Retail News CRM

Tag: shilla duty free

  • Shilla Duty Free recruits Asia’s top social media influencers to pitch K-beauty

    Shilla Duty Free recruits Asia’s top social media influencers to pitch K-beauty

    South Korean Hotel Shilla has recruited five social media influencers across Asian countries to hype K-beauty products through Shilla Duty Free stores. The company said that it will work with top influencers from China, Japan, Vietnam, Malaysia, and Thailand on its “Beauty&You” project to guide customers on how to shop at travel retail online stores via social media platforms.

    Social media influencers with access to a large audience can endorse opinions about products and services, which eventually leads to promote sales.

    Those influencers who have partnered up with Shilla Duty Free reportedly have more than 1.7 million followers worldwide in total. They will work with the travel retailer to guide customers on how to use Shilla Duty Free online store as well as show the latest makeup trends using Korean cosmetics products via their social media channels.

    The company expects its partnership with the top influencers to bolster its brand awareness across the world on top of expanding its share in online travel retail market.

    Currently, its online duty-free shop is available in four languages – Korean, Chinese, Japanese, and English. It also has offline outlets overseas in international airports of Singapore, Hong Kong, and Macao as well as downtown Tokyo and Phuket.

    Lees ook:

    Lees ook:

  • Shilla duty free open new store

    Shilla duty free open new store

    Shilla Duty Free opens at Gimpo International Airport’s international terminal on Wednesday. The duty-free store run by Hotel Shilla was approved by the government in June last year in a bid against Lotte Duty Free. The duty-free store is renting the place for five years.

    Lees ook:

  • Shilla Travel Retail Hong Kong appoints new MD

    Shilla Travel Retail Hong Kong appoints new MD

    The Shilla Duty Free has appointed a new MD of its Hong Kong operations. Changha Shin takes over the helm of Shilla Travel Retail Hong Kong this week after the surprise departure of Alice Woo. Woo built the business up after becoming its first employee last year when the Korean-owned travel retail company secured major duty-free concessions at Hong Kong International Airport.

    Prior to working with Shilla, Woo spent 22 years in travel retail in Asia, Hawaii and North America, with companies including DFS Group and Nuance Watson.

    Her replacement Shin was previously the merchandising director of Shilla Travel Retail Hong Kong. In a short statement, Shilla said Shin has a wealth of knowledge across various product categories with 14 years of experience. He started in HR with Shilla Group and has “deep knowledge” of Shilla Group and its partners.

    “The Shilla Duty Free is proud to promote from within and support the development of its staff.”

    Woo will leave her position this week with the change referred to being due to “internal circumstances”. It is unclear if she will remain with the company in another role.

    Lees ook:

    Lees ook:

  • Shilla Duty Free wins Gimpo’s bid for L&T concession

    Shilla Duty Free wins Gimpo’s bid for L&T concession

    Shilla Duty Free wins the bid against Lotte Duty Free for Gimpo International Airport’s five-year liquor and tobacco concession.

    Gimpo is South Korea’s third busiest airport and the core duty categories will now be divided between South Korea’s two biggest duty free retailers – Shilla and Lotte.

    Last month, the two travel retail giants were shortlisted for the five-year concession covering two stores spanning 733sq m. It seems Shinsegae Duty Free had also submitted a bid, but did not make it to the shortlist.

    It appears Shilla’s strength in the business sustainability, financial health and investment category, counting for half of the overall score the bids were judged on, are what made the balance shift in their favor.

    The opening follows the exit of, previous incumbent, CityPlus due to unsustainable losses

    Even though Incheon International Airport is now the nation’s gateway, Gimpo still sees more than 25 million passengers every year.

  • Beauty&You : The ultimate customer experience

    Beauty&You : The ultimate customer experience

    The Shilla Duty Free, one of the world’s leading travel retail companies, has unveiled their new retail stores at Hong Kong International Airport (HKIA) following a successful six-month soft launch period.

    The Grand Opening Ceremony featured the unveiling of the full Beauty&You concept store and a spectacular K-celebrity guest line-up to commemorate the special occasion.

    Attended by esteemed VIPs including Shilla’s senior management, representatives of the Airport Authority Hong Kong, brand and business partners, as well as media, the elaborate event began with the official ribbon cutting ceremony at the main East Hall outlet, followed by guided tours introducing the new store experience.

    Guests were then invited to attend a special showcase by KPop sensation Highlight, Shilla’s new brand ambassador for 2018-2019. Highlight brought their energy and enthusiasm on stage through a series of performances and interactive games with fans.

