asia volume 15 no. 2

64
SEPTEMBER/OCTOBER 2011 • VOL 15, NO 2 Big in China p.18 Buy in the sky p.24 Celebrating scents p.44 E-cigarettes: The new alternative p.59 TFWA WE 2011

Upload: global-marketing-company-ltd

Post on 09-Mar-2016

220 views

Category:

Documents


2 download

DESCRIPTION

Reporting on new developments and growth in Asia, specifically in China, is a task that never grows old. China Duty Free, for instance, the biggest retailer in the country, is moving forward with amazing speed. It is almost surpassingthe growth of the economy with all the new openings it has planned.China International Travel Service, its parent company, will be opening the world's biggest duty free complex at Haitang Bay, on Hainan, an island province in China's far south. It is a region that the central government in Beijing aims to transform into a tourist magnet.

TRANSCRIPT

Page 1: ASIA Volume 15 No. 2

64 ASIA DUTY FREE & TRAVEL RETAILING TFWA WE AUGUST 2011

never look your age again

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 64

AS

IA D

UT

Y F

RE

E &

TR

AV

EL

RE

TA

ILIN

GS

EP

TE

MB

ER

/OC

TO

BE

R 2

01

1V

OL

UM

E 1

5, N

UM

BE

R 2

AS_spine_text:Layout 1 02/09/11 7:39 PM Page 1

SEPTEMBER/OCTOBER 2011 • VOL 15, NO 2

Big inChina p.18 Buy in

the sky p.24 Celebratingscents p.44 E-cigarettes: The

new alternative p.59

TFWA WE 2011

ASIA August 8.0:ASIA August Master 02/09/11 7:51 PM Page 1

23800 Global Asia cover.indd 1 11-09-06 10:02 AM

Page 2: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 63

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 63

4 0 15:39

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 2

NEW

A new vision for skin perfection.

VISIONNAIRE[LR 2412 4%]

ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS

So powerful that more than half of women considering a cosmetic procedure said they would delay it*

The innovation? Visionnaire is the 1st skincare with LR 2412, a molecule designed to penetrate throughout all the layers of the skin’s epidermis, triggering a range of micro transformations.

With Visionnaire, wrinkles appear visibly reduced, pores look minimised and imperfections such as uneven skin tone appear more even, as if corrected.

LR 2412 HAS BEEN INDEPENDENTLY TESTED IN THE UK.20 PATENTS PENDING.

*Test

ed o

n 34

wom

en co

nsid

erin

g la

sers,

� ller

s and

pee

ls

3 0

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 3

23800 Asia pg.3.indd 2-3 11-09-06 9:58 AM

23800 Global Asia cover.indd 2 11-09-06 10:02 AM

Page 3: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 63

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 63

4 0 15:39

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 2

NEW

A new vision for skin perfection.

VISIONNAIRE[LR 2412 4%]

ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS

So powerful that more than half of women considering a cosmetic procedure said they would delay it*

The innovation? Visionnaire is the 1st skincare with LR 2412, a molecule designed to penetrate throughout all the layers of the skin’s epidermis, triggering a range of micro transformations.

With Visionnaire, wrinkles appear visibly reduced, pores look minimised and imperfections such as uneven skin tone appear more even, as if corrected.

LR 2412 HAS BEEN INDEPENDENTLY TESTED IN THE UK.20 PATENTS PENDING.

*Test

ed o

n 34

wom

en co

nsid

erin

g la

sers,

� ller

s and

pee

ls

3 0

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 3

23800 Asia pg.3.indd 2-3 11-09-06 9:58 AM

23800 Global Asia cover.indd 2 11-09-06 10:02 AM

4 0 15:39

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 2

NEW

A new vision for skin perfection.

VISIONNAIRE[LR 2412 4%]

ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS

So powerful that more than half of women considering a cosmetic procedure said they would delay it*

The innovation? Visionnaire is the 1st skincare with LR 2412, a molecule designed to penetrate throughout all the layers of the skin’s epidermis, triggering a range of micro transformations.

With Visionnaire, wrinkles appear visibly reduced, pores look minimised and imperfections such as uneven skin tone appear more even, as if corrected.

LR 2412 HAS BEEN INDEPENDENTLY TESTED IN THE UK.20 PATENTS PENDING.

*Test

ed o

n 34

wom

en co

nsid

erin

g la

sers,

� ller

s and

pee

ls

3 0

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 3

23800 Asia pg.3.indd 2-3 11-09-06 9:58 AM

23800 Asia pg.3.indd 5 11-09-06 10:04 AM

Page 4: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:35 AM Page 4

Page 5: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:36 AM Page 5

Page 6: ASIA Volume 15 No. 2

eporting on new developments and growth in Asia, specifically in China, is

a task that never grows old. China Duty Free, for instance, the biggest retailer

in the country, is moving forward with amazing speed. It is almost surpass-

ing the growth of the economy with all the new openings it has planned.

China International Travel Service, its parent company, will be opening

the world's biggest duty free complex at Haitang Bay, on Hainan, an island

province in China's far south. It is a region that the central government in Beijing aims to

transform into a tourist magnet. The new complex will be between 350,000-square-meters

and 400,000-square-meters in size and will house a mix of duty free and duty paid stores.

In other big news, Hong Kong International Airport (HKIA) has opened the bidding

process for its core duty free concessions. The move is part of a major shake-up of the

airport’s travel retail operations and is likely to spark a fierce bidding battle between re-

tailers vying for the contracts.

Airport operator Airport Authority Hong Kong (AAHK) has called tenders for the

liquor and tobacco, perfumes and cosmetics, and airside general merchandise concessions.

The liquor and tobacco concession is currently operated by Sky Connection, while Nuance

Watson (HK) runs perfumes and cosmetics and airside general merchandise concessions.

The existing two concessionaires that operate the three categories have confirmed that

they will bid again, but are expected to face competition from rivals, including Dufry, Au-

togrill, Lagardère Services Travel Retail and Gebr Heinemann.

South Korean retailers, including Lotte Duty Free and Shilla Duty Free, are also ex-

pected to bid, along with Chinese retailers China Duty Free Group and Sunrise. Industry

insiders are also predicting a strong showing by locally-based retailers DFS and King Power

Group (HK).

Bidding for the concessions closes on October 28 at 11 a.m. Hong Kong time.

All in all, prepare yourselves for a busy season ahead in Asia!

See you in Cannes.

Kind regards,

Hibah Noor

Editor

[email protected]

6 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Letter from the Editor

Asia Free & Travel Retailing (ISSN 1360-9548) ispublished annually by Global Marketing CompanyLtd., 26 Pearl Street, Mississauga, Ontario L5M 1X2Canada. It is distributed in the following countries,states, regions and territories on the Asian continentand in the Pacific Rim: Australia, Bangladesh, Bhutan,Brunei, Cambodia, China, Fiji, French Polynesia, Guam,Hawaii, Hong Kong, India, Indonesia, Japan, Macao,Malaysia, Maldive Islands, Myanmar, Nepal, NewCaledonia, New Guinea, New Zealand, Philippines,Saipan, Samoa, Singapore, South Korea, Sri Lanka,Taiwan, Thailand, Tonga, Vanuatu and Vietnam. Postageis paid at London, England.

The views expressed in this magazine do not necessarilyreflect the views and opinions of the publisher oreditor. Spring/TFAP 2008, Vol. 12, No. 1. All rightsreserved. Nothing may be reprinted in whole or inpart without written permission from the publisher.© 2008 Asia Duty Free & Travel Retailing.

Asia Duty Free & Travel Retailing26 Pearl Street

Mississauga, Ontario L5M 1X2 CanadaTel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHERAijaz Khan

[email protected]

EDITORIAL DEPARTMENT

EDITORHibah Noor

[email protected]

Liquor and TobaccoRick Lundstrom

[email protected]

ART DIRECTORPatrick Balanquit

[email protected]

CONTRIBUTORSElizabeth Kerr

Lorna Strickland

ADVERTISING SALES

ADVERTISING & MARKETING MANAGER, DUTY FREE TITLES, AMERICAS

Beatrice PitoccoTel: 1 416 908 1734

[email protected]

DIRECTOR OF SALES, DUTY FREE TITLES, EUROPE

Meena BediTel: +33 5 53702538

Mob: +33 6 [email protected]

CIRCULATION & SUBSCRIPTION MANAGERTeresa Garrity

[email protected]

Asia Free & Travel Retailing (ISSN 1360-9548) is

published annually by Global Marketing Company

Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2

Canada. It is distributed in the following countries,

states, regions and territories on the Asian continent

and in the Pacific Rim: Australia, Bangladesh, Bhutan,

Brunei, Cambodia, China, Fiji, French Polynesia, Guam,

Hawaii, Hong Kong, India, Indonesia, Japan, Macao,

Malaysia, Maldive Islands, Myanmar, Nepal, New

Caledonia, New Guinea, New Zealand, Philippines,

Saipan, Samoa, Singapore, South Korea, Sri Lanka,

Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

The views expressed in this magazine do not necessarily

reflect the views and opinions of the publisher or

editor. TFWA WE September/October 2011, Vol. 15,

No. 2. All rights reserved. Nothing may be reprinted

in whole or in part without written permission from

the publisher. © 2011 Asia Duty Free & Travel Retailing.

Asia Duty Free & Travel Retailing26 Pearl Street

Mississauga, Ontario L5M 1X2 Canada

Tel: 1 905 821 3344; Fax: 1 905 821 2777

www.dutyfreemagazine.ca

PUBLISHER

Aijaz [email protected]

EDITORIAL DEPARTMENT

EDITOR

Hibah [email protected]

ASIA ASSOCIATE EDITOR

P. [email protected]

CONCESSIONS, LIQUOR, & TOBACCO EDITOR

Ryan [email protected]

ART DIRECTOR

Patrick [email protected]

CONTRIBUTORS

Andrew BrooksJames RossDan Ridout

ADVERTISING SALES

ADVERTISING & MARKETING MANAGER

Kim [email protected]

CIRCULATION & SUBSCRIPTION MANAGER

Deepa [email protected]

Asianboom

ASIA August 8.0:ASIA August Master 02/09/11 6:40 PM Page 6

Page 7: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:36 AM Page 7

Page 8: ASIA Volume 15 No. 2

OPERATOR NEWS: DELHI DUTY FREE SERVICES

Capital gains It's been just over a year since Delhi got an airport

terminal fit for the seat of power in a major emergingeconomy. And the anchor retailer in its world-classT3 has wasted no time in profiting from a uniqueopportunity

OPERATOR NEWS: KING POWER GROUP

Betting big A renovation program in the casino enclave of Macau

seems to have prompted King Power (HK) to take aserious punt on expansion. Asia Duty Free spoke tothe group's Travel Retail & Duty Free ManagingDirector, Sunil Tuli

IN BRIEF HKIA issues three retail licence tender invitations �

Nuance-Watson (HK) unveils Talika at HKIA � LATR’swork on the Parker and Guess brands confirms themas market winners � The Wandering Monkey isback in Cannes � New members and sponsors forMEDFA conference

TOP STORY: CHINA DUTY FREE

Big in China China Duty Free has a virtual monopoly in its huge

home market. But that doesn't mean it's sitting onits hands

OPERATOR NEWS: KOREAN AIR

Buy in the sky Korean Air’s revolutionary Duty-Free Showcase

opens a new front in the fight for inflight sales

S E P T E M B E R / O C T O B E R 2 0 1 1 • V O L 1 5 , N O 218

34

2810

18

24

248 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Content

ASIA August 8.0:ASIA August Master 02/09/11 7:55 PM Page 8

Page 9: ASIA Volume 15 No. 2

AIRPORT NEWS: CHANGI AIRPORT GROUP

Singapore zing Changi Airport Group's retail record over the past

12 months is enviable - again. How does theairport operator do it?

COMPANY NEWS: L’ORÉAL GROUP

On the radar From exhibitors to brands to attendees, Asia Duty

Free has your inside scoop on what’s in store forsome of this year’s leading brands

COMPANY NEWS

Lancôme releases Visionnairebased on LR 2412 molecule

L'Oréal breaks new ground with a revolutionaryskincare product

BEAUTY BEAT: FRAGRANCES

Celebrating scents Introducing the newest fragrances for the season

BEAUTY BEAT: SKINCARE & COSMETICS

The allure of beauty Cutting edge creams and colorful cosmetics

promise to deliver optimum results for travelingconsumers

COMPANY NEWS: FERRERO

Global appeal For Ferrero Travel Market, standardization and

localization make a great mix

ASIAN FAVORITES

Supply and demand When the Asia market declares a preference,

travel retail’s market makers take note

COMPANY NEWS: DIAGEO

A powerhouse in the making Sales of Shui Jing Fang in Asia travel retail have

tripled in the past two years, and if Diageo has anysay in the matter, this is will be the beginning of amuch longer success story

REVITALIZING TOBACCO

Changing times The tobacco industry balances growth, regulatory

restrictions and social responsibility

NEW & NOTABLE Kilbeggan 18 Year Old � Davidoff Chinese New

Year pack � Chupa Chups Travel Tin

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 9

34

45

44

52

56

58

60

4636

38

42

ASIA August 8.0:ASIA August Master 02/09/11 8:31 PM Page 9

Page 10: ASIA Volume 15 No. 2

Nuance-Watson (HK) unveils Talika at HKIA

10 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

In BriefAirport Authority Hong Kong has invited in-

terested duty free operators to participate for

anchor retail tenders including the airside gen-

eral merchandise, the perfumes and cosmetics,

and the liquor and tobacco concessions – at

both Terminal 1 and Terminal 2 of Hong Kong

International Airport (HKIA).

Comprising 10 to 15 outlets with sizes from 20-

square-meters to over 750-square-meters for

each tender licence, these three anchor tenders

comprise one of the biggest invitations ever in

HKIA since the airport opened. Most of the

tendered outlets are located in the restricted

areas on Level 5 and 6 of the North Satellite

Concourse and SkyPier in Terminal 1, with one

store located in Terminal 2.

These three licences (airside general merchan-

dise, perfumes and cosmetics, and liquor and

tobacco) offer incomparable business opportu-

nities at HKIA. According to HKIA Retail

Tracking Survey for April 2011, over 70% of

passengers at HKIA are Asian, of which 27%

are from the Chinese Mainland.

The outlets for airside general merchandise

demonstrate a high penetration rate of 75%

with customer spending of HK$888 (US$114)

on average. A balanced mix of high-end and

medium-priced brands is designed to cater to

the diverse customer demand.

Meanwhile, customers spend HK$1,050

(US$135) on average on perfumes and cosmet-

ics with a 50% penetration rate, reassuring the

growth with sophisticated demand for both

breadth of desirable brands and depth of prod-

uct offerings within individual brands.

As a key attraction amongst HKIA’s visitors,

liquor and tobacco shows a 46% penetration

rate while customers spend HK$608 (US$78)

on average on the category. A positive accom-

panying demand is seen for luxury and

medium-priced popular brands.

Furthermore, 84% of the discerning, high-net

worth passengers are tertiary educated and

55% of them are professionals, managers, exec-

utives or proprietors. The corresponding high

spending ability of this passenger group offers

solid business prospects for potential busi-

nesses.

HKIA is one of the world’s busiest international

airports, with passenger volume up 8% year on

year to over 52 million passengers in the 12

months ended on July 31 this year. Passengers

would spend over four hours at HKIA with an

average shopping spending of approximately

HK$1,118 (US$143) per person per visit.

The tender will close on October 28, 2011 at

11:00 a.m. Hong Kong time. For details visit

“Tenders & Notices section” at www.hongkon-

gairport.com or call +852 2183 3326, +852

2183 3072, +852 2183 3296 or +852 2183 3208.

Nuance-Watson (HK) announced the launch of leading French skincare specialist, Talika’s new Light Duo technologicalskincare system, at Temptation Duty Free shops at Hong Kong International Airport (HKIA). Light Duo is an innovative

blended product that satisfies users’ growing demand for a top quality solution to theirwhitening and anti-aging needs.

This is the first time that Nuance-Watson (HK) has showcased such an ad-vanced technology-based beauty treatment device at its Temptation Duty Freeshops. In further enhancing the launch’s vital initial impact, Nuance-Watson (HK)and Talika have pioneered a slate of innovative marketing activities targeted atboth HKIA passengers and the airport community as a whole.

To this end, those who work at the airport will be invited to comeand learn about Talika at the tailored workshop for the travel retailindustry. At the consumer level, Nuance-Watson (HK) has set upeye-catching promotional area at Temptation Duty Free shop. Inaddition to introducing products to passengers, a helpful Talika skin-care specialist will be on hand and giving out attractive promotionaloffers. At the same time, beauty advisors at Temptation Duty Freeshops are standing by with up-to-the-minute Talika tech-nologies and product knowledge.

