Cover Stories
ASIA/PACIFIC. As the duty-free industry gathers at the TFWA Asia Pacific show in Singapore, investment projects at key locations in the region are encouraging confidence in the future of the regional industry
ASIA/PACIFIC. The Nuance Group Asia Pacific is in talks with its airport landlords with a view to creating a new, flexible style of contract and is close to cementing the first such agreement with Brisbane airport in Australia
Insight
If you're concerned about the future of travel-retail, then it makes sense that you're concerned about the future of your fellow stakeholders in the travel industry, airlines and airports in particular
Malaysia Airports is expected to tender duty-free retail contracts at Kuala Lumpur International airport (KLIA) at the end of the month, and retailers current and prospective will be eagerly awaiting the documents
Retail tenders at two key Caribbean airports have attracted an impressive list of travel-retail's biggest operators over the past month
Twelve months ago, in the Singapore issue of DFNI, we led with the story "Chinese loom large over Asia's duty-free landscape". The story reported how some airports and retailers were rethinking their product offer and retail mix in an effort to cater for this emerging nationality
As we report elsewhere on these pages, the Caribbean duty-free market is centre stage in the Americas at present. But significant though airport developments in Jamaica and Barbados are, the cruise market remains the vital generator of spend in the region
These are exciting times in Asia/Pacific. The gloom that descended on the region in the wake of the SARS outbreak two years ago now seems a distant memory, even if ghosts linger in some locations
People & Company
The Frontier Duty Free Association (FDFA) board of directors has named Laurie Karson as its executive director
UK airports group BAA has named Stephen Nelson as its new retail director, succeeding Brian Collie who left the company earlier this year
More people and company news
Aldeasa has appointed Daniel Montero as head of international business
Raven Fox would like to invite all delegates to the TFWA Asia Pacific show in Singapore to attend the presentation ceremony for the annual Raven Fox Awards for Travel Retail Excellence in Asia/Pacific
Features
While speculation surrounds Cathay Pacific's merger with Air China, Tina Milton examines its booming inflight retail business, which is set for further growth
this year
Fiji is a popular tourist destination and provides visitors with a wealth of opportunities to go shopping, both at the airport and downtown. And with several new hotel complexes planned, prospects for tourism look bright. Lorna Strickland reports on a country that is developing on several fronts
SkyPlaza is the centrepiece of Hong Kong International airport's new terminal two, which opens in July 2006. Described by the airport as a "contemporary crossroads", the development aims to complement the ground-breaking commercial operations in the airport's East Hall. Dermot Davitt reports
Are beauty suppliers set to continue their investment in inflight beauty, or are they pondering the category's future? Tina Milton talks to inflight retailers and beauty houses in Asia for a progress report
In the past year King Power International Group (Thailand) has consolidated its position as Thailand's dominant duty-free retailer. Not only has it secured long-term contracts to manage duty-free and oversee the commercial operations at Bangkok's new international airport, it plans to develop its own downtown business. But recent months have also presented big challenges, as Dermot Davitt reports
Retail has always been crucial to Kuala Lumpur International airport's success, and current forecasts for Malaysian tourism should guarantee considerable interest in Malaysia Airports' retail tenders when they are launched later this year. By Gavin Lipsith
Asia/Pacific was enjoying a boom in tourism as it recovered from the SARS-related travel downturn of 2003 when the region was hit by December's tsunami. Sandra Newman looks at how the region has fared since then
For the Civil Aviation Authority of Singapore, the next big project is never far away. On the verge of completing a multi-million dollar expansion at Changi airport, the authority is juggling plans for two new terminals and a big redevelopment, against a backdrop of resurgent traffic and retail sales. Dermot Davitt and Joe Bates report
