Retail News CRM

Tag: Travel Retail

  • AirAsia opening restaurant based on its in-flight menu

    AirAsia opening restaurant based on its in-flight menu

    Low-cost carrier AirAsia may launch restaurants serving its Santan “gourmet” in-flight menu on the ground. The proposal was revealed by AirAsia Group CEO Tony Fernandes while promoting his recent autobiography in an interview with US talk show host Larry King. “I think our food is fantastic,” said Fernandes in response to a question from the audience. “We believe in it so much we’re going to start a fast-food restaurant out of it.”

    But Fernandes gave no more details away about the plan, such as where the restaurants might be located or whether he favoured airport locations or city centres.

    News that AirAsia may launch restaurants on the ground may come as a surprise to travellers, but Fernandes has previously spun off new business concepts from the airline’s business model including a short-lived budget hotel chain where occupants paid extra for features such as air conditioning, towels and amenities, and a bus service connecting Kuala Lumpur Airport with downtown.

    AirAsia also made news recently for its new chatbot Ava (AirAsia Virtual Allstar) which, along with a new look for the firm’s website and mobile app, are designed to deliver a more seamless and user-friendly experience to customers.

    Fernandes has also indicated the airline will place increased focus on the Indonesian and Philippines markets in the near future.

  • Smaller duty-free alcohol allowance and GST relief for overseas shopping

    Smaller duty-free alcohol allowance and GST relief for overseas shopping

    From midnight tonight, Singapore duty-free allowances will be cut by about a third for returning travellers. Other allowances have also been reduced. Travellers staying outside of Singapore for fewer than 48 hours will be liable for 7 per cent GST on items bought overseas worth more than SG$100 – down from the previous threshold of $150. For travellers outside the country for a period longer than 48 hours, the $600 threshold will similarly be lowered, to $500.

    The changes were announced yesterday by Finance Minister Heng Swee Keat as part of the nation’s new Budget. From April 1, the alcohol concession will also be lowered from three litres of wine or beer to two litres. The spirits cap remains at one litre.

    According to the Inland Revenue Authority of Singapore and Singapore Customs, the cuts to Singapore duty-free allowances are designed to support the city state’s existing tax intake in the face of increasing international travel.

    Returning travellers are required to declare taxable items on arrival, and have been advised to keep purchase receipts to assist in calculating any taxes due. Advance declaration and payment is available via the Customs @ SG mobile app or web portal. Failure to declare or a false declaration can incur a fine of $10,000 as well as up to a year in prison.

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  • Empire State Building Store sets tourist retail benchmark

    Empire State Building Store sets tourist retail benchmark

    North American travel retail firm Hudson Group has announced the unveiling of the Empire State Building Store, part of the reimagined Empire State Building Observatory experience. The newly renovated 4500sqft retail space offers more than 800 items exclusive to the property, including destination mementos, curated souvenirs, and modern luxury, as well as a new shop-in-shop experience, Empire on Fifth.

    “With our US$160 million Observatory upgrade, the redesign of the Empire State Building Store elevates the retail experience at the building and caters to our guest’s interests,” said senior VP of the Observatory Jean-Yves Ghazi.

    “From the King Kong section to exclusive merchandise from top brands Baccarat Crystal, Puma, Swarovski and more, there truly is something for everyone”.

    The Empire State Building Store is one of more than 300 specialty retail locations operated by Hudson Group.

    “Hudson Group is elevating the gift store experience in our properties across North America by bringing 30 years of travel retail experience to tourism,” said Hudson Group CEO Roger Fordyce. “We could not be prouder to partner with Empire State Realty Trust to offer this new amenity to visitors at the most recognised building in the world, the Empire State Building”.

