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Tag: duty free

  • Cartier opens Sanya flagship

    Cartier opens Sanya flagship

    Cartier has teamed up with China Duty Free Group to unveil its new-look boutique at Sanya International Duty-Free Shopping Complex.

    The Cartier Sanya boutique features an activation pad, which plays a “central” role in the concept, bringing the boutique “to life” for new launches and gatherings.

    In the brand’s first-ever rollout of a new waiting lounge concept, guests at the shop are welcomed in a décor featuring subtle shades of champagne and wood details, accompanied by curled walls in a rectangular space.

    To mark the boutique’s opening Cartier has curated pieces including the Panthère de Cartier Jewellery Collection – as modelled by actress and singer Victoria Song at the opening event – as well as a number of other highly sought-after signature Panthère de Cartier pieces.

    They include the Révélation d’une Panthère Watch, La Panthère Watch, Panthère de Cartier Necklace, Panthère de Cartier Ring, and Pasha de Cartier skeleton steel watch.

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  • South Korean duty-free operators ‘desperate’ amid protracted pandemic

    South Korean duty-free operators ‘desperate’ amid protracted pandemic

    Stung by the protracted new coronavirus outbreak, South Korean duty-free operators are struggling to overcome the industry-wide slump with belt-tightening measures, including increasing the number of closing days at some outlets in major local cities and cutting their overseas operations.

    Industry leader Lotte Duty-Free began closing its outlets at Coex in southern Seoul and the southeastern port city of Busan every Sunday and Monday from this month.

    In April, Lotte decided not to open the two stores every Monday, as the number of customers sharply declined due to the Covid-19 pandemic. The latest move came as a resurgence in virus cases made it difficult to expect imminent business normalization.

    Since late May, Shinsegae Duty-Free has closed its outlets in Seoul’s upmarket southern district of Gangnam and Busan every Sunday and Monday.

    Hit by the virus outbreak, South Korean duty-free operators have suspended the operations of their outlets at major airports either partially or wholly.

    The pandemic has also dealt a blow to duty-free operators’ overseas business. Local duty-free shops had rushed to expand their foray into overseas markets in recent years in a bid to reduce their reliance on Chinese visitors and generate decent profits.

    Lotte Duty-Free plans to close its duty-free stores in Jakarta and Bangkok in the second half and liquidate its units in Indonesia and Thailand.

    In the first half, Lotte withdrew its business from Taiwan. The number of Lotte Duty-Free overseas units will fall to 12 outlets in six countries if it completes the closure of the two units in Southeast Asia.

    Some improvement in sales may give some solace to local duty-free operators, but their revenues remained far below the pre-pandemic level.

    Combined sales at duty-free shops in South Korea in July rose by 12.4 percent from the previous month, as small Chinese vendors returned to scoop up duty-free goods, according to industry data.

    It marked the third straight month of gains since the figure fell below 1 trillion won for the first time in four years in April.

    The number of visitors to local duty-free units topped 500,000 in July, marking the first time in four months.

    “Duty-free sales are tipped to further increase in the third quarter, compared with three months earlier, on the back of the government’s eased restrictions on sales channels of duty-free goods,” said Na Eun-chae, an analyst at Korea Investment & Securities Co.

    To prop up the pandemic-hit segment, the government decided in late April to temporarily permit sales of duty-free goods via local sales channels.

    It also allowed registered foreign buyers to receive duty-free products at their home countries without the need to visit South Korea.

    Meanwhile, major duty-free players are expected to take part in the bidding for new business licenses at the country’s main international airport as they set sights on long-term recovery in the post-Covid-19 era.

    The operator of Incheon International Airport, the country’s main gateway west of Seoul, will close the bidding for new duty-free shop business licenses at six sections, including cosmetics, liquor and tobacco, at the airport’s Terminal 1, on Tuesday.

    In March, Lotte Hotel, Hotel Shilla and Hyundai Department Store Duty-Free won duty-free business licenses at Terminal 1, but Lotte and Shilla gave up the business rights in April amid faltering sales.