    “We are very pleased to announce the grand opening of The Shilla Duty Free’s brand-new retail stores at one of the busiest airports in the world,” says Alice Woo, Managing Director of Shilla Travel Retail Hong Kong Limited, “With the highly-anticipated launch of Beauty&You, we hope to redefine the airport retail experience and customer journey with a comprehensive brand profile presented in an interactive and engaging environment. Our aim is to deliver the ultimate shopping experience to a diverse audience in one of the most robust travel markets in the world.”

    The Shilla Duty Free’s Beauty&You concept symbolises the brand’s commitment to deliver a comprehensive beauty retail experience and be at the forefront of the experiential retail trend.

    ‘Beauty’ and ‘You’ together represent beauty tailored to each individual customer and the infinite combinations available through the multitude of brands and experiences. Crafting the notion that beauty retail can surpass the limitations of cosmetics and skincare products and become associated with fashion and accessories, this retail concept gives room for all definitions of beauty.

    With around 200 brands on offer, The Shilla Duty Free will also bring a list of premium brands new to HKIA, including David Beckham’s global grooming brand HOUSE 99; the best of Korean and Japanese brands like The History of Whoo, su:m37º , THREE, ReFa; image-maker NARS; Italian crafted luxury leather goods labels and accessory brands Bresciani, Maglia Francesco, Victrix; as well as fashion accessory brands like Alexander McQueen and Didier Dubot, just to name a few.

    More than 60 new brands will join our extensive brand selection in offering an innovative and enjoyable shopping experience for customers.

    Furthermore, the new concept revolves around curated hospitality on par with the superior product offerings to create a seamless retail experience. Designed to provide “journeys of discovery” for every customer, the engagement zones together with the stores’ professional beauty and fashion advisors, all offer personalized recommendations. Customers will explore a space meant not only for shopping, but also for retailtainment, in discovering their very own beauty preferences.

    Representing how modern and travel-savvy customers shop, the new retail stores have
    incorporated a blend of branded and non-branded counters, as well as engagement zones where brands and categories come together under a single umbrella. These special lifestyle and themed areas are designed to enhance the retail experience through engaging customer interactively into immersive experience spaces.

    They include Elements – an area dedicated to gentlemen-specific products, New Generation – a section showcasing the best of Korean and Japanese cosmetics and
    perfume brands, and a dedicated Curated Zone, where Shilla will collaborate with different brands each month to feature themed selections and trendy looks with perfume, cosmetics and fashion products on display. In the grand opening month, Lancôme will be presenting a selection of their best-selling items through their “Pink Time” showcase. SK-II and The History of Whoo will also be featured in the Curated Zone, with different interactive elements in visually striking displays to appeal to customers.

    In these engagement zones, The Shilla Duty Free has incorporated the use of digital technology to offer an enhanced shopping experience. Our own Shilla Beauty Selfie makeup app in New Generation invites customers to virtually try on looks from various brands such as Anna Sui, Innisfree, KATE, Etude House, THREE, Ladurée, NARS and Urban Decay. More animated features such as “Get the Look” and “Magic Mirror” are designed to communicate the most updated beauty and fashion trends, promising fun and informative tips.

    Other in-store activities during the opening period highlight Shilla’s brand partners, such as Atelier Cologne’s engraving service, M.A.C.’s interactive ‘selfie’ machine, which allows users to simulate different lip colours and instantly print out photos. Cartier Eyewear and Perfume have also partnered up for the first time to introduce their Panthère range in a stunning display.

    All Beauty&You stores offer Arrival Pick-Up services for a hassle-free traveler’s shopping experience. Customers can visit and purchase at any Beauty&You stores before departure and collect the goods at the pick-up counter in the Arrivals Hall store upon their return to Hong Kong International Airport.

  • The Shilla officially launches Beauty&You

    The Shilla officially launches Beauty&You

    Korean-headquartered travel retailer The Shilla has officially launched its Beauty&You concept stores in Hong Kong International Airport (HKIA) after a six-month soft launch.

    At the launch, Shilla Travel Retail Hong Kong MD Alice Woo said: “We hope to redefine the airport retail experience and customer journey with a comprehensive brand profile presented in an interactive and engaging environment. Our aim is to deliver the ultimate shopping experience to a diverse audience in one of the most robust travel markets in the world.”

