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India Tourism Development Corporation Ltd seeks logistic and retail support for its Duty Free Shops in India.
The Argentinian state of Misiones is embarking on a drive to attract tourists that could benefit duty-free across the southern part of the continent.
A panel discussion on ASUTIL?s first day brought together Doug Nelson, vice-president of Philip Morris Duty Free; Arnaud Naintre, division manager Lancôme at Parbel; and David Spillane, director of gift and confectionery distributor Genesis.
The inflight retail community?s perspective was given by LanChile inflight sales and purchasing director Claudio Guiñerman and Varig inflight sales manager Roberto Teixeira.
After just 18 months in the business, Italian distributor Beauty Gallery is still testing the beauty market. Nevertheless, with doubled figures forecast anda widening international business, the company is doing all the right things. So is duty-free on the cards? Jane Labous finds out.
Hoverspeed has suffered an image problem for years. In the minds of many travellers and industry suppliers, this was the cross-Channel operator which appealed most to the bulk-buying ?runners? who bought while travelling from France or Belgium and sold at discount into the UK. But a new management team is trying to sweep away old attitudes. And the company?s shore-based shops are driving growth.
For Yue-Sai Kan, make-up is much more than just cosmetic. The Chinese entrepreneur says she used the humble lipstick to help Chinese women to liberate themselves from the conservatism of the early 1980s. Jane Labous talks to the woman who has helped open up the Chinese cosmetic market.
Colour is crucial to children?s brand Oilily, especially now its fragrances and cosmetics have their own licensing company. Formed just last month, Colourful Trading is dedicating itself to growing the Oilily brand and nurturing the intricate patterns and rainbow colours that Oilily is famous for. Commercial director Cees Homburg paints the picture for Jane Labous.
Operating two of Europe?s biggest travel retailers and backed by parent Hachette Distribution Services, the Aelia group looks set to become one of duty-free?s most influential companies. John Rimmer talks to managing director Michel Perol about ambition, innovation and expansion.
Arthur Burnham claims his nose is no different to the average person?s. But, whether it?s a genetic gift or the result of dedicated training, Burnham?s sense of smell has brought him a long way. Jane Labous meets the outspoken perfumer behind, among others, Paul Smith?s signature fragrance.
The abolition of intra-EU duty-free was supposed to be the first step towards harmonising excise duties across the EU. Now the European Commission is finally discussing the issue. The scheme may be a little optimistic, so travel retailers will need to monitor developments closely. John Rimmer looks at the implications for the EU liquor market.
On January 1 2002, euro banknotes and coins will enter circulation and the currencies of the 12 EU states in the euro zone will be gradually phased out. As businesses face the challenge of integrating a new currency, and consumers struggle to familiarise themselves with the euro, Gavin Lipsith examines how the industry is preparing for what is being called E-day.
From January 1 1999 when the euro was formed, to February 28 2002, there are numerous stages leading up to the end of the dual currency period.
By the end of 2001, 14.5bn euro banknotes and 49.8bn coins will be in circulation.
Oslo Lufthavn (OSL) wants its new terminal extension to look like a ?cross between a cathedral and a stock exchange?. Dermot Davitt travelled to Oslo to assess its ambitions with OSL manager commercial development Roar Ødegaard.
Tender awards for Gardermoen?s expanded retail areas.
This is a crucial time for Luftfartsverket, the Swedish Civil Aviation Administration. Not only does it have to decide who will operate the duty-free stores at 15 of its airports, but it has also embarked on a plan to add over 10,000sq m (107,640sq ft) of retail space at its three biggest locations. Dermot Davitt went there to find out more.
Duty-free may be dominated by the big players. But as the emphasis on local and destination merchandise grows around the world, smaller companies are bringing an array of quirky new items to duty-free shelves. Martin Moodie attended a board meeting with a difference at one of the quirkiest of them all, Swedish company plus4 Design.
Rakhita Jayawardena is seldom out of the limelight for long. One of the inflight world?s most ebullient characters, the Sri Lankan has moved on from his traditional inflight retailer domain to that of supplying the very same trade. DFNI reports on his new company, Centaur Travel Retail.
On October 5, one of his last days as the senior manager of BA?s inflight business, Chris Norris told an audience of over 150 suppliers about the carrier?s plans to counteract the impact of the terrorist attacks on the US.
This year?s annual Cannes exhibition takes place amid a period of great tension and uncertainty in the global industry.
The press is inundated with news of the world?s airlines suffering as a result of the attacks on the US. Few are more affected than the Australian carrier Ansett. Isabelle Caprano reports on the events that led to its downfall and how its closure affects regional travel.
?Getting inside the consumer mind? is a familiar catchphrase for DFNI?s sister title Travel Retailer International. But there has never been a more critical time for travel retailers to get closer to their consumers. Adele Wolstenhulme talks to the man behind the science?new joint venture partner with Raven Fox and Horizon Research Corp president Dr Ian Cesa.
So the finance director has cut the marketing budget in response to the downturn in travel-retail. How are you going to convince him to invest $1m in a customer relationship marketing programme? It?s easier if you can show a serious return on investment and demonstrate that it will enhance existing bricks and mortar investments. Mark McKenzie, managing director of consultancy ER Partners explains.
Inflight retailing has had its ailments over the years but, following the attacks on September 11, the industry is now firmly on the critical list. Isabelle Caprano assesses the damage, and asks airlines how they are facing up to their biggest-ever challenge.
Cuba is not only famous as the home of the cigar, its homegrown rum Havana Club plays a powerful role in national life too. The brand is distributed overseas by World Brands Duty Free, and Dermot Davitt joined an expedition with the drinks company to find out for himself what Havana Club means to Cuba.
Abu Dhabi Duty Free, one of the most ambitious and innovative travel-retailers, was all set for an exciting expansion into Egypt earlier this month. But, after September 11, the company was forced to put its investment on hold. Martin Moodie spoke to a reflective Mohamed Mounib, managing director of Abu Dhabi Airport Catering and Duty Free.
Stepping into Harry Diehl?s shoes as president of the Travel Value Association was never going to be easy, but Aldeasa?s Marcelino Oreja has much of his predecessor?s appetite for the job. He tells John Rimmer why he feels the Travel Value concept is as relevant as ever?not just in Europe, but wherever there are travelling consumers.
Delegates at ASUTIL were privileged to hear an address from Dr Rosendo Fraga, a noted Argentinian political and economic analyst.
Delegates were given the opportunity to question the region?s key players when members of the ASUTIL board took the stage to air their views on the state of Latin American duty-free.
The second day of ASUTIL was opened by association president Francisco Heredia, who spoke of the economic uncertainty permeating the region but pointed to Brazil, as an example of what can be done.
As the conference drew to a close, it was the turn of duty-free?s biggest trade bodies, IAADFS, TFWA and ASUTIL itself to present their view of the future.
Experienced lobbyist and IAADFS representative Jon Kent made a plea for action over the World Health Organization?s (WHO) proposed ban on duty-free tobacco.
President of consulting firm Horizon Research Ian Cesa arrived from Australia to present an extensive study of today?s travelling consumer.
Following his participation in the ASUTIL panel discussion as head of Aldeasa?s international operations, Marcelino Oreja returned to the stage in his role as president of the Travel Value Association.
If the global duty-free business has reached maturity, the market within Latin America is a mere infant by comparison. That was the message from Generation Group director consulting division Jan Nygren.
As the events on September 11 in the US have shown, forecasting the future is a precarious business. Not for the first time, perceived market trends have to be re-evaluated, and a new set of conditions adapted to.
Revlon may be considered mass-market in much of the world, but in the Middle East the US brand can be found next to the very best of the prestige counters. Jane Labous talks to brand manager for Saudi Arabia, the Gulf region and Lebanon Thafer Mubasset.
Revlon is introducing an ethnic range of products to the UK market. It is designed to cater for women with darker skin tones and targeted at consumers of Asian, Black, Arab or mixed race backgrounds.
Revlon?s Middle East business seems relatively untouched by recent events, but its Asian division has been harder hit, says travel-retail director Asia Pacific Art Miller.
At a time when UK supermarkets are questioning the future of category management in the domestic market, the discipline has scarcely established a presence in the duty-free sector. So will it all end in tears before it gets started?
Nordic powerhouse A&E Petersen is diversifying from its core confectionery business with the creation of a new division dedicated to children?s entertainment brands. Rebecca Mann reports.
Number one for skincare in Europe, and with a fragrance that has knocked Chanel No5 off its longstanding perch as the favourite of the French, Clarins is a quiet giant within the European beauty industry. Jane Labous talks to vice-president international division Isabelle Herbreteau about the company?s global prospects and this Autumn?s big push on make-up.
Clarins? distribution activities made a strong contribution to its burgeoning sales and profits last year.
Although Clarins is not as strong in Asian markets as it would like to be, its whitening range has proved a resounding success in the region.
The new Thierry Mugler fragrance for men is a major launch for the group, and is available from the end of this month in domestic markets and in duty-free from next Spring.
Clarins has built its relationship with consumers through careful consultation and an emphasis on quality and advice.
By 2003, the fate of duty-free tobacco could be sealed. If the World Health Organization (WHO) has its way, 20% of global duty-free sales will be wiped out with the stroke of a pen, under proposals from the Framework Convention on Tobacco Control (FCTC). On the eve of the next round of WHO negotiations, DFNI assesses the story so far, and asks where do we go from here? By Gavin Lipsith
BAA group retail director Brian Collie spoke exclusively to DFNI editor-in-chief Dermot Davitt the day after the announcement, and explained the timing of, and the thinking behind, the sale.
BAA's Mike Hodgkinson, Brian Collie and Duty Free Acquisition Corp chairman Simon Falic on the record.
Having competed for years with WDFA, operators on the Canadian border have reacted with surprise at the timing of the sale announcement, but privately many will be pleased to see the BAA subsidiary disappear from the business.
?Our new identity represents integration, synergies, service, creativity and professionalism,? said ASUTIL secretary general José Luis Donagaray.
It might seem that all the United Arab Emirates has in common with Rio is sand, but that did not stop Dubai Duty Free (DDF) managing director Colm McLoughlin from delivering one of ASUTIL?s best-received addresses.
This year?s ASUTIL conference in Rio de Janeiro upheld the South American reputation for hospitality, colour and energy, all enjoyed in spectacular surroundings. But the attacks on the US?which unfolded on ASUTIL?s second day?cast a cloud over proceedings. DFNI looks back on the event that may prove a watershed for the South American industry.
?We?ve just got married and are now on our honeymoon.? That was how InterBaires marketing manager Alejandra Basile described the Argentinian operator?s relationship with airport authority Aeropuertos Argentina 2000.
In this exclusive DFNI interview, L?Oréal?Luxury Products Division?s man at the top provides an insight into the workings of a powerful brand portfolio that touches all corners of the globe. Executive vice-president Gilles Weil talks to Neena Dhillon about his position at the helm of the selective beauty industry?s United Nations.
For L'Oréal, Japanese consumers are key to sales whether they?re spending at home or on the move. L'Oréal-Luxury Products Division executive vice-president Gilles Weil says the company?s strength in the Japanese market means it is still harnessing this consumer, while others are suffering.
While L'Oréal -Luxury Products Division remains faithful to traditional channels of distribution, in particular the department store, there is room for an alternative.
There are no half measures at L'Oréal -Luxury Products Division when it comes to brand protection. Cultivating the image of brands such as Giorgio Armani, Ralph Lauren or Helena Rubinstein takes an immense amount of resources and time.
Polish Airports State Enterprise (PPL) is presiding over a period of change at Warsaw Okecie airport. Justyna Jasiewicz travelled to Warsaw and met PPL deputy director general, marketing and strategic planning Dr Ewa Czesnik and press officer and marketing manager Ryszard Cebula.
Spanish operator Provimar has been operating in Cuba for six years. General manager Juan Sunet tells DFNI about the next phase of its expansion in one of the Caribbean's fastest-growing tourist destinations.
As the trade gathers for what promises to be a very different Cannes show, the outlook for the global business is uncertain. Our feedback to date suggests losses in the trade of 10-20% worldwide, with a bleaker picture emerging wherever the Japanese traditionally travel. Notes one tobacco executive: "If you're living off DFS, you're in trouble."
The view from the US, Caribbean and Latin America.
Retail News Analysis
PARAGUAY/BRAZIL. Calm has been restored in the Paraguayan town of Ciudad del Este after rioting forced the closure of the city?s border crossing with Brazil. Duty-free stores on the border were closed for two weeks during the disturbances late last month as operators could not guarantee staff safety.
A Miami-based Falic Group subsidiary, Duty Free Acquisition Corp, stunned the industry by acquiring WDFA (formerly Duty Free International) for $121m (£84m) in a deal announced exclusively by DFNI on October 11.
CUBA. Spanish company Provimar, which has a supply and management contract for shops at Cuba?s international airports, has opened five new stores at Varadero airport. Its expansion project with Cuban firm Cimex began two years ago when new stores at La Habana airport opened.
The duty-free industry was stunned by the October 11 sale of World Duty Free Americas to a seemingly unknown Miami-based company, Duty Free Acquisition Corp. But anyone familiar with the US beauty business will know the family behind the deal?brothers Simon, Jerome and Leon Falic. And in the company?s first interview since landing the $121m takeover, president Leon Falic and chairman Simon Falic attempt to allay supplier concerns about the direction the business may take.
INTERNATIONAL. The duty-free industry is facing the greatest threat ever to its survival and prosperity as the crisis following the September 11 attacks on the US deepens. Observers believe the effects could last longer and hit the industry harder than the Gulf War in 1991 or intra-EU abolition two years ago.
NETHERLANDS. Kappé International has unveiled a radical new formula for concession contracts, which it believes can do away with the adversarial relationship between landlord and airport retailer. The formula, called Competence Partnership, is based on a joint venture between landlord and tenant.
EUROPE. At press-time ACI Europe was warning that European airports could be just days from a total shutdown because of reduced insurance cover. Leading airports, previously covered for up to $1bn, are now being offered cover of between $5m and $50m per incident.
INDIA. The India Tourist Development Corp (ITDC) is pressing ahead with plans to expand its newer duty-free shops and refurbish many others.
FRANCE. French press distribution company Hachette Distribution Services has finalised the creation of the Aelia group, bringing together the company?s travel-retail subsidiaries Aeroboutique and DFA.
ARGENTINA. In partnership with InterBaires parent The Exxel Group, Argentinian airport authority AA2000 is developing a $1.2m landside retail concept for the country?s airports.
UK. BAA Heathrow retail director Mark Riches has been appointed managing director of World Duty Free Europe. He replaces Steve Knott who left last month.
US. Many US airports, uncertain about how quickly passenger traffic will recover after the September 11 attacks, are beginning to rethink their expansion plans. ACI (Airports Council International) North America said the total cost to US airports could reach $3bn by next year.
INTERNATIONAL. The International Travel Retail Confederation (ITRC) and the Travel Value Association (TVA) are to sign a memorandum of understanding at this year?s TFWA World Exhibition.
US. Despite making drastic cuts elsewhere in its capital spending budget, American Airlines has announced it will continue, and even speed up, the $1.3bn construction of its new terminal at New York JFK International airport.
HONG KONG. Nuance-Watson (HK) has completed an ambitious renovation programme at Hong Kong International airport.
SWITZERLAND. The Nuance Group, the travel-retail division of the besieged Swissair Group, says it is generating sufficient cash flow to meet all its obligations and commitments. The crisis-hit parent company has applied for a moratorium of debt enforcement against itself, SAirLines and Flightlease companies.
FINLAND. National carrier Finnair has announced that it is to withdraw all onboard retail on its intra-EU scheduled and domestic flights, effective October 28.
Liquor & Wines
Stockholm-based Vin & Sprit (V&S) believes the creation of the supplier?s new duty-free division V&S Global Duty Free & Travel Retail will offer growth opportunities for the regional brands in its portfolio.
French operator Aelia is extending its range of own-brand liquor items with the creation of five flavoured vodkas and three premium Cognacs.
The Nuance Group opened its Australian Wine Growers store at the National Wine Centre of Australia on October 6.
Heineken is launching a range of items exclusive to duty-free at TFWA World Exhibition this month.
Tobacco Products
A leaked health ministry document could spell trouble for the Australian travel-retail industry.
Tobacco manufacturer JTI is going to court to fight regulations threatening its Mild Seven brand name.
Malaysia Airports retail subsidiary Eraman has opened its Duty Free Emporium at the newly renovated Penang International airport in Malaysia.
Sweden has asked the EU that it be temporarily excluded from imposing minimum excise duties on cigarettes of 57%. The problem lies in Sweden?s high level of VAT.
Fragrances
Cult brand Hard Candy is to add a fragrance to its range of colour cosmetics and nail polish next Spring.
New from Estée Lauder under the Tommy Hilfiger umbrella is tommy T, a fragrance aimed at men aged from 15 up.
The new Ralph Lauren fragrance will be launched in European domestic and duty-free markets this month.
Marilyn Miglin said it has created a new concept in fragrance, something between a moisturiser and a perfume.
Cosmopolitan Cosmetics international coordinator Xavier Dujoncquoy told DFNI that the group had repositioned and rejuvenated Dunhill?s image to create a ?leader within the prestige arena?.
Cosmetics
Confectionery & Fine Foods
The Nuance Group has achieved double-digit growth from a Cailler of Switzerland promotion, which was organised in partnership with Nestlé International Travel Retail (NITR) at Geneva and Zürich airports during the Summer.
A new range of biscuits in colourful metal boxes spearhead the Cannes line-up of French gourmet food specialist Fauchon.
The highly-competitive twist-wrap category?until now dominated by Celebrations (Mars), Roses (Cadbury) and Quality Street (Nestlé)?is about to be be entered by Kraft Foods, which is preparing to roll out Twist.
Gifts & Electronics
Confectionery powerhouse A&E Petersen has created a separate business division to establish itself in the children?s entertainment market.
Jewellery & Watches
Colibri has extended its range of lighters with the Horizon and the Talon, to be showcased in Cannes.
Alpha Retail is planning to install display pods to showcase jewellery and watch brands at its new Manchester airport concessions in terminals two and three.
The Swatch Group will be launching its Bijoux collection at the TFWE show in Cannes, having begun a limited domestic distribution at the end of 2000.
Danish jewellery and gifts manufacturer Royal Scandinavia will launch two new gold jewellery collections in Cannes this month in its first attempt to expand beyond its sterling silver designs.
Fashion & Leathergoods
French fashion label Zilli is to focus on the eastern hemisphere in its attempts to drive the brand in travel-retail.
Two travel retail consultancy companies have called for more dedicated environments for the fashion sector in duty-free?with one claiming that third-party retailers can handle luxury brands just as well as the brands themselves or specialist operators.
BAA has brought an independent multi-branded fashion store to its airports, heralding a new direction in its fashion retailing strategy.