    As the airport operator failed to pick new entities, Lotte and Shilla have continued to run their business after extending their licenses.

    Industry watchers expect major duty-free operators to participate in the bidding, as the airport operator has proposed a sharp cut in lease fees.

    “Earnings are still not good, but we are considering participating in the bidding (for the long-term perspective), taking into account the post-pandemic situation,” said an official at a local duty-free operator.

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  • King Power Thailand sales axed 50 percent

    King Power Thailand sales axed 50 percent

    Thai duty-free retailer King Power is anticipating a drop in sales revenues of 50 percent in the wake of the coronavirus pandemic.

    The firm has attempted to drum up business while international travel is largely frozen via an online sales strategy, but it has not been able to offset the steep fall in business with online revenues contributing just 10 percent of total business, far short of the hoped-for 20 percent.

    Just two King Power outlets out of 11 nationwide have reopened since the Covid-19 outbreak.

    “Despite the huge sales drop, we don’t have any plans to lay off any of our 11,000 staff,” said King Power CEO Aiyawatt Srivaddhanaprabha. “Instead, we assigned them to sell King Power products via their own social media accounts and via King Power online.”

    Aiyawatt is a participant in the Thai government’s Thailand Smiles with You campaign, promoting the nation’s image and economic prospects during global recovery via the English Premier League team Leicester City FC, which Aiyawatt chairs.

    “As Thais, we are proud to cooperate with the government in mitigating the adversity and supporting projects that will both, directly and indirectly, benefit our country’s economic and social wellbeing,” said Aiyawatt, “hoping that it will lead us through this crisis safe and sound”.

    The campaign will see the phrase “Thailand Smiles With You” on Leicester City football team jerseys and signboards throughout the 2020–21 season.

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  • DFS Group starts winding down Changi Airport liquor business

    DFS Group starts winding down Changi Airport liquor business

    DFS Group will close all of its stores at Changi Airport on June 8 as its 35-year tenure as wine and spirits concessionaire comes to an end.

    With two of Changi Airport’s four terminals now mothballed in the wake of the Covid-19 crisis, and the number of travelers passing through the remaining ones at a record low, DFS Group has taken to selling more than 200 wines and spirits online at iShopChangiWines.com, offering discounts of up to 70 percent off regular price. The company says it will absorb taxes and duties for customers, who do not have to travel to receive the discount.

    From now until May 22, daily flash deals will run on the site as well.

    “As one of DFS’ most esteemed allies for the last 35 years, we thank Changi Airport Group for their ongoing support and partnership,” said Aymeric Lacroix, DFS Group MD Asia South.

    “We will continue to serve our customers with the same passion for excellence that has distinguished us at Changi Airport until our official exit in June.”

    DFS Group opted not to bid to renew its concession at Changi Airport because it did not believe it could continue to trade there viably.

    “Our decision not to bid was based on our unique understanding of the business environment as the current operator of this concession at Changi,” chairman and CEO Ed Brennan said in a statement last August.

    The LVMH-owned group withdrew from Hong Kong International Airport as well, several years ago. At Changi, DFS Group will be replaced by South Korea’s Lotte Duty-Free.

    DFS Group’s Changi exit applies only to its high-profile liquor concession. The company will continue to operate its multi-label “Fashion Avenue” at Terminal 3 and various brand boutiques across all operating terminals.

    Since winning the Liquor and Tobacco concession in 1985, DFS Wines and Spirits opened numerous stores across Singapore Changi Airport, including in Terminal 2 (1990), the first of its kind Duplex store at Terminal 3 including the Raffles Long Bar (2015), the second Wines & Spirits Duplex store at Terminal 2 (2016) and the first ‘walkthrough’ retail concept store at Terminal 4 (2017).

    “For 35 years and over 300 thousand hours, DFS has been in operation at Changi Airport. Over three wonderful decades of memories and friendships later, it has become an iconic go-to stop for passengers leaving and arriving in Singapore, carrying more than 700 different wines and spirits brands, and selling more than 200 million bottles,” said Lacroix.