Even after a tragedy as appalling as last December's tsunami in southern Asia, life goes on. Retailer Alpha Orient Lanka's charity efforts continue, but it is determined to bring its Sri Lankan business back into the growth enjoyed before the catastrophe. John Rimmer talks to the company's managing director Paul Topping
As Sydney Airports Corp nears a decision on its future duty-free strategy, the company is planning infrastructure improvements that will sustain strong commercial growth. Dermot Davitt visited Sydney airport and spoke to general manager of retail and commercial development Bob McFadyen
The threat to duty-free tobacco sales entered a new phase in February when the World Health Organization's tobacco treaty was passed into international law. Gavin Lipsith speaks to retailers and industry campaigners about the problems the developments pose for the Asia/Pacific duty-free market
Seoul Incheon airport is backing proposals to allow arrivals duty-free in South Korea. But it faces mounting opposition from Customs and airlines. Dermot Davitt reports on a very public duty-free dispute in one of Asia's biggest markets
AENA's retail tender at Tenerife's Reina Sofia airport in the Canary Islands may not be the industry's biggest, but it could mark a decisive turning point in the way the airport operator does business and pave the way for the opening of the Spanish market. As DFNI went to press, AENA was soon to announce the identity of the anchor retailer at this important tourist hotspot. John Gallagher reports
Retail News Analysis
MIDDLE EAST. Aer Rianta International–Middle East (ARI-ME) is poised for strong growth this year as it opens new businesses and upgrades existing operations
AUSTRALIA. Duty Free Stores New Zealand has been awarded its second Australian duty-free contract, at Adelaide International airport
Swiss retailer Dufry Group, Spanish catering and gift shop operator Areas, UK-based Alpha Retail and incumbent concessionaire Aldeasa are to contest the duty-paid retail concession at Reina Sofia International airport on the island of Tenerife in the Canary Islands
IRAQ. Iraq Duty Free is to more than double its departures retail area at Baghdad International airport and has formed a purchasing department to attract a full range of luxury brands to its stores
JAMAICA. Sangster International airport has selected the retailers to take space in the first phase of its commercial expansion
FIJI. Duty-free retailers at Nadi International airport secured extensions to their retail concessions last week
MALAYSIA. The long-awaited duty-free tender at Kuala Lumpur International airport (KLIA) is to be issued at the end of the month, DFNI understands
HONG KONG. Airport Authority Hong Kong (AAHK) is seeking new brand concepts and new retail partners for its commercial space at SkyPlaza, part of the airport's new terminal two, which opens in July 2006
RUSSIA. The first duty-free store at Ufa International airport in the southern Urals opened earlier this week, marking a new phase in the airport's development plans
US. The Nuance Group has extended its duty-free and news and gifts concession at Las Vegas McCarran airport until March 31 2010 (RavenFox.com May 4)
Aldeasa has appointed Daniel Montero as head of international business
FRANCE. Toulouse-Blagnac airport will begin a tender process for new airside retail space in January 2006, DFNI can reveal
RUSSIA. Russian retailer RegStaer is to open its first store at Moscow Vnukovo International airport in August
More retail news
UAE. Dubai Duty Free (DDF) is on course to break the $600m sales barrier if its first-quarter growth is maintained throughout 2005, keeping the retailer on track to reach $1bn before the end of the decade
NEW ZEALAND. Regency Duty Free—part of The Nuance Group—and DFS New Zealand have each gained two-year extensions to their duty-free contracts at Auckland International airport
ITALY. Three retailers remain in the running to operate fine food and fashion concessions at Rome Fiumicino airport, Aeroporti di Roma (AdR) has told DFNI
INDIA. Flemingo International will further its expansion into the Indian duty-free market by opening four stores at Delhi airport this month, managing director Rasik Thakker has told DFNI
ASIA/PACIFIC. More than 30 companies have been nominated for honours at the Raven Fox Awards for Travel Retail Excellence in Asia/Pacific 2005
UK. Virgin Atlantic is to formalise its twice-yearly inflight discount promotion, which ran for the second time last month and ended on May 9
MALAYSIA. Ground-based stores are no longer part of Malaysian carrier Malaysia Airlines' (MAS) retail strategy, DFNI has learned
Liquor & Wines
