ANA Trading Duty Free Co, the airport retail subsidiary of All Nippon Airways, is better placed than most to comment on the changing face of the Japanese traveller. With 60 years of experience in the trade between them, senior executives Takashi Kudo and Kenzo Murase talk to DFNI about the economy, September 11 and targeting the ?parasite generation?.

All Nippon Airways? inflight retail division All Nippon Airways Trading Co might have hoped for a less turbulent year to commemorate the carrier?s 50th anniversary, but it is doing its best to ensure there is something to celebrate.

Whenever the Japanese outbound travel market looks set for uninterrupted growth, a fresh setback dampens the optimism. After a record year in 2000, the events of September 11 put the market back to square one. DFNI charts the slow return of the Japanese traveller.

The future of one of Japan?s most respected airport retailers hangs in the balance as Nagoya Airport Terminal Building Co waits to learn the fate of Nagoya Komaki International airport.

Falling passenger numbers, vacant slots and squabbles between landlord and tenants have made this a challenging year for retailers at Osaka Kansai International airport. But airport authority Kansai International Airport Co is pushing ahead with an ambitious expansion plan and hopes duty-free will play a full part. John Rimmer visited Kansai to see what the future holds.

In years to come commentators may look back on this summer?s football World Cup and conclude that the most significant confrontation did not take place on the pitch. The unprecedented public excitement caused many to wonder if this was vibrant young Asia taking on the established order. What might the implications be for Japanese duty-free? John Rimmer visited Japan to find out.

Pope John Paul II was given to kissing the tarmac when landing at his destination. Operators at Tokyo Narita International airport might have been tempted to do the same when the location?s parallel runway was opened in April. The sudden increase in passenger numbers has fuelled optimism that retail revenues will show good growth in 2002. John Rimmer reports.

Japan Airport Terminal Co (JATCo) is Japan?s biggest travel retailer, with airside and landside shops at all the country?s leading airports.

The IFE (inflight entertainment) sector is broadening to include movies, destination information, brand partnerships, meal selection and, increasingly, the sales function. The UK-based interactive shopping provider FlightStore is at the forefront of developments and is in final negotiations for contracts with leading Asian and US carriers.

Last September the clock stopped on most airline investments, yet the pace of technology showed no sign of slowing. Recently carriers have begun to turn their attention again to onboard POS technology, reports Trevor Lloyd-Jones, benefiting from fast and effective data management.

The gradual polarisation of the Japanese consumer market is continuing, with crucial implications for duty-free.

Leathergoods and luggage have become core categories in top airport locations. While sales statistics indicate a downturn since 1999, suppliers and buyers acknowledge that the sector is crucial to the future success of travel-retail environments. Kevin Rozario reports.

?Leathergoods remain the only fashion products you can buy in a travel environment where you don?t need the size, so you can buy quickly,? says Alviero Martini commercial director Attila Kiss.

Opinions vary when it comes to assessing the ability of retailers to respond to fashion trends, not just in the domestic market, but in the accessories area in particular.

French operator Aelia is about to complete an extensive renovation of its retail operation at Eurotunnel?s Coquelles terminal.

FRANCE. Weitnauer has won the tender for the main liquor, tobacco and fragrances concession at Nice Côte d?Azur International airport?s new terminal two. Weitnauer?s bid was the second highest behind Swiss rival The Nuance Group, but airport authority Nice Chamber of Commerce decided its bid was the more realistic. French operator Aelia also bid for the concession.

INTERNATIONAL. Speculation is intensifying over the future of DFS Group, the troubled travel retailer that parent LVMH Moët Hennessy-Louis Vuitton has declared ?non-core?. With few potential buyers able or willing to purchase the company in its entirety, DFNI understands DFS? owners are discussing ways to break up the group.

URUGUAY. The Uruguayan government has announced an open tender for the management contract at Montevideo Carrasco airport. Although conditions have yet to be finalised, the contract is understood to cover ground services and commercial activities. Aeropuertos Argentina 2000 has already expressed interest in the auction, according to local reports.