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  • Coronavirus to wipe US$8.3bn off Asia-Pacific duty-free sales

    Coronavirus to wipe US$8.3bn off Asia-Pacific duty-free sales

    The coronavirus outbreak has substantially altered forecasts for Asia-Pacific duty-free sales this year, according to research firm GlobalData.

    Takings were originally forecast to reach US$43.4 billion by the end of the year. New calculations show the outbreak will likely cost the industry $8.3 billion off that figure.

    Globaldata now expects Asia-Pacific duty-free sales to reach $35.2 billion, 19.1 percent lower than the original forecast. Positive outlooks for China and South Korea especially have been dashed by the epidemic, with regions expecting to profit from burgeoning Chinese tourism now forlorn.

    “Other Asia-Pacific countries such as Japan, Singapore, Hong Kong, and Thailand with a considerable increase in the number of new cases over the past few days are estimated to worsen the impact,” said GlobalData Retail analyst Suresh Sunkara.

    “The forecasts may change further during the course of time if the virus spread is prolonged to the second half of this year or if it spreads to other key duty-free markets in the region including India, Malaysia, and Australia, which are currently not significantly affected by the spread.”

    Many key airports in the region have closed with travel between countries broadly impacted by the viral threat. Major duty-free operators such as Shilla, Lotte, Shinsegae and China Duty-Free Group are now left re-evaluating their strategies and identifying other consumer groups and markets to help offset a weakening in revenue.

    “The Tokyo Olympics should … aid the recovery in Asia-Pacific duty-free sales over the summer,” said Sunkara, “on the provision that the crisis has calmed down and travel restrictions have been relaxed. If not, the market growth will take an even more serious hit this year.”

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  • Lotte Duty Free to build Sydney CBD flagship

    Lotte Duty Free to build Sydney CBD flagship

    Lotte Duty-Free is to open a flagship store in Sydney’s CBD early next year, planning to tap into the 4 million visitors to the city each year.

    The three-level 3000sqm store will be built by Mirvac on a prime site at the corner of Pitt and Market Streets. It will stock beauty and skincare brands, a prestige-watch boutique, fine and rare liquor and wine shopping experience, and a number of VIP services including concierge and limousine transfers to Sydney’s top hotels and dining.

    The store is Lotte Duty-Free’s first ground-up build in Australia and follows the acquisition of JR Duty-Free in 2018 and the subsequent opening of its first airport store, in Brisbane.

    Lotte Duty-Free Oceania CEO Stephen Timms said the downtown Sydney site is in the heart of the city’s luxury-retail precinct

    “We couldn’t have asked for a more premium location to showcase our quality curated offer.”

    Last year Timms said that the business was looking to lead the duty-free market in Australia by 2023, and is forecasting over AU$280 million (US$188 million)  revenue in its first year in the region.

    “Travel retail is a unique sector. No other industry has such a divisive target audience, which provides both possibilities and challenges,” Timms said.

    “It’s crucial to have an understanding of the types of people who are traveling through a region – their nationalities, their shopping motivations and the special occasions they celebrate in order to generate strong and targeted sales.”

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  • India’s duty-free purchase limits to be cut

    India’s duty-free purchase limits to be cut

    Proposed changes to India’s duty-free purchase limits may dent the country’s duty-free market growth prospects, says GlobalData.

    The country’s Commerce and Industry Ministry plans to limit duty-free alcohol sales to inbound travelers to one bottle or one liter per person – half the current limit – and to ban all sales of tobacco products.

    The ministry also plans to reduce the value of goods and gifts that a passenger can get into the country without paying import duty which is currently capped at US$712.65 (INR50,000). The government says the move will bring duty-free limits into line with other countries such as the US, China, and South Korea.

    “The proposed changes, if implemented, will negatively impact the duty-free market in India as alcoholic beverages and cigarettes account for a significant share of total duty-free sales,” says Vijay Bhupathiraju, a retail analyst at GlobalData.

