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Tag: duty free

  • HKIA issues T1 luxury boutique tender

    HKIA issues T1 luxury boutique tender

    HKIA T1Hong Kong International Airport (HKIA) has issued an invitation to tender for a luxury brand boutique concession.

    The proposition is for a global luxury brand retailer to operate a 170sqm unit, located airside in the T1 East Hall, Level 6.

    In the first two months of 2016, HKIA handled 11.6 million passengers and 67,820 flight movements, up 9% and 5% from the previous year respectively.

    On a rolling 12-month basis, HKIA has handled 69.5 million passengers and 409,255 flight movements, marking year-on-year increases of 8.4% and 3.8%, respectively.

    In February Airport Authority Hong Kong (AA) opened nine new retail shops and a café in the recently-inaugurated Midfield Concourse at HKIA. Additionally, eight retail and three catering outlets are soon to be opened at the 105,000sqm concourse, including a new multi-category store concept from DFS.

    HKIA said this new tender “presents a unique business opportunity for global luxury brand retailers to operate luxury brand boutique in this prestigious aviation hub in Asia”.

    The tender closing date is 28 July 2016 at 2.30 pm (Hong Kong Time).

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  • Shinsegae opens new duty-free shop in central Seoul with 600 brands

    Shinsegae opens new duty-free shop in central Seoul with 600 brands

    South Korea’s retail giant Shinsegae Group opened its duty free outlet on Wednesday in downtown Seoul, about six months upon successfully winning a license on a duty -free retail business after repeated failed attempts over the last two decades. Shinsegae Duty Free shop is located in Shinsegae Group’s flagship department store in Myeong-dong, one of the most bustling shopping and tourist streets in central Seoul.

    According to Shinsegae, its duty-free stores occupy floors 8-12 at Shinsegae Department Store with a sales area of 13,884 square meters. Shinsegae pledged to turn the downtown area as world-class tourist attractions by making its duty-free outlet a Korea’s touristic landmark. The company said Shinsegae Duty Free at Myeong-dong is offering special areas dedicated for Korean pop culture and worldly renowned artworks as well as top international brands.

    Shoppers will find about 600 brands from all over the world, including Gucci, Saint Laurent and Bottega Veneta, at Shinsegae’s tax-exempt outlet. Also, about 70 luxury wrist watch labels such as Audemars Piguet, Vacheron Constantin, Jaeger-LeCoultre and Omega opened their shops at the store, while four other high-end jewelry brands Cartier, Bulgari, Tiffany & Co. and Van Cleef & Arpels are to join the others in the second half of this year.

    A series of luxury brands also plan to make their first debut in the Korean duty free market – Moncler, J.Lindeberg, Emporio Armani and MCM’s sunglass collection. The famous fashion labels Chanel, Hermes and Louis Vuitton are in discussion with the duty free retailer to open corners at the new duty-free shop, aiming for the fall/winter 2016 season. In addition, more than 200 cosmetic brands joined the tax-free outlet, according to the company.

    To ensure foreign customers’ return, it reserved a special venue for foreign tourists at the new duty free store. There are separate zones for Korean cosmetic brands, as well as movie and animation character shops. Korea’s traditional craftworks by artisans will also be available to lure foreign visitors.

    In November last year when the group was granted a license to operate duty free shop, Shinsegae said it aimed to rake in 1.5 trillion won ($1.26 billion) in sales from its duty-free shop operations within the first year of opening and 10 trillion won in five years by 2020.ths upon successfully …

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  • Korea to allow four new duty-free shops in Seoul

    Korea to allow four new duty-free shops in Seoul

    Korea will allow four more duty-free shops to open in Seoul to meet growing demand from Chinese tourists, the government announced Friday.

    “Four new licenses will be issued for operation in Seoul, while the city of Busan and Gangwon Province will also get one each,” Lee Myung-gu, director of the Korea Customs Service, said at a press briefing in Sejong.

    The licensees will be selected by the end of this year through an open competition, the official explained, with one ticket reserved for midsized companies.

    Seoul currently has nine tax-exempt retail outlets. Friday’s decision will raise the total to 13.

    Duty-free stores are a rare bright spot in Korea’s lackluster retail sector, growing by an average 20 per cent over the past five years. Last year, they posted a combined 9.2 trillion won ($8 billion) in sales.

