Phnom Penh Duty Free is located inside the integrated entertainment destination of Naga City at Naga City Walk which connects Naga World to ‘Naga 2’. It offers approximately 4,000sq m of retail space with all the main DF&TR and luxury categories available: cosmetics, perfume, jewellery, sunglasses, watches, fashion, beverages, tobacco, travel goods and confectionery as well as “famous local products”.
The end of September will see the arrival of a slew of further brands: Estée Lauder, Kiehl’s, La Mer, SK-II, Lancôme, MK, Rimowa, and Tumi.
The beauty area in the new store.
State-owned CDFG, which operates a brand company in Cambodia, comments: “We are the top luxury retail store in Phnom Penh providing a high-end shopping destination to tourists and business travellers. Customers can choose from more than 200 brands from around the world.”
On opening, branded boutiques will include Longines, Tissot, Swarovski, Samsonite and Prada, with further boutiques from Armani, Coach and Furla to be unveiled at the end of this year.
SILK ROAD TARGET
The Phnom Penh development is part of an international expansion policy targeting the so-called ‘Silk Road Economic Belt’ to which CDFG parent, China Travel Group, is committed.
Cambodia is a key market within the plan: CDFG has already opened its Angkor duty free store in December 2014 (where it competes with DFS), followed a year later by the Shihanoukville duty free store in December 2015. CDFG says it has “the full support at all levels of government in Cambodia”.
CDFG – which claims to be China’s largest retailer of luxury merchandise – says that with its three stores in place it “will write a new chapter in the tourism industry in Cambodia”.
To celebrate today’s soft opening, promotions are in place with a 15% discount on all shopping; a chance to experiencing the VIP shopping service; and a gift on purchases over $100. Scanning the company’s official WeChat account, or clicking ‘like’ on the company’s official Facebook, also qualifies for a surprise gift.
State-owned China National Service Corporation (CNSC) opened its ambitious Shanghai downtown duty free store on 8 August. The corporation aims to invest heavily in the burgeoning downtown duty free sector in China.
The store opening attracted thousands of shoppers on opening day. It houses an initial 100 brands from the region and worldwide over two floors, with more to come in the next three months, according to local reports. Categories on offer includes watches & jewellery, beauty, confectionery, toys, gifts and special sections dedicated to Korean and Japanese items,
According to reports from Shanghai, the leading brands sold on day one were Estée Lauder, La Mer and MAC.
The reports said that year one sales should hit around 400 million Yuan (US$60 million).
CNSC said it planned to improve its retail systems and service processes, as well as its customer capacity.
Landmark day: The new CNSC store opens in Shanghai (Photos: Duty Free Expert)
Large crowds gathered in anticipation of the new store’s unveiling
Last week the Korean government announced plan to impose duty free limits to stop third party sales of cosmetics in China, and now, in an unrelated move, the China government’s threats to retaliate over Korea’s deployment of new military defence technology seems to be adding to investor fears.
Korea has taken a decision to deploy a Terminal High Altitude Area Defence (THAAD) battery, which some experts believe is one of the reasons why investors a dumping shares in Korean companies, a sector that is heavily reliant on exports to China.
Raising the bar on visas and sanitary regulations
In the first move, perceived to be a retaliatory step by China authorities, officials recently closed a visa agency catering to Koreans, something that will make it harder for Korean companies to obtain multiple entry visas for doing business in China.
On top of this, the China trade authorities have also stepped up sanitary regulations governing Korean beauty products, a move that is also likely to put a damper on exports of certain products and make the whole process more difficult.
“Cosmetics and entertainment stocks have plummeted as China has begun taking steps against Korean companies and individuals doing business on the mainland,” said Daniel Cho, head of research at Daishin Securities, speaking to the Korean Times.
“The recent decline was largely engineered by the potential THAAD backlash.”
Those duty free regulations
Simultaneously, speculation has been growing about the impact of proposed duty free regulations, which are being drawn up to protect the industry, but some experts say this has already had an impact on investors and the value of shares in the country’s big beauty players.
Last week the Korean customs authorities notified all Korean duty-free retail operators, which include three major operators, that each customer would be limited to buy no more than 50 cosmetic and fragrance products.
The main objective behind the clamp down is to cut out on the emerging market for cosmetics then be sold on to third-party brokers, and then resold on to other retail channels.