    “Drinks is the largest product category sold in the Indian duty-free market with category sales at US$695.7 million in 2018, accounting for 66.8 percent of overall duty-free sales. However, the proposed slashing of the limit on alcoholic drinks to half is forecast to reduce the category sales by nearly 25 percent.

    “On the other hand, tobacco is the fourth-largest product category with its sales at US$64.7 million (6.2 percent share) in 2018. If the proposed plan to completely prohibit inbound tourists from purchasing cigarette cartons at duty-free shops is to be believed, it results in a complete nullification of inbound spending on cigarettes, slashing the category sales by as high as 50 percent,” said Bhupathiraju.

    India is the world’s fastest-growing duty-free market globally, with sales growing at a compound annual growth rate (CAGR) of 23.1 percent during 2013-2018 to reach US$1 billion in 2018 and forecast to grow at a CAGR of 19.2 percent to reach US$2.5 million by 2023.

    Bhupathiraju says if the proposed changes are enacted, India’s duty-free retailers need to diversify their offerings to include essential product categories such as cosmetics and toiletries, food, and jewelry and watches to offset lost sales in liquor and cigarettes.

    “The move is also a jolt to non-aviation revenues for airports, impacting the overall growth of airport retail in an otherwise fast-growing airport retail market.”

  • The Shilla Duty Free unveils new brands in Singapore

    The Shilla Duty Free unveils new brands in Singapore

    Travel retailer The Shilla Duty-Free has launched a raft of new brands at its Changi Airport health-and-beauty concessions, marking its fifth anniversary in Singapore.

    The new brands are on display at a refreshed retail space at the Terminal 3 Departure Check-in Hall store (in the public area) which features a modern, tropical look, with earthy hues of woods and whites.

    The new brands are from South Korea, Singapore and Europe, ranging from Banyan Tree and Too Faced to cult beauty favorites including COSRX and Too Cool For School. They will also be stocked at selected stores airside.

    The new brands also include Annick Goutal from France, Age 20’s, Vidivici, First Aid Beauty, Too Faced, Cosme J-Cos and JM Solution.

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  • The Shilla Duty Free unveils Montblanc boutique

    The Shilla Duty Free unveils Montblanc boutique

    International travel retailer The Shilla Duty-Free has partnered with men’s luxury accessories brand Montblanc to unveil a new standalone boutique concept at the Hong Kong International Airport (HKIA).

    The new boutique concept is The Shilla Duty-Free’s latest approach to rejuvenate its fashion and accessories offer, aiming to provide an accessible luxury experience. In homage to Montblanc’s heritage of writing and craftsmanship, the rounded and curved shape of the immersive retail environment, as well as the store’s rear wall furniture designs, are inspired by the art of cursive calligraphy and reminiscent of the “art nouveau era” when Montblanc was founded.

    The new Montblanc boutique will offer the brand’s best-selling products across all major categories at HKIA, including writing instruments, watches, leather goods and accessories. A curated selection of premium and unique products such as seasonal limited editions will also be available in store. The store is targeting sophisticated millennials, business travelers and “other discerning clientele”.

    The new boutique concept will be offering personalization services for its products, such as artistry limited-edition pieces, engraving services for writing instruments and hot stamping for leather goods.

    Montblanc Hong Kong & Macau MD Pierre-Etienne said the company wanted its products to make the travel experience as enjoyable as possible, “leaving room to learn about the world around us, inspiring us to leave our mark”.

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  • Duty Free Philippines opens high-end downtown duty-free store

    Duty Free Philippines opens high-end downtown duty-free store

    Duty Free Philippines Corporation has opened a new downtown duty-free store called Duty Free Luxe at the Mall of Asia in Pasay City.

    Duty-Free Luxe offers high-end brands across categories including fashion, cosmetics, fragrance, confectionery, wine and spirits. It also houses an all-Filipino concept store Marahuyo, which sells curated high-end local brands, including the luxury handmade accessories brand Aranaz.