    Major retail giants Lotte Duty Free, part of Lotte Group, SK Networks of SK Group and Hyundai Department Store hailed the decision, vowing an all-out effort to win a license.

    For Lotte and SK, in particular, this represents a second chance after they failed to renew the license for shops that they have been running for years.

    “We will make utmost efforts to win the license back,” SK Networks said in a press statement after the announcement.

    SK’s only duty-free outlet inside the Walkerhill Hotel in eastern Seoul faces closure in May with the expiry of its license.

    Lotte, which runs the top duty-free store by sales in Seoul, has to shut its Lotte World Tower outlet in southern Seoul by the end of June. The Lotte World Tower shop ranked third by sales in 2014.

    Hyundai Department Store said it wants to open a tax-free retail outlet at Coex in the southern shopping district of Gangnam.

    The government last year changed its policy on duty-free shops, holding an open competition for operational licenses for the first time. HDC Shilla Duty Free, Hanwha Galleria and SM Duty Free grabbed new licenses to open outlets in Seoul, while Doosan and Shinsegae beat Lotte and SK to win theirs.

    The government, however, has changed its stance again this year, extending the operational licenses of local duty-free stores to 10 years from the current five. Also, the licenses will be automatically renewed to help the companies run their businesses in a more sustainable way.

    The decision to open the field wider for competition is a move in line with the government’s efforts to grow tourism and revive the sluggish domestic economy and create jobs, the KCS explained in a press statement. It expects the new licenses to spur domestic investment of 1 trillion won and 5,000 new jobs.

    Korea is the world’s largest duty-free market, accounting for more than 10 per cent of global revenues from duty-free shops.

    In 2014, it saw foreign tourist arrivals rising to a record 14.2 million, greatly helped by a surge in visitors from neighbouring China.

     

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  • Duty free sales will recover, says Global Blue China report

    Duty free sales will recover, says Global Blue China report

    After 58 per cent growth last year, Chinese tax-free shopping has gone into reverse gear, according to the Global Blue China Shopper Report.

    However, China has retained its position as the number-one global shopper market, accounting for a third of tax-free shopping sales worldwide.

    Switzerland-based Global Blue says May and October are set to be busiest months for travel by “regular” Chinese travellers, offering opportunities for global retailers, who need to focus on value and convenience to attract them.

    Its China report combines data from more than 27 million tax-free shopping transactions with the opinions of 5000 regular Chinese travellers about their travel and spending plans for this year. Regular Chinese travellers are defined as survey respondents who have been on an international holiday in the past two years or plan to go on one this year.

    Despite the recent turbulence, Chinese global shoppers remain a lucrative market, says the report. Last month, Chinese tax-free shopping dropped into negative growth, falling 24 per cent year-on-year. This followed slow growth for the first two months of the year (11 per cent in January and 5 per cent in February).

    Reasons for the decline include the ability to obtain visas (an important consideration for 22 per cent of regular Chinese travellers), and terrorist attacks (safety and security were cited by 56 per cent of respondents as an important destination factor).

    Shopping important

    Fluctuation of the yuan on tax-free shopping sales is likely to be minimal, says the report, as the yuan weakened by just 3 per cent against the euro this first quarter. However, the research indicated that nearly half of those surveyed would reconsider their destination (46 per cent) or cut their shopping budget (47 per cent) because of exchange rates.

    Shopping remains a hugely important part of the holiday experience for regular Chinese travellers, says the report, as 81 per cent of those planning international travel this year will shop during their trip with an average shopping budget of 25,902CNY (US$3997) when travelling to Europe and 18,398CNY for Asia visits.

    May is expected to be the most popular month for travel to Europe, Japan and South Korea, while October will be attractive for visits to other Asia-Pacific destinations such as Australia and Singapore. These two key months coincide with major Chinese holidays: Labour Day (May 1-4) and Golden Week (October 1-7).

    Asia is the main destination for Chinese visitors throughout the year, with 73 per cent of those planning a holiday this year intending to travel within the region. South Korea is targeted by 26 per cent of Chinese travellers this year, followed by Japan (23 per cent).

    When it comes to Chinese tax-free shopping spend within Asia, Japan was the region’s strongest performer during the first quarter with 50 per cent growth. Chinese shoppers accounted for 54 per cent of APAC’s sales. Also, Chinese transactions in Asia increased by 32 cent during the quarter.

