of brand activism

…strengthened local

pride

• The amplification of the current facts and the impact on people lives and lifestyle is likely to

reinforce consumers mindfulness (in general, not just about luxury) and sensibility to health concern

• Consumers will restart shopping at physical stores (once they are open and safe again), but if brands

“elevate their digital game” (better assortment, user experience, optimized marketing, …), the appeal

of the digital channel increases, accelerating its growth

• Sustainability will remain a key topic (esp. for Gen Z and alike-minded consumers)

• Some brands may take the chance to rethink their end-to-end product lifecycle and supply chain

for higher sustainability (also for the challenge of excess of unsold stock)

• Current brands activism (brands advocating for people safety, donating to hospitals and medical

centers) reinforces consumer conviction that brands should complement the action of governments

and institutions on social matters

• As some impacted nationalities suffer “social stigma” by international public opinion, they show a

reinforced national/cultural pride and are becoming more vocal against those brands who are

not on their side (e.g. Western brands making donation to their home country institutions, but not

supporting the people in their core market – e.g. China)

Also on Non Aviation, Actual behaviour will strongly differ by Airport

We have tools to help you forecast scenarios specific for your Airport(s)


A New World for Airports, after COVID-19

• Likely fewer, larger Airlines, as the crisis will trigger an involuntary sector consolidation

– Airports relying heavily on an Airline, especially if for connecting traffic, need to assess their position

– Management of Airlines bad debts today will also influence competitive outcome for Airlines

• All Airlines will be much more “aggressively focused” on costs, including Airport-related ones

– Depending on till system, Airports might see “aggressive” renegotiations of their fees (both non-regulated and, at a certain extent, regulated)

• Traffic recovery will not be a “V shaped” bounce back: it will be long and painful, and differ by Airport

– Airports will need to have a continuously updated view on the likely scenarios for their specific situation

– Airports will also have a key role in influencing pax behavior (i.e. addressing health concerns, …) and helping traffic recovery

• Pax choice parameters will likely include, on top of the “traditional” ones (price, schedule, frequent flyer, …) also health protection

– Airports will need to differentiate on pax health protection initiatives (above and beyond country regulations), especially for connecting traffic

• Different pax Retail behavior: omni-channel increase after “forced trial”, reinforced sustainability focus, categories/ brands mix shift

– Airports will need to “double down” on omni-channel (CRM, Tracking, Web, …), on “sustainability” positioning (not only in non-aviation) and re-think

Retail strategy, space allocation and contracts

• Likely fewer, larger travel retailers, as the crisis will trigger sector consolidation, much more focused on costs control

– Airports with a diminished negotiation power vs. retailers, some rents levels challenged as retailers will limit investments also on Tier1 locations

– This will be fundamental in the upcoming full contracts renegotiation in non-aviation (both short term and mid-term)

• Governments will (have to) move to ensure strategic Airports (state-run and private) will continue to operate during and after crisis

– Tier1 Airports might benefit from Government support but their profitability/ ROI might be challenged by public opinion

– Tier2 Airports might face different priorities from Governments, within limited funds

Fundamental to act fast both to “Preserve Cash” AND “Prepare for the New World”

Short term

Medium / Long term


Airports “crisis game plan” - 1: ACT NOW - Govern -proactively- the situation

• Set-up an intelligence task force and dashboard

– Set up a constantly updated Dashboard(s) and News Room with critical KPIs/ Information to monitor: context evolution, people safety, cash, business perf.

– Establish a process for developing and constantly updating short and mid-term market scenarios. Key input for short-term decision-making

– Invest >1FTE to systematically track what is going on in the industry at large (Airports, Airlines, Travel Retailers, Industry Associations, Gov’t entities, …).

Another key input for short-term decision-making

• Establish a high-velocity decision making Emergency Response Center

– Nominate and empower an ERC with crisis leaders, functional experts and external advisors

– Make sure legal is over-represented in ERC: contractual issues, potential health-related claims from employees and pax, …

– Make sure ERC has full visibility of situation (full access to all information, governance of the intelligence task force and dashboard) and has centralized control

of all levers (ability to direct action with any company employee/ asset)

– Make sure your people balance “fire fighting” with “thinking and planning”

• Proactively manage all stakeholders: the number and complexity of interactions has grown 100x

– Reinforce the team with senior people from other dept’s

– Prepare and continuously update a Plan: what you need, how to get it, from each stakeholder