    Duty Free Philippines COO Pelagio Angala said the opening is aimed at addressing the fast-growing trend of selling duty-free products outside airports, and forms part of Duty Free Philippines ́s commitment to promote the country as a premier shopping destination.

    “We acknowledge our vital role and to stay ahead of our competitors and to strengthen the Philippines as a great destination for travellers, we continue to explore ways to offer unique and extraordinary experiences that cannot be replicated easily,” says Angala.

    Duty Free Philippines is a government corporation tasked with operating duty-and tax-free stores across the country. Since its first operation in 1987, Duty Free Philippines has expanded its network to include Fiestamall in Paranaque City, duty-free stores at the arrival and departures areas at Ninoy Aquino International Airport Terminals 1, 2 and 3, and a store at the Waterfront Hotel in Cebu, among others. Half of its revenues are remitted to the Department of Tourism to support tourism projects in the Philippines.

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  • The Shilla wins Macau duty-free concession

    The Shilla wins Macau duty-free concession

    The Shilla has won the race to operate one of the two Macau duty-free concessions at the territory’s international airport.

    The five-year agreement allows the firm to operate half the airport’s duty-free space, a roughly 1122sqm area at the north departure level airside of the passenger terminal. The firm has run some duty-free services at the airport since 2014 in cooperation with Hong Kong duty-free retailer Sky Connection. The new concession has been awarded to Shilla alone.

    Aggregate revenue on the space is likely to approach US$600 million over the course of the contract.

    Stores at the new area are expected to focus on Korean beauty products targeted at Chinese travelers.

    “We have been sharpening our edge on beauty as customers have been recognizing us as a beauty powerhouse,” said a Shilla spokesperson to TRBusiness. “We are launching exclusive products and collaborating with new media.”

    Shilla now has five international locations that also include Singapore, Hong Kong, Phuket and Tokyo.

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  • Lotte Duty Free wins Changi Airport Group liquor & tobacco concession

    Lotte Duty Free wins Changi Airport Group liquor & tobacco concession

    Changi Airport Group has awarded its liquor & tobacco concession tender to Lotte Duty-Free. The company will succeed DFS Group when the concession contract expires next year.

    The awarding of the liquor & tobacco concession ends a fierce contest between some of the world’s leading travel retailers, including Gebr Heinemann and The Shilla Duty-Free.

    Changi Airport Group (CAG) said it undertook a detailed evaluation process after tenders closed on August 26.

    With experience operating concessions in markets including Australia, Japan, New Zealand, South Korea and Vietnam, Lotte Duty-Free is the first new operator to take what is a key CAG concession which was with DFS Group for 40 years. DFS decided not to bid to renew the business, saying it was not commercially viable, and following a similar withdrawal from Hong Kong International Airport two years ago.

    The contract awarded to Lotte is for a six-year term commencing on June 9. The tenancy contract covers all 18 liquor & tobacco stores across Changi’s four terminals, spanning more than 8000 sqm of retail space.

    “The Liquor & Tobacco concession is one of the largest at Changi Airport and it presents unique opportunities for marketing innovation and customer engagement,” said Lim Peck Hoon, executive VP, commercial at CAG.

    “Lotte put forth the strongest and most compelling proposal overall. It is aligned with CAG’s vision to offer passengers a seamless omnichannel retail experience and new retailtainment initiatives leveraging smart technologies. Lotte also demonstrated a keen understanding of the market environment with a sound business plan supported by a competitive financial bid and backed up by solid business fundamentals.”

    Lotte Duty-Free has promised to offer a wide selection of liquor products and brands to Changi’s passengers. All liquor and tobacco stores will be rejuvenated to attract both connoisseurs and new consumers. The company will also feature different boutique concepts and zones presenting the latest and exclusive products in the market.