News of the limit was leaked on the previous Friday and when the Korean Stock Exchange re-opened for trading on Monday, stock prices dropped significantly, with Amore Pacific share prices falling over 2% and LG Household & Health falling 6%.
In the last few years the rise and rise of Korean cosmetics companies has been attributed to a huge appetite from the China market, but with prices of the products being much higher in China, consumers have taken to shopping holidays in Korea to stock up.
China drives duty-free cosmetics sales
Sales of Korean cosmetics have been boosted by chic advertising campaigns, Korean pop and a product innovation pipeline that boasts some of the most cutting edge products available anywhere in the world.
A large part of this success has been the huge influx of tourism from China, many of whom are going on ‘shopping holidays’ with the main aim of buying up their favourite Korean cosmetic products at a cheaper price than they would pay in China.
Current figures show that cosmetics make up the lion’s share of Korea’s largest duty free retail chain, Lotte, accounting for 58.9% of sales in the first quarter of this year, and that 70.8% of the company’s overall sales came from Chinese visitors. This up from 63.3% compared to the previous year.
The Shilla Duty Free has posted a 29 per cent year-on-year rise in second-quarter revenues for its Korean downtown stores, rebounding from the MERS-ravaged tourism sector at the same time last year.
Downtown store revenue climbed to KW538.2 billion (US$473.6 million) for the quarter, with growth outstripping the 23.5 per cent increase in the total Korean duty-free market, especially with higher competition after the government issued more licences last year.
However, Korean airport sales fell 19.2 per cent to KW198 billion, driven by a downturn in Incheon International Airport revenues because of reduced floor space.
Overseas duty-free revenues (mainly Singapore’s Changi Airport and Macau International Airport) rose by 16.3 per cent year-on-year to KW121.3 billion. However, Shilla posted a KW12.3 billion operating loss on its overseas stores, mainly because of the high cost of entry at Changi. This hit overall profits, which fell 51.4 per cent to KW15.4 billion. Even the Korean downtown business fell 39 per cent to KW27.7 billion.
A factor in that decline has been the rocketing costs of commissions to Chinese travel retail agents – up from between 7 and 100 per cent to around 23 per cent, according to The Moodie Davitt Report.
The Shilla Duty Free is the key revenue and profits contributor to parent Hotel Shilla, whose consolidated revenues rose 13 per cent year-on-year to KW954.1 billion, while operating profits fell 36.04 per cent to KW18.7 billion.
Hyderabad Duty Free (HDF), a 100% subsidiary of GMR Hyderabad International Airport Ltd. (GHIAL), in collaboration with DIAGEO group gave away the bumper prize of a Mahindra TUV 300 to Mr. Surya Pathapati, a frequent flyer from Hyderabad Airport. This was the part of the “Johnnie Walker Rewards You” promotional campaign organized at Hyderabad Duty Free.
Visible in the picture are: Mr. SGK Kishore, Chairman, Hyderabad Duty Free Retail Limited (Sixth from Left) along with the relatives of the prize winner and key dignitaries of HDF and GHIAL. To participate in this mega promotion, flyers had to purchase a Johnnie Walker (JW) product in one transaction valued at $50 and above. This entitled the participants to receive a coupon / entry card. At the end of the promotional event, a winner was chosen in a lucky draw.
Bacardi Global Travel Retail has unveiled the largest permanent merchandising installation of The John Dewar & Sons Fine Whisky Emporium in Hong Kong.
The company has partnered with Chinese duty free retailer Sky Connection and sister company Anway for the opening at the Free Duty store inside Hong Kong MTR Lo Wu station.
The station is home to train services between Hong Kong and mainland China, with over 100 million cross-boundary travellers using the location every year.
Brand ambassadors are on hand at the three metre wide emporium to guide shoppers through the Dewar’s portfolio. It also showcases Aberfeldy Highland Single Malt Scotch Whisky, Aultmore of the Foggie Moss Speyside Single Malt, Craigellachie Speyside Single Malt and Glen Deveron, Royal Burgh Collection.
“We have looked in detail at Chinese drinking habits and believe there is a strong opportunity to drive incremental basket spend in Scotch,” said Bacardi Global Travel Retail Regional Director Asia-Pacific Vinay Golikeri. “This opportunity will come from shoppers who were born during and since the economic reform. They are already actively engaging with the ‘discovery’ opportunity and the brand intrinsics of the five single malts in our aged whisky portfolio.”