– Be proactive in setting and managing interactions

• Over-communicate internally and externally

– Make sure your Top and Middle Management is fully constantly updated on the evolving context, business, priorities, action plan

– Have a clear plan on who communicates what internally. All of your people should have constant updates and feel “over-communication”

– Drive a clear and constant external communication: your are a fundamental part of the community you serve, you need to be present and active

– drive a clear and objective communication internally and externally with few honest and fact based messages


• Protect People

– Go above and beyond government regulations to ensure your people, your partners and your pax feel safe. Over-communicate on health protection

internally and externally. Use this as a differentiating lever for you and your partner Airlines

– Evaluate to close non-essential areas of the Airport to reduce infection risks

– Ensure maximum support to critical operations that go trough your Airport, both pax and cargo

• Re-modulate operations capacity aggressively

– Adjust operations capacity on a weekly basis based on updated short term and mid-term plan

– Re-think operations forgiving “traditional” constraints: Airlines separation, Retail flows, …

– Cancel any ops job you can (unless subsidized by Gov’t). Accurately select jobs to cut/ reduce/ suspend in HQ (most people you will need more than ever)

– Cancel any outsourcing contract you have, if you can quickly fill that in with internal resources (training/ certification needs)

• Control Cash

– Re-think Capex based on your best-estimate mid-term scenario, define plan to cancel/ re-modulate balancing need vs penalties/ stakeholders impacts

– Aggressively re-negotiate short, mid and long term debt / credit lines even if think to be able to honor them

– Aggressively ask for Government “moral suasion” to support you on Capex and Debt re-negotiation. You are a strategic infrastructure

– Launch an aggressive procurement re-thinking/ re-negotiation campaign. Most likely there is significant value hidden there, considering the crisis

– Postpone any payment you can, leverage Supply Chain Finance (with Gov’t support/ guarantee) to ensure suppliers get liquidity anyway

– Cancel dividend payment if you have not already materially paid them

• Manage key Partners

– Assess realistic future of partners Airlines, identify those that will be crucial for your future (not necessarily the same as before crisis). Examples

> Unpaid Airport fees: support only the crucial ones

> Health concerns: prioritize the crucial ones on co-preparing operational plans to address pax health concerns (beyond regulatory)

– Evaluate Non-Aviation MAG re-negotiation based on necessity to ensure your current partners do not go bankrupt. Difficult to substitute in the short term

– Assess realistic future of Non-Aviation partners and act accordingly also on short-term decisions

Airports “crisis game plan” - 2: ACT NOW to address immediate risks/ opportunities


• Support your community and the global travelers to maximize speed of air traffic recovery– Once the pick of the crisis will be over, ensure you have a leading role in re-assuring passengers that air traffic is safe (addressing air travel health

concerns and over-communicate them)

• Identify the key decisions that you are taking now and will affect your business mid-term– Which airlines to prioritize (see previous page), and how to partner with them

– How to address Non Aviation partners in this situation: enforce current contract-MAGs?, re-negotiate an “emergency” bridge?, …

– Capex cancellation/ re-thinking

– Debt re-negotiation

– …

• Make sure those decision are based both on immediate necessity and mid-term scenarios– Generate (and constantly update) mid-term traffic, aviation and non-aviation scenarios and leverage them support short-term decision making

– Elaborate a “zero based” view of your business (revenues and costs) in the new mid-term scenarios, and identify the initiatives to get there

> To be launched immediately: e.g. procurement re-thinking

> To be launched after crisis: e.g. automation/ digitalization, travel retail “new” full potential, …

– Elaborate explicitly which initiatives you can launch “leveraging” the crisis, that you would never had been able to do in a less critical situation

• Explicitly dedicate “10%” of your and your team time now to think at how you get out of the crisis stronger than before– Better position with Airlines and Non Aviation partners

– Well prepared for the “New World” both on Aviation and Non Aviation (re-think retail)

– With a higher market share in your catchment area/ on connecting traffic

– With a differentiating position on health control and sustainability

– Maybe with an investment in another Airport

– …

Airports “crisis game plan” - 3: PLAN NOW - Transform to prepare for the future


Final thoughts: act now to “Preserve Cash” AND “Prepare for the New World”

• The greatest challenge is governance and engaging

senior management

– A dramatic move away from traditional “long term planning”

• The shift to cash conservation will be fundamental

– But will need enormous effort

• The level of senior management bandwidth to manage

partners aggressively is unprecedented

– Labour, different Government stakeholders, Regulators,

Airports, Banks, Travel Retailers, etc.