Talika’s new Light Duo technological skincare system

continued on pg 14

ASIA August 8.0:ASIA August Master 02/09/11 6:46 PM Page 10

Page 11: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:37 AM Page 11

Page 12: ASIA Volume 15 No. 2

Malaysia Airports (Niaga) Sdn. Bhd. (281310-V)(A Wholly-Owned Subsidiary of Malaysia Airports Holdings Berhad)

3rd Floor, Airport Management Centre, KL International Airport,64000 KLIA, Selangor Darul Ehsan, Malaysia.

http://eraman-malaysia.klia.com.mywww.eramandutyfree.com

12 ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2011

ASIA August_ASIA August Master 11-08-31 8:38 AM Page 12

Page 13: ASIA Volume 15 No. 2

Where Else But Eraman!The Premier Name In Travel Retail & Duty Free in Malaysia

It�s only natural if you prefer to shop with us. Given our amazing variety of products,competitive prices and attentive service, we promise you it will be

a travel retail, fashion and F&B experience like no other!

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 13

ASIA August_ASIA August Master 11-08-31 8:38 AM Page 13

Page 14: ASIA Volume 15 No. 2

“At Nuance-Watson (HK), we always aspire to bring to ourpassengers at HKIA exciting and innovative products,” saysLay Leng Tan, General Manager for Perfumes & Cosmetics,Technology, Nuance-Watson (HK). “As the airport’s leading re-tail operator, we also do everything possible to entice peoplewho work in the airport with unprecedented privileges. TheTalika launch is the latest example of how we are continuingto work closely with brand and vendor partners to deliver onthese goals at Asia’s premier transportation hub.” she added.

Talika’s award-winning Light Duo is an LED-based therapydevice that harnesses the power of light wavelengths to re-solve common skin concerns. Its attractive and compactdesign is easy to use, small enough to pack in hand lug-gage and easy to recharge. In launching the product atHKIA, Talika is adding other star items to the personal carerange that currently includes the Lipocils unique treatmentfor eyelash growth, Bust Serum and Hand/Feet Therapytreatment. In making such best-selling technology-basedhigh-performance skincare devices available at HKIA, Nu-ance-Watson (HK) is proud to add yet another dimensionto its unrivalled beauty product range.

14 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

LATR’s work on theParker and Guess

brands confirms themas market winners

Les Accessoires Travel Retail (LATR) has been verybusy lately getting the Parker and Guess brandsinto more airport locations. International DirectorDavid Dayan reports that Parker setups are rollingalong nicely with six to eight new openings amonth and an overall increase of 38%. More than50 new points of sales have opened in eightmonths in the Americas, in locations such as Seat-tle, New York, Washington, Montevideo andMiami. “These first implantations showed a sellout ofmore than 88%,” Dayan says. And with the re-cent “Parker 5th Technology” launch, he adds,further rapid growth seems assured.

continued on pg 16

continued from pg 10

ASIA August 8.0:ASIA August Master 02/09/11 6:47 PM Page 14

Page 15: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 15

ASIA August_ASIA August Master 11-08-31 8:38 AM Page 15

Page 16: ASIA Volume 15 No. 2

Parker’s “5th Technology” system promises to drive category growth

16 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

1 1 14:41

The first half of 2011 has beenvery positive for the European ter-ritory and MEA, Dayan says, enu-merating just some of thesuccesses: contracts with DufryGroup in Moscow, Saveria in Vi-enna, Dee Tax Fashion in Beirut,Aer Rianta in Greece, Zainab Ltd.in Pakistan, Iraq Duty Free in Iraq,etc.

For the second half of the year,LATR will focus on developingParker’s presence in Asia even fur-ther. The brand is already firmlyand very visibly ensconced in sig-nal locations such as Hong Kong,Singapore and Bangkok, but LATR

wants to get themost out of othermarkets in the re-gion such as thePhilippines, China,Taiwan, Malaysia andIndonesia.

After signing a distribution agree-ment with Guess Jewelry in March,Dayan is happy to announce open-ings at airports in Moscow, Monte-video, Panama, Sharjah, PuntaCana, Manila, Kuala Lumpur, Chinaand more. To help maintain the mo-mentum, LATR will be showcasingGuess Fall 2011 and Spring 2012jewelry collections in Cannes.

“LATR, with its team, will continueto strengthen our presence withnew openings throughout theglobal travel retail market,” Dayansays. “In addition to keeping upthe pace of openings for Parkerand Guess in airport duty free lo-cations, for 2012 we’re workingon special collections of eachbrand that we’ll be taking into theinflight and cruise markets.”

The Wandering Monkeyis back in Cannes

This year the Wandering Monkey will have a new stand,which will be unveiled at the TFWA show in Cannes. It willbe the start of a new adventure for Wandering Monkey fol-

lowers and will show the company’s dedication to providing products that are educational, fun, interactive andportable for boys and girls from three years and older, and tailor made with travel retail in mind.

Wandering Monkey will be launching a selection of games and gifting items to sit alongside its Activity Pack andcoloring/stickers range of products, all with the traveling child in mind.

Working in partnership with customers has been a key strategy of the company for 2011 and one that they intendto continue in 2012 and beyond. One example of this is the joint promotion with Condor Ferries this year in theirsummer brochure. Using the colorful vibrant graphics associated with the Wandering Monkey, the company hassupported games and fun for kids onboard as well as a coloring competition for all the children to get involved in.

Having won the recent Airline Retail Award at ARC this year for the most promising supplier to inflight retail, theWandering Monkey invites buyers to visit at Marine Village S4.

For more information contact Jonathan Corbett on +447786 950139 or email him at [email protected]

continued from pg 14

ASIA August 8.0:ASIA August Master 02/09/11 6:53 PM Page 16

Page 17: ASIA Volume 15 No. 2

F O R I NFO RMAT ION, P LE ASE CON TAC T :

TR AV E L . R E TA I L @ TO M M Y.COM

ASIA August_ASIA August Master 11-08-31 8:38 AM Page 17

Page 18: ASIA Volume 15 No. 2

China Duty Free stores in Hangzhou airport

Big China Duty Free has a virtualmonopoly in its huge homemarket. But that doesn't mean it's sitting on its hands

Regional Report: China

in China

As China's turbo-powered

economy continues to

surge ahead, the country's

biggest duty-free retailer is

doing more than just grow-

ing with it. That retailer - China Duty Free

Group - looks set to steal a march on the

economy that's supporting its rapid expan-

sion. The Chinese economy is widely ex-

pected to become the world's biggest

sometime around 2020, but more than half a

decade before that date, China Duty Free

Group's parent company, China Interna-

tional Travel Service, plans to open the

world's biggest duty-free complex.

The new complex will be between

350,000-square-meters and 400,000-square-

meters in size and house a mix of duty-free

and duty-paid stores.

It will be located at Haitang Bay, on

Hainan, an island province in China's far

south that the central government in Beijing

aims to transform into a tourist magnet to

rival the likes of resort destinations in Thai-

land and South Korea - although with dis-

tinctly Chinese characteristics.

"The size of [the] Haitang Bay [complex]

hasn't been decided yet," says China Duty

Free Group (CDFG) Vice-President Charles

Chen. "It will depend on the requirements of

the different brands, and on those of the local

partners for things like restaurants, bars and

cafes. We're talking with the brands and an-

alyzing budgets and many other things, so it's

very complicated.

"We'll be making an announcement at

[the TFWA World Exhibition in] Cannes," he

says.

Apart from retail and F&B, Chen says the

complex will also include a luxury brand ex-

hibition area and a designer hotel. He says

the opening is planned for 2013 or 2014.

Opening such a large project may strike

some as overambitious, but CDFG has good

reason to be bullish. The retailer already op-

erates a 7,000-square-meter duty-free retail

complex in the city of Sanya, also on Hainan,

which has proved to be a huge success.

By P. Convery

ASIA August 8.0:ASIA August Master 02/09/11 6:54 PM Page 18

Page 19: ASIA Volume 15 No. 2

1 1

ASIA August_ASIA August Master 11-08-31 8:39 AM Page 19

Page 20: ASIA Volume 15 No. 2

Customers waiting for China Duty Free to open doors at the Sanya Complex

Regional Report: China

CDFG put the finishing touches to its Sanya

Galleria in September last year, in anticipation of

a change in China's duty-free rules that have seen

sales there go through the roof.

On April 20, that change arrived - a tax re-

bate scheme allowing mainland Chinese visi-

tors to the island to save up to 35% on

domestic-market prices when purchasing at

CDFG's Sanya complex.

The response among consumers was imme-

diate and overwhelming, and CDFG Marketing

Director Antonio Hau admits the retailer wasn't

prepared for such an onslaught.

"There were so many people that we had to

close the shop temporarily to limit the number

of customers in it," he says. "The level of sales ab-

solutely surprised us."

And the sales surge has proved to be more

than just opening-week excitement, with contin-

ued strong demand and a May Day holiday that

saw lines of shoppers waiting outside the doors

of the complex from 5am and more than 60,000

cramming into it on the third day alone.

Chen expects strong sales to continue, thanks

in part to the school holiday season, and says the

brands sold in the complex have enjoyed a sub-

stantial boost.

"The brands - especially the luxury brands -

are very satisfied," he says. "Just a few years ago,

they were very reluctant and very hesitant about

[listing in] our shop [in Sanya], but now they're

very active and interested, and asking whether it's

possible to supply their products to our shop.

Now they realize that the purchasing power of

Chinese people is real, and that it's just amazing."

Even though Hainan continues to be one of

CDFG's main areas of focus, the retailer has been

no slouch when it comes to pursuing growth op-

portunities in other parts of China.

One of its business strategies is to target air-

ports in China's so-called second-tier cities, and

to bid for the entire airside retail proposition at

those airports.

CDFG first adopted this approach at

Hangzhou's Xiaoshan International Airport

just over a year ago, and Chen regards it as

both a success in its own right and as a step-

ping stone on the way to securing more multi-

store concessions.

"In the past we operated only some of the

duty-free shops [at Hangzhou], and the duty-

paid and other retail and F&B were operated by

other retailers," he explains. "This produced dif-

ferent styles of decoration. We told the airport au-

thority it wasn't good for the duty-free shopping

and that it would be better to expand our deco-

ration in a higher-class way. Now, under just one

operator, we've been able to use the same decor,

the same colors and the same sales staff, and it's

now a beautiful airport.

"Hangzhou has been very successful, and the

airport authority has seen that CDFG can do not

only duty free, but also duty paid and F&B as well.

ASIA August 8.0:ASIA August Master 02/09/11 6:56 PM Page 20

Page 21: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:40 AM Page 21

Page 22: ASIA Volume 15 No. 2

That's changed other airports' [attitudes to

the single-operator model], too, like at Nanjing,

where we do everything - duty free, duty paid

and F&B," Chen says, referring to CDFG's re-

cently launched operations at the city's Lukou

International Airport.

Chen says CDFG is pursuing a similar strat-

egy at the yet-to-be-named new international

airport in the southwestern city of Kunming.

"We've just signed an agreement to run all

the retail - duty free and duty paid - in interna-

tional departures," he says. "We'll sign the actual

contract very soon. The new airport [in Kun-

ming] is very beautiful - maybe even better

than T3 in Beijing. And it's bigger. It should of-

ficially open on January 1, and that's when our

stores will open there, too."

CDFG has also signed a strategic coopera-

tion agreement with Dalian's Zhoushuizi Inter-

national Airport. Chen says the retailer will be

taking part in "some form of partnership" in

the northeastern city's airport, adding that it is

in discussions with other airports in the cities

of Chongqing, Xian and Chengdu.

"[Those] other airports will also be likely to

pursue [the single-operator] arrangement, be-

cause now they realize that CDFG can do it all,"

he says.

Chen emphasizes that CDFG's approach to

this business model has been based on creating

a better airport experience for passengers rather

than just a single-minded focus on the bottom

line.

"It's been very important to tell the airports

that we really want to help them," he says. It's

not just about generating money for our com-

pany - we want to help them improve every-

thing in the environment in [the passenger]

areas. We try to convince them that we can do

better, and that as a result of the profits will also

be better than before."

He says that as airport operators in coun-

tries such as China and other rapidly develop-

ing economies begin to appreciate the potential

of non-aeronautical revenues, "we're on the

edge of quite a big change in the airport busi-

ness."

Yet surely all this growth in CDFG's airport

business must have its limits. So

how does the retailer propose to

overcome the organic barriers to

further expansion as its airport

portfolio becomes more devel-

oped? One answer seems to lie in

China's much-vaunted high-speed

railway revolution. With nearly

10,000km of track, China already

has the world's longest high-speed

rail network, and the government

plans to more than double its size

by 2020. And with tickets priced at

about half the cost of most airfares,

fast rail is already becoming a pop-

ular alternative to flying.

CDFG hasn't missed this, and

Chen says its first travel-retail stores

on the high-speed rail network

should open in August.

"We're investigating opportunities in venues

such as railway stations," he says. "On the high-

speed railway and in airports, the customers are

the same - they're in the upper income bracket

and they're people that travel a lot."

It's on that upper income bracket that

CDFG has set its sights.

"Next year, China may become the world's

biggest market for luxury goods," says Chen.

The country has already overtaken the US,

previously the second-biggest luxury market,

and now stands behind only label-obsessed

Japan. It's a development that, despite giving a

huge boost to CDFG's business, Chen finds

hard to fathom.

"We can't understand why people are so

crazy for those things - even me, and I'm selling

these goods," he explains. "People see a logo and

say, 'Yes, I want that'. I really can't explain why!"

For a fast-expanding duty-free retailer with

a virtual monopoly in a turbo-charged econ-

omy where travelers' spending power is soar-

ing, it must be a vexing problem to have.

Regional Report: China

The bustling perfume andcosmetics area by thecashier in the SanyaComplex

ASIA August_ASIA August Master 11-08-31 8:41 AM Page 22

Page 23: ASIA Volume 15 No. 2

That's changed other airports' [attitudes to

the single-operator model], too, like at Nanjing,

where we do everything - duty free, duty paid

and F&B," Chen says, referring to CDFG's re-

cently launched operations at the city's Lukou

International Airport.

Chen says CDFG is pursuing a similar strat-

egy at the yet-to-be-named new international

airport in the southwestern city of Kunming.

"We've just signed an agreement to run all

the retail - duty free and duty paid - in interna-

tional departures," he says. "We'll sign the actual

contract very soon. The new airport [in Kun-

ming] is very beautiful - maybe even better

than T3 in Beijing. And it's bigger. It should of-

ficially open on January 1, and that's when our

stores will open there, too."

CDFG has also signed a strategic coopera-

tion agreement with Dalian's Zhoushuizi Inter-

national Airport. Chen says the retailer will be

taking part in "some form of partnership" in

the northeastern city's airport, adding that it is

in discussions with other airports in the cities

of Chongqing, Xian and Chengdu.

"[Those] other airports will also be likely to

pursue [the single-operator] arrangement, be-

cause now they realize that CDFG can do it all,"

he says.

Chen emphasizes that CDFG's approach to

this business model has been based on creating

a better airport experience for passengers rather

than just a single-minded focus on the bottom

line.

"It's been very important to tell the airports

that we really want to help them," he says. It's

not just about generating money for our com-

pany - we want to help them improve every-

thing in the environment in [the passenger]

areas. We try to convince them that we can do

better, and that as a result of the profits will also

be better than before."

He says that as airport operators in coun-

tries such as China and other rapidly develop-

ing economies begin to appreciate the potential

of non-aeronautical revenues, "we're on the

edge of quite a big change in the airport busi-

ness."

Yet surely all this growth in CDFG's airport

business must have its limits. So

how does the retailer propose to

overcome the organic barriers to

further expansion as its airport

portfolio becomes more devel-

oped? One answer seems to lie in

China's much-vaunted high-speed

railway revolution. With nearly

10,000km of track, China already

has the world's longest high-speed

rail network, and the government

plans to more than double its size

by 2020. And with tickets priced at

about half the cost of most airfares,

fast rail is already becoming a pop-

ular alternative to flying.

CDFG hasn't missed this, and

Chen says its first travel-retail stores

on the high-speed rail network

should open in August.

"We're investigating opportunities in venues

such as railway stations," he says. "On the high-

speed railway and in airports, the customers are

the same - they're in the upper income bracket

and they're people that travel a lot."

It's on that upper income bracket that

CDFG has set its sights.

"Next year, China may become the world's

biggest market for luxury goods," says Chen.

The country has already overtaken the US,

previously the second-biggest luxury market,

and now stands behind only label-obsessed

Japan. It's a development that, despite giving a

huge boost to CDFG's business, Chen finds

hard to fathom.

"We can't understand why people are so

crazy for those things - even me, and I'm selling

these goods," he explains. "People see a logo and

say, 'Yes, I want that'. I really can't explain why!"

For a fast-expanding duty-free retailer with

a virtual monopoly in a turbo-charged econ-

omy where travelers' spending power is soar-

ing, it must be a vexing problem to have.