    CEO of Lotte Duty Free, Kap Lee, said: “I express my deep gratitude to Changi Airport Group for acknowledging Lotte Duty Free’s strength and strategy. Winning the Changi Airport’s liquor & tobacco duty-free concession is of great significance in terms of establishing a bridgehead to achieve our vision of “Global No.1 Travel Retailer”. Lotte Duty Free will put its continuous efforts to grow as a global brand with Changi Airport.”

    According to CAG, the transition towards the start of the new concession will be planned carefully with both the incoming and outgoing tenants. Renovation works in the stores will be conducted in phases to ensure that customers continue to enjoy a high standard of service.

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  • Pola chooses Changi for first airport duty-free counter outside Japan

    Pola chooses Changi for first airport duty-free counter outside Japan

    Pola will open its first airport duty-free store outside Japan at The Shilla Duty-Free Changi Airport Store in a move to strengthen its brand presence in the global market.

    Pola is accelerating efforts to open new stores, primarily in ASEAN countries, so as to expand its travel-retail business outside Japan.

    Pola counters are centered around its top-line “B.A” brand and are decorated primarily in a modern black design. The counter design at The Shilla Duty-Free Changi Airport Store follows the design at department stores, extending the brand’s unified look and theme while aiming to match the travel retail environment so that customers can quickly identify the product range and best-sellers even during a short stay in the stores.

    The sales for Pola’s travel retail business are driven by the B.A brand, such as B.A Lotion, B.A Wash, and B.A Eyezone Cream.

    “We are certain that opening our new store at The Shilla Duty-Free Changi Airport Store, which is the biggest hub airport in Asia, will be a great step toward increasing Pola’s brand presence,” said Pola’s global business division director Tamotsu Sato. “The new store will be an important step for Pola to strengthen our brand presence in the global market and further expand our business.”

    The counter will be open at The Shilla Duty-Free Changi Airport Store at Terminal 2.

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  • Lotte Duty Free online sales up

    Lotte Duty Free online sales up

    Online store sales at Lotte Duty Free (LDF) increased by 49 percent year on year to KRW1.4 trillion (US$1.85 billion) during the first half of this year.

    The firm is targeting total online sales of KRW2.9 trillion ($2.46 billion) by the end of the year, following around KRW2 trillion in sales last year – an increase of 46.3 percent over 2017 results. It welcomes an average of 5.4 million active users per month on its retail platform and is on track to take in 30 percent of its total revenues from online sales within five years.

    LDF’s online store offers roughly 87,000 products from almost 2000 brands, around 324 of which are Korean-industry-exclusives such as Filorga, Eve Lom, S. Maria Novella, Barbour, Dr. Martens, Crocs, Joseph&Stacey, Primage, and Lucky Chouette.

    According to the firm, it is the only online duty free operator supporting four languages – Korean, English, Japanese, and Chinese (both simplified and traditional). The addition of traditional Chinese characters in September last year contributed to a 291 percent boost from countries using the character set, including Taiwan, Singapore and Hong Kong.

    The online platform has recently introduced several measures to improve its online services. It monitors real-time congestion levels at its Incheon Airport pick-up counters and has recently relaxed conditions for online VIP membership. The firm has also been conspicuously targeting a younger market with partnerships with other online platforms – supermarket Market Kurly and fashion retailer W Concept – popular with that demographic. Lotte also markets throughout its subsidiary platforms via other Lotte-branded online services.

  • South Korean duty-free operators chasing another boom

    South Korean duty-free operators chasing another boom

    After years of struggle in the face of a decline in Chinese tourists and increased competition, South Korean duty-free operators are in search of a more stable and sustainable business portfolio — to reduce their reliance on Chinese visitors and generate decent profits.

    The country’s duty-free business has raked in huge revenues on the back of soaring tourists, mostly from China.

    But a diplomatic row between Seoul and Beijing over a missile defense system in 2017 and regulatory changes vividly underscored the need for leading duty-free operators — Lotte Duty Free and Shilla Duty Free — to accelerate their overseas push.