    In line with experiential retail trends, Beauty&You offers curated hospitality with high-end product offerings to attempt seamless retail experiences. In a statement, the company said the store is designed to provide “journeys of discovery” for every customer, with professional beauty and fashion advisors placed in engagement zones with both branded and unbranded counters, offering personalised recommendations.

    The retail space is not only designated as a shopping environment, but also for “retailtainment” where customers may explore their own beauty preferences by experimenting with combinations of multiple brands and experiences – involving digital elements such as virtual makeup apps and VR headsets, as well as instant photo printing and even a ‘lucky claw machine’.

    The store will stock around 200 brands, including premium labels not otherwise available at HKIA. These include David Beckham’s House 99; Korean & Japanese beauty brands The History of Whoo, su:m37o, Three, and ReFa; image-maker Nars; Italian-crafted luxury leather goods and accessory brands Bresciani, Maglia Francesco, Victrix; and accessory brands such as Alexander McQueen and Didier Dubot.

    To mark the official launch and the 20th Anniversary of HKIA, in-store promotions and discounts will be held throughout July.

    View the images of the newly launched villa below :

    Lees ook:

  • Shinsegae and Shilla to fight out Incheon T1 duty free bids

    Shinsegae and Shilla to fight out Incheon T1 duty free bids

    Shinsegae Duty Free and The Shilla Duty Free will fight out the contest for two Incheon International Airport Terminal 1 duty free contracts on offer, despite rival Lotte Duty Free tabling the highest bids in each case.

    The tenders followed incumbent Lotte Duty Free’s resignation from both concessions in February.

    As reported, four retailers – Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free and Doota Duty Free – bid for the two packages, DF1 and DF5.

    While Lotte Duty Free submitted the highest offers for both packages (see figures below), Incheon International Airport Corporation opted to shortlist only Shilla and Shinsegae. The two retailers must now table their business plans to Korea Customs Service and Incheon International Airport Corporation by 5 June. A winner will be selected in mid-June.

    A Shinsegae Duty Free spokesperson confirmed the shortlist to The Moodie Davitt Report. A Lotte Duty Free spokesman said the company was “despondent”, given that it had tabled the highest bid.

    Lotte’s DF1 bid was +1.6% higher than Shinsegae’s and +27.2% higher than Shilla’s. On DF5, Lotte’s offer was +13.2% better than Shinsegae’s and +38.8% above that of arch-rival Shilla.

    Some Korean duty free market sources expressed shock at the result. One veteran retailer told The Moodie Davitt Report, “Lotte must have been penalised for dropping the [former] concession in the mid-term. Yet as evaluations are based 60% on the business plan and 40% on the monetary offer, it is not easy to understand that Lotte did not qualify… especially as it had paid a KW187 billion penalty (for its premature exit).

    “There is no specific regulation or degrading for a company which gives up a government concession in the mid-term.”

    One source told The Moodie Davitt Report, “The most probable scenario is that the licence evaluation committee of Korea Customs Service will award DF1 to Shinsegae and DF5 to Shilla in order to avoid potential monopoly issues [as Shilla also holds the rest of the airport’s P&C business reserved for major retailers -Ed].”

    Not surprisingly, Shilla is known to dispute that position. Korea’s Fair Trade Commission will not have a problem with the proposed structure, sources close to the company believe. Shilla could reasonably point to many other international airports which have a single retailer for one category (or in fact for all categories), the sources contend.

    Lees ook:

  • Shilla Duty Free outperforms in Q1 with record-high sales

    Shilla Duty Free outperforms in Q1 with record-high sales

    Hotel Shilla’s airport retailer Shilla Duty Free has posted record-high first-quarter sales of KRW1.14 trillion (US$1 billion).

    Korean-headquartered Shilla Duty Free earned KRW47.6 billion in operating profit in the quarter, mainly because of increased sales at its overseas duty-free shops.

    Sales last year hit KRW600 billion, and the company expects sales to hit KRW1 trillion this year.

    Shilla Duty Free opened its first overseas duty-free shop at Singapore’s Changi Airport in 2013, and in December opened its fifth overseas outlet at Hong Kong International Airport to become the first company to manage duty-free stores in the three largest airports in Asia – Incheon, Singapore and Hong Kong. It also has outlets at airports in Macau, Phuket and Tokyo.

