Industry heavyweights battle for branded outlet at Changi

Dermot Davitt

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Montblanc is in a strong position after the financial bids are revealed

A hotly contested tender for a new branded concession at Singapore Changi terminal one departure lounge west has produced four bids. DFS Venture Singapore, Montblanc Singapore, Swarovski Singapore Trading and Siam Silk Co each tendered for the three-year contract, which carries the option of a two-year extension.

DFS bid a monthly minimum guarantee of S$24,000 ($14,634) or 10% of monthly sales, whichever is higher; Swarovski bid 20% of monthly sales or S$26,000 ($15,853), while the Siam Silk Co bid a minimum of S$10,000 ($6,097) or 15% of monthly sales. But Montblanc looks in a strong position to win the contract, based on the financial bids. It bid a minimum of S$31,888 ($19,443) or 20% of sales if monthly sales are over S$220,000 ($134,146) but under S$380,000 ($231,707), or 25% of sales if the figure exceeds S$380,000. A final decision is due shortly.

In other Changi news, the tender for a mid-price fashion concept in the check-in/departures hall of T2 has closed, with six bidders contesting the contract. The top bidders were King Power, offering an Elle fashion concept; JetBest Enterprises with the brand name Carlo Rino; LianBee-Jeco working with brand Braun Buffel; and Hang Ten sunglasses. Other bidders were Giordano and BUM equipment.

King Power offered 15% of sales of S$8,500 ($5,182) in year one, S$9,000 ($5,487) in year two and S$10,000 ($6,097) in year three. Lianbee-Jeco offered 20% of sales or S$9,000. JetBest offered S$9,680 ($5,902) per month. Hang Ten offered a staggered monthly minimum based on sales levels, culminating in the offer of S$10,000 a month or 13% of sales from S$80,000 ($48,780) and higher.

Other bids due for a final decision shortly include a mid-price fashion accessories concession and a jewellery concession, both in terminal one departures.