Thursday 5 December 2013

The secret of Tumi's Asia Pacific success

In this interview, I find out more about Tumi’s new creative direction and the US travel accessories company’s expansion strategy across the Asia Pacific region.

Following the appointment of a new creative director, the high-end shoe designer George Esquivel, Tumi is pursuing a more lifestyle-driven path.

Famous across the world for its core Alpha range of ballistic nylon travel bags, the new Santa Monica collection incorporates wonderful design twists, such as light- and dark-coloured leather combined in an innovative way, and crafted leather finishes on the handles. Items in this premium collection retail at between $395 and $800.

Tumi's Santa Monica collection, designed by George Esquivel

Like many other premium brands, sales growth is coming from the Asia Pacific region. Tom Nelson, Tumi’s Hong Kong-based managing director Asia Pacific, tells me: “[Asia] is a growth story for us – it’s quite a success story. We started in the region 15 years ago with Japanese department stores, then moved into Hong Kong and Australia. Over the years we’ve established partnerships with the local domestic market.”

Tumi products have shown a particular appeal to Japanese men and women, continues Nelson, as they seek the best tools for everyday use or for travel. “It’s all about performance. Business cases sell well to our Japanese customer. We noticed that after the 2011 tsunami, when there were power cuts and the government introduced its ‘supercool biz’ policy of taking off your jacket in the office, there was a big transition to casual day bags. There was a real shift in their consumption pattern.” Tumi saw an uptick in sales of its more urban, casual Alpha Bravo collection, according to Nelson.

In South Korea, the backpack is one of Tumi’s most successful products, he notes.

Nelson tells me the brand’s core product resonates with the Chinese consumer and observes that there is a higher concentration of sales of all-leather items in the Chinese market. Speaking about how Chinese consumer tastes have changed over the years, he describes this nationality as having tilted towards being “showy” in the past but “they have evolved quickly and love to be educated about brands”. Tumi’s core Alpha collection, as well as the Voyageur and Ticon ranges, are performing well among this customer group.

To attract Chinese customers, Tumi uses social media tools in its marketing, such as Weibo and WeChat, notes Nelson.

Airport store expansion

Tumi pursues a dual strategy in terms of its domestic and travel retail business - with Nelson describing it as a “symbiotic relationship” - and sees the duty-free channel as an opportunity for brand awareness.

To understand the travel retail business better, Tumi has carried out research in airports in Japan, Hong Kong and is about to embark on a study of the Chinese travel retail market, in a bid to understand the relative awareness of the brand.

Tumi has a number of freestanding travel retail shops in the Asia Pacific region, including a new store in the domestic terminal at Kuala Lumpur International Airport, which began trading in October. Recent shop openings have included a new boutique in Terminal 1 at Taiwan Taoyuan International Airport, the largest airport in the country. This store opening follows the debut of a Tumi boutique in the international terminal at Taichung Ching Chuan Kang Airport in western Taiwan, which is said to be “thriving”.

Tumi has also made further inroads in China this year with new shops in the domestic terminals at Guiyang Airport, a new boutique at Shanghai Hongqiao Airport Domestic terminal and a refurbished store at Shanghai Pudong Terminal 2.

In Thailand’s domestic market, a new shop began trading in downtown Bangkok in October.

Santa Monica duffel, tote and hobo bags

 “Global Citizens” ad campaign

Tumi has also stepped up its lifestyle advertising. For 2013 Tumi has created the “Global Citizens” ad campaign featuring a trio of well-travelled citizens - water conservationist and explorer Alexandra Cousteau; singer, songwriter Amanda Sudano-Ramirez; and CEO of Pirelli Tire North America Paolo Ferrari. 

Photographed in the international hub of Los Angeles, the three global citizens speak of their passion for travel and carry their favourite Tumi pieces in the ads. As they head out of Los Angeles Airport on their next assignment, no doubt these three jet-setters will visit Tumi’s just-opened store at Tom Bradley International Terminal.

Said Nelson: “The campaign will resonate with Tumi's diverse, global audience - speaking to global citizens through the use of real individuals and their stories - and will establish a long-term brand platform that provides the foundation for Tumi to grow into a global, premium lifestyle brand."