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New airport terminals drive Asian travel-retail sales * Investment sparks optimism among retailers * Dollar weakness affects some retailers * European response to liquids issue criticised
Insight
Tax is a perfect example of why international operators have found it so difficult to set up shop in the country’s airports
GuestLogix’s latest set of results certainly give the impression that it is growing rapidly
Exploring the DFNI archives
Letter from the editor of DFNI
Tourvest has spent much of the past five years building up its international business, particularly in its Retail Merchandising division
People & Company
Movers and shakers in the travel-retail industry
Features
While New Zealand’s Commerce Commission mulls over Auckland International Airport Limited’s decision to have just one operator—DFS Group—in place, the company’s latest retail concept is wowing the travel-retail world. Kevin Rozario reports on the biggest arrivals shop in the southern hemisphere
Chinese operator Sunrise Duty Free saw its retail spaces at Beijing Capital International and Shanghai Pudong International airports increase more than threefold this year with the opening of the new terminals three and two respectively. Nicole Mezzasalma talks to chairman Fred Kiang about the retailer’s latest developments
Downtown duty-free retailers in South Korea have been handed a marginal reprieve following a reduction in the percentage of foreign visitors required before their licences can be extended. Andrew Pentol investigates
With more than 100 retail outlets and a host of new luxury brands, Singapore Changi airport’s new terminal three offered its tenants high hopes when it opened in January. Four months later, is the performance living up to expectations? Nicole Mezzasalma speaks to the airport authority and T3’s main retailers
Despite tough trading conditions at two of its flagship locations, Delhi Indira Ghandi and Colombo Bandaranaike airports, Alpha Asia is convinced that a continual focus on customer service and staff motivation will yield results. Gavin Lipsith reports
Ridding the international terminal of duplication and expanding retail space are the priorities of the $470m project at Sydney International airport, with The Nuance Group set to benefit considerably from its new walk-through store. Nicole Mezzasalma speaks to the airport authority to learn more about its grand plans for the refurbished space
Vietnam’s largest airport, Tan Son Nhat International, opened a new terminal late last year, reflecting a growing desire to inject more tourism dollars into the economy. Kevin Rozario looks at the prospects for the retail offer at the airport in light of the tourism potential
With the A380’s arrival there has never been so much space available on board a civil aircraft. But, despite some initial airline hype, duty-free is not seeing any radical transformation. Kevin Rozario investigates
When Singapore achieved EU recognition for its security measures on liquids, aerosols and gels, many thought other Asia/Pacific countries would also follow suit and that the transfer issue would soon be resolved. Five months later, and it appears it could be some time before Singapore is joined by any other countries. Andrew Pentol reports
Japan Tobacco International’s acquisition of UK rival Gallaher has added to its momentum, and boosting the group’s presence in travel-retail is now a priority, JTI executive vice-president, deputy CEO and CFO Yasushi Shingai tells Gavin Lipsith
Summer fragrances have established themselves as
a seasonal must-have. But does the niche have longevity? Kevin Rozario finds out
The reversal of cognac’s duty-free fortunes continues apace with demand driven by China. But can the resurgence last, and is there enough stock to meet demand? Joe Bates reports
After years of struggling, the duty-free liquor business in Asia once again has a spring in its step. Joe Bates surveys a thriving category which is being driven by super- and ultra-premium sales
Can a beauty and fashion specialist make a success of one of Asia’s leading duty-free liquor businesses? This is the challenge that lies ahead for South Korea’s Lotte Duty Free as it starts its five-year liquor and tobacco concession at Seoul Incheon airport. Joe Bates reports
Retail News Analysis
The retailer operates stand-alone stores for Gucci, Burberry, Hermès and Bottega Veneta at the terminal
The retailer says 60% of its new shops at Seoul Incheon International airport will be open by June 1
Hong Kong was one of the first in the region to approach the EU for mutual recognition
The offer has been accepted by main shareholder Imperial Holding
Gate Gourmet will use ARINC’s SkyBuy sales technology for its inflight programmes
Selected news from DFNIonline.com
P&O Cruises’ Ventura and Royal Caribbean International’s Independence of the Seas are among the biggest passenger vessels in the world
