Cover Stories

MIDDLE EAST. Aer Rianta International-Middle East (ARI-ME) has re-organised several key units as it aims to grow its business in the region
ASIA/PACIFIC. As visa restrictions ease on Chinese travel abroad, more and more travel retailers in Asia/Pacific are rethinking their product offers in a bid to appeal to this emerging segment
Change is coming to Japanese duty-free, long criticised for its resistance to new thinking. As airport landlords take a greater role in retail, John Rimmer looks at how the market has developed in recent years

Features

Singapore Changi has a vision that few other airports can match. Today's investment in refurbishing terminal two will soon be followed by the development of a low-cost airline terminal to take advantage of the expected surge in passenger numbers. Anna Fenton pays a visit to one of Asia?s most progressive airports.
Dalian International airport isn't the busiest in China, but high-spending Japanese, South Korean and Chinese passengers have made it a lucrative venue for its duty-free operator. With a new terminal and an expanded offer in the pipeline, a good business is about to get better. Anna Fenton reports.
Duty Free Philippines is still waiting to take up its concession at the new international terminal at Manila airport, which has been beset with delays. But the operator has still managed to increase sales of liquor and confectionery thanks to the Filipino tradition of gift-giving by returning overseas workers, who are considered heroes at home. Anna Fenton reports.
It's been a big year so far for King Power in Thailand, and in particular for its Bangkok base. The company is backing its fresh 10-year duty-free contract extension with a raft of new investment. Deputy managing director Susan Whelan speaks to DFNI.
In a few short years Imex Pan-Pacific's chairman and president Johnathan Nguyen has seen his empire grow from a handful of airport shops to dominate Vietnam's duty-free business. Anna Fenton reports.
After a devastating 2003, Malaysia Airport Holdings and retail subsidiary Eraman are hopeful that the government?s investment in tourism infrastructure and support for the aviation industry will pay off when Kuala Lumpur International Airport?s tender for duty-free is finally launched later this year. Gavin Lipsith reports.
For travel retailers, India has long been the most impenetrable of markets. But one company that has broken in is Dubai-based Flemingo International. Gavin Lipsith speaks to managing director Rasik Thakker about the challenges and the opportunities that India presents.
Boosted by last year's $5.1bn order for new aircraft, Qatar Airways is positioning itself for the future as one of the world's leading carriers. And inflight sales are taking off, says assistant general manager Krishna Kumari.
The discounting of beauty products on local markets is hitting travel-retail below the revenue belt, and the drip-drip of stock onto the grey market is not doing much to improve bottom lines either. But the industry is far from quiescent in the face of these challenges. Tina Milton reports.
"Like a tuna swallowing a shark" was how one industry pundit described Pernod Ricard's purchase of key Seagram brands in 2001. Now that the bigger fish has been all but digested, will it result in heartburn for Pernod? John Rimmer talks to Gilles Cambournac, chairman and ceo of the supplier's travel-retail division Pernod Ricard World Trade.

Retail News Analysis

UAE. Abu Dhabi Duty Free (ADDF) has returned the best results in its 20-year history for the first four months of 2004
BULGARIA. Sofia airport has reported a strong start to 2004, posting a 25% increase in sales from January to April compared with the same period last year
CHINA. Sephora, the beauty retailer owned by LVMH Moët Hennessy-Louis Vuitton, has confirmed it is looking to open its first store in China
NETHERLANDS. In a big boost to travel retailers seeking a better deal on transaction charges from credit card companies and banks, the Dutch Competition Authority has fined Interpay - the finance body that links card companies and their customers - Eu30m ($36m) for abusing its position in the market
BRAZIL. Walfrido Mares Guia, Brazil's tourism minister, will open the 2004 ASUTIL Conference
Whisper it quietly, but 2004 looks like the year that travel-retail worldwide returns to serious growth after last year's stagnation
CANADA. Delta Air Lines has awarded incumbent retailer Diplomatic Supplies Canada (DSC) a new long-term contract to operate its inflight duty-free concession
EGYPT. The Chalhoub Group, in partnership with Cairo airport authority and Egyptair, has opened the first stores in its retail alliance at Cairo's new terminal one
INDIA. Airports Authority of India's latest tenders for duty-free space at Mumbai, Delhi, Trichy and Kolkata airports have received a mixed reception from retailers
MALAYSIA. Air Asia, the fast-growing Malaysian low-cost carrier, will launch its first inflight duty-free programme on July 1
POLAND. Gdansk airport has announced it will soon release tender documents for additional retail space
CHINA. China Duty Free Group (CDFG) is renegotiating contracts with several suppliers following the withdrawal of Paragon Brand Management from the Chinese market
PORTUGAL. Lojas Francas de Portugal is to open a 130sq m (1,400sq ft) luxury gift boutique and a 40sq m (430sq ft) children's shop alongside its expanded main shop at Lisbon airport, which opened earlier this month

Liquor & Wines

DFNI EXCLUSIVE. Austrian chocolate liqueur manufacturer HC König has launched a new liqueur aimed at younger consumers
Pernod Ricard World Trade (PRWT) has broken new ground in the bourbon category with the launch of Wild Turkey Sherry Signature
Kobrand International claims it is on track to double domestic and travel-retail sales of its Alizé cognac-based fruit liqueurs in Asia/Pacific this year
Los Angeles-based gourmet gift manufacturer Shonfeld's will make its first appearance at TFWA Asia Pacific later this month with a new range of infused vodkas and tequilas