Regional Report: China

The bustling perfume andcosmetics area by thecashier in the SanyaComplex

ASIA August_ASIA August Master 11-08-31 8:41 AM Page 22

ASIA August_ASIA August Master 11-08-31 8:41 AM Page 23

Page 24: ASIA Volume 15 No. 2

24 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Buy in the skyKorean Air’s revolutionary Duty-Free Showcaseopens a new front in the fight for inflight salesKorean Air’s revolutionary Duty-Free Showcaseopens a new front in the fight for inflight sales

Everyone had to push themselves

to the limit,” says Heather Cho of

her brainchild. The Senior Vice

President of the Catering & In-

flight Sales Business Division of

Korean Air was the person who initially con-

ceived of an inflight Duty-Free Showcase located

aboard the carrier's massive Airbus A380 airlin-

ers. After several years of development by a con-

sortium of partners from around the world, the

first Duty-Free Showcase took flight on June 17

this year.

Duty-Free Showcase means that, for the first

time in history, passengers can browse a product

showcase while en route to their destination. The

concept was unveiled in a dramatic mockup dis-

play at the TFWA Asia Pacific exhibition in Sin-

gapore in May, a few weeks before the first

Duty-Free Showcase took to the skies aboard a

KAL flight from Seoul’s Incheon International

Airport to Tokyo Narita International. The flight

was flown by the first of KAL’s planned 10

A380s, just days after the airline took delivery of

the airliner at a ceremony at Airbus headquarters

in Toulouse, France.

Cho came up with the Duty-Free Showcase

idea in 2005, the same year the Airbus A380

made its maiden flight. As you might imagine,

the steps that had to be gone through in design-

ing Duty-Free Showcase, and the number of

partners who had to work closely as a team to

make the idea a reality, made the project a daunt-

ing one.

In addition to Korean Air, primary team

members included Scental – the L'Oréal Luxury

Products Division Travel Retail Asia Pacific –

AIM Aviation, an English company that designs

and engineers aircraft interiors, and of course

Airbus Industrie. Much of the design and devel-

opment work took place at the main Airbus fa-

cility in Toulouse, in addition to the outfitting of

the A380 prior to delivery.

“The challenge was enormous: create a de-

sign that was compact but still offered a genuine

consumer experience,” Cho says. “Korean Air

had to think like a boutique retailer, Airbus was

to accommodate the first real boutique on

board, and AIM Aviation, the engineer

and manufacturer, had to de-

velop numerous technical

innovations to allow this

whole novelty to fit within

the extremely rigorous technical

and safety requirements of the in-

dustry.”

Korean Air approached Scental

to handle the design of SkyShop

because of its known expertise and

experience in the luxury market

and retail design. Scental was

quick to sign on, immediately see-

ing the idea's huge potential.

“It is clearly the first time an

airline is investing so much cre-

ativity and time to propose such a

new experience to its customers,”

says Olivier Dubois, former

L’Oréal Luxury Products Interna-

tional Asia/Pacific Travel Retail Division Scen-

tal General Manager. “We are really proud at

L'Oréal to have been considered the best part-

ners.” Dubois considers Scental's knowledge of

travel retail, especially when it comes to cus-

tomer behavior and category management, to

have been its key contributions to the inflight

store project.

Sebastien Guesney, who was Scental's Retail

Design and Merchandising Director during the

six-year development process, recalls the role

that Scental played in devising the best way to

maximize the limited space available.

The ‘dovecote’ fragrance display:the wall behind each shelf is sold

as advertising space

By Andrew Brooks

Operator News: Korean Air

ASIA August 8.0:ASIA August Master 13/09/11 12:16 PM Page 24

Page 25: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:41 AM Page 25

Page 26: ASIA Volume 15 No. 2

“Our first input was in the architecture it-

self,” he says, “defining the Duty-Free Show-

case and all its technical constraints with

Airbus cabin definition and engineering team

in Toulouse, France. Then we studied the cat-

egory management in detail, to ensure the

best and most attractive product catalog

would be visible and palpable.”

Duty-Free Showcase offers five main cate-

gories of display items: perfumes, liquors,

cosmetics, accessories and health supple-

ments. Items for sale are selected from the

best-selling products in Korean Air’s duty free

catalog. At the moment, perfumes and cos-

metics account for about one-third of Korean

Air’s inflight duty free sales, while liquor ac-

counts for about a quarter.

Duty-Free Showcase has enough room to

display up to 54 items in full view. Alcohol

products are available in limited amounts,

and Duty-Free Showcase does not feature any

tobacco goods. A cabin crew member is as-

signed to work sales in Duty-Free Showcase,

while traditional inflight catalog sales con-

tinue to be offered by cart as usual in addition

to Duty-Free Showcase.

Chris Whetter, Sales/Project Director for

AIM Aviation, explained some of the details

of Duty-Free Showcase to aviation magazine

airliners.de at Aircraft Interiors Expo in Ham-

burg in April. Whetter noted that the Duty-

Free Showcase in fact consists of five separate

units, each weighing about 130 kg (286 lbs.)

and capable of storing some 30kg (66 lbs.) of

product. Each unit has a dedicated purpose.

One consists of nine LCD screens which can

be used, for example, to display a ‘brand of

the month’ promotion depending on which

brands have promotions planned.

Another ‘dovecote’ style unit holds and

displays fragrances. This consists of 24 small

shelves, each of which can hold a sample. The

back facing can be sold as ad space. There’s a

liquor unit, and dedicated units for particu-

larly high-value items like watches and jew-

elry, where the products are displayed behind

clear PPSC (polyphenylsulphone) plastic

doors. The staircase from the upper deck en-

ters the Duty-Free Showcase space between

the liquor and cosmetics units.

Passengers can browse, try samples if they

want, and then place their order with the

cabin member staffing the counter. They re-

turn to their seats and their bagged purchases

are brought to them later in the flight.

The Duty-Free Showcase will be aboard all

ten of the A380s that Korean Air has on order.

The initial service to Japan has started to be

complemented by flights to Hong Kong and

New York, after which Paris and Los Angeles

will be added.

The launching of the inflight Duty-Free

Showcase comes at a time when inflight duty

free sales for Korean Air have been struggling.

After an uptick in the first half of 2010 occa-

sioned by a rise in passenger numbers, sales

fell off in the latter part of the year and have

continued soft through 2011, Cho says. Ko-

rean Air attributes this at least in part to in-

discriminate promotion on the part of

airport duty free shops, which have eroded

the inflight business. The monthly revenue

has gradually decreased since June 2010 and

the slump is still continuing, the airline says.

Nonetheless, Duty-Free Showcase repre-

sents an imaginative new step for inflight

duty free, one that KAL, which leads the

global market in inflight duty-free sales,

hopes will create a substantial new revenue

stream in addition to offering a totally new

approach to the inflight market.

26 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Korea AirOperator News :

The inflight boutique maximizes everyavailable square foot of space

ASIA August 8.0:ASIA August Master 02/09/11 7:00 PM Page 26

Page 27: ASIA Volume 15 No. 2

“Our first input was in the architecture it-

self,” he says, “defining the Duty-Free Show-

case and all its technical constraints with

Airbus cabin definition and engineering team

in Toulouse, France. Then we studied the cat-

egory management in detail, to ensure the

best and most attractive product catalog

would be visible and palpable.”

Duty-Free Showcase offers five main cate-

gories of display items: perfumes, liquors,

cosmetics, accessories and health supple-

ments. Items for sale are selected from the

best-selling products in Korean Air’s duty free

catalog. At the moment, perfumes and cos-

metics account for about one-third of Korean

Air’s inflight duty free sales, while liquor ac-

counts for about a quarter.

Duty-Free Showcase has enough room to

display up to 54 items in full view. Alcohol

products are available in limited amounts,

and Duty-Free Showcase does not feature any

tobacco goods. A cabin crew member is as-

signed to work sales in Duty-Free Showcase,

while traditional inflight catalog sales con-

tinue to be offered by cart as usual in addition

to Duty-Free Showcase.

Chris Whetter, Sales/Project Director for

AIM Aviation, explained some of the details

of Duty-Free Showcase to aviation magazine

airliners.de at Aircraft Interiors Expo in Ham-

burg in April. Whetter noted that the Duty-

Free Showcase in fact consists of five separate

units, each weighing about 130 kg (286 lbs.)

and capable of storing some 30kg (66 lbs.) of

product. Each unit has a dedicated purpose.

One consists of nine LCD screens which can

be used, for example, to display a ‘brand of

the month’ promotion depending on which

brands have promotions planned.

Another ‘dovecote’ style unit holds and

displays fragrances. This consists of 24 small

shelves, each of which can hold a sample. The

back facing can be sold as ad space. There’s a

liquor unit, and dedicated units for particu-

larly high-value items like watches and jew-

elry, where the products are displayed behind

clear PPSC (polyphenylsulphone) plastic

doors. The staircase from the upper deck en-

ters the Duty-Free Showcase space between

the liquor and cosmetics units.

Passengers can browse, try samples if they

want, and then place their order with the

cabin member staffing the counter. They re-

turn to their seats and their bagged purchases

are brought to them later in the flight.

The Duty-Free Showcase will be aboard all

ten of the A380s that Korean Air has on order.

The initial service to Japan has started to be

complemented by flights to Hong Kong and

New York, after which Paris and Los Angeles

will be added.

The launching of the inflight Duty-Free

Showcase comes at a time when inflight duty

free sales for Korean Air have been struggling.

After an uptick in the first half of 2010 occa-

sioned by a rise in passenger numbers, sales

fell off in the latter part of the year and have

continued soft through 2011, Cho says. Ko-

rean Air attributes this at least in part to in-

discriminate promotion on the part of

airport duty free shops, which have eroded

the inflight business. The monthly revenue

has gradually decreased since June 2010 and

the slump is still continuing, the airline says.

Nonetheless, Duty-Free Showcase repre-

sents an imaginative new step for inflight

duty free, one that KAL, which leads the

global market in inflight duty-free sales,

hopes will create a substantial new revenue

stream in addition to offering a totally new

approach to the inflight market.

26 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Korea AirOperator News :

The inflight boutique maximizes everyavailable square foot of space

ASIA August 8.0:ASIA August Master 02/09/11 7:00 PM Page 26 ASIA August_ASIA August Master 11-08-31 8:41 AM Page 27

Page 28: ASIA Volume 15 No. 2

Delhi Duty Free ServicesOperator News :

28 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

It's been just over a year since Delhi got anairport terminal fit for the seat of power in a major emerging economy. And the anchorretailer in its world-class T3 has wasted notime in profiting from a unique opportunity

i D

elhi Duty Free Services (DDFS) may be just over a year

old, but it's come a long way in a very short time. The

retailer - a joint venture between Aer Rianta Interna-

tional (ARI), local retailer Indian Duty Free Services

(IDFS) and airport operator Delhi International Air-

port Ltd (Dial) - celebrated its first birthday in Terminal 3 of the Indian

capital's Indira Gandhi International Airport at the end of July, and it's

now looking to consolidate the stellar gains it has made since it burst onto

the Indian travel-retail scene.

DDFS Chief Executive Steve O'Connor says: "Two or three months

back, there was phenomenal growth the whole time. Now it's tapering off

a bit, so we're getting a bit of breathing space, but up until then we were

just chasing our tails the whole time.

"Like most stores, you open and you get the surge, because it's all new

and exciting and everybody wants to see it," he says. "[A reduction in sales

growth] is almost inevitable. It's not that sales growth is stopping, by any

means, but it's tapering off and we're getting to grips with the volumes and

we're more at ease with the levels of expectation."

O'Connor says that now the business has begun to settle down after its

frenetic first year, the priority is fine-tuning.

"It's making sure we have everything right with what we're operating

at the moment and that all our ducks are in line when it comes to meeting

the customers' requirement in service, speed, efficiency and product

ranges," he says. "And likewise with our suppliers - making sure they're

getting the exposure that's been agreed and the presentation and the

branding, making sure they're getting exactly what's required."

O'Connor says that India's reputation has sometimes suffered as a result

of shoddy business practices, and that reliability and consistency are the

key foundations on which to build a strong duty-free business in the coun-

try.

"With our suppliers, it's important that what has been agreed is also

honored," he says. "The same goes for our customers - it's important that

they get used to the products being there and that those products are ex-

actly the same as they are everywhere else in the region. It's very important

that there are no discrepancies and that they're of the same standard."

He says the fact that T3 is so well designed has been a major boost to

DDFS's business.

"If you'd seen Delhi a few years ago, the shop looked like a cold store. It

didn't matter what they had on the shelves, you didn't trust it, you didn't

believe it, no matter what they told you. So you just bought elsewhere.

Delhi Duty Free Services celebrates its first birthday in Terminal 3 of Delhi International Airport Ltd.

By P. Convery

ASIA August 8.0:ASIA August Master 02/09/11 7:01 PM Page 28

Page 29: ASIA Volume 15 No. 2

CLASSIC MACALLAN. A RICH, INTENSE CHARACTER FROM THE WORLD’S MOST PRECIOUS WHISKY.Exclusively available in Global Travel Retail.

All our experience distilled into one special collection.

ASIA August_ASIA August Master 11-08-31 8:42 AM Page 29

Page 30: ASIA Volume 15 No. 2

Delhi Duty Free ServicesOperator News :

12880_CKEF_210X50.indd 1 1/08/11 11:08:36

`"[But] the new T3 is spectacular. The whole focus right through is

really good. The longest walk for passengers is from duty free to the gates

- everything else is pretty close together. You get into the airport and

check-in is right in front of you, then Immigration and Security are di-

rectly behind that, and straight ahead is duty free. It's maybe 100 meters

from check-in to the duty free, so that helps us. And also, people can

look into duty free while they're waiting at Immigration and Security.

They have a view into the entrance of the duty free area, so that helps

build anticipation and it whets travelers' appetites a little bit."

O'Connor says another underpinning of DDFS's success at T3 has

been, quite simply, awareness of the quality of the new duty-free oper-

ation.

"The key element is that you have individuals knowing that we have

an airport of international standard and duty free of an international

standard here in Delhi," he explains. "It's a learning curve for people

who are so used to not having it. When they travel from Delhi T3 the

first time, obviously they're not too sure of what's in arrivals, so you lose

sales [among those first-time T3 travelers]. But more and more we're

seeing our arrivals business growing as travelers become familiar with

it. That's made our arrivals business almost as big as our departures

business."

Asked if DDFS has taken a bold approach to launching its operations

at T3, O'Connor laughs and says: "I'd say 'calculated'," adding that the

retailer didn't rush into its new and relatively undeveloped market.

"The key is waiting for the right moment," he says. "For the right op-

portunity and linking up with the right partners, who, going forward,

will bring value to the table, rather than jumping in too quickly only to

find that it doesn't work or that you don't have the right partners or the

right facilities.

"There's no point going charging over the hill if you're not too sure

what's on the other side. That's why I'd say our approach here has been

calculated. Linking up with our local partner, IDFS, which has been op-

erating here for a number of years, has been a benefit because they know

the local market and likewise with Dial, the airport operator."

And O'Connor says the passengers aren't the only ones on a learning

curve.

"We're still trying to better understand the mentality of the Indian

consumer and all the nuances we need to come to terms with that don't

necessarily hold true elsewhere," he explains. "They're simple things,

like the fact that people don't buy tobacco when their kids are with

them, because they don't want to encourage them to smoke. It's also

like that with alcohol, to a degree. We wouldn't have an issue with those

things in the West, but here these are things that people look at differ-

ently. These are the types of things we need to come to terms with."

He observes that another key difference between the Indian duty-

free market and those in other countries is the importance of the arrivals

business.

"It's just the sheer volume that Indian travelers buy in arrivals," he

says. "There are allowances, but the vast majority of people use up their

allowances because the [domestic market] duties are just so high. And

there's always that feeling when you're shopping downtown, that you're

never too sure whether what you're buying is a legitimate product or

whether it's counterfeit, so there's an emphasis on having that duty-free

stamp, indicating quality and authenticity."

O'Connor says that in the time DDFS has been operating at T3, in-

creasing awareness of the new retail proposition among Indian travelers

has given the retailer scope to develop the nature of its offer, encouraging

its customers to trade up and try new products.

TRIPLE DISTILLED,TWICE AS SMOOTH, ONE GREAT TASTE.

Please Drink Jameson Responsibly www.jamesonwhiskey.com

Jameson_TR_A4.indd 1 17/08/2011 18:15

ASIA August_ASIA August Master 11-08-31 8:42 AM Page 30

Page 31: ASIA Volume 15 No. 2

Please contact Deepa J at +1 905-821-3344 ext.#21 or email [email protected]

Subscribe to Asia Duty Free & Travel Retailingmagazine and its monthly eNewsletter to keep you informed of the latest news. Simply fill out and return this subscription card to the following address, or fax with your credit carddetails to +1 905-821-2777

SIGN UP NOW!One Year – 1 issue and 12 eNewslettersUS$60.00

Two Years – 2 issues and 24 eNewslettersUS$80.00

company name

name

mailing address

city province/state

country postal code/zip

area code phone area code fax

email

credit card number

� Enclosed is a check or moneyorder made payable to GlobalMarketing Company Ltd.