Bacardi sees a US$40 million incremental opportunity in global travel retail whisky. “We are convinced the key to this prize is by leveraging the appeal of discovery brands such as ours with shoppers at the second stage of luxury,” said Golikeri.
Anway/Sky Connection Merchandising & Buying Director Simon Au commented: “This is an exciting opportunity for us to bring something special to the high proportion of our shoppers who are whisky lovers and collectors. We’re delighted with the customer feedback – people are genuinely amazed to be able to purchase some of the world most awarded whiskies on their commute home.”
Luxury travel retailer DFS Group Cambodia has marked the opening of its first store, T Galleria by DFS, Angkor, with a gala event for more than 300 guests.
In the resort town and provincial capital of Siem Reap, near the ancient temple of Angkor Wat, T Galleria by DFS, Angkor is the largest duty-free luxury department store in Cambodia. It offers travelers an integrated retail, hospitality and leisure experience with 170 brands across 86,000 sqft (7989 sqm).
The opening celebration began with a ribbon-cutting ceremony, after which traditional Cambodian Apsara hostesses led guests through the two-storey store for traditional cultural performances and demonstrations by Cambodian craftsmen.
From DFS Group were chairman/CEO Philippe Schaus and co-founder Robert Miller, while special guests included Cambodia’s Senior Minister of Economy and Finance Aun Pornmoniroth and Minister of Tourism Thong Khon.
The store features a curated collection of Cambodian artisanal products designed and produced by more than 30 Cambodian artist workshops. At the event, Angkor Artwork, a Siem Reap design studio, demonstrated the art of lacquer work, while Golden Silk, one of the last fully integrated silk producers in the world, wove silk spun from Cambodian silk worms.
Traditional Khmer motifs and carvings feature throughout the store, including a nearly 20m art installation suspended above the vaulted atrium.
T Galleria by DFS Angkor also ranges more than 130 international brands including watches and jewellery from Bulgari, Cartier and Tiffany & Co and fashion from Bottega Veneta, Burberry, Fendi, Gucci and Saint Laurent. There are also more than 30 beauty and fragrance brands such as Cle de Peau Beaute, Dior, Estee Lauder and Giorgio Armani.
The gala event also marked the official opening of the onsite restaurant, the first Crystal Jade outlet in Cambodia, serving traditional Chinese cuisine in a setting overlooking the gardens and reflecting pools outside.
The event also provided a platform to officially announce the company’s sponsorship of several non-profit organisations focussed on helping underserved populations in Cambodia. Schaus presented a donation to Kuma Cambodia, which aims to reduce poverty through providing education, healthcare and nutrition to vulnerable youngsters, English and computer courses for teenagers, and workshops and guidance for parents and guardians.
Ten Changi Airport bookstore concessions are up for tender across four terminals.
Changi Airport Group (CAG) has issued documentation seeking bids to operate books/magazine/stationery concessions spread across terminals 1 to 4 at Singapore’s airport.
Three store premises are being made available for each of the T1 (departure/transit lounge East and West, and departure/check-in-hall East), T2 (departure/transit lounge North and South, and departure/check-in-hall South) and T3 (departure/transit lounge North and South, and departure/check-in-hall North). One T4 store will be made available in departure/transit lounge North.
CAG says the concession requires that companies have “a good track record” in the business of retailing books, magazines, newspapers, postcards, pens and stationery items.
The contract is for three years, with a two-year option to extend at the discretion of CAG.
Meanwhile, concept stores Avenue Kids and Pure Gold Jewellers have launched in T2 in the public areas. It is Avenue Kids’ second full-fledged airport store following the opening of its first outlet in the T2 transit area last month.
South Korean authorities raided the headquarters and other offices of Lotte Duty Free Guam’s parent company in Seoul earlier this month.
The duty-free retailer sells an array of high-end products, from eyewear to liquor, to passengers who’ve passed through the airport’s security check.
“The airport is not concerned at this time with the news coming out of Korea about Lotte,” Airport Executive Manager Chuck Ada’s office said in a statement. “It has nothing to do with Lotte Duty Free Guam’s obligations under its specialty retail concession contract with (the A.B. Won Pat Guam International Airport Authority).”