• This event will likely change our world, the “New

World”, even after Crisis has ended, will be different

– Need to start preparing now for it, it will require significant

change, cancelling/ acceleration of projects, …

The sum of a fast short term action and

dramatic mid-term business re-thinking

A N N E X

COVID-19 Airlines game plan

COVID-19 Travel Retailers/ Brands game plan


Airlines “crisis game plan” - summary

Separate 2020

from beyond

Prioritise

cash

Engage with

customers

& partners

S2020 & W20/21 realism

– Leveraging real world

experience

– Collaborate with labour

Rapidly adjust coming

months

– With JV partners

– With eye on competitive

actions

– Clear triggers to thin or

pause flying

Considered 2021-22

scenarios:

– Manage slot portfolio

– Aligned with partners

Assess need to change

strategy

– Relative cost position

– On-board product

Ensure executive mind-

shift to cash– Daily position shared

with execs

– Goal shift in AP/AR

Reinforce balance sheet

Immediately engage in

renegotiations – Hub / Lessors / OEM

/MRO

– Distribution channels

– Grind out procurement

savings everywhere

Rethink overheads– Freeze all hiring & non

essential training

– Seek break clauses

Adjust key commercial

levers:– Credit cards

– Loyalty

– Interline

Understand changing

needs and expectations

Create drumbeat of

communication:

especially with

commercial partners

Rapidly engage with

hub operator as a

partner

Appeal to authorities for

support and clear

guidance

Closely monitor supply

chain:

– Prepare sufficient buffer

especially in

Maintenance.

Protect the

people first

Protect your staff:

invest to ensure the

safest working

environment

Protect the

passengers: working

with authorities and

learning from partners

Focus on the hub: as

a network airline,

particular care around

connecting facilities and

lounges is critical

Be focused

on main

levers

Establish a Dedicated

Unit: close to key

decision-makers and

empowered to make

recommendations and

track all COVID-19

related activities

internally

Over-communicate:

relevantly and

consistently to all

stakeholders

Scan the market and

listen: absorb best

practice and respond

quickly to regulatory

changes

Airlines


Airlines “crisis game plan” – details (1/2)

Centralise

visibility of levers

Protect the

people first

Establish a control

tower

Over -

communicate

Scan the market

and listen

Protect your Staff

Protect the

passengers

Focus on Hub

• Cancel non operationally critical gatherings > 20 people and consider closing canteens

• Review crew centre /airside gatherings pre/post duty and halt (almost) all staff travel

• Consider reducing IMO in-bound travel for IT contractors

• Clear hygiene and health advice to all staff (head office, flying crew, station staff)

• Review cleaning/hygiene facilities, in the light of regulatory input, for all staff and adapt

• Take advice on possible deep cleaning of most used areas/facilities, sites and in the hub

• Set up a small but trusted Dedicated Unit attached to CEO/CFO/CRO Office

• Hold together multiple ongoing communication initiatives

• Track internal progress of COVID-19 related activities and be ready to adjust up and down

• Report internal KPIs deemed relevant for major commercial decisions

• Ensure staff hears it from you first and create extra bandwidth across all channels internally and externally

• Activate extra handling resources at hub and key transfer points

• Dedicate >1 FTE to scanning other airlines’ actions

• Support Network/ commercial/ ground teams with timely information of COVID-19 spread into markets

• Clear information provision in coordination with Hub and outstation operators, Alliance/JV partners

• Review inventory and availability of hygiene products (soap, water, wipes) on board/lounge/check-in/ gate

• Changes in refund/change conditions and review of cleaning protocol following regulatory/expert input

• Consider stopping/changing catering service and alterations to lines of flying for geographic focus

• Review all connecting procedures along with key partners (airport, security and immigration)

• Identify infrastructure opportunities to manage passenger flows from affected regions separately

Separate 2020

from beyond

S2020 & W20/21

realism

Rapidly adjust

coming months

• Design a core set of graduated scenarios preferably based on currently observable realities.

