Cover Stories
SAUDI ARABIA. Saudi Arabia's General Authority of Civil Aviation (GACA) has set a deadline of May 24 for requests for pre-qualification as it launches a tender for duty-free at the country's three biggest airports
SINGAPORE. Civil Aviation Authority of Singapore (CAAS) is preparing what could be Asia/Pacific's biggest airport retail opportunity for years when it tenders core duty-free contracts for Singapore Changi terminals one and two, the recently-opened Budget Terminal and the new T3, set to open in 2008
Insight
The heads of money-making concerns are sometimes compelled to remind staff that "the company is not a charity"
Nine years ago this month, one of the travel-retail industry's most enduring and successful partnerships was born
While Chinese tourists enjoy their new-found freedom to travel to destinations all over the world, Malaysian duty-free operators have expressed frustration at the declining numbers of Chinese visitors to their stores
Among the most important themes addressed at the Nordic Travel Retail Seminar earlier this month was the need to promote our industry to the people who matter—the consumers
It's just over a year since Mark Riches, Randy Emch and Steve Franklin announced the establishment of Global Airport Services (GAS), the concept that they hoped would change the way business is done in airport retailing
One of the most interesting categories in the Raven Fox Awards for Travel Retail Excellence in Asia/Pacific is the Airport Authority with the Most Supportive Approach to Travel Retail
People & Company
Dan Cappell has resigned from his post as deputy managing director of Abu Dhabi Duty Free (ADDF)
More People and Company News
Features
In 2003 the travel-retail industry in Asia was hit by the SARS outbreak, resulting in a severe downturn in travel and plummeting sales. Now the business faces what could be a bigger threat—that of bird flu. Emily Pacey talks to retailers to assess what steps are being taken to deal with the danger
The world's biggest travel retailer has gained a new lease of life, posting strong profits and justifying owner LMVH Moët Hennessy-Louis Vuitton's faith in the retailer. Recent moves point to interesting changes in the company's strategy, writes Gavin Lipsith
The duty-free gifts market has traditionally tempted Asian shoppers keen to buy gifts when they travel. But the sector increasingly appeals to travellers from other regions who have very different preferences, as Lorna Strickland discovers
A watershed year for Indian travel-retail continues with tenders at the new airports of Hydrabad and Banglore and private consortia set to take over at the country's biggest hubs, Delhi and Mumbai. John Rimmer reports on the opportunities, challenges and threats to India's undoubtful potential
Landmark Duty Free's Philippines-based fashion and beauty business is adapting to the need for improved brand personalisation. Managing director Jose Esteban speaks to Tina Milton about the constant need for re-invention
The Middle East and Asia/Pacific are the fastest-growing markets in global travel-retail, and retail tenders in both regions invariably excite much interest. Here DFNI highlights a selection of airport opportunities certain to make the headlines in the months ahead
A new duty-free store scheduled to open in North Korea next month is an intriguing development in a country renowned for its political and diplomatic secrecy. But how far is the country from matching the duty-free success of South Korea? Tina Milton reports
Strong bookings for Golden Week and the summer season this year are expected to boost the recovery in Japanese outbound travel, but growth is not guaranteed, writes Sandra Newman
Fashion and gifts brand Shanghai Tang is one of the fastest growing companies in Asia/Pacific travel-retail. Lorna Strickland reports on a company seeking to capitalise on the world's growing fascination with Asia
Two big projects over the next two years are set to change the retail landscape at one of Asia's most rapidly-evolving airports. Gavin Lipsith speaks to Civil Aviation Authority of Singapore assistant commercial director Jeffrey Loke about plans to transform Changi airport
After a turbulent few years filled with talk of onerous contracts, concerned landlords and potential withdrawals, The Nuance Group's business in Australia and New Zealand is now on firmer ground. Gavin Lipsith talks to Nuance Australia and New Zealand CEO Christian Strang about the group's journey back from the brink
Welcome to this special APTRA/DFNI Asia report marking the first anniversary of the Asia Pacific Travel Retail Association
About 200 people whose lives were shattered in one hour on December 26 2004 were given a new lease of life in March as residents of the tsunami-stricken Sri Lankan village of Palliyawatte moved into the Travel Retail Village. DFNI was among honoured guests at the official opening
In 1999 the company was selling stock at car boot sales to stay afloat. Now it is one of the travel-retail industry's leading gifts suppliers with distribution across the world. John Rimmer tells the story of Premier Portfolio, the company that first flew the Fun Plane
Asia is home to some of the world's most successful arrivals retail operations, with retailers in several countries taking advantage of the opportunity to offer incoming passengers a final chance to buy. Yet despite the success enjoyed by existing arrivals operators, many countries are unwilling to introduce the concept. APTRA considers the spread of arrivals shopping to be a key growth driver for the Asia/Pacific region, so encouraging reluctant governments is a priority. As supervisor of two of the region's most progressive arrivals operations, Alpha Asia managing director Paul Topping is well placed to lead the charge