Lotte Duty Free Guam is a wholly owned subsidiary of Hotel Lotte Co. Ltd., which is based in South Korea. Hotel Lotte and other companies under the Lotte Group have been the subject of a widening investigation by South Korean authorities, according to media reports.
The news about the raids came after an audit, released in February, indicated Lotte Guam was facing financial problems.
The most recent audit of the retailer’s financial statements showed Lotte Guam posted $14.3 million net loss at the end of last year. Lotte Guam also recorded a $14 million loss at the end of 2014, and an $8.9 million loss in 2013.
In January 2015, Lotte Guam asked the airport for a temporary reduction in rent. Ada denied the request, saying it would affect the agency’s ability to pay its debts, according to letters between the airport and Lotte.
An email and phone calls to Lotte legal counsel Cesar Cabot were not returned.
Ada was unable to comment on whether Lotte had made a subsequent request for reduced rent.
In 2013, Lotte Guam signed a contract to pay the Guam airport agency $15 million a year for 10 years, and the airport used these future payments to enhance its ability to borrow more money from bond investors.
In light of the reports of the investigation into Lotte’s parent company, the airport “has to do their own due diligence,” said Guam’s Public Auditor Doris Flores Brooks.
However, Brooks said it’s too soon for her to comment whether there’s reason to be concerned about the airport’s future finances.
The Wall Street Journal reported that according to South Korean media, the raids were triggered by an investigation into whether a local cosmetics company paid bribes in exchange for floor space at Lotte’s duty-free retail outlets in that country.
Lotte’s South Korean office confirmed the raids occurred, but the company declined to comment regarding the specifics of the investigation, according to the Wall Street Journal.
Lotte Guam is part of the worldwide Lotte Group’s duty-free enterprise, which reported more than $4 billion in annual sales in 2015, according to the statement from Ada’s office.
“The airport has confidence that with Lotte’s experience and vast financial resources that it will abide by and meet the terms of our 10-year agreement,” the statement said.
If Lotte Guam fails to make a payment, the airport agency said it’s protected by a letter of credit of more than $15 million. A letter of credit is issued by a bank as a backup source of payment.
When asking for the rent to be reduced, Jung Min Lee, chief executive officer of Lotte Guam, wrote that sales “have not met projections, and are not even near the estimated levels based upon available economic data.”
“Lotte respectfully requests GIAA’s kind consideration in order to survive this temporary rough patch of adversity and market events that are beyond Lotte’s control,” Lee wrote. The request cited the weakened value of the yen and the ruble against the U.S. dollar as a reason for the dismal sales.
Guam’s tourism industry has seen a dip in Japanese visitor arrivals and steep plunge in tourist arrivals from Russia, and those challenges continued this year.
Lotte Guam’s net sales of $15 million weren’t enough to cover all of the duty-free retailer’s bills last year, including: $15 million in rent to the airport; almost $4 million in payroll and employee benefits; and $3.3 million in professional fees, the 2015 audit report showed.
The airport agency doesn’t want to increase airline fees to cover losses from duty-free concession revenues, Ada wrote in his letter denying the rent reduction. When the airport raises airline fees, airlines could pass on the cost to the traveling public.
Lotte’s $15 million rent payment to the airport in fiscal 2015 made up nearly 25 cents for every $1 of the airport agency’s operating revenue that year, a separate government audit report shows.
Lotte Guam and the airport agency continue to fight luxury goods retailer DFS Guam in Superior Court over the duty-free shop spaces at the airport.
DFS was the duty-free concessionaire for 30 years until the airport awarded a 10-year concession agreement with Lotte in 2013.
Lotte has paid $20 million for projects to improve the look of the duty-free concession areas at the Guam airport terminal, according to the airport agency.
“There is no question that the Lotte concession has been of tremendous benefit to the airport and the people of Guam,” the agency said in a statement.
An expansion of Macau’s DFS City of Dreams retail area has been launched, offering a lifestyle luxury shopping experience in the heart of the Cotai Strip.
Three times larger than the former retail space, it was unveiled by gaming and entertainment group Melco Crown Entertainment and luxury travel retailer DFS Group. The area is being run by T Galleria by DFS.