� Bill me

Payment in U.S. funds must accompany th is subscr ip t ion card .

� SIGN ME UP! I would like to receive a subscription to Asia Duty Free & TravelRetailing magazine

� 1 year US $60.001 magazine Issue & 12 eNewsletters

� 2 year US $80.002 magazine Issues & 24 eNewsletters

( ) ( )

signature

expiry datey ym m

Asia Duty Free & Travel Retailing magazine26 Pearl Street Mississauga,Ontario,Canada L5M 1X2 Tel:1-905-821-3344 Fax:1-905-821-2777 email: [email protected]

Mail check made payable to Global Marketing Company Ltd.:

SUBSCRIPTION FORM

� � �

AS_subform:Layout 1 11/04/10 6:06 PM Page 1

Page 32: ASIA Volume 15 No. 2

32 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Delhi Duty Free ServicesOperator News :

"Indian consumers have spare cash now, and opportunity, and are

no longer so restricted in their buying behavior because they can't afford

things," he explains. "If [for example] you only have Johnnie Walker

Black [Label], they'll all drink that, so it's about giving them alternatives.

They're eager to try new things. And it's also a matter of prestige,

which revolves not just around the family but also around work and

friends and people's social networks. It's a part of showing your success

and your ability and part of a desire to move up, as well, and get the lat-

est and the newest.

"To separate yourself from the herd in India is difficult, because the

herd is huge. So anything you can do to advance your image or prestige

or social standing is always beneficial, and trading up is one way of doing

that. With things like alcohol, there are some things that people at a

middle-class level can afford to move up to, in order to give themselves

that element of prestige and status."

If Delhi's international airport now offers an opportunity for Indian

travelers to set themselves apart from the crowd with prestige purchases

at DDFS's store, surely status-minded travelers in Mumbai, India's com-

mercial capital, with its mix of Bollywood flashiness and deeply flawed

modernity, are a fertile market for more of the same.

O'Connor says the duty-free offer at Mumbai's Chhatrapati Shivaji

International Airport would probably be more like that at Delhi if the

airport reflected the same kind of aspirational lifestyle. And with a new

terminal in development, that may be about to happen. So is DDFS

looking south to expand in India's business capital?

"Of course," says O'Connor. "We're as greedy as the next man!"

He's candid about DDFS's plans to grow its business in other airports

in India.

"Our objective is to use DDFS as a springboard for launching other

operations by showing the airport operators that this is the standard we

can provide," he says. "We're looking at all the main airports as oppor-

tunities come up. People can come in and have a look and see that we're

not just talking the talk but actually doing it. That's one of our strong

selling points. And that's particularly true here in Delhi, even in terms

of just getting our products here. Other airports are near the sea, but

we're inland, so the logistics are an even greater nightmare [than for

other airport retailers]. But even with all of that, we're still achieving

substantial growth.

"So we have that in our back pocket when we're talking to [airport

operators]. We can play the ARI and the ARI Middle East card as well.

From a regional perspective we have very strong local partnerships. We

also have IDFS as a strong local partner, and that can support us as well,

which is very important, too.

So should we be looking out for a Delhi Duty Free shop at Mumbai's

international airport anytime soon?

"Historically, Aer Rianta has used its brand all over," O'Connor says.

"But there's not much point in being in Mumbai and being called Delhi

Duty Free!"

If Delhi Duty Free's rapid rise to the top tier of India's duty-free in-

dustry is any indication of the company's ability to fulfill its ambitions,

you might want to be looking out for "Mumbai Duty Free" in the not

too distant future.

DDFS Beauty Festival

ASIA August 8.0:ASIA August Master 02/09/11 7:04 PM Page 32

Page 33: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:42 AM Page 33

Page 34: ASIA Volume 15 No. 2

King Power operates domestic stores in Chinese airports including Xian and Harbin (pictured)

A renovation program in the casino enclave of Macau seemsto have prompted King Power (HK) to take a serious punt onexpansion. Asia Duty Free spoke to the group's Travel Retail& Duty Free Managing Director, Sunil Tuli

King PowerOperator News:

King Power Group (HK) Travel

Retail & Duty Free Managing Di-

rector Sunil Tuli is a man with

growth on his mind.

Invigorated by his company's ongoing store

renovation program at Macau International Air-

port, Tuli says King Power is now targeting Hong

Kong International Airport and Singapore's

Changi Airport for further expansion.

"All the tenders are up for Hong Kong," he

says, "and we'll be bidding for the main ones -

liquor & tobacco, perfumes & cosmetics and gen-

eral merchandise."

He says that King Power has also put in bids

at Changi, adding that the retailer will consider

bidding for concessions in any category, in any

suitable locations, so long as there's a sound busi-

ness case to do so.

King Power has weathered the economic tur-

moil of recent years well, and Tuli regarded the

recession as a chance to reassess and remodel the

company's business. He says that sales have re-

covered strongly, especially in Hong Kong and

China, despite what he calls "ups and downs" in

Singapore before a return to steady growth.

But it's the company's Macau operations that

have really taken off.

"Sales have been fantastic," Tuli says. "They've

shot through the roof - it's incredible."

Asked which categories have shown the most

spectacular sales growth, he answers: "Liquor &

tobacco, luxury products, jewelry, perfumes &

cosmetics, and now also confectionery."

In other words, almost all of them.

King Power is in the midst of renovating its

stores at Macau's international airport, adopting

a casino theme to reflect the main lure of the ter-

ritory.

"It's all being done right now," he says. "We've

just completed our chocolate shop, decorated

with playing cards. Our liquor & tobacco shop is

not ready yet, but the plan is to decorate it with a

main light on the ceiling in the shape of a roulette

wheel.

"I'd say we're about 30% [of the way through

the renovation program]. It's an ongoing process

and it's going to continue until early next year,"

Tuli explains.

"We've got a multi-brand fashion store that's

been completed, and the confectionery and pack-

aged foods shop is complete and three boutiques

have been done - Dunhill, Burberry and Bally.

Now we've got to do the main liquor & tobacco

store and the big perfumes & cosmetics shop.

Also we've got to do watches, we have three more

boutiques coming up - Coach, Ferragamo and

another high-end brand - and then we've got an-

other store opening selling general merchandise."

He says the passenger profile in Macau has

changed, bringing in customers from a wider

range of countries than those in greater China.

"Now there are all sorts of nationalities. The

majority of passengers are still mainland Chinese

and Taiwanese, but with all the casinos that have

opened in the past few years, there are also a

whole lot of other people coming in - passengers

from Japan, [South] Korea, Australia, India,

Malaysia, Indonesia..."

Nevertheless, Tuli says that Chinese mainlan-

ders remain King Power's most important cus-

tomer group at present, across almost all

categories but especially in luxury goods.

And that's something that's unlikely to change

going forward, as the retailer continues its push

into the duty-paid business in China's domestic

airport terminals.

King Power opened a 74-square-meter multi-

brand store with Tumi, Lacoste, Safilo and Lux-

ottica at Shanghai's Pudong Airport in April last

year. That December it cut the ribbon on an 88-

square-meter China Gold boutique and a liquor,

tobacco and packaged foods store. And by April

this year it had opened three boutiques - a 46-

square-meter Swarovski store, a 46-square-meter

Nautica shop and a 25-square-meter Kiehl’s bou-

tique.

King Power is also at the airport in

Chongqing, operating a 56-square-meter Lacoste

boutique and two L’Oréal luxury cosmetics

stores, each measuring 150-square-meters.

But that's certainly not where the retailer's

China ambitions end.

"We're also in domestic at the airports in Xian

and Harbin," says Tuli, "and we're looking at

other domestic terminal airport opportunities in

different cities in China."

King Power's strategy is nothing if not a mil-

lion-dollar bet on growth in China and beyond.

And that seems fairly appropriate, coming from

a travel-retailer flush with its recent winnings in

Macau.

By P. Convery

ASIA August 8.0:ASIA August Master 02/09/11 7:07 PM Page 34

Page 35: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 35

12881_CKOS_210X50.indd 1 1/08/11 10:44

ASIA August_ASIA August Master 11-08-31 8:43 AM Page 35

Page 36: ASIA Volume 15 No. 2

Changi Airport Group Airport News:

1 0

For Singaporean airport operator

Changi Airport Group (CAG), suc-

cess seems to be simple: it's just a

matter of doing what you do well,

and then doing it better.

The airport ended 2010 having handled a

record 42 million passengers – 13% more than

the previous year – and with concession sales 15%

higher.

"We hope to see this trend continuing, says

Changi Airport Group Executive Vice-President

of Commercial Lim Peck Hoon. “In the first six

months of this year, Changi Airport handled 22.4

million passengers, an increase of 10.7% com-

pared to the same period last year. If traffic

growth at Changi maintains its course, we should

also be looking forward to having our retail sales

increase in tandem this year."

One measure of CAG's success is the number

of new brands it has attracted.

In November 2010, a new luxury fashion con-

cept named The Fashion Gallery opened in the

airport's Terminal 2 Departure Transit Lounge.

At 764-square-meters, it's one of the region’s

biggest multi-brand airport fashion outlets, car-

rying 17 internationally renowned luxury de-

signer fashion brands, including Changi Airport

debutants such as agnès b., Loewe and Yves Saint

Laurent.

Lim says: "Other notable brands that opened

in the transit area this year include So Chocolate,

Polo Ralph Lauren, Hugo Boss, Shanghai Tang,

Godiva, Candy Empire, Cedele, Bonia Natural

and Adidas. And in the second half of the year,

new brands that will introduce their first stand-

alone shops include Marc by Marc Jacobs,

Longchamp and Alfred Dunhill in the transit

area, and Cotton On, Home Fix and Souperli-

cious in the public areas."

She says the promotions the airport runs are

a key driver of sales in its burgeoning retail busi-

ness, citing the first run of the "Be a Changi Mil-

lionaire" draw last year, which boasted a cash prize

of S$1 million (US$823,000) and which the air-

port operator is repeating this year.

"In addition to the second run of the ‘Be a

Changi Millionaire’ draw that we are organizing

in conjunction with Changi Airport’s 30th an-

niversary celebration, we have the ‘Fabulous Fri-

day’ deals promotion," Lim explains. "It offers

travelers and visitors at Changi the opportunity

to grab some of the season’s hottest buys at a frac-

tion of their original retail prices."

The promotion runs for 30 weeks until 30 No-

vember 2011 and will feature a different product

at a bargain price every Friday. Shoppers must

spend a minimum of S$30 (US$24) in a single

transaction at the airport using their Visa card or

S$60 (US$49) by any other means to enjoy the

Fabulous Fridays deals.

Besides draws and discounts, Lim says CAG's

experiential promotions and events have also

helped to boost retail sales and raise the profile of

the airport as a shopping destination.

"The Master of Spirits event that DFS held in

partnership with Changi Airport in March gen-

erated a lot interest in high-end collectible liquor,"

she says. "Some of the products from the event

were also showcased in the main concourse area

at Terminal 1, and that garnered quite a lot of buzz

among our travelers.

"And in May, we worked with DFS and Dia-

geo to introduce a Johnnie Walker Greg Norman

golf simulator booth in Terminal1. That initiative

contributed to a significant increase in sales of

Johnny Walker Blue Label during the event pe-

riod."

Redevelopment of the airport's terminals has

also played a

key role in ex-

panding and

improving the airport's retail offer, and in helping

the airport maximize its already formidable non-

aeronautical revenues, and Lim says there's plenty

more of it to come.

"The upgrading of Terminal 1 will be com-

pleted in early 2012 after three-and-a-half years

of extensive works," she says. "Upon completion,

it will boost concession space by over 10% - more

than 2,000-square-meters - and increase the

number of concessions by about 25% in both the

transit and public areas, allowing Changi Airport

to expand its retail and F&B offerings.

Across 20,000-square-meters of space, Termi-

nal 1 will feature over 120 retail, F&B and service

outlets.

"In the public area, concession space will be in-

creased and enhanced with a wide variety of retail

and F&B offerings," she adds.

"We have also embarked on a development

project at Terminal 3 to expand and revamp the

retail space in the public areas," Lim says. "Cover-

ing Basement 2 and Levels 2 and 3, the project will

increase the total floor space for retail and F&B by

about 20%, to more than 10,000-square-meters.

At the Departure Check-in Hall on Level 2, a new

row of retail shops has been created. In addition,

reconfiguration works are being undertaken on

Level 3 to further optimize the retail layout."

She says all the new spaces in the transit areas

have already been leased, and that in the public

areas there will also be leasing opportunities for

newly created space in Terminal 3's Basement 2.

As Changi looks forward to rounding out

2011 with another round of robust retail results,

it seems there's no end to the apparently bound-

less energy of its commercial division.

Lim Peck Hoon, ExecutiveVice-President of CommercialChangi Airport Group

Singapore zingChangi Airport Group's

retail record over the past12 months is enviable -

again. How does the air-port operator do it?

Artistic rendering of T3,Changi Airport, Singapore

By P. Convery

ASIA August 8.0:ASIA August Master 02/09/11 7:08 PM Page 36

Page 37: ASIA Volume 15 No. 2

Success in ITR comes in many colours.

As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision. Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts.For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.

639.090f Coorporate Advertentie.indd 1 09-08-11 14:5412879_DCWMCU_210X50.indd 1 1/08/11 13:34:42

ASIA August_ASIA August Master 11-08-31 8:43 AM Page 37

Page 38: ASIA Volume 15 No. 2

Exhibitors TFWA News:

38 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Fratelli Rosetti Where are you based? For the past 58 years, Fratelli Rossetti has been based in Parabiago near Milan, Italy. What are some new collections that you will be exhibiting during the show? We will be presenting some very representative models of our Spring/Summer 2012 Collection, many ofwhich are iconic products that combine contemporary proposals of outstanding quality with a heritage builtup over the course of 60 years of work. Working on colors and styles, we give a new take to tradition. Exclu-sively for travel retail, we have created a women’s jacquard handbag line.What are your best sellers in travel retail?Fratelli Rossetti’s new strategy is to focus on growing the brand in travel retail. We have experience withshoes in several points of sales in airports but this is our first Cannes exhibition. How long have you been supplying travel retail and duty free?We started some years ago, supplying shoes in Beirut and Brussels airports. In Beirut we sell around 800pairs per season.Who are you reaching out to during the show?Consumers, travelers and tourists know our name but are not always aware of the contents of our productsor our history. Giving the brand more exposure will enable us to educate people and let them discover thatcraftsmanship still exists with affordable prices. The TFWE exhibition is a great opportunity to meet dutyfree operators and local actors. Fratelli Rossetti’s big challenge today is to further expand in South East Asiaand the Americas.

Spring Summer 2012 Collection Sophie Weber, Area Manager,

Fratelli Rosetti

TravaloWhere are you based? Travalo’s parent company, Aydya Limited, is based in the U.K.What are some new collections that you will be exhibiting during the show?We will be exhibiting the new Travalo Excel refillable perfume spray. Travalo Excel carries up to 30% morefragrance than the Travalo Classic, so you can travel longer before refilling. The new display and storagecase protects the Excel from scratches and optimizes cart and counter space. The advanced aluminumspray head is totally drip free and comfortable to press. What are your best sellers in travel retail?Currently the Travalo Classic refillable perfume spray with 185 travel retail listings globally. How long have you been supplying travel retail and duty free?We started in the spring of 2010 and have been going strong since.Who are you reaching out to during the show? It’s our first ever booth at the show, so our objectives are more generalized than some other exhibitors. Theshow allows us to demonstrate and showcase the Travalo opportunity to a wider audience, and also allowsus to introduce the new Travalo Excel. We spent six months gathering feedback from tens of thousands ofusers, and then six months making an array of changes that, in terms of features, retain the best and im-prove the rest. Cannes is the perfect place to present the results of these efforts.

TRAVALO EXCELYusuf Okhai, Managing Director,

Aydya Limited

ToscowWhere are you based? Toscow is an Australian brand. The company was established in 1984 in Sydney. What are some new collections that you will be exhibiting during the show?We will launch our new collection Celestial Cascade at TFWA Cannes. This new collection is inspired by theshimmering elegance of a waterfall. Celestial Cascade includes pendants, rings, earrings and bangles. Thebangles are designed to cater for the requirements of the travel retail, especially inflight sales where freesize is preferred. The bangles are flexible and can fit almost any wrist. What are your best sellers in travel retail?From the debut launch of Glitter Glamour to the recent collection such as Spangle Splendour and ParadiseGarden, our colorful crystal jewelry has always been popular and sell extremely well.How long have you been supplying travel retail and duty free?Ever since the company was established in 1984, we have been supplying to travel retail. As a matter offact, the company was totally dedicated to travel retail when it was first established. Until now, travel retailis still the core of our business.Who are you reaching out to during the show?During the show, we would like to catch up with our existing customers. Due to the broad geographic loca-tions of our customers, it is a good opportunity to meet our customers from all over the world.