US wine maker Constellation Brands and Jack Daniel's owner Brown-Forman have formally announced they are considering a joint bid to buy Allied Domecq
Heineken International will introduce a new gift pack showcasing its aluminium Paco bottle at the TFWA Asia Pacific show in Singapore this month
First-time exhibitor Paul Kang & Sons will launch a new range of competitively priced white and brown spirits at the TFWA Asia Pacific show later this month
Bacardi will erect a new Bombay Sapphire art installation at Hong Kong International airport this summer, designed by Dutch artist Tord Boontje
More liquor news
Tobacco Products
Imperial Tobacco is hoping to repeat the success of its Davidoff Windows of the World promotion in 2004 when it unveils this year's campaign, Celebrate the World
Franco-Spanish supplier Altadis has revealed upbeat annual sales for the Americas travel-retail market
More tobacco news
Malaysia Airlines is testing several cigar products with a view to building its offer in the segment, DFNI can reveal
Fragrances
Fragrances sales enjoyed a 14% year-on-year increase in January to April at King Power International Group (Thailand)'s Bangkok International airport stores. Cosmetics sales also grew, by 12.5%
Alpha Inflight Retail has made a vigorous defence of the inflight beauty market after some suppliers, who asked to remain anonymous, told DFNI they were increasingly concerned about the return on investment achievable in the market
Parfums Christian Dior is to introduce three summer fragrances as part of its seasonal launch programme
Deauville French Spa is the latest fragrance offering from Michel Germain, which showcased the new scent at the Duty Free Show of the Americas in Fort Lauderdale last month
Cosmopolitan is to add a Latin twist to the new Escada fashion fragrance for 2005, Rockin' Rio
More fragrances news
Japanese company Jalux, which operates the inflight concessions for Japan Airlines and Japan Asia Airways, plans to establish closer ties with beauty brands to develop inflight exclusives for Japan Airlines
Fashion house Vertigo Paris is to introduce its first women's fragrance line to the duty-free market by the end of the year
Parlux is adapting its product portfolio to cater for a broader range of consumers
Riviera Concepts expects year-on-year sales growth to double to 20% this year as it plans to launch a number of new fragrances across its brand portfolio
The beauty category topped sales rankings on board Cathay Pacific Airways during the first quarter of 2005. Fragrances accounted for 12% of total sales, growing by 7% compared with 2004 first-quarter figures, while skincare increased by an impressive 160%, accounting for 17% of total sales.
Cofinluxe is to focus on expanding the Andy Warhol brand in the Chinese and Latin American markets in 2005. According to chairman Jean-Pierre Givory, in Latin America it will concentrate efforts on Brazil and Argentina
Fragrance supplier Sogen will focus on gift sets as part of its duty-free expansion programme during 2005, in partnership with agent Bonardo Travel Retail
Ralph Lauren Style was the most successful new launch for L'Oréal Luxury Products Division (Parbel) in North America last year
Beauté Prestige International brand Jean Paul Gaultier will introduce two new summer limited-edition fragrances to travel-retail next month
More fragrances news
Cosmetics
Smashbox Cosmetics' introduction onboard Cathay Pacific Airways last month has offered the brand a gaeway to the Australian duty-free market, according to vice-president international Norm Barsky
Organic beauty brand Jurlique is targeting the cruise market as part of its next phase of expansion, in partnership with worldwide duty-free agent Escale Group
Asian no-frills carrier Air Asia is to re-examine the positioning of its duty-free beauty ranges on short-haul routes to focus on best-selling items
L'Occitane plans to expand its presence in downtown and airport stores across Asia this year as part of its growth strategy, although inflight sales remain crucial to the supplier
Incentives and promotions have driven an overall year-on-year sales increase of 30% at Malaysia Airlines, where the beauty category accounts for over 50% of sales
More cosmetics news
A 35sq m (376sq ft) Blue Lagoon Iceland shop-in-shop is to open this month at the Islandica duty-free store at Keflavik airport. The Islandica store focuses on the sale of Icelandic products and souvenirs
Parfums Christian Dior is planning to bolster its skincare offer this year with relaunches including Capture R60/80 Crème and Dior Snow Pure.