Styled like an edgy department store, the space uses elements of glass, marble and steel combined with warm wood accents, designed to be both dramatic and intimate. The space links dining areas, casinos, retail stores, entertainment attractions and hotels.
Melco Crown Entertainment chairman/CEO Lawrence Ho says the group’s flagship property beings many firsts to Macau. “It features the largest collection of luxury brands in Cotai and creates an exciting luxury shopping scene for all aspirational, sophisticated and cosmopolitan leisure seekers in the region.”
DFS Group chairman/CEO Philippe Schaus says Macau continues to be an important destination for its customers, “which is why we are thrilled to unveil a retail concept that is a first for DFS in terms of its scale, audacity and innovation”.
Curated selection
He says it is a first for Macau in terms of providing a curated and modern product selection across the major luxury categories. “T Galleria by DFS, City of Dreams will combine the breadth of a luxury shopping mall with the personalised service of a high-end department store.”
Opening in phases from now until December, City of Dreams’ T Galleria by DFS will have the largest collection of luxury brands in Cotai, including beauty products and fragrances, fashion and accessories, and watches and jewellery brands.
It will also introduce exclusive T Galleria signature customer services, including the first-ever shoe salon as well as a multi-brand lifestyle shopping area dedicated to men’s fashion and grooming.
Offering more than 50 men’s and women’s shoe brands across two floors, highlighted by exclusive-to-Macau brands such as Aquazzura and Rupert Sanderson, the shoe salon will be the largest in Hong Kong and Macau.
The expanded beauty and fragrance section opens this month. When fully expanded, the 23,000 sqft (2136.7 sqm) space will comprise two wings and feature nearly 70 brands, making it the largest beauty hall in southern China. It will include Korean brands Hera, Laneige and Sulwhasoo.
A first for men
Also opening his month are 31 fashion and accessories brand outlets, including Dior, Fendi, Louis Vuitton, Miu Miu and Prada. And for male customers, for the first time at any T Galleria by DFS store there will be a multi-branded, lifestyle area that mixes ready-to-wear, accessories, shoes, watches and grooming all in one space.
By the end of this year, the phased opening will culminate in a significantly wider jewellery offering, bringing key luxury brands Tiffany & Co. and Van Cleef & Arpels to City of Dreams, as well as new watch boutiques from Audemars Piguet and Vacheron Constantin.
Dining outlets will also be integrated into the environment.
Developed by Melco Crown Entertainment, City of Dreams is an integrated resort that brings together a collection of brands including Crown, Dragone, Grand Hyatt and Hard Rock, with more than 20 restaurants and bars, the world’s largest water-based extravaganza in the Dancing Water Theater, and accommodation options.
The mall extension follows a new package of social and economic policies for the city, released under the Macau government’s Five-Year Development Plan. By 2020, the government wants to see non-gaming income account on average for at least 9 per cent of all revenue generated by casinos, compared to an estimated 6.6 per cent in 2014.
Following the success of TFWA Asia Pacific Exhibition & Conference in Singapore, Lindt has opened a shop-in-shop concept with DFS Group at DFS, Hong Kong International Airport.
The store features the latest Lindt pick and mix in Asia, which for the first time will take the form of an eye-catching wall feature. With clear visibility from across the terminal, the stunning new unit will attract footfall into the shop. The pick and mix concept enables travellers to discover a wide assortment of Lindor chocolate truffles and create their own ideal mix. Eminently suitable for gifting, customers will be able to choose from a range of gift cards to complement their selection and personalise their pick and mix bags. The gift cards are themed to highlight the Hong Kong destination and seasonal events.
The shop will also feature a bespoke space created for the Lindt Master Chocolatiers where live demonstrations will showcase the Lindt tradition of craftsmanship, artistry and innovation in the later part of 2016.
Commenting on the partnership, DFS Group’s Senior Vice President Food and Gifts, Thierry Canivet, said, ‘DFS continuously strives to create shopping experiences that surprise and delight our customers and we are proud to partner with Lindt to do just that with the new shop-in-shop at DFS, Hong Kong International Airport. This engaging approach to the food and gifts segment will provide travellers with a lasting memory of their travels and we look forward to what we are confident will be a successful new take on this exciting category.’