Tobacco Products

Recovery in Asian travel markets has inspired Nat Sherman to launch three products in the region's travel-retail at TFWA Asia Pacific this month
The Indian government's stance on the Framework Convention on Tobacco Control's (FCTC) duty-free clause was made clear earlier this month when national legislation introduced in line with the treaty omitted any mention of restrictions
Bahrain Duty Free Shops has reported an 8% increase in tobacco sales in 2003, boosted by the addition of personalised units and the expansion of its arrivals outlet
The International Travel Retail Confederation Tax Free World Association will host a workshop on the Framework Convention on Tobacco Control during TFWA Asia Pacific

Fragrances

DFNI EXCLUSIVE. Salvatore Ferragamo Parfums, which owns the Salvatore Ferragamo and Emanuel Ungaro brands, has signed a deal with distributor Edward Clarke in a bid to raise its duty-free profile in Asia/Pacific
Marilyn Miglin fragrance Pherómone is to receive a makeover in November
Schiapparelli Pikenz is to launch the men's version of its Girl fragrance Trybe into domestic markets in the second half of 2004 with a view to taking it into duty-free once the brand is established
DFNI EXCLUSIVE. Canadian border retailer Blue Water Bridge Duty Free has called on the industry to pull together and take a tougher stance against beauty suppliers involved in selling goods to the grey market
Cosmopolitan Cosmetics is to introduce a number of fragrances in travel-retail in the coming year
Supply chain bureaucracy has hit sales of beauty products at Dalian airport in China, and is inhibiting the growth of the fragrances and cosmetics category, according to duty-free shop manager Xiao Bing
Yves Saint Laurent Parfums (YSL) has unveiled four fragrances for the summer season
Riviera Concepts is to roll out its men's Hummer fragrance to international markets rather than keeping it exclusive to north America as originally planned

Cosmetics

Versace is planning to grow its presence in Asia/Pacific, according to export manager Marcio dos Santos
Nuance-Watson (HK) is to use spa treatments at Hong Kong International airport as an incentive for passengers to spend more in duty-free
Eclipse Colours Paris is to make its debut at the TFWA Asia Pacific show this month with new beauty sets designed specifically for travel-retail
Dior has announced several new product launches for travel-retail for the next quarter
Diana de Silva Cosmétiques is to preview its moisturiser Hanorah Bio-Aqua at this month's TFWA Asia Pacific show
Robust travel-retail results at Estée Lauder contributed to a 15% sales increase during the third fiscal quarter ending March 31 2004
Micys Company-owned brand Pupa has set new distribution targets in a bid to grow its Asia/Pacific business
Lancôme has developed a new skincare programme called Pure Focus aimed at women with oily skin

Confectionery & Fine Foods

Ferry operator Tallink prepared for Estonia's entry to the European Union this month with a thorough overhaul of its confectionery portfolio
Singapore distributor Distriworld has been appointed to represent Australian manufacturer Ballantyne, which produces a range of chocolate sticks
Cadbury Schweppes International Travel Retail (CSITR) is extending its policy of focusing on the Cadbury brand name.
Ferrero aims to raise its profile with its first appearance at an established duty-free trade exhibition after supporting the inaugural Middle East Exclusive show in Dubai last autumn
Vienna-based Schuberts Köstlichkeiten, a family-owned manufacturer of hand-stirred jams, marmalades and chutneys, is ready to explore the potential for travel-retail sales after 18 months of establishing itself in Austria's domestic market

Gifts & Electronics

DFNI EXCLUSIVE. Estonian cruiseship and ferry operator Tallink has dedicated 60sq m (645sq ft) of space to electronics, gifts and children's products onboard its latest cruiseship, the M/S Victoria I
UK flag-carrier British Airways is offering passengers a novel selection of duty-free goods in association with Bliss Lifestyle Gifts
German miniature electronics supplier Minox will scout for new business at the TFWA Asia Pacific show in Singapore this month, using its new night vision device
UK toy company 8th Wonder has designed and produced a range of plush toys for domestic and duty-free markets
DIC Entertainment has acquired the entertainment and licensing rights for Trollz from The Troll Company
US gifts firm Crystal World has unveiled two crystal collectibles for duty-free
FoneGear has launched the world's first mobile phone magnetic wireless headset, according to the company

Jewellery & Watches

Austrian enamel jeweller Frey Wille opened a second travel-retail store at Vienna airport last month
Swiss watch supplier Tissot is convinced that its latest watch range will be a success in travel-retail after it previewed its new collection at Baselworld last month
Swedish watch supplier Axcent of Scandinavia has reported positive feedback from travel retailers in the first five months of 2004

Fashion & Leathergoods

Niche golf concept retailer Duty Free Golf Brands is set for a big Asian expansion in the coming months and is preparing for a bumper year following its debut at the TFWA Asia Pacific show this month
Fashion and apparel buyers looking for something new and fresh at this year?s Singapore show will find many new or returning suppliers to the exhibition
Kipling, the Belgian firm that says its international growth is now coming from Asia, has big plans for expansion in the region's travel-retail market
French leathergoods house Longchamp has unveiled its Autumn/Winter 2004/05 collections with 17 ranges, including an update of the best-selling travel bag the Pliage