Celestial Cascade Golden BangleFrancis Ng, General Manager,

Toscow

By Kim Carrera

From exhibitors to brands to attendees, Asia Duty Free has your inside scoop on what’s in store for some of this year’s leading brands

ASIA August 8.0:ASIA August Master 02/09/11 8:26 PM Page 38

Page 39: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 39

ASIA August_ASIA August Master 11-08-31 8:43 AM Page 39

Page 40: ASIA Volume 15 No. 2

40 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

1 0

Jack Russell Malletier Where are you based?

Jack Russell Malletier is based in Paris, France.

What are some new collections that you will be exhibiting during the show?

We will be promoting the new SS 2012 collection that includes a full line of trunks, bags, luggage and trol-

leys, SLG in leather, coated canvas in leather, as well as accessories for iPhone, iPad and other smart-

phones in leather, coated canvas or polycarbonate.

What are your best sellers in travel retail?

Some of our best sellers include travel items such as Travel Bag 48HOO, Trolley’s and SLG, iPhone Sleeves.

How long have you been supplying travel retail and duty free?

We started with Air France back in 2010.

Who are you reaching out to during the show?

We would like to reach new airline companies and duty free operators worldwide looking for original and

exclusive products.

SS 2012 CollectionCederic Flachard, General Director -

Duty Free ManagerJack Russell Malletier

Pandora Jewelry A/S Where are you based? Pandora Travel retail is based in our head office on the outskirts of Copenhagen in an area called Glostrup. What are some new collections that you will be exhibiting during the show? We will be displaying a broad selection of products from all of our collections including Moments (Charm collection)through to Love Pods our 18kt gold collection. We will also have some very exciting new introductions.What are your best sellers in travel retail? Our Charm collection still is a major share of our business and within this, classic items such as hearts, our miniature air-plane, suitcase, 'wrapped present' and Murano glass charms are always winners. However this year we have also seen asignificant increase in sales of rings as we have introduced our Touch and Feel displays into an increasing number ofoutlets worldwide.How long have you been supplying travel retail and duty free? This is very new for Pandora as we only started just over two years ago. In that time we have opened our own conceptstores in airports such as Copenhagen, Singapore and Sydney; entered into partnerships with many of the major TR oper-ators such as WDF/Aldeasa, Heinemann, Nuance, Aer Rianta International, MSC and Lagadere; gone from no airline list-ings to now being onboard over 25 carriers globally.Who are you reaching out to during the show?Naturally this is a mixture of building on existing relationships both with the land-based retailers and also airlines to seehow to take the business to the next level, plus in particular we are actively seeking own store locations globally.

Moments Charm CollectionJulian Mullins, Travel Retail Director,

Pandora Jewelry A/S

Polaroid

Cosmic P8150B SunglassesRebecca Harwood Lincoln, Global

Duty Free Manager, Polaroid Eyewear

Where are you based?

The company is based in Zurich, Switzerland.

What are some new collections that you will be exhibiting during the show?

We will be exhibiting our new 2012 collections, Best Under the Sun, Suncovers (glasses that fit over an opti-

cal frame), 3d glasses, Polaroid Junior, Hello Kitty Premium and Disney Premium sunglasses.

What are your best sellers in travel retail?

Best sellers in 2011 have been P4036a, P8150b, P4034a. We are forecasting that best sellers in 2012 will

include P4250a, P4212b and P8224b, P8211a.

How long have you been supplying travel retail and duty free?

The company has been supplying travel retail for 15 years.

Who are you reaching out to during the show?

We hope to further strengthen our relationships, establish new contacts and grow our travel retail business.

Wolford AG

String BodySonja Bernhard, Customer Service Travel Retail & Duty Free, Wolford AG

Where are you based?

The company is based in Zurich, Switzerland.

What are some new collections that you will be exhibiting during the show?

During the Cannes exhibition we will be presenting our Spring/Summer 2012 collection including the String Body

collection. The String Body makes an impact with the deep, transparent neckline, decoratively tied with a satin

band. The winged chiffon sleeves provide a summery look.

What are your best sellers in travel retail?

Popular products are our Individual 10 Tights, Satin Touch 20 Tights, Fatal Dress and Lisbon String Body.

How long have you been supplying travel retail and duty free?

Approximately 10 years, but at a small level.

Who are you reaching out to during the show?

We hope to further strengthen our working relationships with worldwide operators, airport authorities and airlines.

ASIA August 8.0:ASIA August Master 02/09/11 8:07 PM Page 40

Page 41: ASIA Volume 15 No. 2

www.clogau.com

The Gold Of RoyaltyTFWA World Exhibition 18-23 September 2011 Yellow Village D35

Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1Clogau_Advert_-_CannesAd_Duty_Free_Magazine_2011.indd 1 03/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:2603/08/2011 15:48:26

ASIA August_ASIA August Master 11-08-31 8:43 AM Page 41

Page 42: ASIA Volume 15 No. 2

42 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

The core of the L’Oréal Group’s

Lancôme brand is skincare, and

at the moment the most im-

portant news in that line is the

release of Visionnaire [LR 4212

4%] Corrector Serum. Based on molecular re-

search that has uncovered what L’Oréal calls “a

miraculous new molecule” – the LR 4212 in

the product’s name – Visionnaire promises to

rejuvenate skin, imparting finer texture, eras-

ing wrinkles, reducing pigmentary and vascu-

lar irregularities and tightening pores.

“There is a reason, why we call it the ‘Fun-

damental Corrector’ – for a ‘New Vision of

skin perfection.’ Upon application, one can

immediately see the skin being transformed,”

explains Stefan Lehner, Brand Director

Lancôme for Travel Retail Worldwide, L’Oréal

Luxe. “Such major scientific breakthrough in

skincare does not happen every three months.

We are particularly excited about this skincare

launch and are putting all our energy, creativ-

ity and excitement in this successful launch.

We are convinced that we can recreate a simi-

lar success story as we continue building with

Génifique Youth Activator.”

The “miracle molecule” in Visionnaire

'self-propels' through the layers of the epider-

mis, to set off what Lancôme calls a series of

tissular micro-transformations. The result, the

company says, is that “skin becomes finer,

wrinkles are erased, pigmentary and vascular

irregularities are reduced and pores are tight-

ened.”

The company’s researchers have always paid

attention to the processes that plants use to re-

pair themselves. When damaged, plants pro-

duce a “signal molecule” called jasmonic acid,

which activates healing processes in damaged

tissues and makes them more resistant.

The performance of the new Visionnaire LR

2412 4% product has been tested on Hispanic,

Caucasian, Asian and Afro-American complex-

ions. Lancôme says that the product can be

used on all skin types, including sensitive skin,

and on the eye contour regardless of the time

of year or time of day. Besides the uniqueness

and newness of the new molecule, Visionnaire

LR2412 4% is proven to be effective on every

type of skin and on all different skin carnations.

“We have tested the product on four differ-

ent ethnicities, always with outstanding re-

sults. Visionnaire LR2412 4% truly is a

transversal skincare innovation for each and

every woman on this planet – particularly

those who are currently not Lancôme skin

care users. Third, the powerful molecule

LR2412 has 100% tolerance – even around the

eye contour – and is active on 100% of the

subjects tested, which makes it perfectly suit-

able even for sensitive skin types,” says Lehner.

He continues: “Test results on Asian

women are just amazing. They especially love

the visible skin perfecting properties of Vi-

sionnaire LR2412 4%. This product integrates

itself perfectly in the Lancôme skincare rou-

tine. One starts with Génifique to activate,

then applies Visionnaire LR2412 4% to cor-

rect, before using one’s skin care cream(s).

“Exclusively for the Asian clientele we have

developed in addition a Visionnaire Emulsion

and Lotion, to offer a complete ‘Skin Perfec-

tion’ Routine,’” says Lehner.

The bottle design is inspired by a high-

technology mix of glass and metal, centred on

a fusion of silver and malachite green.

The company’s skincare focus for Septem-

ber and October will be on Visionnaire. Apart

from the regular POS and animation pro-

grams, it will use different visuals, i.e., testi-

monials with different ethnicities at the same

POS in order to communicate that Vision-

naire LR2412 4% truly is a product for every

woman.

Lancôme releases Visionnairebased on LR 2412 moleculeL'Oréal breaks new ground with a revolutionary skincare product

Visionnaire [LR 4212 4%] Corrector Serum

L’Oréal GroupCompany News:

ASIA August 8.0:ASIA August Master 02/09/11 7:10 PM Page 42

Page 43: ASIA Volume 15 No. 2

middleeastexclusive.com

27-29 February 2012Dubai World Trade Centre

Where buyers and brands do business

Taking place in Dubai – the commercial heart of the UAE and the wider Middle East – MiddleEast Exclusive is the definitive travel retail and duty free event, for the most dynamic airtransport region in the world.

Middle East Exclusive showcases duty free brands, luxury goods, and new products fortravel retail buyers, duty free outlets, agents and decision makers, who are keen to sourcehigh quality goods for the region’s thriving travel retail sector.

The travel retail world comes to Dubai!

Take part in this special event – which includes business networking opportunities and aunique VIP buyers’ programme – and build your sales in this booming marketplace.

For Stand Booking and to know more about the Hosted Buyers programme, please contactthe organiser, Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates. Telephone +971 (0)4 282 4737, or email [email protected]

The World Travel Retail, Duty Free & Luxury Goods Exhibition

Supported byVenue

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 43

ASIA August_ASIA August Master 11-08-31 8:44 AM Page 43

Page 44: ASIA Volume 15 No. 2

Vera Wang LovestruckCompany: Coty PrestigeDescription: The floral scentcaptures mouth-watering pinkguava and mandarin, followedby a delicate mix of tuberoseand lotus blossom. The drydown includes precious woodsand sheer musk Booth: Marine Village Foyer 3

44 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Vince CamutoCompany: Parlux FragrancesDescription: Vince Camuto is afloral chypre created by celebratedperfumer Steve Demercado. Thedelicate outline of the Camuto

family crest surrounds the capand appears on a ribbonedmedallion adorning the facadeof the angled bottleBooth: Green Village M64

Introducing the newestfragrances for the season

Viva Rock by John RichmondCompany: EuroitaliaDescription: Viva Rock opens on thesparkling and energizing blend of starfruit and Sicilian mandarin with anunexpected touch of cactus flower. Theheart reveals floral notes of damascenarose, watery jasmine and delicate cherryblossom. The dry down seals asophisticated rock’n’roll femininityenveloped by delicate musks, sensualambergris and elegant orrisBooth: Riviera Village RE2

Deep by GapCompany: InterParfums Inc.Description: This new scent for him capturesthe natural green masculine notes of sequoialeaves, mountain sage and nettle, filteredthrough water. These wet green notes arecombined with warm masculine notes of canoecedar and eucalyptus bark. A reflective greenbottle is reminiscent of the color found in adeep forest canopy viewed through filtered lightBooth: Ambassador Village V9

212 VIP MenCompany: PuigDescription: The new masculinefragrance completes the 212 VIPrange and represents the styleand attitude of VIP men in NewYork. The fragrance is a cocktailof vodka with frozen mint, limecaviar and vibrant spices inspiredby the scent and attitude of themost exclusive partiesBooth: Riviera Village RE19

Attimo L’Eau FloraleCompany: Ferragamo ParfumsDescription: Fashion designerSalvatore Ferragamo unveils itsnewest creation: Attimo L’EauFlorale, which is a celebrationof femininity with a chicpersonal touch by the designer.The outer packaging expressesthe femininity and romance ofthe fragrance with the softcolor paletteBooth: Riviera Village RC13

Kaloo Fluffy Dragée gift box Company: The Millennium Essence CompanyDescription: This gift box contains a soft toytwice the size of a regular Kaloo plush toy,along with clinically tested, 100ml alcohol-freescented water, featuring subtle notes ofalmond and vanilla. The box is beautifullydecorated with a satin ribbonBooth: Ambassador Village U5, U7, U11

Celebratingscents

Oh, Lola! By Marc JacobsCompany: Coty PrestigeDescription: A sparkling fruity floral openswith a refreshing top note of raspberry with apeony heart and a vanilla dry down. It comeswith the same signature floral top bottledesign and features a feminine pink facetteBooth: Marine Village Foyer 3

Beauty Beat: Cosmetics & Skincare

ASIA August 8.0:ASIA August Master 06/09/11 12:15 PM Page 44

Page 45: ASIA Volume 15 No. 2

Cutting edge creams and colorfulcosmetics promise to deliver optimumresults for traveling consumers

The allure of beauty

Anti-Aging Neck CreamCompany: La PrairieDescription: This cream effectively helps torecondition and recontour skin that becomesdehydrated and slackens with age. The resultis tighter, smoother, firmer skin with anoticeable lessening of age-related symptomsBooth: RivieraVillage RE6

Jasmine Body Cream& Rose Body CreamCompany:JurliqueInternational Pty LtdDescription: This uniquebiodynamic blend ofingredients provides an easilyabsorbed and powerful solutionfor creating softness andeliminating dryness. Thenourishing body cream isenriched with jojoba oil,shea butter and cocoabutter that leaves dryskin hydrated andlustrousBooth: YellowVillage F49

Luminys Silk Company: Micys Company, Pupa MilanoDescription: This baked eyeshadow isavailable in a new, satin version for asophisticated and elegant make-up result.The vibrant colors are silky and soft to thetouch. The eyeshadow can be used with adry look for elegant and sophisticated eyesor a wet look for intense and bright colors

Black Rose Cream MaskCompany: SisleyDescription: A new soothingskincare mask that instantlyrefreshes, smoothes and energizesthe face thanks to a rich formulathat includes vitamins and anti-aging active ingredient. It is availablein 60ml Booth: Harbour Village, Costa Magna

Beauty Beat: Fragrances

Skinleÿa – anti-aging lift foundationCompany: SisleyDescription: All of Sisley skincaretechnology can be found in thisnew foundation, sheer and silky asa second skin and able to correctthe visible signs of aging. Availablein 30ml in nine natural shadesBooth: Harbour Village, CostaMagna

Huile Absolue Face & Body SerumCompany: PATYKA CosmeticsDescription: A treatment that canbe applied to the face, body andhair daily. It is composed of 12essential plant oils with anti-oxidizing, regenerating, toning andnourishing properties that addradiance and softness to the skinBooth: Blue Village H21

Cellular Power InfusionCompany: La PrairieDescription: The formula utilizes a three-dimensional age-defiance system torestore skin to a more youthful state atany stage of the aging process. Thecompany says that the product employsa threefold action to secure cellularenergy supply and protect skin from theeffects of external stresses, backing upthe skin’s own natural renewal processesBooth: Riviera Village RE6

Nourishing Body Cream Company: Institut Karite Paris Description: This body cream,rich in Shea Butter, nourishesand softens the skin. Itscomplex mix fights againstslackening skin to firm andstrengthen it. It gives the skin a smooth and radiant glow

ASIA August 8.0:ASIA August Master 02/09/11 8:09 PM Page 45

Page 46: ASIA Volume 15 No. 2

46 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

14:07

Ferrero Travel Market had an ex-

cellent year in 2010,” says Gian-

nicola Losacco, General Manager

of the Ferrero Travel Market Di-

vision. “We closed up 30% in

sales by value versus 2009, which puts us at

number five in the confectionery rankings. This

remarkable performance, which far exceeds the

rest of the category, can be put down to inno-

vative products and the huge contribution of

our partners – the retailers and operators who

share our vision.” 2011 has also started very

well, he reports.

Ferrero is a global company with a solid

presence and performance in Asia. “We are

present in all the major airports in the region,

and sales are progressing very satisfactorily in-

deed,” Losacco says. Confectionery demand in

the region is increasing rapidly, he says, as the

expanding Asian middle classes travel more fre-

quently – a growth scenario that is reinforced

by the strong sharing impulse that drives pur-

chasing behaviors across the region.

While Asia is growing rapidly, along with the

Americas, Ferrero Travel Market is eying the

potential of other markets too, such as India,

the Middle East and Europe. “The whole con-

fectionery category is growing rapidly and Fer-

rero is investing resources in making the most

of the opportunities,” Losacco says.

Being a global product sold into both do-

mestic and travel retail markets, Ferrero is

highly standardized throughout its markets,

with only presentation and packaging differing

to some degree from one market to another, de-

pending on localized preferences. There are also

some items that are exclusive to travel retail. In

Asia, Ferrero Rocher and Kinder Bueno are very

popular choices, Losacco says, and accordingly

the company offers a wide selection of SKUs in

these brands, including several designed specif-

ically to cater to the sharing impulse – these in-

clude Kinder SchokoBons and Kinder Friends,

which are important sellers in Asia.

