Industry delivers mixed reaction to Changi bids

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The industry has delivered a mixed reaction to Nuance-Watson?s victory in the Singapore Changi terminal two fragrances and cosmetics contract. Nuance-Watson beat incumbent operator Saresco, as well as Alpha?SUTL, DFS Group and Weitnauer to the three-year contract with a bid of almost $70m. The concession accounts for about 55% of all fragrances and cosmetics sales at the airport.

Most suppliers interviewed in the current issue of Duty-Free News International said Nuance?s victory was a positive move from a retailing point of view, given Nuance?s record at Hong Kong International airport. And many were encouraged by the company?s promises of a strong branded approach at Changi, which compares to Saresco?s generic approach to presentation.

But the lack of space for beauty at Changi, the lowest pricing policy of Changi?s airport authority and the perceived high bid made by Nuance was also a cause for concern for some suppliers.

• The Singapore Changi terminal one fragrances and cosmetics contract, operated by Weitnauer, also comes up for bid this month. See the August 1 issue of DFNI, out now, for full analysis.