World Duty Free (WDF) is to open a specialist men's grooming concept as part of a 297sq m (3,195sq ft) area for men, which will also feature liquor and wines
Nuance-Watson (Singapore)'s latest design rethink is helping to drive sales at Singapore Changi terminal two. Its new arrangement favours gondolas over back walls
Shiseido is to consolidate its travel-retail business in Europe
Confectionery & Fine Foods
Aero-Cos International, the new agent for Alaska Smokehouse and its associated fine food companies, will exhibit their products at the TFWA Asia Pacific show in Singapore this month
Chocolate Sales & Supplies (CS&S) retail subsidiary Choc Stop International will complete a four-month promotion in partnership with Masterfoods International Travel Retail (MITR) at Kuala Lumpur International airport (KLIA) at the end of this month
Dubai-based nuts specialist Al Fustaq Food Stuff, which celebrates its 15th anniversary this year, is seeking further expansion after its first appearance at the IAADFS exhibition in Fort Lauderdale
Italian gourmet food manufacturer and retailer Cascina San Cassiano, which has opened shops at several Italian airports during the past three years, has launched a broad range of products to be made available to other operators
Gifts & Electronics
Music and DVD specialist Virgin Megastores' retail contracts at landside areas in London Gatwick airport's North and South terminals have come to an end, signalling the entrance of rival UK operator Impulse at the location
Sheaffer is redoubling its efforts in the duty-free channel after a lull in recent years.
US licensee and distributor Cosmoda has signed a supply agreement with Pantone to introduce a range of products for the travel-retail industry
US crystal supplier Crystal World has signed an exclusive licensing deal with Peanuts to produce Snoopy memorabilia
Jewellery & Watches
Australian jewellery supplier Toscow has signed two duty-free distribution deals for the Americas region—with Distributions Fontaine for Canada and Art Marketing Solutions for South America
Pilgrim spokesperson Diana Albiol told DFNI that the deal represents a strategic move in the region and said Pilgrim intends to enter the US duty-free channel before any move into the domestic market
Duty-free agent Niclas Switzerland has signed Swedish watch brand Axcent of Scandinavia to its growing duty-free product portfolio for worldwide sales
Jewellery supplier The Colibri Group has appointed Signature Brands International as its exclusive duty-free agent for the US, South America, Central America and the Caribbean
Spanish pearl and jewellery manufacturer Antonio Dorado has introduced special display cases for its range of pearl necklaces and earrings to facilitate the merchandising of the company's duty-free range
Fashion & Leathergoods
Lifebaby is to make its debut appearance at TFWA Asia Pacific this month.
Having developed a variety of travel-retail brands, including Nat Sherman, McG Consultants is now fine-tuning its business to focus on the fashion sector
Almost one-third of fashion exhibitors at this year's TFWA Asia Pacific show in Singapore are first-timers
UK fashion house Alfred Dunhill is building on its strategy of opening more boutiques and shop-in-shops in major destinations—outbound and inbound—frequented by Chinese and Japanese travellers
Network Partners, the travel-retail marketing consultancy for the top-end Calvin Klein Collection of leather accessories—produced and distributed under licence by La Compagnia delle Pelli—is promoting an 'all-year' offer to travel retailers to gain new points of sale for the collection and increase demand
With travel markets back in growth in Latin America, accessories brand Kipling is focusing more attention there
The Hunting World bags and accessories brand is making its debut at the TFWA Asia Pacific show, and the company will be encouraging buyers from airports, airlines and duty-free outlets across Asia to 'Live the Adventure'—the theme of its display
Two new boutiques and a personalised corner at top Asian airport hubs signal Swiss fashion house Bally's intention to grow its market share in the region
Special Reports
Following the success of their cooperation at Puerta Maya pier in the Mexican resort of Cozumel, retailer Dufry Americas and cruiseline Carnival Corp are aiming to repeat the trick in one of the Caribbean's untapped markets. John Rimmer reports on the companies' plans in the Turks and Caicos Islands

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