Aéroports de Paris (AdP) is adding nine shops and a new healthy eating catering concept at Paris Orly South terminal
The outlets would be the first downtown duty-free shops in mainland China
The retailer opened nine stores covering 1,000sq m (10,760sq ft) on April 15
President Frank O’Connell said that all the meetings had been productive
The airport's new terminal three has received widespread praise from the regional travel-retail industry
The €37m ($58.7m) investment includes 180sq m (1,937sq ft) of new retail outlets
The airport authority ordered shops and restaurants to cut retail and food prices by an average of 25%
Liquor & Wines
Suppliers are particularly excited about the commercial opportunities presented by this summer’s Olympic Games
The rand plans duty-free sales from its current 30% to 40–50% in the next few years
At targeted duty-free locations Camus plans to create brand-specific merchandising for Moutai
The liquor and wine category will account for 13% of exhibitors at this year’s TFWA Asia Pacific show
Tobacco Products
APTRA is to meet with suppliers at the TFWA Asia Pacific event
The retailer said several external factors hindered growth in 2007
The tobacco category accounted for 20–21% of total business in 2006
Fragrances
Mainland Chinese customers have become the top spending tourist nationality at Nuance-Watson (Singapore)'s outlets
The airport’s new 1,600sq m (17,216sq ft) arrivals store is the biggest in Asia/Pacific
The company will add new brands at higher price points this year
Cosmetics
The special Fafi promotion at London Heathrow airport terminal five performed as well as expected
The products are expected to be available by mid-May
The Lancaster line now features products approved by the US Food and Drugs Administration (FDA)
The category has upstaged fragrances to become the main beauty offer at Singapore Changi airport terminal three
Confectionery & Fine Foods
Ladurée and La Maison du Chocolat will make their travel-retail debuts at the terminal
The company hopes that this month’s TFWA Asia Pacific show in Singapore will generate more growth
The supplier has warned of possible further price increases
The offer at London Heathrow airport’s new terminal features fresh levels of theatre, innovation and choice
The company is ready to focus on the travel-retail channel after gaining more than 2,000 domestic sales points in 15 countries
The supplier is returning to the TFWA Asia Pacific show in Singapore after an absence of several years
Gifts & Electronics
The 715sq ft (66sq m) store is the fourth Techshowcase in the US
The company has benefited from the change in concessions at Seoul Incheon airport
The distributor will represent four brands in its first appearance at the TFWA Asia Pacific show in Singapore
The company was established in 2006
Jewellery & Watches
The company said it had a “record year” in 2007
The company conducted a strategic review of its business in 2007
The company now has listings with Silk Air, Emirates Airlines, Air Arabia and Air Oman
The company exhibited at Duty Free Show of the Americas for the first time this year
Jewellery and watches account for about 5% of total sales in the retailer's departures shop at Delhi Indira Gandhi International
The company’s watches portfolio already includes brands such as TAG Heuer, Zenith and Dior Montres
The Canadian jewellery supplier is focusing on extending its presence with cruise operators in 2008
The company appointed Silvana Garcia as sales manager for the region in September 2007
Fashion & Leathergoods
Travel-retail sales now represent more than a third (36.2%) of Longchamp’s total Asian business
The company has just opened large boutiques in Beijing International airport’s new terminal three
The 23sq m (248sq ft) shop-in-shop will be opened in association with the airport’s main retailer, Eraman
Eurotrade used the renovation to enhance the fashion ambience of the terminal retail space on level four (north east)
The figures will reach 17 by the end of the year, excluding accessories and leathergoods outlets
Special Reports
The 2008 Beijing Olympics and the inaugural Singapore Grand Prix weekend represent significant opportunities for airport authorities, retailers and suppliers in many parts of Asia. Andrew Pentol assesses their preparations for these events and finds out how they plan to capitalise on other sporting competitions
Launch Pad
The latest product releases in travel-retail
Market Watch
Richemont’s announcement of positive results for the year to March 31 is encouraging news for the travel-retail industry, giving rise to hope that the credit crisis will not cause a global slowdown in luxury goods sales
The airport operator's total revenue grew by 24%, driven by an 18.2% increase in passenger traffic
Drop in Gucci sales hits PPR * Ambitious TAV on the rise