• Ensure Revenue Mgmt systems are manually adjusted

• Plan with labour to address short term options such as furlough, reduced duty flexibility or other forms of leave

• Evaluate competitor actions and announcements:

• Immediately agree with JV/antitrust partners

• Agree guidelines and clarify network/schedule teams decision rights for route thinning / suspension

• Evaluate Fleet size adjustment

Airlines


Airlines “crisis game plan” – details (2/2)

Separate 2020

from beyond

(cont.)

Considered 2021-22

scenarios

• Design a set of 2-3 year scenarios: market sizes, yields, competition, fuel prices, environmental costs

• Aggressively reshape fleet planning options

• Rethink completely balance of capacity across various group entities

• Map out the combinations of market, capacity (MAX return?) and competitor actions

• Ensure balance sheet can create a safety net and resilience to hostile approaches

• In case of persistent low yields lay out path to retaining/building relative cost advantage

Assess need to

change strategy

Engage with

customers and

Partners

Understand

changing needs

Communication

Hub operator

Appeal to

authorities

Closely monitor

supply chain

• Ensure feedback from front desks and call centers is consolidated and fed back

• Engage in ethnographic studies along physical journey and launch a program of evidence-based say/go testing

• Leverage Control Tower to ensure direct channels and ensure PR teams are working together

• Ensure codependency is clear at highest levels and enhance focus on staff and passenger safety

• Locate key counterparts and ensure your executives engage fully and be aware that Health guidance is critical

• Identify potential areas of government support and consultation for all travel restriction changes

• Initiate conversations on broader industry support and explore IATA support & guidance

• Ensure access to engineering spares

• Explore opportunities for earlier/later refurbishments, heavy checks and shop visits

Prioritise cashEnsure executive

mind shift to cash

Reinforce balance

sheet

Immediately engage

in renegotiations

• Daily position shared with all execs with weekly reforecast and stay away from P&L budgets

• Ensure Finance tightens /loosens and defer executive fixed compensation and adjust variable

• Draw down on all existing credit lines and then extend lines and support from FFP credit card bank partners

• Suspend non-critical payments where possible and review hedging policies on fuel and currency

• Renegotiate Fleet both with OEMs and Lessors and with other strategic suppliers

• Procurement to immediately renegotiate with all suppliers and renegotiate with FFP partners

• Freeze all hiring and cancel all non-essential (operations) training and seek break clauses in contracts

• Reduce & rethink marketing/ advertising and consider flexible staffing/ shift models

• Review interline agreements, immediately adjust marketing spend/type and moderate capacity

• Reduce regulatory delay fines and review loyalty earn/burn (status retention) and Cargo opportunities

Rethink overheads

Adjust key

commercial levers

Airlines

A N N E X

COVID-19 Airlines game plan

COVID-19 Travel Retailers/ Brands game plan


Travel retailers – brands game plan: summary

Governdon’t be carried away

Actto address immediate opportunities & risks

Transformto prepare for the future

Intelligence task-force

and dashboard

High-velocity decision making

committee(assess, plan, re-assess, adjust)

Internal and external

communication plan

Top line protection and

mitigation initiatives execution

OpEx and CapEx

re-phasing and shifting execution

Short-term operations

contingencies actions

“Smart & agile”

decision making & way of working

Supply Chain Reinvention

Digital Boost

TravelRetailers/

Brands


Travel retailers – Brands game plan: define and fine-tune plans

informed by robust and fresh intelligence, and drive teams actions

Intelligence task

force and

dashboard

High-velocity

decision making

committee

Internal and

external

communication

plan

• Set up an periodically updated dashboard(s) and news room with critical KPIs and information to monitor

– Context evolution

– People safety

– Business performance (i.e. Retail turnover, production lead-time, inventory stock)

• Develop external market scenarios (on consumption) based on evolution of epidemiology and socioeconomic

responses

• Assess impact to P&L, balance sheet, cash-flow for each scenario, considering contingency plans

• Nominate and empower a (restricted) committee of crisis leaders, and extends invite to functional experts

and external advisors (based on topic)

• Establish a lean but dedicated project management office (PMO) to coordinate and support the committee

• Periodically re-assess the situation and adjust priorities and plans based on the evolving scenario and

emerging results

• Delegate to operative task-forces by objectives

• Constantly update top management on the evolving context, business and priorities and action plan

• Drive a clear and objective communication to teams to enable their action and contribution

• Define few, honest & fact-based messages to be conveyed externally to inform on business continuity (don’t lie

/ don’t panic)