    What they like

    When asked what makes a good shopping destination, 35 per cent of respondents opted for a good selection of shopping malls or retail parks, while 33 per cent said they looked for a destination with famous international brand stores. For 31 per cent, the availability of products at better prices than in China was important.

    The research also revealed the top five services that should be offered by retailers looking to attract Chinese shoppers: tax-free shopping (65 per cent), ability to pay with China Union Pay (55 per cent), ability to pay in their home currency (46 per cent), retail staff who speak their language (39 per cent) and Wi-Fi in-store (26 per cent).

    Their main research points for international shopping include travel, shopping and fashion websites (43 per cent) and recommendations from friends and family (also 43 per cent), Social media also plays a key role, either through the brand’s own site (38 per cent) or via inspiration from friends’ pages (36 per cent).

    Opinium Research ran the survey, sampling 5005 Chinese travellers between January 22 and February 1.

    Global Blue came up with the concept of tax-free shopping more than 35 years ago and now creates value for retailers and partners through a range of products and services. It has a presence in 51 countries, employing more than 1800 people worldwide. Global Blue last year powered more than 27 million transactions involving 22 million dyna

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  • Lotte Duty Free Ginza store opens

    Lotte Duty Free Ginza store opens

    Tokyo’s new Lotte Duty Free Ginza is the largest duty-free store in the Japanese capital.

    Covering 4400 sqm, it occupies the entire eighth and ninth floors of the new Tokyu Plaza Ginza, at Sukiyabashi intersection, connecting the historic and cultural Hibiya district to Ginza, Japan’s most famous shopping street.

    With about 150 international brands, the store has luxury boutiques on the eighth floor, and international cosmetics on the other floor. Cosmetics include Estee Lauder, Lancome and Shiseido, fashion brands include Alexander McQueen, Coach, Gucci, Hugo Boss, Ralph Lauren, Zegna and South Korea’s MCM, while there will be watches from such brands as Blancpain and Omega.

    There is also a Japanese souvenirs section.

    Tokyu Plaza Ginza is an 11-storey retail, commercial and entertainment complex developed by theTokyu Land Corporation.

    Meanwhile, a two-level Lotte Duty Free store is also planned for Osaka, to open early next year.

  • Lotte opens 2nd duty-free store in Tokyo

    Lotte opens 2nd duty-free store in Tokyo

    Lotte Duty Free, South Korea’s No. 1 duty-free operator, opened a duty-free store in Tokyo on Thursday to target rising travelers, as part of efforts to expand its global presence.

    The duty-free store opened in the upscale shopping district of Ginza, the second following one in the Japanese capital in late January.

    Lotte, the world’s No. 3 duty-free operator, said it will strengthen its brand competitiveness in Japan, which attracted a huge influx of Chinese travelers last year.

    Lotte chairman Shin Dong-bin and his family, including his mother, wife and son, attended the opening ceremony. His father and corporate founder Kyuk-ho and his elder brother and former vice president Dong-joo did not attend.

    The rare family gathering at a public event was seen as an effort to show internal unity as Lotte has been trying to improve its tarnished corporate image following a prolonged succession feud between the founder’s two brothers.

    “The duty-free business has created some noise in South Korea, but I hope it to do well,” Shin told Yonhap News Agency during the ceremony. “I think this store is better than I expected.”

    Lotte lost its duty-free license in Lotte World Tower in southern Seoul in a November bid, amid the family succession feud and criticism for its dominance in the domestic market.

    Shin said his company will open a new tax-free store in Thailand in June, and two more in Japan — Osaka in early 2017 and Fukuoka later that year.

    Lotte, the retail giant who runs businesses in Korea and Japan, said the new duty-free shop is targeting 150 billion won (US$131 million) in sales this year and it plans to open additional shops in Japan over the next decade.

    Foreign visitors to Japan hit a record high of 19.69 million in 2015, marking the first time since 1970 that inbound travelers surpassed those who headed abroad, according to the Japan National Tourism Organization. Koreans were the biggest tourist group to Japan by nationality, followed by Chinese with 3.78 million.

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  • Cambodia duty-free store opened by DFS

    Cambodia duty-free store opened by DFS

    Luxury travel retailer DFS Group has opened its first T Galleria by DFS store for Cambodia in the resort town of Siem Reap.

    Near the ancient temple of Angkor Wat, T Galleria by DFS, Angkor is the largest Cambodia duty-free luxury department store, offering an integrated retail, hospitality and leisure experience.

