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Even before last month?s tragedy in the US, Japanese carrier All Nippon Airways was grappling with a troubled travel market. The future now looks bleak for all airlines, but ANA is hoping there is light at the end of the tunnel. John Rimmer asks the questions.
Given the past few weeks, the future for fashion looks uncertain. But as this special report shows, there is plenty of activity in the market, and room for long-term optimism.
If the World Health Organization (WHO) succeeds in its bid to ban duty-free tobacco sales, few countries will suffer as much as Japan. For operators whose health concerns are restricted to their bottom lines, the loss of tobacco would be catastrophic.
An off-the-wall window display in an Italian store was how Alviero Martini set the wheels in motion for his successful luggage collection, which travel-retailers know as Prima Classe.
Japan?s stop-start economic recovery is just one of the threats to the country?s duty-free industry. Government policy on import regulations has prompted deep unease among operators, while the clock is still ticking on duty-free tobacco sales. DFNI analyses the issues that will shape Japanese duty-free over the coming year.
2001 will be viewed in time to come as a landmark year for King Power Group. Its joint venture with China Duty Free might have made the biggest headlines, but its deal with Kansai operator Taihoh Global?exclusively revealed in DFNI?will help it build a significant presence in the insular Japanese duty-free industry.
A store on Madison Avenue brings Alviero Martini?s business in the US full circle. Just over 10 years ago the Italian company launched there to wide acclaim and now its ambitions are more far-reaching. Kevin Rozario speaks to general manager Piero Domenico Rivera about the follow-on prospects in travel-retail.
The company's domestic and duty-free own-label boutiques worldwide.
New to travel-retail fashion? So are many other businesses. But what separates the successes from the failures? Kevin Rozario takes a look at the strategies of three fashion and accessories companies that have kept their businesses alive and kicking.
DFNI profiles the strategies of three recent entrants to the travel-retail fashion sector.
Is fashion ready to go it alone in specialist stores? World Duty Free thinks so, but not everyone agrees. Kevin Rozario reports on a category that still can?t make up its mind.
Alan Flaneur, an independent travel-retail analyst specialising in the North American market, says that financial considerations are at the heart of World Duty Free?s (WDF) decision to pull out of fashion.
While specialist stores offer the potential to increase profits by presenting fashion in much more appealing way, the problem is often how to get more passengers to pass through their doors compared to general merchandise stores.
A view of several retailers and airports and their attitudes to single-brand stores.
A surge in popularity with Japanese teenagers is easing LeSportsac?s switch from function to fashion. President and chief executive Tim Schifter tells Kevin Rozario how new styles are elevating the brand...at just the right time.
LeSportsac has 17 freestanding stores worldwide in prestigious shopping areas and four new openings planned this year.
When DFNI visited Japan last August, analysts were cautiously optimistic about the market for outbound travel. But September?s terrorist attack on the US?and its inevitable consequences?have cast a dark shadow over the business. John Rimmer reports.
Predicting the behaviour of the Japanese traveller, ever a precarious exercise, just became that much harder. The events of September 11 that shook the world, are going to shake Japanese travel patterns for months, possibly years to come. In this section, DFNI assesses the market to date. But the future may look very different.
China is expected to be the world?s leading tourist destination by 2002 according to the World Tourism Organisation, and there will be opportunities for the entrepreneurial Chinese to take advantage. For travel and potentially for duty-free, this could signal another power shift in the region.
The Belgian travel-retail industry is a close-knit group, as was evident to anyone attending the Belgian Tax-Free Barbecue in September.
Swedish liquor supplier Vin & Sprit has created a dedicated travel-retail division, to be headed by the company?s senior vice-president Erik Juul-Mortensen. V&S Global Duty Free & Travel Retail will handle all customer relations in the duty-free and travel-retail markets worldwide.
Like the rest of the industry, Tax Free World Association is watching and waiting to see if the crisis sparked by the US terrorist attacks escalates. Association president Erik Juul-Mortensen and ceo Andrew Ford tell DFNI the situation is still very fluid. But the show will go on, with some modifications, they insist.
How do we make sense of the real Japan? There are plenty of economic indicators that tell us it?s the recession-ridden ?sick man of Asia?. New prime minister Junichiro Koizumi has warned things will get worse before they get better. But is this gloomy picture mirrored in duty-free? When DFNI?s John Rimmer travelled to Japan last month (just before the tragedy in the US), he found a market beset by contradictions.