G O V E R N

TravelRetailers/

Brands


Travel retailers – Brands game plan: execute contingency plan

through pragmatic initiatives across top-line, costs and operations

Topline

protection and

mitigation

initiatives

execution

OpEx and CapEx

re-phasing

• Redirect sales to the more resilient channels / geographies (safe for people / not impacted): e.g. – Double down on online (including digital messaging) in response to retail traffic decline in interested epidemic areas

– Update CRM playbook and initiatives; activate top customers while growing customer experience across touchpoints

– Perform quick evaluation of expected upside potentials and related costs for the various initiatives

– Perform preparatory activities for when the outbreak will be over (e.g. China), with clear “go/no-go” deadlines

• Test new models to next sales campaign for buyers (e.g. virtual showroom, trunk shows)

• Postpone/cancel non-converting mktg. activities (incl. fashion shows) and re-negotiate agency fees (if any)

• Postpone all non strategic CAPEX investments (e.g. stores openings in affected countries)

• Manage retail and other costs (e.g. hiring, training, VM rotations & Props, rents renegotiations, travelling)

Short-term

operations

contingencies

actions

• Optimize current season working capital (stock reallocations, temporary stores/outlets activation, production

phasing/postponement – e.g. permanent items with sufficient stock levels, …)

• Put your Supply Chain in crisis mode to ensure end-to-end product dev., production & delivery (“red and

blue” teams in prototyping/manufacturing/warehouses, 3D product dev., reshoring, expedite of late deliveries,… )

• Develop buying approach and guidelines for next season (how to split the OTB, how to cluster stores based

on expected impacts on consumption of Covid-19, what and how much to buy for identified store clusters)

• Review OTB for next season, accounting for evolution of Chinese and other nationalities consumption –

develop scenarios (be ready to trigger actions - e.g. to unlock budget if situation rapidly improves)

• Review next season collection structure to account for potential production issues (both façon but also

raw material – e.g. cashmere, silk, leather,…); potentially focus on key raw materials (especially fabrics) to order

in advance to ensure availability when production will start (considering current disruptions in sourcing)

A C T

TravelRetailers/

Brands


Travel retailers – Brands game plan: take the opportunity to fully

transform those areas that this outbreak has made more critical

“Smart & agile”

decision making

& way of

working

Supply Chain

Reinvention

Digital Boost

• Enable faster and more robust decision making

– Design and set up advanced-analytic dashboards, easily available, updated and insightful

– Streamline governance and accountabilities (removing old legacy process / silos)

• Make the way of working more in line with the mindset of the new generations

– Design and roll out a model for flexible working hours / locations (to better fit individual lifestyles, and optimize costs)

– Enable virtual meetings and collaboration (saving on travel costs, allowing flexibility, reducing carbon footprint)

• Unlock the full potential of omnichannel

– Define your omnichannel full potential vision and unlock current constraints (functional silos among channels, lack of shared

MBOs / incentives across channels and geos, lack of integrated customer view, B2B logistics mode and processes, …)

– Design, launch and execute enabling initiatives (including enabling IT systems enhancement /re-platforming)

– Revise the role of the store in the omnichannel eco-system and take opportunity to optimize the sub-optimal DOS & doors

• Optimize marketing spending and take more control on digital marketing

– Identify digital capabilities (systems, talent, …) to be internalized (vs. agency black-box)

– Adopt a marketing model based on test and learn to optimize costs and results

• Transform your Supply Chain becoming more reactive and flexible to enable a “seasons-less” and “drops-

oriented” collection structure

– Upgrade suppliers/vendors base, carefully judging their ability to quickly react at scale (without deteriorating product quality)

– Redesign all internal processes, from product dev. to delivery – also cross-functional (e.g. S&OP), to reduce lead-times and

gain speed without increasing risks (e.g. blind orders)

• Increase your bar on sustainability and innovation

– Enhance your sustainability initiatives and control across value chain and introduce innovations (3D product dev., …)

T R A N S F O R M

TravelRetailers/

Brands

Mauro Anastasi [email protected]

Lorenzo Ferroni [email protected]

Derek Gerow, Bain Global Aviation Sector Head [email protected]

mailto:[email protected]



Documents

COVID-19 A New World for Airports€¦ · Airports “crisis game plan” - 1: ACT NOW - Govern -proactively- the situation • Set-up an intelligence task force and dashboard –