    Lees ook:

    Lees ook:

  • The Shilla Duty Free set to come off MAG in Changi as business improves

    The Shilla Duty Free set to come off MAG in Changi as business improves

    The Shilla Duty Free’s burgeoning reputation as an Asian travel retail powerhouse in beauty is being underscored at Changi Airport, where the company expects this year to start contributing a percentage of revenues rather than the Minimum Annual Guarantee (MAG) it has been paying until now – a sure-fire indicator of improved business.

    “That means we have made a great improvement,” said Hotel Shilla President of Travel Retail Division Ingyu Han. Han said that Shilla has driven a much-improved passenger spend rate as well as implementing various operational improvements at its key Singaporean operation.

    Shilla was awarded the Changi perfumes & cosmetics concession ahead of red-hot competition in late 2013. Although it got off to a difficult and heavy loss-making start, business has improved substantially since. The victory – and learnings – laid the platform for further international expansion in ensuing years.

    That development included the beauty business at Macau International Airport in partnership with Sky Connection and, notably, the key beauty & accessories contract at Hong Kong International, which it won ahead of intense competition last year. Shilla will celebrate the Grand Opening of its multi-store network at Hong Kong International, where it trades as Beauty & You, on 28 June.

    Shilla is also the dominant beauty retailer at Incheon International Airport T1 and T2.

    As reported, Shilla posted outstanding results for the first quarter. Hotel Shilla’s travel retail division posted a +30 percent surge in revenues for the first quarter of 2018, to 1,013.7 billion won (US$950 million), while operating profit in the division surged by +182 percent year-on-year, hitting 47.6 billion won (US$44.5 million).

    The company’s airport duty free business delivered a +41 percent revenue rise, while in downtown duty free the increase was +22 percent.

    Regina Hahm Equity Analyst (Cosmetics, Household goods, DFS) at Mirae Asset Daewoo Research Center said: “The overseas duty free business delivered a strong performance in terms of both growth and profitability. Revenue surged +76 percent year on year, bolstered by more meaningful sales from the Hong Kong International Airport operation. Operating loss declined to 42 percent of the 1Q17 level with the help of efficiency gains in the Singapore Changi Airport operation.”

    Commenting on the wider results, Ms Hahm said, “The stellar results were attributable to strong growth and margin improvements across all businesses. The domestic duty free business (key to profits) posted record revenue of 771.5billion won (+19.6 percent year-on-year) and OP margin of 6.5 percent, the highest quarterly level since 3Q15. We believe the main drivers were: 1) the stabilization of travel agent commissions (which became unduly high due to intensified competition); and 2) cost efficiency gains resulting from the company’s enhanced merchandising capabilities.”

  • The Shilla Duty Free aims high with new Terminal 2 perfume & cosmetics offer

    The Shilla Duty Free aims high with new Terminal 2 perfume & cosmetics offer

    The Shilla Duty Free has pledged “brand new kinds of customer experience that the airport has never seen before” at its new Incheon International Terminal 2 perfumes & cosmetics stores.

    T2 opened on 18 January. The Shilla Duty Free was awarded the terminal’s perfumes & cosmetics contract after an open tender in 2017.

    The travel retailer offered KW100 billion (US$87.9 million) in first-year guarantees for the five-year contract, which covers six stores and 2,105sq m of space.

    Shilla said that the T2 stores will offer “the best beauty experience in Incheon”. The overall retail concept will major on two key themes – “interactive” and “experience”.

    Seven interactive experience zones will enhance brand identity through promotional campaigns and product demonstrations.

    Customer interactive elements will include a ‘Digital Beauty Bar’, powered by what Shilla described as “cutting-edge display and information & communication technology”. It will provide a combination of information services, in-store promotions and virtual make-up previews, using a “gigantic” LED screen and interactive kiosk.

    Around 110 cosmetics & perfume brands, Korean and international, will be on offer. Chanel, Dior, Lancôme, Estée Lauder, SK-II and Sulwhasoo will each have flagship stores within an area of approximately 360sq m. The flagships are three times larger than the brands’ existing shops at the airport, Shilla said. Each has been independently conceptualised and designed by the respective beauty houses to create unique brand experiences. Key aspects of each offer are as follows:

    Chanel: “Brand new skincare experience”, featuring in-store product demonstrations and new product awareness using VR technology.

    Dior: Professional make-up artist’s product recommendations and demonstrations; Digital beauty tool including skin type analyser and lip test tablet.

    Lancôme: Virtual make-up mirror to showcase popular items and new arrivals; Digital screen covering entire store interior for video demonstrations.

    Estée Lauder: In-store engraving for various products, including fragrances and lipsticks.