     

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  • The Macallan releases the first annual limited edition

    The Macallan releases the first annual limited edition

    The first in an annual, limited edition series, The Macallan Concept Number 1 was inspired by the whimsical world of surreal art, and celebrates world’s visionaries by daring to disrupt the whiskey making process. Following its Asia debut on 1st January 2019 in Singapore’s Changi International Airport, The Macallan Concept Number 1 will be made available in Hong Kong Hong Kong International Airport starting from 1st February 2019. Bringing together imagination and idealism to create a fantastical, sensorial world of whisky where anything and everything is possible, the label and packaging of The Macallan Concept Number 1 features a surrealistic interpretation of The Macallan’s Six Pillars -– the spiritual home, curiously small stills, the finest cut, exceptional oak casks, natural colour and peerless spirit.

    Created from whiskies matured first in sherry-seasoned oak casks and subsequently for an equal amount of time in ex-bourbon casks, The Macallan Concept Number 1 is a whisky crafted to explore maturation more imaginatively. Displaying characteristic notes of citrus fruits and ginger, it is a spirit that combines an unwavering passion for whisky with an unfailing mastery driven by bold and brave choices.

    Commenting on the uniqueness of this series, Macallan Master Distiller, Nick Savage says, “The Macallan Concept Number 1 is whisky reimagined, offering a compelling new sensory experience that rewards with every sip. The innovative process developed to produce this remarkable single malt pays tribute to the visionaries of the surreal art world and reflects our continuous search for excellence.”

    Adding further, Igor Boyadjian, Edrington Global Travel Retail Director, emphasises, “We’re proud to unveil the first release in The Macallan’s latest innovative travel retail-exclusive product range. By “breaking the norm”, The Macallan Concept Number 1 reinforces our commitment to offering exciting products to travellers and we’re confident this fresh innovation will prove attractive to travellers and collectors alike.”

    The Macallan Concept Number 1 is now available exclusively in Hong Kong, via duty free stores in Hong Kong International Airport, and in selected airports throughout Asia Pacific from February 2019 onwards.

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  • DFS Changi celebrates lunar new year with offers

    DFS Changi celebrates lunar new year with offers

    DFS Group, the world’s leading luxury travel retailer, is celebrating Lunar New Year 2019, ‘The Year of the Pig’ with a series of exciting promotions, exclusive offers, personalization services and interactive activities at DFS, Singapore Changi Airport.

    Until 19 February, DFS has partnered with Moët Hennessy to celebrate the new year festivities with an exclusive Hennessy pop-up store at Changi Airport, the only one of its kind in the global travel retail sphere. Offering interactive consumer experiences and tastings, the pop-up features Hennessy’s first ever engraving station in travel retail for travelers who wish to add a personalized touch to their bottles. Hennessy partnered with contemporary artist, Guang-Yu Zhang to create an exclusive art piece, incorporating the zodiac symbol of the boar and Hennessy’s double distillation process. The artwork is featured on limited-edition festive packaging for Hennessy XO, Hennessy VSOP and James Hennessy.

    “Lunar New Year is one of the world’s most celebrated festivals and is a time for family, friends, giving, happiness and good fortune. As we welcome the Year of the Pig, we thank our loyal customers and look forward to welcoming new traveling customers to a luxurious shopping experience that only DFS can offer. Our Lunar New Year campaign enhances the pleasure of giving by offering an array of DFS exclusive products – for customers to show appreciation to loved ones or treat themselves to something extra special at this special time,” said Ariel Gentzbourger, DFS Group Executive Vice President Merchandising.

    Exclusive and limited-edition products available at DFS Changi include the Macallan Concept No.1, an Asia First Launch, the limited-edition Benedictine Dom Chinese New Year tin and the limited-edition Royal Salute 21 Year Old. All products are also readily available on www.iShopChangi.com, where travelling customers can browse and purchase products from 18 hours to 30 days before their flight. Purchased products can be collected at the departure terminals or arrival halls. Travelers can enjoy 10 per cent discount when they check out with the ‘CHEERS10” promocode now through until 31 March 2019.

    In preparation for festive feasts and celebrations, travelers arriving in Singapore during the festive period can enjoy an unlimited purchase of wines and champagnes. By absorbing all duties and taxes, DFS allows customers to purchase as many bottles as they wish from an extensive collection at an affordable price. Products range in cost and variety and start from as little as S$25, with travelers enjoying savings of up to 70% versus domestic prices.

    From now through 4 February, travelers at Changi Airport can try their hand at winning a 999 Pure Gold Bar (10 g) by playing the exclusive ‘Fortune Catcher’ claw machine. Located in each DFS departure store, travelers are able to use vouchers to play the claw machine – that offers an array of prizes with a minimum purchase of S$168 in store.

  • New shopping ambassadors at Hong Kong International Airport

    New shopping ambassadors at Hong Kong International Airport

    Shopping for travelers will be even easier at Hong Kong International Airport (HKIA) with the introduction of Airport Shopping Ambassadors. The Airport Shopping Ambassadors are stationed at key locations within the airport’s retail areas. They are well acknowledged on shopping and dining offerings at HKIA, providing a friendly and personalized service to travelers. The ambassadors can provide helpful advice or last-minute shopping recommendations, as well as hot-picks, latest promotions and dining options from a wide range of global and local cuisine.

    Travelers can also receive personalised shopping and dining itineraries online, simply by filling in the Airport Shopping Ambassadors enquiry page on HKIA’s website https://www.hongkongairport.com. After completing the online request section, together with flight schedule and other information, travelers will be able to receive the ambassadors’ recommendations within 48 hours.

    HKIA is an international and regional aviation hub connecting about 220 destinations around the world, including 50 Mainland cities. HKIA achieved record-breaking passenger throughput of 74.7 million in 2018.

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  • Who visited Korea in 2018?

    Who visited Korea in 2018?

    Chinese visitor arrivals in South Korea rose 14.9 percent year-on-year in 2018 to 4,789,512, according to new Korea Tourism Organization figures. Chinese arrivals in December 2018 rose 25.2 percent year-on-year. The results confirm a sustained recovery in Chinese tourism from March 2018 as Korean-Chinese relationships improved in the wake of the THAAD anti-missile system dispute that had devastated Chinese tourism for the previous year.

    For the first two months of 2018 Chinese arrivals slumped 43.7 percent, heavily influencing the year-end result.

    However, the 2018 performance was still far short of pre-THAAD levels. In 2016, 8,067,722 Chinese visited South Korea, 68 percent more than the 2018 tally and a 46.8 percent share of total arrivals, compared to last year’s 31.2 percent.

    Japanese market buoyant but political concerns rise

    The Japanese tourism market was buoyant in 2018, rising 27.6 percent to 2,948,527, a 19.2 percent share of arrivals. December saw a 33.5 percent rise year-on-year.

    The combination of concerted Japanese visitor growth and a strong yen has been reflected in increased duty free spending. A report by The Korea Herald said that January 2019 sales to Japanese consumers at Lotte Duty Free’s flagship store in Myeong-dong, Seoul (the country’s biggest travel retail door) had surged 31 percent year-on-year, compared to 15 percent for all nationalities.

    The same report said that Shinsegae Duty Free’s Myeong-dong store posted a 53 percent rise in sales to Japanese shoppers during the same period, while overall turnover at the flagship fell 1 percent.

    But prospects for a continued boom in Japanese tourism may be marred by a worsening political dispute, this time between South Korea and Japan. A military row began on 20 December following an encounter between a Japanese plane and a South Korean destroyer.

    The Japanese claimed that the South Korean warship aimed its fire-control radar at the aircraft while the Koreans contend that the ship was rescuing a North Korean ship drifting in international waters.

    Several more ‘fly-buy’ incidents since then have escalated tensions, leading to fears that the row could “snowball into crisis”, as CNN wrote.

    Departures of Korean nationals (along with Chinese and Japanese the key components of the Korean travel retail industry consumer mix) rose 8.3 percent year-on-year in 2018 to 28,695,983 and 3.8 percent in December to 2,495,279. The year ended much weaker than it began – five of the first six months saw double-digit increases, all of the final six months were under 6 percent.

  • Pernod Ricard Global Travel Retail announces new Vice President Marketing

    Pernod Ricard Global Travel Retail announces new Vice President Marketing

    Craig Johnson, currently Vice President Global Marketing, Absolut Vodka at The Absolut Company, is appointed to the position of Vice President Marketing of Pernod Ricard Global Travel Retail (PR GTR) from January 2019, reporting to Mohit Lal, CEO of Pernod Ricard Global Travel Retail. Johnson will be based in Pernod Ricard Global Travel Retail’s London headquarters and will also become a member of the PR GTR Executive Team.

    This organizational change will continue to build on the strong work achieved so far since the consolidation of the global travel team, by continuing to push category boundaries of what can be achieved within the channel and connect with travelers across the globe at different stages of the Travel Trail through innovative and meaningful communications.

    Craig Johnson, BA Engineering, Rochester Institute of Technology and MBA, The University of Connecticut, started his career at BIC in 1993, where he transitioned from engineering to marketing, before joining Allied Domecq Spirits USA in 1999 as Brand Director, Innovation & Advantage.

    Craig joined the Group at Pernod Ricard USA in 2004 as Brand Director and became Vice President Marketing, Spirits in 2010. He joined The Absolut Company in 2013 as Global Brand Director, Malibu, and was promoted to Global Marketing Director in late 2015.

    From January 2019 Craig is the Global Vice President Marketing for Global Travel Retail.

  • AirAsia carried 16% more passengers in 2018

    AirAsia carried 16% more passengers in 2018

    AirAsia Group Bhd Consolidated AOCs carried a total of 12.1 million passengers in the fourth quarter ended Dec 31, 2018 (4Q18), reflecting a 16% growth from 10.4 million passengers carried a year ago. During the quarter, load factor was 4 percentage points lower at 84% from 88% a year ago, due to significant increase in capacity, which rose 21% to 14.3 million from 11.9 million a year ago.

    The group said in a statement that its available seat kilometres (ASK) grew 14% year-on-year, in line with the group’s strategy to grow its market share.

    For the full financial year ended Dec 31, 2018 (FY18), the group carried a total of 44.4 million, an increase of 14% from 39.0 million passengers carried a year ago.

    Capacity grew 18% to 52.5 million from 44.4 million a year ago while load factor fell 3 percentage points to 85% from 88% a year ago. ASK for the period grew 14%.

    The consolidated AOCs refers to AOCs whose financial and operational results are consolidated for financial reporting purposes, namely the Malaysian, Indonesian and Philippines AOCs.

    In 4Q18, Malaysia AirAsia carried a total of 8.5 million passengers, reflecting a 9% increase from 7.7 million passengers carried a year ago. Load factor fell 5 percentage points to 84% from 89% a year ago.

    The Malaysian operations saw a 16% increase in capacity to 10.2 million from 8.8 million a year ago while ASK rose 9% year-on-year.

    For FY18, Malaysia AirAsia carried 32.3 million passengers, 11% higher than 29.1 million passengers carried a year ago while load factor fell 4 percentage points to 85% from 89% a year ago.

    Capacity grew 16% to 38.0 million from 32.8 million a year ago while ASK rose 12% year-on-year.

    Overall, the group carried a total of 74.8 million passengers in FY18, which is an increase of 14% year-on-year. This includes all operations in Malaysia, Indonesia, Philippines, Thailand, India and Japan.

    The group also expanded its capacity during the year, with ASK up by 15% and load factor of 85%. The group’s total fleet size closed at 224.

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  • WH Smith opens two further stores in Philippines airports

    WH Smith opens two further stores in Philippines airports

    International news and convenience retailer WHSmith has opened two new stores at Mactan-Cebu International Airport. The new branches under local franchise partner Regent Distributor Philippines join three existing stores at Mactan-Cebu and Manila Ninoy Aquino International Airports showcasing the retailer’s latest fascia, fixtures and fittings. The move is part of the brand’s overall strategy to bolster its presence in Asian markets.

    “We are very pleased to add an additional two stores to our growing portfolio in the Philippines”, said Phil McNally, MD international WHSmith. “With a fresh and modern look, we look forward to welcoming customers to the new stores to enjoy a full range of news, books, travel and convenience items.”

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  • Senai Airport Malaysia records 13% passenger growth in 2018

    Senai Airport Malaysia records 13% passenger growth in 2018

    Senai International Airport handled 3.52 million passengers last year, a 13% increase from the number of passengers recorded in 2017. Md Derick Basir, CEO of Senai Airport Terminal Services Sdn Bhd (SATSSB), the airport operator, said growth was mainly driven by domestic passengers with an increase of 234,650 passengers while international passenger traffic rose by 37% to 600,000 in 2018.

    “Growth was fuelled by the southern region’s rigorous economic activities, escalating demand for business and corporate travel, as well as the leisure sector,” he said in a statement.

    Commercial aircraft movement grew 8% with a total of 32,574 landings and takeoffs compared with 2017.

    “The rise in total passenger traffic in 2018 was mainly attributed by the introduction of new routes including Seoul by Jin Air, Sanya and Haikou by Malindo Air, as well as Alor Star and Ipoh by AirAsia.

    “In addition, the increase in flight frequencies to existing sectors such as Kuala Lumpur, Penang, Kota Kinabalu, Langkawi and Bangkok had also contributed to the growth,” he said.

    Md Derick added that SATSSB had also collaborated with industry players including tourism bodies and airlines to promote Johor as a destination, ultimately to encourage the demand for more air connectivity.

    “For 2019, Senai International Airport aims to handle 3.76 million passengers,” he added.

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  • Thai’s King Power Duty Free, World’s Leading Airport Duty Free Operator 2018

    Thai’s King Power Duty Free, World’s Leading Airport Duty Free Operator 2018

    Thailand’s King Power Duty Free has won the world’s ultimate accolade for travel, tourism and hospitality industry excellence, voted ‘World’s Leading Airport Duty Free Operator 2018 in the 25th World Travel Awards. King Power Duty Free triumphed ahead of than a hundred duty free operators worldwide including shortlisted finalists China Duty Free Group, Hong Kong’s DFS, Dubai Duty Free, Swiss-based Dufry, Duty Free Americas, Germany’s Heinemann Duty Free, France’s Lagardere Travel Retail, and South Korea’s Lotte Duty Free and The Shilla Duty Free.

    “The award strengthens Thailand’s tourism image as a world class destination while underlining the outstanding capability of a Thai company,” said King Power Group CEO, Mr Aiyawatt Srivaddhanaprabha. “King Power is proud to be Thai and committed to the national travel retail business, setting a new benchmark for world-class duty free shopping experience.”

    Operated by King Power International, King Power Duty Free was earlier voted Asia’s Leading Airport Duty Free Operator 2018 in the regional finals of the World Travel Awards.

    World Travel Award was established in 1993 to annually acknowledge, reward, and celebrate excellence across key sectors of the travel, tourism and hospitality industries. Today the brand is recognized globally as the ultimate hallmark of industry excellence, voted by travel, tourism and consumer trade executives.

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  • Hennessy celebrates Chinese New Year by opening pop up store at Changi

    Hennessy celebrates Chinese New Year by opening pop up store at Changi

    Moet Hennessy is partnering with DFS Group in Hennessy pop-up store a Changi Airport celebrate Chinese New Year. The store, a Travel Retail Concept Exclusive, features interactive consumer experiences and will remain open until February 19. Located at the Terminal 3 Departure Hall, the pop-up experience, the only one of its kind globally. It invites travellers to “engage in a joyous reunion through experiences such as interactive digital games, Hennessy’s bottle engraving service, limited edition offers, as well as exclusive gifts with purchase,” the companies said in a statement.

    Travellers are also welcomed to test the Firecracker, a unique Hennessy cocktail, which will be available exclusively at the pop up.

    Hennessy collaborated with contemporary artist Guang-Yu Zhang to create an art piece centrestage in the pop up. The design, A Joyous Reunion, celebrates the love for nature, mastery of savoir-faire and spirit of conquest.

    Gallery of the pop up stores (6 images) :

    “Hennessy shares the dream of Harmony, from vine to grape to distillation to glass, from nature to people, Hennessy takes the best of nature and offers it to the Chinese people to celebrate this special moment,” said Guang-Yu Zhang.

    The also features on the limited-edition packaging that has been created for Hennessy XO, Hennessy VSOP and James Hennessy products.

    After purchase, customers at Changi are invited to use Hennessy’s first-ever engraving station at the pop-up store to add a personalised messages to their bottles.

    “At Hennessy, we are honoured to have collaborated with a world-class artist to deliver these beautiful, one-of-a-kind Chinese New Year limited-editions for our travellers,” said Moet Hennessy MD travel retail Asia Pacific, Vanessa Widmann.

    A rising star in the international art world, Guang-Yu Zhang grew up in Shanghai and graduated from Central Saint Martins College in London in 2012. In 2014, he was selected for the International Emerging Artists Exhibition at the Saatchi Gallery in London; that year, he also exhibited his work at the Tate Britain Museum in London. He is known for his unique fusion of Eastern and Western cultures and traditional and contemporary techniques.

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  • Shiseido opens new office hub in Singapore

    Shiseido opens new office hub in Singapore

    Shiseido announced the opening of its new office in Singapore, located in the heart of Singapore’s Central Business District. The move is part of Shiseido’s VISION 2020 corporate transformation, as the company focuses on accelerating growth in the second phase of its medium-to-long term strategy. The new office hub will house the regional headquarters of Shiseido Asia Pacific, the global headquarters for Shiseido Travel Retail and the affiliate office of Shiseido Singapore.

    As centres of value creation, this structure facilitates flexible and agile decision making; enabling Shiseido to achieve significant growth through marketing activities attuned to the needs of regional consumers and global travellers.

    As we continue to build for the future, Shiseido is committed to an increased investment in our brands, talent development, beauty innovation and business activities that will positively and sustainably impact society.

    The new office will house three new dedicated facilities:

    • Asia Learning Centre, a first-of-its-kind dedicated training facility that will train approximately 2,000 Shiseido employees from Asia Pacific, Travel Retail, Japan & China each year. Its programmes aim to develop leadership, function-specific and innovation skills and behaviours that are critical in supporting growth and bringing out the best from employees for Shiseido’s continued success.

    • Asia Pacific Innovation Centre, which will enable open-source innovation, Asia Pacific consumer research, as well as create and localize a portfolio of highly specialised products for the Asian market and climate.

    • Life Quality Beauty Centre: As we strive for a society that promotes greater happiness and positivity for everyone, this is a unique facility that provides private, specialized make-up consultations to consumers with significant skin concerns such as port-wine stains, nevus, scars, vitiligo and changes in appearance due to the side effects of medical treatment. Shiseido has helped consumers with serious skin concerns since 1956, when many in Japan suffered from serious skin burns post-war, by developing a foundation called Shiseido Spots Cover.

    Shiseido Asia Pacific and the global headquarters of Travel Retail first established their presence in Singapore in 2016 & 2015 respectively; with the employee base almost doubling to over 250 employees, with nationalities spread across 17 countries.

    The strategic location of the Singapore office puts Shiseido closer to key markets in Asia, enabling the company to leverage the region’s robust potential with its rising middle-class population. Growth in the premium beauty segment in Asia Pacific is forecasted increase by USD$4.4 billion from 2016-2021, while the mass beauty segment is expected to achieve more than triple this amount[1].

    Asia Pacific also represents a key region and engine of growth for the global Travel Retail Channel. Current forecasts estimate that its beauty segment represents a potential market size of USD$26 billion by 2021[2]; the proximity of Shiseido Travel Retail aims to empower and guide the team alongside this growth.

    “Our new regional headquarters is testament to our solid growth in Asia Pacific over the past few years and my commitment to our consumers and employees in the years to come – I am looking forward to our expanded capabilities in leadership & talent development, innovation and harnessing deeper Asian consumer insights. These will play a critical role in accelerating our growth across the region,” said Jean-Philippe Charrier, President & CEO, Shiseido Asia Pacific.

    “As we continue our trajectory towards achieving our Vision 2020 goals, this new modern office for Shiseido Travel Retail aims to be a place of innovation, creativity and collaboration for our global & Asia teams. We hope that this office will be a place to inspire our team and partners in new ways of thinking, continuing our journey in finding new and fresh methods of engaging our hyper connected travelers and pioneering new forms of retail entertainment,” comments Philippe Lesné, President & CEO, Shiseido Travel Retail.

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  • Incheon Airport breaks record with 2018 sales

    Incheon Airport breaks record with 2018 sales

    Incheon International Airport announced record annual sales of US$2.4 billion for 2018, beating the previous record set in 2017. The performance ranks Incheon as the world’s number one airport for duty free sales in 2018, ahead of Dubai International. The latter’s anchor retailer, Dubai Duty Free, posted 2018 sales of US$2.015 billion. Sales rose 14.8% year-on-year, driven by the successful opening of Terminal 2 in 2018 and increased passenger traffic from the 2018 PyeongChang Winter Olympics. Departing passenger traffic rose 9.9% in the year, Incheon International Airport Corporation told The Moodie Davitt Report. A total of 67.7 million passengers used the airport in 2018, including 33.9 million arriving and 33.8 million departing.

    Cosmetics & perfumes continued as the leading product category with a 40% share of the mix and US$953 million in sales. Liquor and tobacco combined took second place with US$540 million (23%).

    Incheon International Airport Corporation (IIAC) said that the 2019 introduction of arrivals duty free shopping will boost the shopping offer.

    “With the introduction of the first arrival duty free in Korea, Incheon Airport will strengthen its competitiveness as the leading airport of the industry, satisfying customers through an advanced shopping environment,” IAAC commented.

    IIAC noted the retail performance of T2, which opened in January 2018. The terminal boasts outstanding beauty, liquor and tobacco flagship stores that feature exceptional design and digital and experiential components, the corporation said. Luxury boutiques such as Chanel and Valentino also played a role in the record-breaking performance.

    T1 performance was boosted by the addition of new retailers, Shinsegae Duty Free and Grand Duty Free. Both had minimised store closure periods during their respective handovers, IIAC said.

    Despite the collapse in Chinese tourism to South Korea from March 2017 driven by the THAAD row with China, duty free sales have maintained their upward curve throughout the ensuing period. Even in 2017, the nadir of the crisis, Incheon posted a 4.1% rise in duty free sales (admittedly well behind a 7.6% passenger increase).

    While Chinese tourism numbers are still well short of 2016 levels (-41.6% for the first 11 months of 2018), spending by daigou traders spurred the Korean duty free market to new heights last year. Incheon, while having a more balanced passenger spending profile than the overwhelmingly Chinese-dominated downtown stores, still benefited from that trend.

    What happens in 2019 following China’s introduction this month of a new e-commerce designed to crack down on daigou imports? That’s the question on everyone’s lips in Korean (and Asian) travel retail. Incheon International Airport Corporation will hope that a combination of a steady recovery in traditional Chinese tourism, daigou ingenuity in getting around the rules, and strong Japanese and Korean business will maintain the upward trajectory. The imminent introduction of the country’s first arrivals shops will help too.

    Higher sales in 2018 did not, of course, equate to higher profitability for the country’s duty free retailers, hurt by the high costs of attracting daigou shoppers. For Incheon International Airport, however, safely wrapped up in the safe haven of steep minimum annual guarantees, 2018 will go down as a stellar year.

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