The decline of the duty-free market in Japan has several causes, but all operators agree that the rise in the number of High Street discount stores has dealt travel-retail a severe blow. How can duty-free fight back? John Rimmer reports.
Will fashion and accessories be the staple category in Japanese duty-free by 2005? As investment in the sector grows and new boutiques are built, operators? reliance on fashion brands is greater than ever. DFNI reports on the latest developments.
First, the Japanese economic recovery was slow. Then, it stalled. Now it looks like it?s back in the pit lane as prime minister Koizumi warns the worst is yet to come. What effect is this having on the Japanese duty-free consumer? John Rimmer went to Japan to find out.
This year?s Cannes symposium, TFWA World Exhibition, will host five different sports events on Sunday, October 21.
In this special report, DFNI assesses reaction from the key global regions, from the US to the Middle East, and gauges the scale of the crisis for the industry.
DFNI assesses the damage the Gulf War inflicted on the duty-free trade?and finds there is room for optimism in the way it bounced back in late 1991 and 1992.
DFNI draws insights from the tourism effects of the Gulf War in 1991, including the aftermath of the conflict.
DFNI surveys a cross-section of buyers who are attending this year?sCannes exhibition. At the time of writing, most retailers still intended travelling to the show, despite some fears over air travel after the tragedy in the US.
If airlines believed the market was tough before September 11, their whole world now looks radically different, and will never be the same again. The industry has already posted job losses of over 60,000 worldwide, with many more expected as people make flying the last resort when travelling.
Retail News Analysis
This Japanese Special Issue of DFNI focuses on a market that might be described as punch-drunk. The predicted world travel crisis could not have come at a worse time for operators dependent on Japanese traveller spend, as the country?s economy continues to falter.
AUSTRALIA. The Australian government has deferred the sale of Sydney Kingsford Smith airport until early 2002 because of the turmoil in financial markets and the aviation business.
HONG KONG. Cathay Pacific has issued a Request for Information document to selected third-party supply companies.
INTERNATIONAL. A working party has been set up to examine the creation of an Inflight Retail Association. The initiative was sparked at the recent airline conference in Geneva, organised by Lemantrade and The Duty Free Business.
FRANCE/INTERNATIONAL. Tax Free World Association has confirmed that this year?s Cannes show will proceed as planned. The news follows a meeting of the board last week.
INDIA. India Tourism Development Corp (ITDC) is seeking a partner for marketing and logistics support. The company is looking for interest from international duty-free operators.
INTERNATIONAL. The duty-free industry is already feeling the drastic effects of the September 11 terrorist atrocities in the US?but there are some encouraging bright spots. Retailers around the world are forecasting dramatic declines in sales, and many fear the situation could be as bad as during the Gulf War 10 years ago.
GREECE. Sweeping management changes have been made at Hellenic Duty Free Shops following protracted problems between shareholders, board members and the joint venture management company, GTM.
SINGAPORE. The Civil Aviation Authority of Singapore (CAAS) has postponed the issue of tender documents for the next crucial tender at Changi airport because of the uncertainty in the market.
INTERNATIONAL. LVMH has appointed Antonio Belloni as its new group managing director. He replaces Myron Ullman III, who becomes ceo of LVMH Inc, the company?s US division. Belloni joined the group in June 2001 from Procter & Gamble.
INTERNATIONAL. Inflight retail concessionaire Inflight Sales Group (ISG) has announced that its contract with Air Macau will end on November 26. The contract will be terminated, it is claimed, because of extensive credit card fraud affecting duty-free sales. King Power will take over the contract from ISG.
Liquor & Wines
Over two years after abolishing duty-free within its borders, the European Union is finally to push for the harmonisation of liquor duties across member states.
Osaka Kansai operator Airport Senmon Daiten told DFNI its liquor sales have been affected by changing customer behaviour since the renovation of its stores at the end of last year.
Tobacco Products
Swiss cigar maker Villiger is targeting younger adult smokers and women with its new Premium Vanilla cigarillo, to be launched this month at the TFWA World Exhibition.
Fragrances
Christian Dior has opened its first airport shop featuring a new Studio Voyage concept at Madrid Barajas. The retail concept develops the company?s Dior Voyage range, and is aimed at obtaining additional exposure in airports while stimulating consumer interest, said the company.
Cosmetics
US cosmetics brand Benefit is increasing its presence in travel-retail with the opening of a shop-in-shop at London Heathrow terminal four. The development is the next step in the brand?s recent growth from cult product to international name.