    SK-II: Skin type analysis for personal counselling and product recommendation.

    Sulwhasoo: Hands & eyes massages; skin analysis and related product recommendation service with in-store moisture-measuring device.

    The offer will not just be about established brands. The Shilla Duty Free is also promising nine brand newcomers. Five are Korean – Primera, Too Cool for School, Cell Fusion C and Atopalm – and four imported – Caudalie, Foreo, Santa Maria Novella, Acqua di Parma and Atelier Cologne.

    r

    Lees ook:

    Lees ook:

  • Shilla Duty Free sets up second presence in Incheon airport

    Shilla Duty Free sets up second presence in Incheon airport

    With its new second store at Incheon International Airport (IIA), Shilla Duty Free says it now has cosmetics and perfume outlets at all passenger terminals in Asia’s three largest airports.

    The South Korean duty-free retailer says it has shops at all four terminals at Singapore’s Changi Airport and at Chek Lap Kok Airport in Hong Kong. Its first store at IIA opened in 2001.

    Cosmetics and perfume are considered key duty-free items as they generate strong revenue. In the case of IIA’s duty-free shops, cosmetics and perfume account for 38 per cent of all sales.

    Shilla Duty Free, part of Hotel Shilla, says it expects overseas business to soon exceed KW1 trillion (US$939 million).

    Its new store covers 2100sqm and offers products from 110 brands including Chanel, Dior, Estee Lauder, Lancome, SK-II and Sulwhasoo. It features a “digital beauty bar” that uses such technology as a VR “beauty mirror”.

  • Shilla Duty Free opens six new shops at Hong Kong International Airport

    Shilla Duty Free opens six new shops at Hong Kong International Airport

    The Shilla Duty Free has opened six new retail outlets at Hong Kong International Airport (HKIA).

    The retailer sucellfully bid on the perfume and cosmetics and fashion accessories concessions earlier this year. Shilla says the new license marks it as the first operator to simultaneously secure duty free perfumes and cosmetics concessions across the hub airports of Incheon International, Hong Kong International and Singapore Changi.

    With the opening of the HKIA stores, Shilla has also announced its new vision for experiential retail – Beauty & You. Following the commencement of operations this December, the outlets will be transformed in phases into the new identity.

    Shilla’s Beauty & You concept is designed to combine “innovative store designs with a wide array of products, excellent service and exciting activities to delight guests at every stage of their shopping journey, giving a new innovative approach to travel retail in an airport”. Designed to represent how modern customers shop, the new Beauty & You store layout will incorporate both branded counters and non-branded areas, as well as immersive engagement zones.

    New brands

    With the grand opening of the new concept stores slated for the summer of 2018, the number of brands featured across the six stores will increase to over 200.

    “We’re extremely excited to expand The Shilla Duty Free network to one of the busiest airports in the world,” said Alice Woo, managing director of Shilla Travel Retail Hong Kong. “The airport served more than 70 million passengers annually and 1,100 aircrafts daily in the past 12 months. Hong Kong’s proximity to other Asian countries and mainland China also makes HKIA a powerful and promising hub for duty free sales. With the upcoming launch of Beauty & You, we hope to redefine the airport retail experience and customer journey through personalised service, interactive and engaging environment in one of the most robust travel markets in the world.”

    Lees ook:

  • The Shilla Duty Free unveils “seamless retail” in Changi T4 beauty outlet

    The Shilla Duty Free unveils “seamless retail” in Changi T4 beauty outlet

    The Shilla Duty Free has unveiled its 1,375 square meter beauty store in Singapore Changi Airport’s newly-opened Terminal 4.

    It is the biggest among all the Shilla Central stores at Changi and is part of the airport’s first integrated duty free zone, which travellers reach after passing through the centralised area for departure immigration.

    The zone also includes DFS Group’s liquor and tobacco outlet, and passengers can make purchases across the two stores in a single transaction.

    A number of beauty brands not currently offered at other terminals are available in The Shilla Duty Free’s new store, including Hera, diptyque, Alexander McQueen, Mercedes-Benz, Bentley and Bath & Body Works.

    The store features high ceilings and has been designed to be spacious to “allow for more creativity in the designs of the brand counters”, the retailer said. Large digital screens have been incorporated into the walls and pillars, and amplify the key branding messages and promotions.

    The layout encompasses four distinct zones, with the aim of making the shopping journey “seamless and uninterrupted”. A vibrant cosmetics zone features at the store’s main entrance, while internationally renowned brands are carried in the skincare zone, The Shilla Duty Free said.

