ASIA Volume 15 No. 2
-
Upload
global-marketing-company-ltd -
Category
Documents
-
view
222 -
download
2
description
Transcript of 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
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
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
ASIA August_ASIA August Master 11-08-31 8:35 AM Page 4
ASIA August_ASIA August Master 11-08-31 8:36 AM Page 5
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
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
EDITORIAL DEPARTMENT
EDITORHibah Noor
Liquor and TobaccoRick Lundstrom
ART DIRECTORPatrick Balanquit
CONTRIBUTORSElizabeth Kerr
Lorna Strickland
ADVERTISING SALES
ADVERTISING & MARKETING MANAGER, DUTY FREE TITLES, AMERICAS
Beatrice PitoccoTel: 1 416 908 1734
DIRECTOR OF SALES, DUTY FREE TITLES, EUROPE
Meena BediTel: +33 5 53702538
Mob: +33 6 [email protected]
CIRCULATION & SUBSCRIPTION MANAGERTeresa Garrity
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
CONCESSIONS, LIQUOR, & TOBACCO EDITOR
Ryan [email protected]
ART DIRECTOR
Patrick [email protected]
CONTRIBUTORS
Andrew BrooksJames RossDan Ridout
ADVERTISING SALES
ADVERTISING & MARKETING MANAGER
CIRCULATION & SUBSCRIPTION MANAGER
Deepa [email protected]
Asianboom
ASIA August 8.0:ASIA August Master 02/09/11 6:40 PM Page 6
ASIA August_ASIA August Master 11-08-31 8:36 AM Page 7
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
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
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
ASIA August_ASIA August Master 11-08-31 8:37 AM Page 11
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
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
“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
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 15
ASIA August_ASIA August Master 11-08-31 8:38 AM Page 15
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
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
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
1 1
ASIA August_ASIA August Master 11-08-31 8:39 AM Page 19
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
ASIA August_ASIA August Master 11-08-31 8:40 AM Page 21
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
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
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
ASIA August_ASIA August Master 11-08-31 8:41 AM Page 25
“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
“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
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
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
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
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
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
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
ASIA August_ASIA August Master 11-08-31 8:42 AM Page 33
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
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
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
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
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
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 39
ASIA August_ASIA August Master 11-08-31 8:43 AM Page 39
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
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
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
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
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
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
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
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
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
A-0312.08.11 M. Morard Annonce Americas Duty Free Magazine 7819A NITR NESTLÉ SWISS
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
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
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
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
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
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
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
ASIA August_ASIA August Master 11-08-31 8:45 AM Page 57
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
"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
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
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
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
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
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
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