    The store is opening in phases until June, bringing 170 brands to the 86,000 sqft (7990 sqm) space, including fashion and accessories, watches and jewellery, wines and spirits, and beauty and fragrances as well as locally handcrafted artisan products.

    Next to Angkor National Museum and overlooking a park, the new outlet features traditional Khmer motifs and carvings by Cambodian artisans. Stone columns feature panels carved in styles reflecting the nearby temples and palaces of Angkor Wat, intricately patterned wall screens and floor tiles evoke local architecture, and a 20m art installation suspended above the store’s vaulted atrium, was inspired by the hues of Buddhist monks’ robes. More than 200 local sales associates will welcome customers.

    Several firsts for Cambodia duty-free come with the opening of the store, such as watches and jewellery brands Bulgari, Carl F Bucherer and Tiffany & Co and international fashion brands Burberry, Bottega Veneta, Fendi, Gucci, Ralph Lauren, Saint Laurent and Zegna. There are also 12 exclusive beauty and fragrance brands such as Bobbi Brown, Cle de Peau Beaute, Mac and Sulwhasoo.

    Among Cambodian artisans featured are Angkor Artwork, whose master craftsmen Eric and Thierry Stocker produce lacquer and straw marquetry using traditional techniques. There is also Golden Silk, one of the last fully integrated silk producers in the world to use the rare yellow silkworm indigenous to Cambodia, and Samatoa, an eco-friendly accessories brand that has revived the technique of lotus-fibre weaving.

    T Galleria by DFS, Angkor has also teamed up with Artisans d’Angkor, a socially conscious business aimed at revitalising Cambodia’s traditional craftsmanship while pioneering a sustainable working environment. Its exclusive collection of handwoven silks and fine crafts were designed by and will benefit local artisans.

    An onsite restaurant, Crystal Jade, will open in June, the first outlet in Cambodia for the Singapore brand. It will serve traditional Chinese cuisine and dim sum dishes in a casual setting overlooking gardens and reflecting pools.

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  • Korean downtown duty free licence system under review

    Korean downtown duty free licence system under review

     

    In news that rocked the Korean travel-retail and duty-free world last November, Lotte Duty Free and Walkerhill Duty Free lost major downtown licenses to Shinsegae Duty Free and Doosan Group respectively, following a ground-breaking decision by the Korea Customs Service (KCS). But could they be granted a reprieve following a public hearing this week which discussed ways of easing regulations?

    The KCS’ decision to float key licenses—Lotte flagship and Lotte Tower stores, Walkerhill Duty Free’s downtown Seoul shop and Shinsegae’s Duty Free Busan operation—was in line with new regulations introduced in 2013. This meant contracts would expire after five years instead of the previous 10 and competition for licences would be encouraged at national level.

    The new regulations and KCS’ decision to rob Lotte of its invaluable World Tower Licence and SK Networks (Walkerhill Duty Free) of its flagship downtown duty-free operation it had operated for more than 25 years — DFNIonline understands both stores continue to trade until their futures are resolved once and for all— prompted strong criticism in Korea. It was widely believed such developments would hinder long-term investment and perhaps undermine global competitiveness of the country’s duty-free industry.

    During Wednesday’s hearing, The Korea Herald revealed officials proposed the issue of more licenses for duty-free shops in Seoul and return of 10-year expiration terms – previous terms were for five years. According to the publication, under the new proposals, the government could grant more duty-free licensees if the portion of foreigners and money spent at local duty-free shops exceeded 50% over the previous year. It could also do so if foreign visitors increased more than 300,000 in each municipality.

    While the Korean government believes the proposed new measures would make the local duty-free market more attractive compared to competition elsewhere and promote the tourist industry, the new operators do not share the same view. They believe they would only succeed in instigating “excessive rivalry” in a currently saturated market and re-invigorate Lotte and Shilla, which would not do them any favours. DFNIonline understands and appreciates both perspectives but the reality is that changes must be made for the sake of the industry.

    Quoting data released by the Seoul City government, indicating visitor numbers in the capital dropped 10.6 million last year from 11.4 million the year before, the Korean Herald report said: “The number of foreigners entering Korea via Incheon International airport and Gimpo airport also tumbled 5.9% and 11% respectively.

    ”The Korea Herald suggests the likes of Doosan Group, the heavy industry conglomerate, which confirmed to DFNIonline it is due to open its first store at the Doosan Tower in Dongdaemun in May and Shinsegae Duty Free, which already opened its new downtown store in March, believe the government has been “misled” by exaggerated tourism numbers.