Asia/Pacific remains the region most at risk from attempts to restrict duty-free tobacco sales. As a result the matter is high on APTRA's agenda, and Imperial Tobacco director Asia and Americas travel-retail John Kammerman is coordinating the association's efforts to protect the regional industry from further constraints
Those who were present at the inaugural India Duty Free Workshop in March this year—or indeed who have tracked the recent progress of India's duty-free and aviation markets—will testify to the great promise the country holds
Rent rises are just the tip of the iceberg for duty-free operators at Kuala Lumpur International airport. Retailers are also facing a drop in Chinese passenger traffic, the effects of soaring oil prices on the airline business and tough competition from the domestic market. Tina Milton reports on their strategies for coping with the pressure
Retail News Analysis
MOROCCO. International Duty Free Shops (IDFS) has opened a 41sq m (441sq ft) store at the new Casablanca Mohammed V airport terminal three
SWITZERLAND. Dufry Group increased its turnover by 12% in 2005 to SFr949.8m ($730.6m), compared with SFr850.5m ($654.3m) in 2004
CYPRUS. As DFNI went to press the Cypriot government and the Hermes consortium that it has appointed to run Larnaca and Paphos airports were about to complete financial closure of the deal to hand over control of the facilities
MALAYSIA. Airport authority Malaysia Airports plans to double the retail area at Kuching International airport and has launched a tender for the new space
INDIA. Bangalore International Airport Ltd (BIAL), the company charged with building a new airport in India's fast-growing city, is to call for formal expressions of interest in the airport's duty-free contract within weeks
ESTONIA. Ferry operator Tallink launched its latest super ferry, MS Galaxy, on April 28. The company unveiled the vessel's onboard shops to selected guests from the duty-free industry, including DFNI
AUSTRALIA. Brisbane Airport Corp (BAC) has granted The Nuance Group a seven-year extension as part of its plans for the airport's newly-expanded international terminal
ICELAND. Inflight and groundstore retailer Icelandair is preparing to open its new fashion and accessories store at Keflavik International airport
AUSTRALIA. Retail developments at Qantas Airways' eight self-operated domestic terminals have contributed to a 7% increase in retail revenue over the past year, DFNI can reveal
INDIA. Air India has selected concessionaire Indian Duty Free Services to run its inflight retail business, effective from May 1
ITALY. The new Catania Fontanarossa airport, scheduled to open soon, will house 2,000sq m (21,520sq ft) of retail space
SRI LANKA. Tourist arrivals to Sri Lanka have returned to pre-tsunami levels following a 44% increase in overseas visitors to the country in February and March
AUSTRALASIA. The partnership between King Power Group (Hong Kong) and New Zealand high street gifts and souvenir retailer Aotea is to continue seeking airport opportunities in Australia and New Zealand, Aotea chairman Peter Hanson has confirmed
CHINA. Beijing Capital International Airport (BCIA) has formed a business offering locally-produced fine foods and artefacts across its portfolio of Chinese airports
SWEDEN. Travel retailer Inflight Service has set up a new ferry division after securing its first onboard retail concession with Norwegian operator Kystlink
TURKEY. Turkish airport authority DHMI has approved the redistribution of passenger traffic between Antalya airport terminal one, run by Fraport, and the new T2
SINGAPORE. Civil Aviation Authority of Singapore has received bids from 14 companies representing several luxury brands in its tender for concessions at seven outlets in Singapore Changi terminal two's central and south departures/transit lounges
INDIA. The India duty-free working group, first proposed at the India Duty Free Workshop in February, will hold its first formal meeting at the TFWA Asia Pacific show
SCANDINAVIA. The annual Nordic Travel Retail Seminar, held on May 3–5 in Mallorca, called for the creation of an 'industry think tank' in response to the alarming findings of a customer survey conducted by Kjaer and Schmeltzer
HONG KONG. The Government Property Agency is reviewing submissions for a tender to operate arrivals duty-free stores selling liquor and tobacco at Hong Kong ferry piers serving Macau and several mainland Chinese destinations in the Pearl River Delta region
Liquor & Wines
Beam Global Spirits & Wines has reported that duty-free sales of recent acquisition Courvoisier cognac are growing strongly in Asia/Pacific
The Lafragette & Leiger Group, the French parent company of Alizé International, has bought the A de Fussigny cognac brand for an undisclosed sum
Angus Dundee Distillers has launched an unusual peated Scotch single malt whisky into duty-free. Peated malts are often associated with renowned island whiskies such as Laphroaig and Highland Park
Los Angeles-based liquor supplier XXX Tequila will unveil an aged premium tequila at this month's TFWA Asia Pacific exhibition in Singapore
H Mounier will launch a new VSOP cognac from its Prince Hubert de Polignac range at the TFWA Asia Pacific show in Singapore later this month
Tobacco Products
Duty Free Philippines (DFP) has recorded a 15% fall in volume and value sales of cigarettes since the Filipino government passed legislation subjecting tobacco goods sold in duty-free stores to excise duties in January 2005
The Asia Pacific Travel Retail Association (APTRA) is to host a tobacco workshop at this month's TFWA Asia Pacific show
Swedish Match is to introduce a range of wood-filtered cigars to Asian travel-retail markets at the TFWA Asia Pacific show this month