US. International Shoppes has gained a foothold at Philadelphia International airport with the award of four duty-free storesp; two in the airport?s new terminal and two in the existing terminal, currently operated by Weitnauer.

FRANCE. French operator Aelia is about to complete an extensive renovation of its retail operation at Eurotunnel?s Coquelles terminal. The company has introduced its Beauty Unlimited concept in its fragrances and cosmetics store, and has revamped the main liquor, tobacco and fine foods outlet.

CHINA. Foreign investors will be allowed to take majority stakes in China?s airports and airlines for the first time from August 1, under new rules drafted by the country?s aviation regulator. The move is being made to attract more overseas investors into the market. Currently foreign stakes in airports are capped at 49% and 35% for airlines.

MALAYSIA. Tenders will be called at the end of this year for duty-free contracts at Kuala Lumpur International airport, the airport authority has confirmed. International companies will be invited to bid for the business, which has suffered more than most regional airports through the Asian economic crisis and September 11.

AUSTRALIA. The new owners of Sydney International airport are to lobby Australia?s government to increase duty-free allowances and allow arriving passengers to buy a wider range of goods. Macquarie Airports, a 44% shareholder in the Southern Cross consortium, also said it will push for a redesign of the duty-free areas to boost spending as it moves to maximise revenues from its new $3.1bn asset.

BRAZIL. International brands will face stiff competition in Brazilian travel-retail from the middle of this month. Under new laws locally-made products are allowed in duty-free for the first time. Locally-produced goods will be now be offered to departing travellers in Brasif?s 26 stores.

French operator Aelia has expanded the liquor and wines assortment in its store at Eurotunnel?s terminal on the French mainland.

Brown-Forman has begun a summer travel-retail campaign behind its leading brands Jack Daniel?s and Southern Comfort.

Danish pipe tobacco supplier Mac Baren has seen impressive results in Asia/Pacific following a concerted effort to gain market share in the region.

Cross-Channel ferry operator Hoverspeed has begun legal action against HM Customs and Excise over its aggressive policy of confiscating liquor and tobacco that it suspects might be sold illegally in the UK.

Canadian border operators have told DFNI that the 5% drop in dollar sales of domestically produced tobacco registered at the Canadian border in 2001 fails to reveal the true extent of the deficit.

Escada Beauté, the German brand recently acquired by Cosmopolitan Cosmetics, will use its increased financial power and widening distribution network to pursue new projects in the next few years

English perfumer Floris has created a summer body oil designed to be used as an all-over body fragrance.

Positive performances from both Yves Saint Laurent and YSL Beauté were the only bright spots in otherwise disappointing results from the Gucci Group for the first quarter of 2002.

Puig?s Nina Ricci will relaunch its cosmetics line in September as part of a realignment of its portfolio with the core values of the original brand and with recent launches such as Premier Jour and men?s fragrance Mémoire d?Homme.

Nestlé International Travel Retail (NITR) is focusing on its Kit Kat brand to establish a number of ?break points?.

Confectionery has emerged as the fastest-growing category for Blue Water Bridge Duty Free border shop at Sarnia, north of Detroit.

Bulk purchases of confectionery are one of ferry operators main travel incentives.

Bonardo Travel Retail has introduced a fresh identity for its Swiss Delice brand and launched an accompanying biscuit range.

California-based export company Saybrex is capitalising on the popularity of Las Vegas as an entertainment destination and fast-growing US metropolis with the launch of two Las Vegas Cookies products.

The final selection of Premier Portfolio?s new range of baby/toddler gift products for the inflight market will be ready this autumn.

Leading French glass and crystal company Arc International has created a summer collection for its Salviati brand.

One of Italy?s oldest fashion houses has put its duty-free business in the hands of a consultancy in a bid to strengthen its travel-retail presence.