    It also quoted an industry insider who commented: “New duty-free operators are set to invest K1.07trn ($896m) and hire 14,200 workers. But if we are going to have more operators even before setting the businesses, this would kill the entire duty-free market.”

    Lotte and Walkerhill Duty Free, however, refuted these claims, indicating the winners had previously urged the government to introduce more operators in the market, only to change their position once securing the licenses.

    Speaking to DFNIonline in December 2015 Lotte Duty Free marketing division managing director Bo Joon Kim said: “The reason why the duty-free market in Korea can be the world’s best is the constant investment and tremendous effort to attract foreign tourists to Korea.

    “However, if the operator changes every five years, the instability of the investment will not only hinder long-term investment, but create increased competition, which will eventually curtail service.”

    Kim also said a repeated change of operators would harm the global competitiveness of tourism in Korea and the duty-free market – Lotte Duty Free directly attracted 1.55 million foreign tourists to Korea in 2014 equating to 10.9% of the total number, he said.

    If local media reports are to be believed, the Finance Ministry will finalise the plan on duty-free operations this month. Do Lotte and Walkerhill really believe they will be granted new duty-free licences and is there a realistic chance these proposals will be implemented? Time will tell, but one thing is certain. Something has to be done.

     

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  • DFI agrees 10% equity stake disposal to Heinemann ASPAC

    DFI agrees 10% equity stake disposal to Heinemann ASPAC

    Malaysian duty free retailing group Duty Free International (DFI) is primed to sell a minority stake of its business to Heinemann Asia Pacific.

    The sale and purchase agreement includes the disposal of a 10% equity interest plus one share – comprising an aggregate 20,996,384 shares – in wholly-owned subsidiary DFZ Capital Berhad (DFZ) to Heinemann Asia Pacific for a consideration of €19,700,000.

    Under the terms, Heinemann Asia Pacific are also entitled to purchase a second tranche of shares in DFZ Capital Berhad (DFZ) via a call option (€1 per share) in an 18-month period beginning on the date that the first tranche of sales are completed.

    A further option to purchase a third tranche of shares in a 12-month period will begin on the date of expiry of the second tranche call option period – taking the total share eligibility of Heinemann Asia Pacific to 25% in a potential overall transaction of €52.21 million.

    The completion of the sale and purchase of the first tranche of shares is expected to take place on 1 June.

    A DFI statement read: ‘The company views HAP as a strategic investor, and the proposed disposal is expected to enable the company to benefit from the resources and expertise of Gebr. Heinemann and HAP in the areas of product assortment and costing, retail store management, distribution and logistics management of DFZ products.’

    ‘HAP’s investment in DFZ will allow Malaysians and visitors to Malaysia an enhanced travel retail experience, one on par with the best available in the world. The proposed disposal is also expected to further strengthen the group’s financial strength, enabling the group to consider future business opportunities.’

    Heinemann Asia Pacific CEO Max Heinemann is confident the joint venture with DFZ will realise synergies and new growth opportunities in Malaysia.

    Gebr. Heinemann says the joint venture agreement will not only strengthen the presence of the company in Malaysia but will ‘realise gross margin and operational synergies for DFZ Capital Berhad’, with Heinemann Asia Pacific involved in day-to-day operations and overall decision making.

    Max Heinemann, CEO of Heinemann Asia Pacific said: “Looking at the similar business models and corporate cultures of both companies, Gebr. Heinemann and DFI believe this joint venture to be a great strategic fit for growth together in Malaysia.”

    Malaysia’s fast-growing retailing group has more than 30 years’ experience operating at airports, seaport, downtown, border towns and popular tourist destinations at entry and exit points on the peninsular.

    DFZ operates duty free retail, duty free wholesale and duty paid outlets throughout the region in areas such as Pedang, Besar, Langkawi, Bukit Kayu Hitam, Kuala Lumpur International Airport and Johor Bahru.

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  • HKIA passenger numbers grow as new stores open at Midfield Concourse

    HKIA passenger numbers grow as new stores open at Midfield Concourse

    Hong Kong International Airport (HKIA) recorded steady growth in passenger volume and flight movements last month. During the month, passenger traffic rose 4.9% year-on-year to 5.7 million, while flight movements increased by 4.5% to 32,625.