Japan Tobacco International (JTI) has reported positive results from a gwp promotion it ran on its Mild Seven cigarette brand in December last year
Fragrances
Dimensi Eksklusif attributed a weak start at Kuala Lumpur International airport (KLIA) this year to flat passenger traffic and has called for more action to be taken to encourage Chinese tourists to visit Malaysia
Weruska & Joel is to launch new fragrance Capucci Nuance in Asia/Pacific travel-retail this month
Parfums Christian Dior has reported strong double-digit growth across all travel-retail regions this year, driven by the continued success of skincare brand Capture Totale and fragrance Dior Addict 2
Philippines-based retailer Landmark Duty Free has revealed further details of plans to add new personalised space across its Beauty Walk stores in Manila and Cebu to keep in tune with the rapidly-changing market
The latest addition to the Prada fragrance range, Prada Tendre, is to target Asian consumers when it is introduced to travel-retail next month
Bobbi Brown has launched new fragrance Bobbi with World Duty Free at London Heathrow terminal three
Guerlain launched its latest travel-retail exclusive last month, women's fragrance Colours of Love
Malaysian retailer Colours & Fragrances is close to completing the renovation of its Langkawi ferry terminal outlet
Initial sales results posted by the new women's fragrance Armani Code since its April launch have been "promising", according to L'Oréal Luxury Products International marketing director development of exclusive products, publicity and trade communication travel-retail worldwide Jean-Michel Bostroem
Cosmetics
Nuance-Watson (Singapore) became the first Asia/Pacific retailer to offer Boss Skin this month and will be the brand's exclusive stockist in the region until June
Estée Lauder Travel Retailing has unveiled several new additions to its Clinique and Estée Lauder whitening assortments
Dessange Paris will display its spring/summer cosmetics collection Yearning for Provence at the TFWA Asia Pacific show in Singapore this month
The Valiram Group plans to expand its skincare and cosmetics offer at its big new airside Flying Emporium store in the domestic terminal at Kuala Lumpur International airport (KLIA)
L'Oréal Luxury Products International skincare brand Kiehl's is to enter the duty-free sector for the first time this month with the opening of a stand-alone store at Hong Kong International airport in partnership with retailer Nuance-Watson (HK)
Confectionery & Fine Foods
Goldkenn has installed 60 gold-coloured metal podiums in airport shops around the world
Chocolaterie Duc d'O has ended its association with Nordic distributor Valora Trade Travel Retail
Godiva Chocolatier will introduce a new Carrés collection at the TFWA Asia Pacific show
Zürich airport authority Unique is to join forces with The Nuance Group and Lindt & Sprüngli to stage a Soul of Chocolate exhibition at Zürich airport between September 15 and October 31
Masterfoods International Travel Retail (MITR) has reported a year-on-year sales rise of 60% in Asia/Pacific, while its global performance has shown an increase of more than one-third
Gifts & Electronics
Gifts supplier Premier Portfolio will present a number of new ranges at the TFWA Asia Pacific show this month
Oslo International airport received more than 50 bids for its tender for what it described as "other retail", launched at the end of January (DFNI May 1)
Bookseller WH Smith has confirmed its dedication to expanding its travel-retail division, the only arm of the company to achieve sales growth in the six-month period to the end of February 2006
Jewellery & Watches
Australian jewellery supplier Toscow has designed a range of display and merchandising concepts for domestic and travel-retail outlets
Monaco-based jewellery and watches supplier Misaki plans to focus on what it described as its "three key markets" in the Asia/Pacific region—China, South Korea and Thailand—in 2006
World Tour Enterprises' timepiece brand Tommy Bahama is rolling out products to duty-free shops on the US/Canada border. Until this year the brand was mainly available in the Caribbean
Fashion & Leathergoods
Aer Rianta International-Sardana, the retail operator at New York JFK airport terminal four, will introduce its first dedicated niche fashion concept in July
Sports sunglasses brand Maui Jim plans to build its presence in the Asia/Pacific travel-retail market and is recruiting a new team member to manage the region
Italian eyewear company Luxottica is to develop new, clean-lined merchandising units for its selection of travel-retail brands and will ask its US retail partners for their views before the autumn season begins
Colorful Licenses, which produces licenced accessories and beauty products for Oilily, could soon extend its recent collection of travel bags for the fashion brand with the introduction of a prototype wheeled trolley
Despite having less than a year's travel-retail experience, French swimwear company Plouf is to make its debut at the TFWA Asia Pacific show in Singapore
A new range of precision reading glasses from pen manufacturer AT Cross has been listed in the latest British Airways (BA) brochure following success with Air France and in BAA's London Heathrow, Stansted and Gatwick airports
PT Switzerland, the worldwide duty-free distributor for Police sunglasses and licensee of Police watches and jewellery, is presenting Chopard, Escada and Givenchy sunglasses to the travel-retail market for the first time at the TFWA Asia Pacific show in Singapore this year
Italian luxury house Ermenegildo Zegna opened its first downtown travel-retail outlet at the end of April, at DFS Group's Chinachem Galleria in Hong Kong

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