Peter Zehnder, head of the Lindt & Sprüngli global duty free division, said that the Asian market clearly presents the travel retail sector with considerable opportunities, and this new venture was the first of a series of innovative initiatives to capitalise on this potential. ‘We are delighted to have launched our latest shop-in-shop concept in Asia and believe that there is a huge opportunity for Lindt in the region. Our well-known brand of premium chocolate offers a wide range of bestseller products, a continual flow of innovations and strong activations beyond ordinary price-offs to drive category sales.’
Singapore Cruise Centre Pte (SCCPL) is inviting interested companies to tender for the development and operation of the duty free and general merchandise concession contract at the Harbourfront and Tanah Merah terminals for a period of five years (with an option to extend for another two years).
The SCC confirmed that it is investing in the redesign and upgrade of its commercial offer at both terminals, with expansion and reconfiguration of the main retail space in the departures and arrivals areas.
The new contract up for tender will govern 542sq m of retail space, serving over 6.3m ferry passengers and 560,000 cruise passenger annually.
The SCC has also decided to consolidate several separate contracts for the existing duty free concessions (including liquor & tobacco, perfumes & cosmetics, fashion & travel accessories and confectionery), into a single contract, to run for five years with a two-year extension option, commencing 1st April 2017.
The contract will govern 542sq m of retail space, serving over 6.3m ferry passengers and 560,000 cruise passenger annually.
BULLISH PROSPECTS FOR CRUISE INDUSTRY
Singapore Cruise Centre CEO Christina Siaw released this statement: “It is an exciting time for SCC as we launch our first public duty free retail tender, amid bullish prospects for the cruise and ferry industry in Asia Pacific.
“We are committed to driving passenger growth in our terminals and retail is a key contributor to overall passenger satisfaction. We seek an experienced, world-class duty free retail operator to partner us in developing a unique, integrated shopping destination that optimises commercial revenues at our terminals.”
The tender is open to companies with ‘relevant experience in duty free retailing’ until 30 June, when all RFQs must be submitted.
One of the incumbents, DFS Singapore currently operates the departure-transit and arrivals transit shops alongside the SCC’s Ocean Duty Free outlets, which are operated by Gebr Heinemann.
In March earlier this year, the Singapore Tourism Board (STB) reported that the country witnessed encouraged growth in the cruise and business segments as the Singapore Cruise Centre (SCC) was named the number one cruise port in Asia in 2015.
As previously reported, the latter incumbent operator, Heinemann opened its third (157sq m) Ocean Duty Free store in Singapore’s HarbourFront Ferry Terminal in January 2015.
This follows the earlier opening of its first two outlets at the Tanah Merah Ferry Terminal in March 2014.
Heinemann opened its third (157sq m) Ocean Duty Free store in Singapore’s HarbourFront Ferry Terminal in January 2015.
The deadline for the RFQ submission is Thursday 30 June, 4pm (SGT), deposited into Tender Box A in the reception area at Singapore Cruise Centre Pte Ltd, 1 Maritime Square (Lobby D), #07-01, HarbourFront Centre, Singapore 099253.
“SCCPL does not bind itself to accept any tender nor the highest bid,” the SCC states on its website.
In March earlier this year, the Singapore Tourism Board (STB) reported that the country witnessed encouraged growth in the cruise and business segments as the Singapore Cruise Centre (SCC) was named the number one cruise port in Asia in 2015.
Heinemann opened two outlets at the Tanah Merah Ferry Terminal in March 2014.
Interestingly, the cruise industry saw a 14% year-on-year increase in cruise passenger throughput last year to more than one million.
In addition, the country welcomed a total of 385 cruise ships, including international cruise brands such as TUI cruises, and Royal Caribbean, as well as nine maiden calls – new to Singapore and Southeast Asia.
UnionPay International (UPI), an international payment network, has launched the 2016 Global Airport Campaign, its third edition since the inaugural annual campaign in 2014. This year’s Global Airport Campaign is the largest to date, featuring 120 participating duty-free shops at 80 airports, including 16 of the busiest airports across the world. Duty-free outlets located at the Heathrow Airport in London, United Kingdom, Haneda International Airport in Tokyo, Japan, and Chicago O’Hare International Airport in the United States of America are some of the notable inclusions in this year’s campaign.
As part of the 2016 Global Airport Campaign, UnionPay Cardholders with card numbers starting with “62” can enjoy exclusive shopping discounts, complimentary gifts and more at airports located in 28 countries and regions in Asia Pacific, the Middle East, Africa, Europe and America. Top duty-free groups in the world, including Dufry, DFS, Lotte Duty Free, World Duty Free Group, The Shilla Duty Free Group, Everrich Duty Free, King Power, Blue Sky and China Duty Free are also on board the campaign to offer special shopping privileges to UnionPay Cardholders at participating outlets across the world.
“We are delighted to launch our biggest ever Global Airport Campaign this year, with participation by over 120 duty-free shopping outlets globally. Over the years, the Global Airport Campaign has seen tremendous growth in size and in scale. This year, the number of participating outlets has doubled that of 2014, with new duty-free groups such as Blue Sky and Loop Duty Free coming on board for the first time. This is testament to the effectiveness of the campaign in boosting traveler spending, and we hope that shoppers will continue to benefit from this campaign and enjoy wonderful shopping experiences at all their favorite destinations across the world,” said Wenhui Yang, General Manager of UnionPay International Southeast Asia.
In Singapore, the participating duty-free outlets are DFS and The Shilla Duty-Free. Starting this month, shoppers can enjoy up to 5 percent in discounts and vouchers, and participate in lucky dips to win additional shopping vouchers when they pay with their UnionPay cards at Shilla Duty-Free and DFS stores.
UnionPay Cardholders in Singapore can also enjoy special discounts and privileges at their favourite Asia Pacific destinations such as Bangkok, Bali, Hong Kong, Tokyo, Seoul, Taipei, Kuala Lumpur and London, just to name a few.
Other participating cities offering exclusive duty-free shopping privileges for UnionPay cardholders include Barcelona, Cape Town, Osaka, Los Angeles, Madrid, Moscow, New York, Paris, Rome, San Francisco and Toronto.
For the full list of participating duty-free outlets and details of the privileges.
UPI focuses on supporting the growth of UnionPay’s global business. With an acceptance footprint covering 157 countries and regions globally, UnionPay serves the world’s largest cardholder base by providing quality, cost-effective and secure payment services to over five billion cardholders worldwide.
In Singapore, UnionPay enables efficient and cost-effective payment services that are tailored to the needs of local businesses and consumers. UnionPay cards are accepted at over 80 percent of retail, lifestyle and food and beverage establishments locally, as well as at almost all the automated teller machines (ATMs) across the island.
Shareholders of Malaysia’s largest duty-free operator Duty Free International Ltd have approved a strategic partnership with Heinemann Asia Pacific for a sale of up to 25% equity interest plus one share in DFZ Capital Berhad (DFZ).
The sale and purchase agreement with Heinemann comprises a 10% equity interest plus one share in DFZ (the proposed sale), and two call options to purchase up to a further 15% equity interest in DFZ.
The proposed sale is targeted to be completed by June 2016. On completion of the proposed sale, Heinemann will be entitled to board representation on the board of directors of DFZ, allowing both parties to deliver the expected synergies in an efficient and timely manner, said DFI in a statement.
“We view Heinemann as a strong business partner and strategic investor. The completion of the proposed sale will bring significant positive changes to DFZ. Going forward, we will be leveraging on their resources and expertise in the areas of purchasing, merchandising, product assortment/costing, retail store management, distribution and logistics management. We believe that this alliance will further enhance the overall travel retail experience in Malaysia, to bring us on par with the best available in the world. The Proposed Sale will also further strengthen DFI’s financial position and allow the Company to consider future business opportunities.” said DFI executive director Lee Sze Siang.
Commenting on the proposed sales, Heinemann Asia Pacific CEO Max Heinemann said: “One of the key synergies for this alliance is the similar business models and corporate culture that both the organisations share. We are confident that this partnership will provide a sturdy platform for our expansion into South East Asia.”
DFZ Capital Berhad, a group subsidiary of DFI with an operating history of more than 35 years, is the largest multi-channel duty-free and duty-paid retailing group in Malaysia. The company, through its “ZON” brand of retail shops, serves both Malaysian and international customers across all major entry and exit points in Peninsular Malaysia including operations at international and domestic airports, seaports, border towns, duty-free islands and other tourist destinations.
The companies entered into the sale and purchase agreement in March 2016 as reported.