    The growth in passenger traffic in February was mainly driven by Hong Kong resident travel, which registered a 16% year-on-year growth over the same month last year. Passenger traffic to / from Southeast Asia and Japan increased most significantly.

    In the first two months of 2016, HKIA handled 11.6 million passengers and 67,820 flight movements, up 9% and 5% from the previous year respectively.

    On a rolling 12-month basis, HKIA has handled 69.5 million passengers and 409,255 flight movements, marking year-on-year increases of 8.4% and 3.8%, respectively.HKIA

    Last month Airport Authority Hong Kong (AA) opened nine new retail shops and a café in the recently-inaugurated Midfield Concourse at HKIA. Additionally, eight retail and three catering outlets are soon to be opened at the 105,000 square metre concourse, including a new multi-category store concept from DFS. The catering outlets will offer café and casual-dining options to departing passengers who have limited time before boarding.

    “The Midfield Concourse will be able to serve an additional 10 million annual passengers in order to meet the increasing passenger volume at HKIA.

    “We are proud to offer extended retail and catering options throughout the concourse, which will let the passengers have a pleasant and enjoyable last-minute shopping and dining experience,”  said Cissy Chan, executive director, Commercial, Airport Authority Hong Kong.

    The airport has also introduced a mobile application, which provides travel information and says it hopes to explore more advances with airport technology.

    HKIA 2C K Ng, executive director of Airport Operations of Airport Authority Hong Kong, said: “To enhance the travel experience for HKIA’s passengers, we strive to provide customer-centric services by leveraging the latest technology, including the introduction of the HKG My Flight mobile application in 2013 that provides airport information, real-time flight status and more.

    “With the application of iBeacon technology, passengers using the HKG My Flight app can receive push notifications of airport information including dining and shopping offers and promotions at the airport. While arrays of initiatives are in the pipeline, we will continue exploring the application of different technologies in daily operations, aiming to enhance mobility, automation, efficiency and convenience for passengers.”

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  • Ever Rich sales resilient despite China slowdown

    Ever Rich sales resilient despite China slowdown

    Ever Rich D.F.S. Corporation tells David Hayes that the company achieved single digit revenue growth in 2015 at its major downtown and airport duty free locations with the rise in sales reflecting a similar increase in international passenger traffic through the republic’s main airports, during the past 12 months.

    Ever Rich says that the company’s overall rise in duty free sales is less than previously expected and is due a slowdown in per capita spending by mainland Chinese visitors, who still make up the majority of sales at many of Ever Rich’s duty free outlets.

    “We have seen growth in 2015, but not as large as in 2014. Mainland tourist numbers are still growing gradually but the duty free sales growth is slowing,” commented an Ever Rich source.

    “China’s economy is still quite strong, but their currency is weaker; China’s economy is not growing as fast as before.”

    Ever-Rich-Taoyuan-Airport-T1-departure-shop

    Ever Rich P&C at Taoyuan Airport T1 Departures.

    While duty free sales are rising as more mainland tourists visit Taiwan, Ever Rich – Taiwan’s leading duty free operator – had been looking for overall double-digit sales growth last year after opening its new Kinmen Islands’ hotel and downtown duty free shopping complex in 2014.

    Kinmen Ever Rich Golden Lake Plaza duty free shopping mall and hotel complex is located in Kinhu town on Big Kinmen. In addition to duty free shopping and other retail facilities, the Ever Rich hotel shopping and entertainment resort is planned to include a multiplex cinema and has space for a casino in future, though no casino licenses for Kinmen have been approved so far.

    Ever-Rich's-Taoyuan-Airport-T1-arrival-shop

    Ever Rich’s Taoyuan Airport T1 arrival shop.

    Duty free shopping facilities occupy about 27,000sq m of retail space over five floors, divided into separate areas serving visitors departing overseas to China and elsewhere from Kinmen. It also includes a domestic duty free allowance area for Taiwanese and other travellers returning to mainland Taiwan.

    “Our sales are still growing, but it’s slow growth,” says the source. “After the effort we put into our shops we expected to grow more. Although mainland tourist numbers are growing it’s not as much as many people here expected – all department stores in Taiwan are feeling that mainland customers’ purchasing growth is slowing down.

    Ever-Ric-Cosmetics,-handbags,-liquor-and-tobacco

    Cosmetics, handbags, liquor and tobacco are the best-selling items in Ever Rich’s duty free outlets at present.

    “In Kinmen our international duty free sales are better than domestic duty free. Our main target is Chinese visitors, they buy cosmetics and fashion.”

    In addition to its Kinmen Islands’ shops, Ever Rich operates departure and arrival duty free shops in Taiwan’s main airports – Taoyuan International Airport, Taipei Songshan International Airport, Kaohsiung International Airport and Taichung International Airport – plus two downtown pre-order duty free shops in Taipei.

     

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  • Changi retail +8% to $1.56bn is new record in 2015

    Changi retail +8% to $1.56bn is new record in 2015

    Singapore Changi Airport has formally reported that it achieved an 8% record increase in retail and food and beverage sales worth S$2.2bn ($1.56bn) in 2015, compared with the previous trading period in calendar year 2014.

    The Changi Airport Group includes 350 retail shops and 160 food & beverage outlets within its ‘retail’ definition and it says that last year’s sales performance benefited from several innovative retail concepts.

    These included the introduction of duplex stores for duty free liquor and tobacco (DFS Group) and beauty (Shilla), a varied retail mix and successful retail campaigns – including the hugely popular ’Be a Changi Millionaire’.

    New Shilla Duplex Sept 2015 opening

    The relatively new Shilla Duty Free duplex store in Changi Airport Terminal 3 which opened in September 2015.

    CAG says that its top customers by nationality were from China, Singapore, Indonesia, India and Australia, while its shoppers’ favourite product purchases (in order) were led by Liquor & Tobacco; Cosmetics & Perfumes; Luxury Goods; Electronics & Gadgets; and Chocolate/Candy/delicatessen.

    Interestingly, Changi Airport management added that the top three product categories bought on iSHOPCHANGI.COM were Cosmetics & Perfume, Electronics and Wine & Spirits, while the top three customers using this service were from China, Singapore and Malaysia.

    HUGELY POPULAR EVENT…

    Meanwhile, the ‘Be a Changi Millionaire’ campaign has literally crowned five winners since the competition draw began back in 2010, with another 333,828 instant winners drawn from an incredible 1.9m entries.

    Changi also claims that all of these sales and other achievements placed the airport amongst the top three in the world for concession sales.

    Singapore Changi Airport capped a resilient performance in 2015 with new benchmarks for passenger traffic and aircraft movements, handling a record 55.4m passengers and 346,330 landings and take-offs during the year. This represented a rise of 2.5% and 1.4% respectively.

    Changi Airport infographic retail 2015

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  • DFS launches new Spring Galleria campaign

    DFS launches new Spring Galleria campaign

    DFS Group has announced its new Spring 2016 campaign tie up with three international influencers and global travellers to support and celebrate the launch of its new travel #mustpack concept – aimed at equipping travellers with the essentials ‘for wherever your journey takes you’.

    The new campaign features Ethiopian philanthropist and model Liya Kebede, Chinese model Zhao Lei and Chinese actress Chen Ran and is designed to provide DFS’ customers with a photographic inside track on these celebrities’ #mustpack journey choices, using photos and stories from their personal travels.

    DFS says that the campaign will run between March, April and May, allowing its customer to interact with the campaign in-store, online and through its social media channels.

    T Galleria

    How the new T Galleria front window displays look in Hong Kong.

    Mustpack window close up

    A close up of the #mustpack store window display.

    Customers will also be able to connect with each influencer, as well as their travel destinations, plus the selected #mustpack products that will be available for sale at T Galleria by DFS stores

    Commenting on the campaign, John Gerhardt, Senior Vice President, Creative Branding Direction, DFS Group said: “This season we were particularly inspired by those #mustpack items you have to have with you throughout your journey.

    “We wanted to bring that story to life by showcasing Liya, Zhao and Chen’s love of travel through their own personal travel photos, as well their true travel #mustpacks.”

    ‘IMMERSIVE’ DIGITAL EXPERIENCE…

    The retailer says that the new campaign is being shown utilising three videos featuring Liya, Zhao and Chen, plus ‘an immersive digital experience’ at TGalleria.com where customers can discover the videos and travel guides as well as the season’s #mustpack products.

    DFS’ customers in Hong Kong will also be able to meet the influencers, with Zhao Lei set to host a shopping night at T Galleria by DFS, Hong Kong, Canton Road on March 17 and Chen Ren attending the T Galleria Beauty by DFS, Hong Kong at Causeway Bay on April 14.

    The campaign brands feature #mustpack products from 15 of DFS’ most popular brands, including Estée Lauder, Givenchy, Prada, Bulgari, Rémy Martin and others and DFS says this is ‘just a sample’ of the from the 700 brands across its ‘five pillars of luxury’.

    Adding her comments, Sibylle Scherer, DFS Group President Merchandising and Consumer Marketing said: “Our Spring 2016 campaign’s celebration of travel as well those essential items you have to bring with you along the way, truly brings to life everything our customers love about DFS.

    Big 2 T Galleria by DFS Spring 2016 Campaign Featuring Liya Kebede_verticalSTORES ‘PACKED’ WITH #MUSTPACK PRODUCTS

    “From fashion and beauty to watches and wines, our stores are packed with the #mustpack products that complete your journey and we’re thrilled that Liya, Zhao and Chen have joined with us to share that story this season.”

    DFS adds that its store windows now show “x-ray” views into the various suitcases displaying this season’s collection, while in-store customers encounter highlighted #mustpack products at multi-category display tables.

    These are designed to simulate the experience of unveiling products through an airport security x-ray machine.

    DFS concludes that this campaign will also run on social media, with T Galleria by DFS teaming up with various influencers in key DFS locations, such as Gaile Lok in Hong Kong, Halley Elefante in Hawaii and Andrea Chong in Singapore. They will also be giving away the season’s best #mustpack products for dedicated followers of @DFSOfficial.

     

     

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  • China duty free push

    China duty free push

    Nineteen inbound China duty-free shops have opened to serve domestic travellers returning home.

    The state’s Ministry of Finance announced the stores have been built in 13 airports including Guangzhou Baiyun, Hangzhou Xiaoshan and Qingdao Liuting, as well as six sea ports.
    Passengers can carry up to 8000 yuan ($1230) worth of duty-free goods, up from the previous 5000-yuan limit, when clearing customs, the ministry said, claiming that the shops feature more products than existing inbound duty-free outlets.

    Isetan Mitsukoshi Holdings says its stores served about 50 per cent more international duty-free shoppers from February 7 to 13 compared with the same holiday week last year, thanks to a spike from mainland China – but customer spend was 15 per cent less this time.

    Visitors from mainland China doubled to five million, helping Japan’s overall tourist numbers reach nearly 20 million – a target the government had hoped to achieve by 2020.

    Shopping by Chinese tourists at department stores and electronics shops last year created a buzzword, “bakugai”, or “explosive buying”, and came as a boon for Japanese retailers smarting from decades of sluggish demand from domestic consumers. However, China’s economy has since sagged to a 25-year low, with stock markets slumping mid-year.

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  • HKIA celebrated the new Year of the Monkey

    HKIA celebrated the new Year of the Monkey

    Hong Kong International Airport (HKIA) is celebrating the Year of the Monkey with a series of promotional activities and offerings, including cash coupons for shoppers of up to HK$5,000 ($642).

    From today through to February 15, travellers spending over HK$2,000, HK$5,000, HK$10,000 and HK$50,000 by electronic payment can redeem HKIA cash coupons of HK$100, HK$300, HK$700 and HK$5,000 respectively.

    Airport Authority of Hong Kong adds that during this period ‘designated retailers’ will also offer free red packet redemption on a first-come-first-served basis.

    Commenting on the promotion, Airport Authority stated: “To spread the festive joy, HKIA’s mascot will dress in the Year-of-the-Monkey costume at Terminal 1 of HKIA and will send warm blessings to travellers by giving out specially-designed Fai Chuns [traditional decorations-Ed] for free.

    “The joyous atmosphere can also be experienced on Level 6 of the Departures East Hall, where travellers will find a grand display box with a special selection of Chinese New Year products and an interactive-game booth.

    “Passengers with boarding passes and any purchase receipt from HKIA can participate in the game. Among the top of [more than] 12,000 prizes are suitcases, massagers and necklaces, while others include HKIA cash coupons and HKIA red packets.”

    Chinese New Year traditions that will also be celebrated include lion dances and various musical performances over the two-week period.

    In addition, HKIA is also offering a free local delivery service for all travellers spending over HK$1,000 in a single transaction at HKIA. Free delivery also applies to Mainland China, Macao and Taiwan for travellers spending more than HK$2,500 on clothing, bags and accessories in a single transaction.

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