    Sales at local duty-free stores continued to show solid growth in the past few years, reaching their highest-ever of US$17.23 billion last year, with an annual growth of 23 per cent over the past two years, according to data from the Korea Duty Free Shops Association.

    The spectacular result comes even when the number of Chinese package tour travellers to South Korea continued to drop after the travel ban imposed by Beijing in 2017 in protest against Seoul’s hosting of a US missile defense system.

    The number of Chinese who arrived in South Korea peaked at 8.07 million in 2016 but shrank to 4.16 million a year later, according to the state-run Korea Tourism Organization (KTO).

    The number, however, rebounded last year rising 14.9 per cent to 4.78 million, accounting for 31.2 per cent of 15.34 million foreign visitors to the country, which marks a 14.9 percentage-point rise from the previous year.

    Market watchers said the robust growth in their sales was mostly attributable to Chinese vendors or individual Chinese merchants who buy their duty-free purchases, such as cosmetic products, in large quantities and sell them back at their home.

    But commissions doled out to the sellers, who also work with travel agents to bring in big-spending tour package groups, have been excessive, eating into the profits of South Korean duty-free operators.

    The local duty-free market’s dependence on foreign tourists continued to increase with sales from foreigners accounting for 83 per cent of the total market last year, according to separate data. The figure for downtown duty-free outlets is even higher at 90 per cent.

    “It is difficult to just paint a rosy picture for duty-free operators given excessive marketing costs, such as commission fees that are needed to maintain a certain level of Chinese customers,” said Cha Jae-heon, an analyst at DB Financial Investment Co.

    Competition to bring in individual merchants and group travellers may intensify as more duty-free outlets are set to open in Seoul and other parts of the country later this year.

    The number of downtown duty-free outlets in Seoul more than doubled from six in 2015 to 13 last year. Earlier this month, the government said it will also issue five additional licenses to local retail conglomerates.

    Against this backdrop, market leader Lotte Duty Free, the travel retail division of Lotte Hotel Co, has been actively tapping into overseas markets by opening the first outpost in Jakarta, Indonesia, in 2013.

    Lotte Duty Free now operates 12 outlets in seven countries, including South Korea, and is set to increase the number to 22 in eight countries, including a new store in downtown Danang, Vietnam, and another at Hanoi International Airport that are set to open in the latter half of the year.

    The duty-free operator said it expects to meet its annual overseas sales target of 700 billion won (US$596 million) this year on the back of robust performances at its overseas operations, most noticeably in Vietnam.

    Lotte Duty Free aims to reap 1 trillion won in annual revenue from its offshore business in 2020 and plans to tap into new lucrative markets, such as Japan.

    “What sets Lotte Duty Free apart is that industry rivals are mostly focused on airport duty-free businesses, while we aim to dominate the market where there are no downtown duty-free stores,” said Park Sang-seob, a Lotte Duty Free official.

    The company also opened stores in Australia and New Zealand in March becoming the first South Korean duty-free operator to make inroads into the Oceania region. It signed an agreement with Melbourne-based JR Duty Free to run four retail outlets in Australia and one in New Zealand.

    Shilla Duty Free, the country’s second-biggest travel retailer under Hotel Shilla Co, currently operates five outlets in Singapore, Hong Kong, Macao, Thailand and Japan, as part of its strategy to balance its over reliance on the local market.

    The company already achieved annual sales of over 1 trillion won in its offshore business last year, accounting for over 20 per cent of the total revenue. The figure is also more than a twofold jump from 500 billion won in 2016.

    Its offshore business also climbed into the black in the first quarter of the year for the first time, partly on the back of stellar performance in major gateways of Asian countries.

    “The figure shows Shilla Duty Free’s reputation as an Asian travel retail powerhouse,” said Ha Joo-ho, an official at Hotel Shilla.

    “We are highly focused on our overseas push so that our sales are less affected even when there are fewer travellers from China.”

    The company said it will continue to bolster its duty-free business to make it the third-largest player around the globe by 2022, trailing Swiss-based travel retailer Dufry AG and France-based Lagardere Travel Retail.

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