    A zone dedicated to introducing travellers to brands known for their artisanal and organic approach to beauty features next. The last zone highlights fragrances, and is intended to “immerse travellers in the romance of perfumery”.

    The Shilla Duty Free Vice President of Global Merchandising Division Raelene Johnson commented: “We are thrilled to present Shilla’s new seamless retail format to travellers. The entire store has been tailored with our shoppers in mind, as we try to understand the consumer psyche and focus on building a great experience for each one of them.

    “Whether it is the joy of browsing through the different segmented zones that pique their interest, or discovery of their favourite brands that are not readily available downtown, or the exclusive promotions, we are confident that shoppers will always have a pleasant and enjoyable time at our store.”

    Lees ook:

  • The Shilla Duty Free and AmorePacific launch pop-up ‘Beauty Truck’

    The Shilla Duty Free and AmorePacific launch pop-up ‘Beauty Truck’

    The Shilla Duty Free and AmorePacific have introduced a pop-up ‘Beauty Truck’ store to promote the Korean skincare house’s MakeOn brand. The pop-up, which launched on 22 June and will stay open till 19 July, is located outside the travel retailer’s flagship store in downtown Seoul.

    The five-tonne Beauty Truck, painted vivid pink, is intended to capture visitor interest as soon as they arrive at the main store.

    MakeOn is described as a “self-aesthetic device that allows facial cleansing, make-up and massage” at any time and any place.

    MakeOn beauty devices offer skincare treatments through energy – combining light, heat, ion and motion. MakeOn’s four top items can be experienced at the pop-up store: Cleansing Enhancer, Skin Light Therapy, Makeup Enhancer and Magnetite Roller.

    Pop-up store staff provide product support and product explanations in Korean, English and Chinese. All items are available for sale inside the main store.

    Pop-up store visitors receive discount coupons and free gifts from MakeOn and AmorePacific, including a -10% discount coupon for MakeOn products a and pink fan featuring the brand’s logo.

    Free samples of highly popular AmorePacific cosmetics brand Laneige are given to visitors taking and sharing pictures in the MakeOn photo zone. Additional Laneige samples are given to visitors boarding the truck and experiencing MakeOn treatment.

    Shoppers who visit the MakeOn shop in The Shilla Duty Free Seoul store receive a MakeOn gold pouch. An additional beach bag is given to those who purchase at the shop.

    The Shilla Duty Free is airing live social media broadcasts at the pop-up store for Chinese, Southeast Asian and South Korean followers in Chinese, English and Korean. KOLs (Key Opinion Leaders) for each language are visiting the pop-up, and describing their experiences in an effort to generate on-line buzz and word of mouth via social media.

    While The Shilla Duty Free has long focused on social media events for Chinese followers, this is the first time that the retailer has aired live broadcasts in other languages. Shilla says it plans to increase social media events and live feeds for Southeast Asian and South Korean consumers following the Beauty Truck initiative.

    The company commented: “This brand new concept pop-up store is The Shilla Duty Free’s latest endeavour to provide an unique and differentiated customer experience especially focused on the beauty category. The Shilla Duty Free, the first operator to run the cosmetics & perfume category in all three major hub airports in East Asia [ncheon, Changi and, soon, Hong Kong International -Ed, is eager to offer an unparalleled beauty experience to customers.”

    Lees ook:

  • Lotte Group forced to drop $4.5bn IPO

    Lotte Group forced to drop $4.5bn IPO

    Following a 30 per cent drop in duty-free sales last month and the virtual closure of more than 100 supermarkets and discount shops in China, the Lotte Group has cancelled its US$4.5 billion IPO.

    Its woes are fallout from the mainland’s objection to South Korea’s new THAAD missile defence system, designed to knock out missiles from North Korea in the event of a war. China’s military claims the system can snoop on its installations as well. China is also angered that the system is on land sold by the Lotte Group to the South Korean government.

    These political moves have put the brakes on Lotte Duty Free’s booming South Korean sales, which rose a record 36 per cent last year to US$5.7 billion.

    Meanwhile, South Korea has protested to the World Trade Organisation (WTO) in an effort to persuade China to relax its stance.

    This means the Lotte Group will now dip out on funding for its expansion programs while its key competitor, Shilla Duty Free, has continued to expand its duty-free business overseas, including Hong Kong International Airport (HKIA), as reported.

    Lees ook: