Features
The launch of Cacharel?s latest fragrance marks a radical departure from the transparent purity of Anaïs Anaïs and Noa. With its multi-coloured bottles and a hint of decadence, the scent heralds a new era for the brand. Jane Labous reports on the heady world of Gloria.
Border operators in Canada have struggled to survive this year, fighting what they see as an unjust tobacco tax and the economic aftermath of September 11. But, as Gavin Lipsith writes, a boost in US passenger numbers has given retailers some much-needed hope.
If the export tax has knocked Canada?s duty-free operators off their feet, it has positively crippled the country?s tobacco manufacturers.
Known to provide funds for terrorism and other criminal activities, counterfeit products not only drain the luxury goods industry of revenue, but have also put some consumers in hospital. Jane Labous talks to the experts on, and victims of, counterfeit crime.
As the fourth round of negotiations on the World Health Organization?s (WHO) Framework Convention on Tobacco Control (FCTC) approaches, Washington lobbyist Jon Kent talks to Gavin Lipsith about the American effort in the campaign to save duty-free tobacco.
Jon Kent and IAADFS may be encouraged by the overwhelming response they have received from the industry in the Americas region, but elsewhere the co-coordinator, International Travel Retail Confederation (ITRC), is finding it slightly harder to arouse enthusiasm.
The proposal to ban duty-free tobacco sales, contained within the Framework Convention on Tobacco Control, has taken various forms throughout the campaign.
Lancôme has been putting in the groundwork to make sure its latest men?s fragrance launch, Miracle for Men, assures it a firm foothold in the increasingly lucrative men?s market. Jane Labous reports on the brand?s sales staff incentives, and discovers the results of its latest survey of the men?s market.
With the continuing economic crisis in Argentina, and last year?s catastrophic events in New York and Washington, the Americas is not the easiest place for any businessman right now, let alone the travel retailer. But Parbel, L?Oréal Luxury Products Americas division for local and travel-retail markets, remains optimistic for the business in the region. Jane Labous talks to general manager Philippe Lamy.
The way concessions in the US are structured, the need to move away from old formats and the threat of diminishing numbers of travellers entering stores were the main themes of the 11th ACI Europe Airport Trading Conference, held in Paris last month. Trevor Lloyd-Jones was there.
Randy Emch has been appointed executive director of Argentinian operator InterBaires, where he has been ceo for several years. In his new role Emch will be working more closely with Exxel Group, the private equity company that owns InterBaires.
This year?s Habanos festival once again concluded with a presentation of awards for Habanos People of the Year.
The economic crisis in Argentina has made the traditionally volatile duty-free market in Latin America an even tougher place to do business. As the country?s leading airport operator, InterBaires has been hit harder than most. But as executive director Randy Emch tells John Rimmer, the company is confident it can ride out the crisis?and emerge the stronger for it.
Much has been said about the Europeans? reluctance to stray from traditional European fragrance expertise. Nevertheless, a new division of Givenchy is set to change all that, or so believes American Designer Fragrances vice president international marketing and business development Marie Clothilde Brulé. She explains to Jane Labous why the recently established division is set to raise the standard of American fragrances.
The economic news in Latin America continues to make depressing reading, but at least one duty-free operator began the year on a high note. Neutral?s victory in the Montevideo Carrasco duty-free tender handed the retailer an eight-year extension to its contract and ensured it would remain a significant player in the market. John Rimmer talks to the operator about Carrasco, crisis and the challenges ahead.
In addition to Neutral?s newly-extended contract at Carrasco, the operator runs two border stores in the town of Chuy.
One of the most alarming assessments of the short- to medium-term damage to airport revenues post-September 11 came at the ACI Trading conference in Paris last month.
In Hawaii, efforts to provide relief for airport retailers took another step forward last month with a proposed new bill in the state legislature.
In this exclusive report, DFNI assesses the commercial health of North America?s airports after September 11. We examine why operators are calling for an urgent review of concession contracts, and we chronicle the responses of the airports to the crisis and to concessionaires? concerns.
Airports Council International has released its latest list of the top Americas airports by passenger numbers. But how do duty-free sales stack up at these locations? In a special show issue report, Isabelle Caprano takes a closer look at leading airports in the region.
North American international passenger traffic far outweighs that of Latin America and the Caribbean. It is one of the world?s key regions for international air travel despite traffic being largely domestic.
Airport commercial managers set out their views on how airports can recover from the crisis.
Despite being hit hard after September 11, BAA has pressed ahead with expansion at London Gatwick North terminal. The new layout, which has a new World Duty Free store as the centrepiece, could be a model for retail developments in the future.
International tourist arrivals to the Americas declined by 7% in 2001 following growth of 5% in 2000. North America and South America were the regions most badly affected.
The Raven Fox Enchantment Ball, held in London on March 8, proved another resounding success for its chosen charity, this year Cosmetic Executive Women France.
Retail News Analysis
US. Portland International airport has scaled back minimum annual guarantee (MAG) requirements for its tenants. The action has been taken to reduce the risk to operators of falls in traffic.
INTERNATIONAL. Leading airport consultant Concession Planning International (CPI) has widened the range of consultancy services that it offers to airport clients.
SOUTH AMERICA. The annual South American duty-free ASUTIL conference will take place from September 4 to 6, DFNI can reveal. The Uruguay capital Montevideo, home to the region?s duty-free association, will host the event.
HAWAII. The State Department of Transportation is reconsidering plans to double duty-free space in the main terminal at Honolulu International airport, where DFS Group is the operator. The airport has been hit hard by the fall in Asian passenger numbers since September 11.
RUSSIA. Aeroflot Russian Airlines has revealed details of the forthcoming tender for 12?15,000sq m (129,165?161,460sq ft) of commercial space in Moscow Sheremetyevo airport?s new terminal three. Aeroflot will manage the facility and will be the main carrier to use the terminal, which is scheduled to open in late 2004.
INTERNATIONAL. The performance of DFS Group and Sephora had a big impact on the slide in annual profits at luxury goods group LVMH Moët Hennessy-Louis Vuitton in 2001. LVMH said it had taken out a provision of Eur769m ($675m) for goodwill depreciation and restructuring at DFS and Sephora.
MIDDLE EAST. Aer Rianta International?s (ARI) management contract at Damascus Duty Free is unlikely to be renewed when it ends in May this year. The contract has been in place for almost five years but DFNI understands local partner Makhlouf wants to proceed alone.
UK. The Raven Fox Enchantment Ball, held in London on March 8, proved another resounding success for its chosen charity, this year Cosmetic Executive Women France. Around 180 people attended the event, in aid of the charity, which helps terminally ill patients through beauty treatments in centres and hospitals across France.
CANADA. The Canada Customs & Revenue Agency is finally to abolish licence fees for border duty-free operators within the next few months. Operators have been anticipating this decision, which could save them a total of C$6m ($3.77m) in the next year.
FRANCE. The 11th ACI Europe Airport Trading Conference held in Paris last month covered the industry?s many structural problems and the threats of declining market penetration and customer confusion?issues thrown into sharp focus by September 11.
US/INTERNATIONAL. Campaigners on both sides of the Atlantic have reiterated calls for industry action on the tobacco issue, as the next round of World Health Organization (WHO) meetings are about to begin.
US. Airports across the US will lose $2.3bn in revenues during the year to September 2002, according to a devastating new report from Airports Council International (ACI). An ACI North America survey predicts that $446m of these losses will be in concession revenues at the region?s airports.
Liquor & Wines
Panamanian operator Waked Internacional has opened four new liquor outlets on the Colombian-governed holiday island of San Andres.
Sales of Scotch whisky have struggled to recover since the government introduced legislation restricting travellers to two bottles upon arrival in Uruguay.
V&S Global Duty Free and Travel Retail has handed over control of its brands Danzka Vodka, Plymouth Gin, Aalborg, Frïs vodka, Heering cherry liqueur and Kirsberry to Future Brands LLC in US duty-free.
Allied Domecq?s purchase of coconut rum Malibu from Diageo will end the long-standing legal dispute over Captain Morgan, the rum brand both companies claimed to own.
Tobacco Products
UK tobacco manufacturer Imperial Tobacco International has announced that it will buy German counterpart Reemtsma in a Eur5.2bn ($4.5bn) deal that puts it within reach of the world?s three largest suppliers.
Agio has restated the importance of the Americas to its duty-free operations as its new Balmoral Dominican Selection is rolled out across the region.
Fragrances
Raising the bar on American fragrances is the aim of LVMH?s new Givenchy business, which is set to push its Michael Kors and Marc Jacobs brands into international markets this year.
A contest organised by L?Oréal?s Luxury Products Division in association with World Duty Free (WDF) at London Heathrow and Gatwick airports has been a resounding success, according to organisers.
French skincare specialist Sisley has said its fragrances and cosmetics categories are fast catching up with the runaway success of its skincare business.
Canadian Riviera Concepts will launch a new fragrance this year from the Alfred Sung brand. The men?s fragrance will be called Hei, echoing the Chinese theme of the women?s version Shi.
Wella-owned Cosmopolitan Cosmetics subsidiary Parfums Rochas has signed a long-term licensing agreement with fashion group Escada to market its fragrances and cosmetics.
Cacharel?s latest women?s fragrance is a radical departure from the brand?s pure image, championed by previous fragrances Anaïs Anaïs and Noa.
Cosmetics
In a study of women over 50, Juvena has found most have a clear idea of what they want from a daily face and bodycare line, and most require products designed specifically for women of their age group.
Clarins has developed a comprehensive range of suncare products and summer cosmetics for the coming season, rolling out on duty-free markets in the next few months.
Nuance-Watson (Hong Kong) has expanded its Asian beauty offer with the introduction of leading Japanese cosmetics brands Shu Uemura and Shiseido to its operations at Hong Kong International airport (HKIA).
According to research by the Northern Group, which owns the Pierre Cardin brand, 80% of men now buy grooming and fragrance products for themselves, with these products gradually becoming a fundamental part of many men?s daily routine.
Pupa?s Optical Kit is a square, compact case containing transparent ?ultra-light? colours.
Confectionery & Fine Foods
Nestlé International Travel Retail (NITR) has started its most concentrated programme of in-store initiatives for US airports.
Kim?s Chocolates is targeting the US and Asia as the main regions for expansion this year, focusing on its Cachet brand.
Gifts & Electronics
US company Air Terminal Gifts (ATG), which operates 14 retail outlets at Salt Lake International airport, Utah, has reported a phenomenal year-on-year sales increase during February?s Winter Olympics.
Alpha Retail?s new shops at Manchester airport will offer an extensive gift and core electronics selection. The stores are due to open at the end of March.
In response to the introduction of the Pet Travel Scheme three years ago, UK gifts company G Ettinger has created the Pet Passport Folder.
Jewellery & Watches
Nihon SiberHegner has signed an agreement with Givenchy to distribute the brand?s writing instruments and lighters in travel-retail worldwide.
German brands Thomas Sabo sterling silver jewellery and Junkas watches are among the latest products to be launched in Gebr Heinemann?s German airport outlets.
UK-based Scorpio Distributors has signed a preliminary agreement with Binda Italy to distribute Dolce & Gabbana watches in selective European inflight markets.
Swatch?s new Spring/ Summer collection has a strong colour theme. One of the company?s latest wristwatches is Tropical Heat.
Fashion & Leathergoods
Copenhagen fashion house Sand will complete its travel-retail distribution network at the key Scandinavian hub airports when a sales unit opens at Copenhagen Kastrup in April.

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