Given the proliferation of explosive news items detailing the crisis in Latin America, with dramatic and often exaggerated reports of bank closures and riots in the streets, you would expect the businesspeople of the region to be in the grip of panic, fearing for their futures or even their lives. But if you travel to Argentina, Uruguay or Brazil, you will emerge with a very different picture.

Biotherm has enjoyed phenomenal growth in the past few years. It has a cult following in Scandinavian markets and recently opened a new stand-alone store at Hong Kong International airport. And in July the brand took the biggest step of all with the addition of a cosmetics range. Jane Labous finds out the details in this DFNI exclusive.

Tony & Tina?s first products were so arty few people bought them. But despite its psychedelic leanings, its business acumen is firmly rooted in reality, as illustrated by its recent acquisition by Cosmopolitan Cosmetics. Jane Labous discovers that the Tony & Tina brand is going mainstream.

Self-proclaimed ?airport evangelist? Charles Denton, joint managing director of UK cosmetics company Molton Brown, believes airports should be as exciting as theme parks. World Duty Free Europe director of buying Alyson Reilly prefers to call it the ?theatre factor?. Both have a vision to take airport retailing to a new level. Jane Labous reports.

Aeropuertos Argentina 2000 commercial director Marcelo Orfila talks to DFNI about the tough times the country faces, and why diversifying the business is the way forward.

While some international retailers fear to enter the challenging Latin American market, Spain?s Aldeasa is nearing a decade of successful trading in the region. John Gallagher retraces the operator?s footsteps since it first entered Peru in 1994, and assesses prospects for expansion, despite the worsening economic climate.

ASUTIL 2002, which takes place in Montevideo, Uruguay from September 4-6, has been described as a ?critical event? for South American duty-free. DFNI speaks to ASUTIL secretary-general José Luis Donagaray on the eve of the event, and asks how this year?s conference can tackle the enormous problems that have beset the region?s economies and the travel-retail market.

To wander around Buenos Aires at night, at first glance it?s difficult to spot a country gripped by recession, where unemployment is rising faster than the peso is falling.

Despite the crisis in the region, Brazilian duty-free operator Brasif is intent on investing at home and overseas. And its duty-paid business is reaping the rewards.

London Supply?s new duty-free complex at Puerto Iguazu is one of the most modern and sophisticated in South America. But as recession kicks in and overseas visitors drop away, how is the group reacting?

The creation of Paraguay?s first duty-free shops in Asunción airport was soured by legal action and vocal opposition from domestic retailers. Operator Bright Star refused to give up, and is determined to make a success of the operation. John Gallagher reports.

Once dubbed the ?Switzerland of South America? for its political and economic stability, Uruguay?s economy has taken a turn for the worse. Duty-free is among the hardest hit industries, as it struggles to counter pricing pressures from the local market.

PARAGUAY. Paraguayan duty-free operator Bright Star has signed a two-year deal with Asunción-based airline TAM Mercosur to supply and manage its duty-free assortment. TAM Mercosur, a sister airline to São Paulo-based TAM, is the biggest airline operating out of Asunción, and carried over 300,000 passengers last year.

BRAZIL/US. Brazilian travel retailer Brasif has gained two key specialist shop concessions at Miami International airport, with contracts set to begin in January. The group will operate one leathergoods store and one outlet offering soaps and scents, both duty-paid. Brasif has also bid for several other contracts on which Miami airport is expected to decide shortly.

EU EUROPE. Tax Free World Association (TFWA) and the International Travel Retail Confederation (ITRC) have announced a new collaboration with the aim of developing more effective lobbying for the industry at European level. TFWA will provide administration for ITRC, including many back office functions.

CANADA. As DFNI went to press, Peace Arch Duty Free was preparing to sue landowner the Semiahmoo First Nation band for alleged breach of agreement over its 20-year lease at the Douglas, British Columbia border crossing with the US. Peace Arch president Peter Raju has threatened a lawsuit unless a new contract is signed by the end of August.

HONG KONG. King Power Group has appointed two of the duty-free industry?s most experienced retailers as business consultants to help with the company?s expansion. Nick Hillyard and Sunil Tuli joined the Hong Kong-based company on August 11. Both became directors of King Power and will assist with supplier relations and new projects.

JAPAN. Women in their 30s and 50s will drive travel-retail sales among Japanese travellers into the next decade, according to a study conducted jointly by the Japan Tourism Marketing Co (JTM) and Tax Free World Association (TFWA), and released last month. The 2002 Japanese Traveller Study found that women in these age groups spend considerably more on shopping when travelling than other groups.

SOUTH AMERICA. Duty-free retailers in Argentina and Uruguay are resisting strong pressure to reduce prices at leading airports and border stores as domestic market prices fluctuate wildly amid currency devaluations. Although the value of the Argentinian peso has been reduced nearly fourfold in recent months, domestic market prices of imported goods such as fragrances and liquor have not risen to reflect the changes. This means some local prices are lower than in duty-free, eroding duty-free price savings.

US. The US is to double the duty-free allowance for returning US residents under new legislation signed into law on August 6. The Trade Act of 2002 becomes effective on November 4. The move comes after a long period of lobbying by the International Association of Airport Duty-Free Stores (IAADFS).

Estée Lauder?s latest launch, Intuition for Men, marks a new classification of male fragrances for the company?Solar Oriental.

Coty has joined forces with Celine Dion to develop and market a fragrance line, signing an exclusive global licensing agreement with the Canadian singer who sang the signature tune from the blockbuster film Titanic.

Nestlé International Travel Retail (NITR) is targeting its 400g bar range for a big sales push, based on a new merchandising concept which resolves the traditional problems of displaying flat packs.

Fair price points, convenience and the comparative simplicity and longevity of Braun?s core products are the key purchase criteria for travelling consumers, according to Braun duty-free sales agent Klaus Mellin.

Taramax, the worldwide manufacturer and distributor of Fendi timepieces, is optimistic that sales will reach the levels of last year this autumn despite the 30% fall in travel-retail sales since the events of September 11.

Research undertaken by Duty Free Americas (DFA) has identified at least 12 brands across the luxury sector, which the company intends to pursue as part of its attempts to upgrade its stores.

German leathergoods house Etienne Aigner is preparing its third duty-free store in China, a downtown shop-in-shop in Dalian run by China Power.