Ferrero Travel Market’s near-term plans to

build on its success in Asia include new POS

materials and high-profile promotions. “We

will be reinforcing the Kinder brand with new

packaging and some Dog Story themed chil-

dren’s items,” Losacco says. “Kinder

has great potential as it offers a

range of attractive gift and shar-

ing purchases for all ages.”

Losacco’s team has

developed new dis-

plays for each of its

brands, for example the

Nutella stand in the shape

of a Nutella jar, and

Kinder displays in bright

orange, white and blue in the shape of a Kinder

Surprise egg. “The Ferrero Rocher golden pyra-

mid display is a real eye-catcher and all our

merchandising and display material is coordi-

nated and premium in appearance and quality,

so that it creates a top end display overall,”

Losacco says.

The Happy Hippo themed Kinder lines,

which have enjoyed particularly strong success

as children’s gifting items, are scheduled for a

relaunch based on a new “Dog Stories” theme.

Each cartoon dog has a unique character and

temperament, reinforcing the appeal for

youngsters. New presentations in the Nutella

series include the special weekly 7 x 30g pack

which is being widely distributed in travel re-

tail. In addition, Losacco says, “the new-style

Kinder Mix 420g in its smart and original shape

will make a great purchase for sharing with fel-

low travelers or for friends back home.”

At Cannes, Ferrero Travel Market will show-

case the newest lines from each of its brands,

such as a Nutella destination sleeve with images

of international cities, the Kinder Mix 420g and

the Kinder “Dog Story” themed collection of

the Kinder Chocobox 144g, the Kinder Surprise

T4 with doggy characters and the Kinder

Chocolate multipack, which features collectable

stickers.

The new Ferrero Rondnoir will also be un-

veiled in Cannes and rolled out worldwide in

redesigned luxury packaging, Losacco says.

“The recipe has been improved with a

crunchier, more delicious wafer and chocolate

sprinkles on the outside and a dark chocolate

coated half-almond at its center, for an even

more enjoyable experience.”

Global appeal

For Ferrero Travel Market, standardizationand localization make a great mix

The “Dog Stories”themed Kinder

Chocobox

Ferrero Rocher isa heavy hitter inAsia

By Andrew Brooks

Company News: Ferrero Travel Market

ASIA August 8.0:ASIA August Master 02/09/11 8:10 PM Page 46

Page 47: ASIA Volume 15 No. 2

Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: [email protected], www.braun.com/global

All of the styles,none of the damage.Satin•Hair Boutique

RZ BR HC Werbeanzeige 210x297mm 3.8.indd 1 04.08.11 14:07

ASIA August_ASIA August Master 11-08-31 8:44 AM Page 47

Page 48: ASIA Volume 15 No. 2

Gijsbrecht Ostyn, Brand Manager for

Belgium-based Duc d’O Chocolaterie,

has revealed that the Swiss chocolate

maker will reveal two new additions

as well as some major improve-

ments to existing products. A

major innovation in the truffle segment will be clearly distinguished from

the company’s existing offerings by being introduced as a new line – the

“Intense Collection.” This collection now appears alongside Duc d’O’s

well known Original Collection.

Defined as a sub-brand, the Intense Collection will contain all the ex-

clusive truffle varieties that are marked by unique flavors and features. At

the same time, Duc d’O will launch two new truffle variants: a milk choco-

late truffle with a crunchy biscuit filling and a white truffle with strawberry

mousse. The first features one of France’s most renowned biscuits – the

crèpe dentelle or feuilletine. The second contains small strawberry pieces

in the strawberry mousse. Duc d’O says that consumer research has

shown that strawberry is one of the most popular chocolate flavors.

Both will be launched in a 100g box, with visuals provided by well

known food photographer Stephane Verheye. The box will be a first for

Duc d’O in stating that all truffles are 100% natural.

Duc d’O has also launched five limited edition truffle, praline and mini

praline package designs called “Winter Tales” for the 2011 holiday season.

The designs are by leading international design firm Brandimage. A new

product will be launched in the La Boule sharing range, marked by new

packaging with a window, adjusted weight, new foils and value pricing.

The 5.5g mini pralines, first launched in 2001, will get a new look that

brings them into line with the rest of the range, and Pâtes de Fruits will

receive new packaging, with the original ballotin replaced by a modern

bottom-lid box with a brighter design.

48 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Asianflavorings The Orient brings

sweet success to these confectionery stars

The Chocolate Frey Chocobloc Family Pack

Chocolate Freypromotion stand

Duc d’O: new and improved

The Duc d’O Intense Collection

Jacobsen’s Bakery: building the TR sideAt this year’s TFWA WE in Cannes, Denmark-based

Jacobsen’s Bakery will be featuring three new products: Teddy

Bear 300g vanilla cookies, Tivoli 150g cookies with pieces of or-

ange, cranberry, pear and chocolate, and Market Place 150g and

340g traditional butter cookies.

Tivoli cookiecollection withfruit pieces

The Market Placetraditional buttercookies

Confectionary News

By Andrew Brooks

Chocolate Frey is well covered in Asia, with the key mar-

kets being Singapore, Korea, the Philippines and

Malaysia. Expansion is in the works in the near future,

says Jacques Isler, Export Manager Travel Retail. “Asia

is a very important market for us,” Isler says. “We’re a young brand

which started its activities in 2008 and we see fine growth potential

in Asia as well as in many other markets around the world.”

Chocolate Frey’s best sellers are in the Chocobloc range, which

comes in five variations in almond, honey and nougat: Chocobloc

Milk, Chocobloc White, Chocobloc Dark, exclusive Chocobloc Dark

72% and Chocobloc Orange. The complete line was redesigned this

year and Isler says customer response is backing the change. One

new item launched this year is Chocobloc Air, with the launch heav-

ily supported by a lucky draw promotional activity – titled “Airis-

simo” – that gives customers the chance to win a sport bag.

At TFWA WE in Cannes, Chocolate Frey will introduce a new

item to the Chocobloc range. The company team has expanded,

Isler says, and the new staff member will also be on hand. The in-

creased staffing will help Chocolate Frey open new markets.

Overall, 2011 has been a good year for Chocolate Frey, Isler says,

thanks to the opening up of new markets and the building of brand

recognition. However, the strength of the Swiss Franc is undermin-

ing competitiveness, and Isler hopes to see the currency exchange

situation improve in the not-too-distant future.

Chocolate Frey: growing fast

ASIA August 8.0:ASIA August Master 02/09/11 7:18 PM Page 48

Page 49: ASIA Volume 15 No. 2

A-0312.08.11 M. Morard Annonce Americas Duty Free Magazine 7819A NITR NESTLÉ SWISS

Page 50: ASIA Volume 15 No. 2

50 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

The new products will join an expensive

range that is enjoying double-digit growth

figures in the Asian market, an important

theater of operations, says Bo Keller, Senior

Sales Manager. Jacobsen’s is present in all

major markets in the Asia-Pacific region in

terms of traditional food retail, while in

travel retail it is still a relative newcomer,

though one with a presence in key markets,

including China. “We like to grow our busi-

ness and open new markets,” Keller says,

“but we’re in no hurry. Finding the right

partners to work with is critically important

to us.

“To stay competitive and relevant, we

need to be very focused and good at what we

do, and execute with precision,” Keller says.

“The Asian consumer is demanding and has

lots of choice, and new products enter the

market all the time. We work hard to try to

stay ahead – by innovating to meet con-

sumer expectations, today and tomorrow, in

order to be able to offer unique and sellable

products to travel retail.”

Jacobsens Bakery has a number of very

popular cookie products and designs, some

of them exclusive to travel retail. The con-

cept and image of Danish butter cookies is

generally well understood and appreciated

in Asia, Keller says.

“Cookies in tins remain a popular gift

item, and we constantly work to improve our

product offerings,” he says. One way Jacob-

sen’s has done this is by working with

smaller-sized tins with top-end design in-

cluding embossing and gold print. The

smaller size makes Jacobsen’s offerings a

more convenient option for buyers who are

traveling, improving travel retail uptake and

also ‘shaking up’ presentation modes as a

way of creating more interest in the category.

Kraft covers all key segments

For Cannes this year, Kraft Foods World

Travel Retail (KFWTR) is launching a mix of

new offers from recognized travel retail brands

like Toblerone, Cadbury and Milka, as well as

launching the Oreo biscuit brand into the

travel retail channel. “The TFWA World Exhi-

bition has always been the ideal launch plat-

form for our new concepts, and following our

integration with Cadbury, this year we come

to Cannes with a stronger-than-ever portfolio

in all the key confectionery segments – choco-

late, gum and candy,” says KFWTR Managing

Director, Andreas Fehr.

Fehr and his team will unveil the Toblerone

Variety Gift Box with four flavors, including

milk, white, dark and the ‘Snowtop’ milk-

white combination, available in travel retail for

the first time. And the Toblerone White Minis

Pouch brings one of the most popular To-

blerone flavors to the market in a snack size

format.

New from Cadbury are two new offers in

the gifting sector. The Cadbury Chunk Box of-

fers 26 individually wrapped pieces of Cadbury

Dairy Milk chocolate in a gift box modelled on

a chunk of Cadbury Milk Chocolate. And the

new Cadbury Travel Mix contains Dairy Milk,

Caramel, Twirl, Fudge, Eclairs and Twist. The

Milka brand will be augmented with two new

offerings – Milka Popcorn and the Milka

Crispello Pouch. Popcorn combines Alpine

milk chocolate with slightly salted popcorn,

while the Crispello Pouch offers individually

wrapped pieces of chocolate-covered wafer

filled with a smooth milk chocolate cream.

“KFWTR is very present in Asia,” says Fehr.

“With the number one position in the confec-

tionery category according to Generation, our

brands are well represented in Asia and enjoy-

ing strong brand awareness. With Cadbury as

part of our portfolio, our position is further

strengthened given the strength of the Cad-

bury brand within Asia.”

Paton’s looks eastward

Paton’s is consolidating existing markets

and won’t be launching anything new until

2012, so the company won’t have new re-

leases to reveal at Cannes this year, says

James Kfouri, Chief Operating Officer. Due

to the current depressed situation in Europe,

and the fact that Asia has bounced back more

strongly from the economic downturn, Asia-

Pacific is Paton’s primary focus at the mo-

ment – and the company’s largest market.

“Sales have been adversely affected by the

natural disasters in Asia and Australia, but

are showing positive signs,” Kfouri says.

“Elsewhere sales have been steady and are

showing some positive changes in the last

couple of months.”

Paton’s is represented in virtually all of the

major Asia-Pacific hubs, Kfouri says, as well

as secondary airports and downtown stores.

Add Australia, where travel retail sales have

been very lively over the last four months, and

it’s easy to see why this part of the world is

taking up so much of Paton’s attention.

“We’ve already established a footprint in

China where retailing facilities are develop-

ing at a fantastic rate, and we’re working

with several retailers in India too, another

burgeoning market,” Kfouri says. “Markets

such as Hong Kong and Singapore are also

instrumental to our presence in the region.

We also see great potential in Europe, Middle

East and Americas, but at the moment Asia

is the number one focus.”

Oreo’s travel retaildebut range

Toblerone is one of Kraft’stravel retail frontrunners

Paton’s Dubai-themedchocolate-coated coffee beans

Paton’s Macadamia Royals,as seen on Qantas

Page 1ASIA August 8.0:ASIA August Master 02/09/11 7:21 PM Page 50

Page 51: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 51

TFWE.qxp 10/08/11 13:56 Page 1ASIA August_ASIA August Master 11-08-31 8:45 AM Page 51

Page 52: ASIA Volume 15 No. 2

52 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Vinay Golikeri, Marketing Director for the Bacardi

Global Travel Retail Division, has a lot to talk about

when asked about Bacardi’s bestsellers in the Asia mar-

ket. “Dewar’s is enjoying massive growth in Asia,” Go-

likeri says. The Dewar’s Gold Rush promotion last year

was a great success and continues to bolster Asian sales, he notes.

This July Dewar’s Gold Rush was joined by a new promotion called

“Dewar’s World of Discovery,” in which the brand has partnered with

National Geographic magazine. “This is a particularly exciting promotion

in Asia, where the National Geographic magazine and TV channel attract

huge audiences,” Golikeri says. The promotion is currently running in

China, Malaysia and Hong Kong.

Grey Goose vodka is what Golikeri calls a “star performer” throughout

travel retail, and in Asia the brand has posted growth significantly ahead

of the overall vodka category. As elsewhere, Grey Goose has been a stand-

out in building the super-premium vodka segment. Asia travel retail is

proving to be a key channel in establishing the brand as a luxury icon in

the region.

Staying on the topic of vodka, 42 Below is embarking on what some

would consider a highly unconventional promotion—and in the world

of promotions and marketing, “unconventional” tends to mean “good.”

For this year’s Rugby World Cup, which takes place in New Zealand Sep-

tember 9 to October 23, 42 Below is “renaming” the country “42BELOW-

LAND – New Zealand in a bottle.” Golikeri says the promotion will

include the first ever limited edition 42 Below bottle, which boasts a cus-

tomizable label: the label’s wraparound photograph of 42BELOWLAND

can be customized with stickers included on the bottle’s neck-hanger.

Golikeri points out that rugby fans will be especially attracted by the ac-

companying GWP: for the purchase of two one-liter bottles of 42 Below,

buyers will receive a 42 Below rugby ball cocktail shaker.

“42 Below promotions always deliver in both originality and effective-

ness and perfectly represent the level of innovation that we as a team

pride ourselves on,” Golikeri says. “42BELOWLAND is a brilliant way of

capturing the attention of the 85,000 rugby fans that are expected to visit

the country during the Rugby World Cup, and increasing footfall

throughout the retail spaces of the region’s airports.”

Earlier this year, the rarest-ever cognac from Baron Otard was launched.

Fortis et Fidelis is an exclusive blend of some of the oldest and rarest eaux-

de-vie from the Chateau de Cognac cellars. The cognac is presented in a

crystal carafe handcrafted in France by renowned glass maker Saint-Louis.

Golikeri says that in Bacardi’s experience, the decanter, which retails for

US$4500, has proven to be exactly what the Asian market is demanding,

and Fortis et Fidelis is making steady headway in getting Asian listings.

Pernod Ricard takes offA taste for brown spirits and a taste for luxury

items—put them together and these hallmarks of the

Asia market are keeping Pernod Ricard in a leadership

spot in the region. John O’Sullivan, Marketing Director

for Pernod Ricard Asia Duty Free, notes that the Martell

Experience Boutique concept at the international air-

ports in Hong Kong and Kuala Lumpur have ex-

ceeded sales expectations but have also gone

above and beyond in strengthening the

brand’s connection with its customer base.

O’Sullivan says that while the intangibles

were as important as the raw sales figures

from Pernod Ricard’s point of view, sales to

Malaysian and Chinese customers have been

especially strong, driven in particular by the

Prestige range, which consists of L’Or de Jean

Martell, Martell XO, Martell Creation and

Martell Cordon Bleu.

Earlier this year, Absolut Watkins coffee

and almond flavored vodka was premiered

in travel retail, first in Singapore Changi Air-

port and then in Hong Kong, Thailand,

Malaysia and Korea. The bottle features a

graphic devised by famous designer and

graphic artist Liselotte Watkins. Overall, the

vodka category is showing good growth, al-

though on a smaller scale so far.

Supply and demand

When the Asia market declares a preference, travel retail’s market makers take note

Baron Otard’s rarest-ever: Fortis et Fidelis

The stronglypromoted

Dewar’s range

Absolut Watkins coffee and almond flavored vodkawas premiered this year in Singapore Changi,

Hong Kong, Thailand, Malaysia and Korea

By Andrew Brooks

Asian FavoritesLiquor Report :

ASIA August 8.0:ASIA August Master 02/09/11 7:23 PM Page 52

Page 53: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 53

At around the same time, Pernod Ricard Travel Retail launched a new

Chivas Regal 18 Year Old limited edition in major Asian airports, starting

with Hong Kong and then moving to Incheon and Kuala Lumpur. The run

is limited to 3,000 bottles, a selection of which was earmarked for the Asian

duty free channel.

The Chivas 18 Year Old launch was a major event, with detailed and or-

nate displays in high-traffic locations, but according to John O’Sullivan,

Marketing Director for Pernod Ricard Asia Duty Free, the launch trappings

surrounding Royal Salute 62 Gun Salute were probably the most lavish that

his team has mounted so far in 2011. This is the top-end whisky in the Royal

Salute range, and it was launched early in 2011 at Hong Kong International

Airport, Singapore Changi Airport, Taiwan Taoyuan Airport and Korea In-

cheon Airport. Premium display units carried the new brand in Korean

Air’s first class and business lounges.

“The Asian spirits market remains significantly driven by brown spir-

its, and this trend looks set to continue in the short to medium term,”

says Ryan Hill, Area Director, Asia Duty Free for The Edrington Group.

“We are also witnessing strong growth in Chinese white spirits.”

For Edrington Group, the single malt category is especially favorable,

showing 17% percent growth. “Travel retail continues to be an excellent

platform, or shop window, for building strong brand visibility and driving

the position of our premium SKUs,” Hill says. “A key to

our position in Asia comes from the fact that we man-

age distribution of The Macallan, in tandem

with our strongest domestic markets whilst

also driving targeted distribution for future

growth.” In March, the Macallan range was

augmented with the addition of Limited Re-

lease MMXI, part of the 1824 single malt

collection, which is exclusive to global

travel retail.

Ultra-premium spirits in particular

are a favorite with Asian buyers, Hill says.

“As our 1824 Collection is exclusive to

travel retail, and not available through

domestic channels, we know that the

brand appeal is strong and drives con-

sumers towards the Macallan on shelf.

“Within the range, Oscuro, Whisky

Maker’s Edition and the Limited Release decanter are all popular, as

they encapsulate the premium position of the brand.” Oscuro was re-

leased in October of last year, and is priced between Estate Re-

serve and Limited Release in the 1824 range.

Thanks to Edrington Group’s ongoing educational and pro-

motional campaigns, Hill says that consumers understand that

all versions of The Macallan are created with the same stress on

high-end quality. This creates strong market awareness and also

a sense of “reliability” in that buyers know what they’re getting.

“This is coupled with the fact that we have inherent

strength in the domestic Asian markets, which gives us

greater traction in travel retail,” Hill says. “We also know

there’s a strong desire for collectability and gifting within

the Asian markets, which also helps drive demand of the

exclusive travel retail range.

At present, Edrington Group is experiencing growth

through current distribution channels across Asia in

combination with a longstanding high sales success rate.

Plans for the near- and long-term future are to focus on

building presence in China and Korea. “The approach for

us isn’t necessarily about growing distribution to grow the

business, but about managing and controlling distribution

to maximize value for The Macallan given the very strict

supply constraints.”

Edrington Group maximizes value

Pernod Ricard notes that theMartell Experience Boutiqueconcept at Hong Kong and KualaLumpur Airports has exceededexpectations this year

The Macallan Oscuro

The Macallan Whisky Maker’s Edition

ASIA August 8.0:ASIA August Master 02/09/11 7:23 PM Page 53

Page 54: ASIA Volume 15 No. 2

White Gold looks for continued success in travel retail

White Gold Black Edition is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate

While Gold broke into duty free and travel retail just two years ago andhas already seen some impressive successes. The company’s products arenow listed in Gebr Heinemann and Aer Rianta International stores world-wide, as well as with Dufry shops in Russia.

“We are currently in negotiations with other operators such as DFS Group,Aldeasa - WDF, The Nuance Group, B&S Paul Global, Weitnauer, ATU DutyFree and many others, who seem to be very positive about the idea oflaunching of our main brands, White Gold Black Edition vodka, WhiteGold vodka and Russian Gold vodka,” says Marketing and Travel RetailManager Kirill Pechenkin.

White Gold says that given the growth of the vodka subcategory, especiallyin duty free, it sees a great opportunity for its brands as they continue topenetrate the channel. Currently working on its own to supply clients andorganize activities, the company is interested in meeting with experienced

distributors to discuss increasing the reach of its brands.

“Our brands have a perfect presentation and are known for their quality,”Pechenkin says. “We’re looking for a company with sufficient sales andmarketing strength to drive our brands into this competitive marketand share in White Gold’s success.”

Indeed, the company’s products are getting noticed on the world stage.According to a recent IWSR report, vodka brand Gzhelka, produced anddistributed by White Gold, is a new entrant on the list of the top 20 vodkabrands worldwide. The company’s latest offering is a new variant calledWhite Gold Black Edition. The limited edition spirit comes in a sleek blackbottle and is triple-filtered in black coal and a silver ion filter for crystalclarity and a pleasant palate. The variant is designed to appeal to trendyclubgoers, with a design that pays tribute to the traditional cues of theoriginal spirit while communicating a sense of modernity and mystery.

Jose Cuervo returns to its roots… and to the Indian SubcontinentJose Cuervo recently announced that it is launching a new brand

positioning for its international markets. The new positioning—

Cuervo. The tequila from Tequila—will cover the entire product

portfolio, from Especial to Reserva de la Familia. In conjunction with

the launch, Gulf Beverages FZE announced that Jose Cuervo is once

again available in the Indian Subcontinent. Gulf Beverages will be

selling and marketing the product throughout the Subcontinent in

both the travel retail and domestic channels.

The tequila’s new positioning celebrates Jose Cuervo’s authenticity,

provenance and independence. The Cuervo family started the tequila

industry from its base in the town of Tequila, Jalisco 270 years ago and

they are still there today, ten generations later, crafting the world’s

number one tequila and the eighth biggest spirits brand in the world.

The secret to this extraordinary tale lies is the

270-year pact between the family, the people of

the town of Tequila and Mother Nature.

Generation upon generation of townspeo-

ple has been passionately invested in the art of

working with the family to make Cuervo in the

same way it always has been produced. As is re-

flected in the new positioning, in the town of

Tequila, it’s about who you are not what you

are. Social hierarchies are forgotten as the town

comes together to create Cuervo Tequila. To-

gether is how it’s made and together is how

this unique spirit is best enjoyed.

Both the town and the drink are named

after the Tequila volcano that lies there. The

volcano provides the mineral-rich soil in which the indigenous Blue

Agave plant grows for a minimum of 7 years, soaked from below by

the volcanic minerals and from above by the Mexican sun. Indeed,

an unbroken 270-year story of one family’s passion, one commu-

nity’s endeavor and a unique natural environment have combined

to produce Jose Cuervo Tequila.

“To me it’s a tragedy that the story of Cuervo, and the magic of

tequila, remains a mystery,” says Jose Cuervo’s International Man-

aging Director Peter Gutierrez. “It’s our mission to put this right. It’s

time to shine a light on what Cuervo really is. You don’t get to be the

world’s favorite tequila by accident. Things happen for a reason. It’s

about who’s making it, where it’s been made, how it’s been made

and how it’s meant to be enjoyed. That work starts now.”

54 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Liquor News

ASIA August 8.0:ASIA August Master 02/09/11 8:11 PM Page 54

Page 55: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 55

A. De Fussignylaunches XO 24 Carats at

TFWA WE

XO 24 Carats completes the A. de Fussigny range, which consistsof Selection, Supérieur Fine Champagne and XO Fine Champagne

A. de Fussigny has announced the release ofXO 24 Carats in the travel retail market. Devel-oped for the duty free channel, XO 24 Caratscompletes the range of A. de Fussigny Cognac,consisting of Selection, Supérieur Fine Cham-pagne and the brand’s flagship, XO Fine Cham-pagne.

A 100% Grande Champagne (Premier GrandCru) cognac bottled at 43% vol. for maximumaromatic revelation, XO 24 Carats develops out-standing aromatic richness, balance, eleganceand softness.

A. de Fussigny notes that 24 Carats will beavailable in an upscale, modern and slick designwith a golden topped decanter in a luxuriousembossed gold and red gift box. To see more ofthis new release, as well as the rest of the A. deFussigny portfolio, visit Red Village K21 at thisyear’s TFWA WE.

Liquor News

ASIA August 8.0:ASIA August Master 06/09/11 12:12 PM Page 55

Page 56: ASIA Volume 15 No. 2

56 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

A powerhouse in the making

While many rightfully asso-

ciate Diageo with top-selling

spirits such as Johnnie Walker,

Baileys, Smirnoff and a host

of other internationally

renowned brands, Asia Duty Free recently learned

from Edward Mirana, Diageo’s Regional Market-

ing Manager – Asia Pacific, that the spirits pow-

erhouse, working in partnership with the Shui

Jing Fang manufacturers in China, continues to

pleasantly surprise with new regional offerings

that have worldwide potential.

Part of Diageo’s portfolio and a top seller in

Asian duty free is the Shui Jing Fang family of Chi-

nese White Spirits, or Baijiu, as it is locally referred

to. Sales of the brand have tripled in the last two

years alone in travel retail in the region. “To give

you an idea of how popular Shui Jing Fang is with

Asian consumers, it is now Diageo’s second

biggest selling brand in Asia Travel Retail, behind

only Johnnie Walker,” Mirana explains.

Chinese White Spirits is actually the largest

spirits category in the world. In the global spirits

market, Baijiu accounts for 31% of volume ac-

cording to IWSR. The next biggest category is

Vodka with 19%. In China alone, Baijiu is by far

the largest category, contributing 55% of total

beverage alcohol sales value.

A long traditionBaijiu refers to an alcohol beverage made from

grain ingredients. These fresh ingredients are

steamed and mixed together using traditional

Chinese fermenting yeast (Qu) and brewing

through different processes such as distilling, stor-

age, blending and aging in specially designed cel-

lars. Baijiu is later extracted with a special process

by the master distiller.

“Shui Jing Fang is a pioneer of Baijiu and an

acknowledged trendsetter in the super deluxe cat-

egory. Our workshop is China’s first and oldest

Baijiu distillery in continuous operation, honored

as one of the country’s Major Historical and Cul-

tural Sites under State Protection, with an extraor-

dinary 600 years of heritage. In 2001, Shui Jing

Fang was declared as the oldest distillery in the

world by the Guinness Book of World Records,”

says Mirana

Only carefully selected ingredients, crafted by

a highly accomplished master blender and per-

fected by generations of experts, go into every bot-

tle of Shui Jing Fang, thus producing its powerful

yet graceful flavor and aroma. Furthermore, classic

and elegant packaging makes Shui Jing Fang dis-

tinctive from other super deluxe Baijiu brands.

Given the above, it’s clear that the brand has po-

tential throughout the world.

An all-star lineupThe core Shui Jing Fang expressions are called

Wellbay and are available in 38% and 52% ABV

variations with a Classic 61% ABV offering also

in the portfolio. Mirana notes that innovation is a

key driver of future growth and a series of new of-

fers and limited editions have been launched

under the Shui Jing Fang umbrella. These include

Forest Green and the Scholar’s Edition Pack plus

exciting new limited edition Chinese New Year

and Mid Autumn Festival packs. Demand for

more offers and limited edition packs is over-

whelming given the success of the brand in the

past few years, Mirana says.

“There are a lot of opportunities for the Shui

Jing Fang brand outside the Asia Pacific re-

gion,” he explains. “First and foremost, it’s a

brand that has a proven track record of qual-

ity and tradition. Additionally, the increase

in Chinese travelers worldwide and the lim-

itless opportunities to buy a unique gift

when traveling have already made the brand

hugely popular with Koreans as

well as Chinese, with a growing

number of both Asians and West-

erners increasingly exploring the

segment for a gift or appreciating

the liquid with a Chinese meal.”

Distribution for Shui Jing Fang

in travel retail has expanded al-

ready in the past 6 months

to 20 major international

airports in Asia Pacific plus an additional 4 air-

ports outside of Asia. Diageo has plans for further

expansion of distribution to 20 international air-

ports across Europe and the Americas by the end

of this year. This has led to an accelerated sales tra-

jectory, with the sales value for Shui Jing Fang hav-

ing grown in travel retail by over 120% in the fiscal

year ended June 2011. “We are very excited about

the future potential for Shui Jing Fang in travel re-

tail,” concludes Mirana.

Sales of Shui Jing Fang in Asia travelretail have tripled in the past twoyears, and if Diageo has any say inthe matter, this is will be the begin-ning of a much longer success story

DiageoCompany News:

Forest Green (above) and Wellbay are from Diageo’s Shui Jing Fang family of Chinese white spirits

ASIA August 8.0:ASIA August Master 06/09/11 12:21 PM Page 56

Page 57: ASIA Volume 15 No. 2

ASIA August_ASIA August Master 11-08-31 8:45 AM Page 57

Page 58: ASIA Volume 15 No. 2

Despite challenges, many tobacco companies have lately maintained

and in some cases improved their market share. They have also begun to

take social responsibility, sustainability and ethical marketing very seri-

ously. In some cases, they have initiated research to lessen the potential

risks posed by their products.

BAT sells more than 200 brands sold in over 180 markets. The com-

pany has 45 cigarette factories in 39 countries, employing more than

60,000 people worldwide. BAT’s strategy is based on growth, delivered

by an organization that acts responsibly at all times. The company is es-

tablishing a benchmark for the industry by applying strict marketing

standards to its activities to ensure that no marketing activity is directed

at, or particularly appeals to, youth.

Social responsibility and sustainability are key for BAT. The Group is

very active in promoting sustainable agriculture,

for example, by educating farmers on good prac-

tices, by preserving water and protecting the soil,

in leaf processing and through eliminating child

labor.

Justinus Nurman, Head of Operational Mar-

keting for BAT’s Asia Pacific duty free business,

doesn’t hold back in saying that “tobacco con-

sumption poses real risks to health, so we agree

that tobacco products should be regulated in ap-

propriate ways. We believe, however, that duty

free sales are a legitimate part of our industry and

that balanced regulation should be applied.”

Of course, along with addressing these issues,

BAT has been adapting in different ways to the

major surge in travel by previously more static

communities, among them Chinese, Koreans and

Japanese. The company has lately registered dou-

ble-digit growth on the travel scene.

“Sales are mainly driven by increased travelers, especially during fes-

tive seasons,” says Nurman. “Our adult tobacco consumers are looking

for additional value when they purchase in the travel retail environment.

Another trend we have observed is the proliferation of premium product

offerings.”

Asia, says Nurman, is well positioned to lead the growth in travel retail,

including in tobacco products. And this is what is driving companies such

as BAT to innovate. Good examples are the Kent Convertible and Lucky

Strike Click & Roll brands, wherein crushing the filter results in a men-

thol-flavored cigarette. Meanwhile, BAT’s classic brands such as State Ex-

press 555 and Dunhill continue to hold top spot among smokers in Asia.

“We believe that Asia is definitely well positioned to lead growth in

travel retailing, including in the tobacco category,” says Nurman. “We

see both business and leisure traveling continue its

recovery since the recent financial crisis. Nation-

ality-wise, Chinese are the leading traveler growth

numbers in Asia. Winning Chinese, with their in-

creasing spending power, is at the top of the strate-

gic growth agenda within travel retail.”

Kelly Song, spokesperson for KT&G, agrees,

saying that geographically and demographically

the growth area "will have to be China. In addition

to their growing economy, Chinese travelers are

becoming a big influence in the travel retail sector.

Asian airports have played a significant role in

travel retail. I think that the importance of Asian

countries will only grow."

This fall will be the sixth year in which KT&G

will be participating at TFWA WE. As South

Korea's leading manufacturer of tobacco products,

it enjoys a market dominance of more than 65%

in that country.

58 ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Changing times

The tobacco industry balances growth, regulatory restrictions and social responsibility

BAT’s Burgundy Shop at Hong Kong International Airport

KT&G’s ESSE superslims, stocked up and ready to go

ASIA August 8.0:ASIA August Master 02/09/11 7:33 PM Page 58

Page 59: ASIA Volume 15 No. 2

"Banning tobacco is the ultimate aim for

many governments," says Ian Smart, Director of

Business Development at Protégé International

Ltd. "We only have to look at Australia, Ireland

and the UK to see where the tobacco industry is

heading. But as these governments are still ad-

dicted to the income derived from excise duty,

the momentum has to be maintained over a

longer period of time to allow them to wean

themselves off their tobacco dependency."

Protégé was formed in 2000 and provides a

global and exclusive marketing service to its

clients. Initially it worked in tandem with a sister

company, Zeitgeist Productions, which designed

iconic and evocative products for the interna-

tional market, but the two companies were

merged in 2006.

As with the other companies, Asia is where it’s

happening for Protégé’s cigarette brands, and the

global twist is that each brand is associated with

a dynamic North American city. "The High

Roller brand captures the spirit of fabulous Las

Vegas,” says Smart. “After Hours is a sophisti-

cated reflection of New York. Individuality is the

key to New York and individuality is the key to

After Hours. We’ll be showcasing the new look

Five & Dime brand at the forthcoming TFWA

WE. It’s already proving to be a great hit in Asian

duty free markets." Smart describes Five & Dime

as individual and modern, reflecting today’s fast

paced lifestyle.

Although king-sized cigarettes still have a large

market share, Protégé has noticed that new pack-

aging formats such as slims, superslims and short

cigarettes are becoming increasingly popular.

"There seems to be a distinct sea change in con-

sumer buying patterns in Europe as well and we

see a dynamic growth in categories such as roll

your own and make your own. In Asia and North

America, the increasing popularity of cigarillos

and cigars among over 30-year-olds again shows

that the choices that the consumer makes deter-

mine the direction the tobacco industry takes."

And what is Smart’s projection for the indus-

try, given all the pressures from governments,

global agencies and the media?

"Governments will continue to push towards

a total tobacco ban in the mistaken belief that the

momentum must not be lost," he says. "At which

point, they will create a whole new criminal class

of their own citizens, which would be approxi-

mately a quarter to a third of their population in

many countries. History has taught us that when

governments try to ban products, all it does is set

up a criminal class that will supply it. Let's not

forget prohibition."

Smart says that while his company has always

believed in responsible marketing, it also believes

that tobacco “is a legal substance, and producers

should have the right to market it”—ethically

and responsibly, of course.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 59

It mainly exports its products to the Middle East and the CIS coun-

tries, including Russia, and is currently widening its markets in South-

east Asia, America and Eastern Europe. Direct investment for building

manufacturing facilities has also been made in countries such as Turkey,

Russia and Iran. KT&G’s 2010 revenue totaled US$3.3 billion, up from

US$2.9 billion in 2007.

KT&G is getting ready to introduce its flagship ESSE, BOHEM and

RAISON brands at this year’s tradeshow. "Having been successfully ac-

cepted and loved by young, stylish smokers across the world, ESSE has

grown rapidly in sales volume and brand awareness," says the company's

marketing literature. "ESSE has been introduced in more than 40 coun-

tries and has become a prestigious name for super-slim cigarettes."

Since 2008, electronic cigarettes have become increasingly popular as an

alternative to smoking traditional tobacco cigarettes given the fact that e-

cigarettes can be used virtually anywhere. At the forefront of this burgeoning

movement is pioneering e-cigarette company Vapor Corp. [OTCBB:

VPCO], which offers a range of e-cigarette brands—from the rechargeable

Fifty-One brand to the disposable Krave brand—to satisfy the varied needs

of virtually any smoker.

“Vapor Corp.’s e-cigarette brands are distinct from many other e-ciga-

rettes available today, both in terms of the quality and the cutting-edge tech-

nology employed,” says Adam Frija, Director of Business Development at

Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke.

Instead, our products emit an odorless vapor. Our electronic cigarettes look

like, taste like and feel like a cigarette, but they aren't cigarettes."

The filter of the Fifty-One contains flavoring, nicotine and an atomizer

that essentially vaporizes the nicotine. When you inhale, a microcomputer

activates the atomizer and the battery (contained in the white part of the e-

cigarette). The end of the Fifty-One even glows when you puff it.

Over the last 3 years, Vapor Corp. has crossed into virtually every distri-

bution channel available in the US, such as convenience stores, tobacco

shops and supermarket chains. The company also sells direct-to-consumer

on its website and has carved out a very respectable niche selling in mall

kiosks throughout the US.

The worldwide duty free channel is attractive to a company like Vapor

Corp. for two main reasons, says Frija: “First of all, airports are very high-

traffic areas for retail, which is what any company looks for. Furthermore,

e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler

on the go. Vapor Corp. has increased its business exponentially year over

year since its inception and I have no doubt that both the traveling public

and the duty free industry will see immense value in our brands.”

The Fifty-Onestarter kit willretail in dutyfree for aboutUS$100; a refillcartridge costsUS$3 and eachcan last as longas two pack oftraditionalcigarettes

E-cigarettes: the new alternative

ASIA August 8.0:ASIA August Master 02/09/11 7:34 PM Page 59

Page 60: ASIA Volume 15 No. 2

60 ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011

New& NotableLIQUOR & TOBACCO

CONFECTIONERY

Davidoff Chinese New Year packCompany: Imperial TobaccoDescription: To celebrate theYear of the Rabbit, ImperialTobacco has introduced a travelretail exclusive carton coverprinted with an elegant Year ofthe Dragon symbolBooth: Gold Village GO6

Orbis Aged World WhiskeyCompany: St James DistilleryDescription: Orbis Aged World Whiskey is aglobal blend of finest aged whiskeys selectedby a Master Blender from the five greatwhiskey nations of Scotland, Ireland, America,Canada and Japan. Many of the whiskeysincluded in Orbis are of great age, produced in

small batches and each bottle is individuallynumbered and presented in a gift tube

Booth: Green Village M 71

Il de Ré Cliffside CellarCompany: Camus Wines & SpiritsDescription: Cliffside Cellar is drawn from eaux-de-vie grown, distilled and aged on the Island of Ré,the most westerly part of Cognac AOC. Distinctivelymarine and mellow, Cliffside Cellar undergoes finalmaturation in a cellar deep in the Fort de la PréeBooth: Blue Village F11

2012 Tablet CollectionCompany: Godiva ChocolatierDescription: The new tablet features aWhite Vanilla Bean flavor that consistsof white chocolate infused withvanilla from the highest qualitywhole vanilla beans. The newassortment replaces DarkRaspberry, Dark Mint & DarkOrange, keeping theselection fresh and modernBooth: Yellow Village F33

Kilbeggan 18 Year OldCompany: Cooley DistilleryDescription: The new brandpackaging pays homage to the richheritage and quality of the Kilbegganbrand while maintaining acontemporary look and feel.Smooth and very easy todrink, with spices, aniseedbalanced with sweet malt,fresh fruits and oak drynessBooth: Mediterranean Village N17

AS_2011:AS/GU/AM Template 02/09/11 7:37 PM Page 60

Page 61: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 61

MEDIAknowledgeCLIENTunderstanding

ESSENTIAL COMMUNICA

DEMknkM

ESSENTIAL COMMUNICA

AID elwoown

eTIONSESSENTIAL COMMUNICAESSENTIAL COMMUNICATIONS

egde

eTIONS

e

N

nkNEEIInLC nuu

ssTdelwoown

TdNdNd srrreeeddTNNnn

gegeggndt

dednnaatttatass

ie

gginniidd

o

ummoClaitnessErytsudnieerfyttyudiehtnitneserper

moClaitnessEtAoporparehtegotofffofol

gnikooler’uoyyo’l’eew,ngiapmac

ba uPtnednepedninas

sisnoitacinuh raeyyenetrevveoovroffodehss

ailbatsE.ry

i idemlanoigerdnalanoitt

s

anretni

csyyau wlatneilceht,snoitacinu.

mmdna...ss deenruoyyosteemtahtlas

ao

serpdrarwn

offothgiarts,elpmisaros oitulosesnesnon-oo-nauoyyoevveig

s nisilaicepsycnegasnnoo

italeRcilbo elfiorpehtesiarotsilaogg

r

ruo,s.a

evveodneblliwewwednatsrfiemocanehtsiyttyilibixelF.tegdubruoyyodgnisllanaromargorpesaelersswtiodewwe..dnA.sdeenruoyotn

d naliaterlevartehtnige wwe seinapmocehtfo

t upotsdrawwakkwcabrf ios,emagruofoemaa idemgnicnadlla,gnig

.elimsahtiw

a

s

e

htthtrrtoppppusehTTh“sEmorroffrdevveiivecerresnnooiiioiottaacccacaiiicicnnuummmmooCCCoCosnoiiotattacepxxpeexruoyllyllluffusseccusdlldosoffolennnnaahhcclliiaatttataeerrrere

n ettesiislnes

ewwe,srrsaeyyeonoiiioiotaccaiicnummoCCo

e

d

s

vve ahewwetal aiiatness

d eedddedeeeeecccecexxxcxceeexexssaahhssg

D

niinvviaHHa.sl evvearrattrottoniiny

y namrl aiiatnessEEsde

0 102yllyrrlaeniins

a

oiioprrpocSSc““SoClaiiatnessEEsappssaa66000022sgniintekkerrkamrffrahtiitwwisuseevvveveiiivivttccaa-o-aoo-rrroropp,

voo,iioprrpocSScroffomroffoeulavva

d

d

y

etteniinoppppaapsrrsottoubiibrttrsiisDn iin snoiiotaciicnummod eedddedeaarrraraggpppgpguuupupnnaaffoottrrrtrtaa

e

n

dde iidvviorropyehTTh.yy.geegttearrattrs, tt, neiiecfifffie,yy,llyddlneiie

y llly ly nniiininaatttatarreecc,ddd,nnaaeecciiicicvvrrrvrveesst

g

nellelecxxceextneserrepeeprre,”.yy.eeyno

e

essEEs““Eiinneebbegiiigighheehhttththnoonccoewwelabbaollogessnniiininssuuenhtthobbo

moomttosuc

o s

f

ahsnoiiottiaccaiicnummoCg

Colaiiatnm nng iinvvieiiehcaacsuniinlattanem

s urruttrsn

r akeeeesewwetahtthellefifilorropprreehhggs seniinsubehtthdlldiilubottoeuniintno tto laiiatnessesiisellefiorropehTTh.yy.llyll

f ooeecccecenneedddedefififidfidnnooononcccocoeehhttththggnnngngiiininrruucceee niinlesiisurrucgnngiinttisiisxxieexdnawes uoiiorriavvaehtthsallllewwesasrrsem

e

cooocfffoi

apooplloevveeddeottoiaapmaccaRPPRliattaerreeddeerreasrrsemottosucewweskeewweniinhtthiitwwidasasrrsemmootttoso

ucocceeWWWe

C

.RPPRruofothtthiwwidesserrepmiim

dnaegddgellewwlonkummoCCollaaiiiaiattnessEEs

f

y

o

gl evvearrattrdesuc

g niintsixeexruO.ngiiigg d nadettehgiiiglle

w a endeniinat

ger luserrett

e cerreiird

t bottof

euniintnof h ooot

Stuart McGuire, Group Managing

ht

Stuart McGuire, Group Managing

thpeddeehttht iahtthsttscattanocs ahsnoiiotaccaiicnu

Director, Scorpio Distributors LtdDirectorDirector, Scorpio Distributors Ltd

l Claaib

iatnessEEs‘‘EbottodevveorropdnasseccusecnegiiglllletteniiniuuqqsyysaaywwallwArehtth,sddseen

p

e

y

y

Stuart McGuire, Group Managing , Scorpio Distributors Ltd

s ahsnoiiotaciicnummoCe htthfotrrtaplattaiitvviaebb

o r ettenuoCfohtthwwtorrrorog.

dn lennahcehtthniiinin

r liilattaeRe

d uoottodnn

u

opeserrrereootttotokkcciiicicy nnaapmocehtthhcaerre

tiitttisnoccoiniinahcciichwwhniinpeddeaadrrattrniinmorroffrtrrtappaeepdde

attasiisssaE,ee,vveiivrddrebsah

s s o

y lly ppppuupsehtthfosttsnemelleetneuues eiieroorttoiitrrirrrettesuoiiorriavvaehtthfollllaniin

m orroFFr.ettearraeppeoopewwehc, ss, ellefioofirropettearraopporrpoccoottosserrep

n iin amehtthhtthiitwwiswwseiievvirrvettenl anooniiottianottosddsaadeeahtnemttmt nemttmiiturrucerreruohtthiitwwieccenannnoood

iiioiotttitiaal

ccaiicnummoCColaiiatnessEEst nalanoiiosseffeorropyllylllattaootttoneeee

hahsottoellebaneeb

wood Lincoln, Global Rebecca Harravel Retail DirectorTTravel Retail Director

Eyewear

e

e

”w .suhtthiitwwiwieerrrere ha

wood Lincoln, Global , Polaroid ravel Retail Directorravel Retail Director, Polaroid

eddeiidvviorropsahav wwalaevve’ewwwewe

ofottnuomaorroppppaaptsommiimtthgiigrehtth

y Stasiulevicuis, Managing Garr, Counter Intelligence RetailDirectorDirector, Counter Intelligence Retail

d

e r

erreusnesahsudet hgiigrehtthdahsyysaaye hhttddnnaerreusopxxpeex

t aegaagrraevveocetteaiiarppo

y Stasiulevicuis, Managing

op.’em

y Stasiulevicuis, Managing , Counter Intelligence Retail, Counter Intelligence Retail

d

avvaoovnniin

dlloraHHarding Brothers Retail Ltd

””

G ,

n

r

.hcaacooarroppppaapsttsiitn

g

iinevveiivttia

m rr, r, oottccg eriDgHarding Brothers Retail Ltd

nniganaM,nn,omlettiGHarding Brothers Retail LtdHarding Brothers Retail Ltd

Rowena HollandEssential Communications110 Falconwood RoadCroydon

, CR0 9BD, UKSurreySurrey, CR0 9BD, UK

44 (0) 208 405 8109el:TTel:44 (0) 208 405 0330Fax:44 (0) 771 021 9784Mob:[email protected]:.essentialcommunications.orwwwwww.essentialcommunications.or

[email protected]

44 (0) 208 405 810944 (0) 208 405 033044 (0) 771 021 [email protected]

g.essentialcommunications.or.essentialcommunications.or

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 61

Page 62: ASIA Volume 15 No. 2

New & notable

62 ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011

CONFECTIONERY

TRAVEL ACCESSORIES

Cocoa Truffles ballotinCompany: GuylianDescription: Guylian presentsthe new 200g Cocoa Trufflesballotin. The collection contains23 pieces of high quality Belgianchocolates, perfect for sharing Booth: Mediterranean Village P10

Chupa Chups Travel TinCompany: Perfetti van Melle Global Travel RetailDescription: An exclusive gift tincontaining 16 lollipops. The tinis decorated with typical travelsymbols such as passportstamps and signposts. This can also be customized forspecific destinationsBooth: Blue Village G27

Spring/Summer 2012 Collection Company: MCMDescription: MCM’s Spring Summer2012 Collection repositions the brandat a new premium level with enhancedquality materials and improved detailingthroughout. This color inspiredcollection offers a wider choice ofstyles and designs, creating anoffer that caters to all profilesand age rangesBooth: Rivera Village C4

Spring/Summer 2012 Collection Company: FurlaDescription: The collectionmixes bags with shoulderstraps, unusual forms andconstructions, to createunique pieces for thewoman’s wardrobeBooth: Bay Village 5B

eConnectCompany: Scorpio DistributorsDescription: eConnect allowsusers to create a Wi-Fi hotspotwith either a USB dongle or via acat5 cable (USB 3G Dongle is notincluded). The eConnect is idealfor hotels or cafes as many onlysupply a cat 5 connecting cableBooth: Mediterranean Village P8

The Hape RangeCompany: Scorpio DistributorsDescription: The Hape Rangeuses unique materials includingbamboo. Educational, fun andecologically sound, Hape toyshas won several awards Booth: Mediterranean Village P8

Jacques Farel Kids Gift PacksCompany: Harston GroupDescription: The Champion setis a perfect combination of funand style for boys. The setincludes five interchangeablestraps and is available with atrendy silver dial and is waterresistant up to 30 meters Booth: Yellow Village B23

Jacques Lemans Porto for MenCompany: Harston GroupDescription: Thesesporty dynamicchronographs have astriking dial designand exudes qualitywith its solidstainless steel case,special hardenedmineral crystex anda high gradecaoutchouc-grainleather or rubber strapwith Jacques LemansletteringBooth: Yellow Village B23

Jacques du ManoirCompany: ScorpioDistributorsDescription: TheJacques du Manoircollection featuresa classic Swiss stylewatch that is madewith high quality

materials and is perfectto adorn any wardrobe

Booth: MediterraneanVillage P 8

WATCHES

AS_2011:AS/GU/AM Template 02/09/11 8:29 PM Page 62

Page 63: ASIA Volume 15 No. 2

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 63

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 63

4 0 15:39

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 2

NEW

A new vision for skin perfection.

VISIONNAIRE[LR 2412 4%]

ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS

So powerful that more than half of women considering a cosmetic procedure said they would delay it*

The innovation? Visionnaire is the 1st skincare with LR 2412, a molecule designed to penetrate throughout all the layers of the skin’s epidermis, triggering a range of micro transformations.

With Visionnaire, wrinkles appear visibly reduced, pores look minimised and imperfections such as uneven skin tone appear more even, as if corrected.

LR 2412 HAS BEEN INDEPENDENTLY TESTED IN THE UK.20 PATENTS PENDING.

*Test

ed o

n 34

wom

en co

nsid

erin

g la

sers,

� ller

s and

pee

ls

3 0

ASIA August 8.0:ASIA August Master 02/09/11 6:34 PM Page 3

23800 Asia pg.3.indd 2-3 11-09-06 9:58 AM

23800 Global Asia cover.indd 2 11-09-06 10:02 AM

Page 64: ASIA Volume 15 No. 2

64 ASIA DUTY FREE & TRAVEL RETAILING TFWA WE AUGUST 2011

never look your age again

ASIA August_ASIA August Master 11-08-31 8:46 AM Page 64A

SIA

DU

TY

FR

EE

& T

RA

VE

L R

ET

AIL

ING

SE

PT

EM

BE

R/O

CT

OB

ER

20

11

VO

LU

ME

15

, NU

MB

ER

2

AS_spine_text:Layout 1 02/09/11 7:39 PM Page 1

SEPTEMBER/OCTOBER 2011 • VOL 15, NO 2

Big inChina p.18 Buy in

the sky p.24 Celebratingscents p.44 E-cigarettes: The

new alternative p.59

TFWA WE 2011

ASIA August 8.0:ASIA August Master 02/09/11 7:51 PM Page 1

23800 Global Asia cover.indd 1 11-09-06 10:02 AM