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DUTYFREEMAGAZINE.CA JUNE 2016 · ASUTIL· VOL 26 · NO 2

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Moroccanoil.com

In Memoriam: Alberto “Pancho” Motta Jr. p. 16 DPG conquers Chile and Peru p. 20 ASUR’s Cancun Terminal 4 takes off p. 38

Welcome to ASUTIL 2016

n behalf of the Board of Directors of ASUTIL, we would like to welcome you to the 20th Annual Conference, which will take place in Santiago de Chile. The theme of this year’s event is “Step by Step in the Right Direction”. Why have we chosen this topic? The region is facing a very difficult business scenario, with issues like political changes of power, high domestic inflation rates, poor GDP growth and the strengthening of the US dollar against the local currencies. All of these issues are impacting strongly on the traveler’s willingness to purchase travel retail products. Nevertheless, substantial efforts are being made across the industry to overcome this challenging scenario. That is what we are going to show in the conference. Among the conference highlights most notable is the resilience of the industry in the region, while keeping a relevant level of investment, and bringing new retail concepts to the table. Innovation is a key word, especially in the times that we live in today.

he theme of this year’s ASUTIL conference, “Step by Step in the Right Direction”, came about during our discussions last year, when we could see the crisis coming. When a storm is coming, you just need to be calm and move in the right direction. We want to give a message of hope – keep calm, keep cool. This year, we have a lot of highlights. Networking time will be important, as we have more than 50 delegates from the operators, along with a list of wonderful speakers. First, ASUTIL President Gustavo Fagundes will discuss the situation in Brazil. Then I will discuss issues affecting our region. Peter Mohn will give us information from his study on what drives South American duty free shoppers to purchase. Enrique Urioste will discuss borders, the current reality and long-term outlook, while Google LATAM Director Olga San Jacinto will discuss next steps in technology and the impact on our industry. The agenda has changed this year so delegates are able to make the most of their time. Thursday morning will be set aside for networking. Thursday afternoon’s conference will feature Argentinean economist and President of Banco Nación, Carlos

Passenger flow has weakened in the region, changing the positive trend of the last several years. I believe this will be the main challenge we face as an industry. Our region also has an enormous opportunity. Rio de Janeiro is hosting the first Olympic Games in Latin America in August. It is mandatory that each operator makes the most of this event. I believe that the entire region will benefit from it. Travelers that would never consider visiting our countries should be more open to come. In my first year as President, I would like to thank Enrique Urioste for his support, as well as the participants, sponsors, speakers, the press, the Board of Directors, and the staff of ASUTIL. Warm regards,

Gustavo Fagundes President ASUTIL

Melconian, who will offer his vision of the country’s future under its new President. Dufry Brazil will introduce its new stores and expansion at the airport in Rio de Janeiro, in preparation for the Olympic Games starting in August. Dufry’s innovations at Lima Airport will also be on the agenda, together with the hot topic of retailing in an omnichannel world. The final speaker is Roberto Canessa, who survived the famous 1972 air crash. He was one of the survivors who walked out of the Andes — step by step in the right direction — and also because he recovered over Christmas that year in the very hotel where ASUTIL is taking place. Friday morning is networking time again. I would like to thank everyone for coming to ASUTIL, and I look forward to listening to your views as we boldly step in the right direction. Best regards,

José Luis Donagaray Secretary-General ASUTIL

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

¡Bienvenidos a ASUTIL 2016!

nombre de la Junta de Directores de ASUTIL, queremos darle la bienvenida a la Vigésima Conferencia Anual que se llevará a cabo en Santiago de Chile. El tema del evento de este año es “Paso a paso en la dirección correcta”. ¿Por qué razón lo hemos elegido? La región está enfrentando un entorno comercial muy difícil, debido a acontecimientos como cambios de poder político, altos índices de inflación nacional, crecimiento insuficiente del PNB, y el fortalecimiento del dólar estadounidense con respecto a las monedas locales. Todos estos problemas están ejerciendo un impacto en la voluntad del viajero de comprar productos del comercio minorista de viajes. Sin embargo, se están haciendo esfuerzos sustanciales en la industria para vencer este entorno desafiante. Eso es precisamente lo que presentaremos en la conferencia. Entre los puntos notables de la conferencia estará la resiliencia de la industria en la región manteniendo un nivel relevante de inversiones, y la adopción de nuevos conceptos de comercio minorista. La innovación es palabra clave, especialmente en los momentos que vivimos actualmente.

l tema de la conferencia ASUTIL de este año, “Paso a paso en la dirección correcta”, surgió durante nuestros intercambios de opiniones el año pasado, cuando pudimos pronosticar la llegada de la crisis. Cuando se acerca una tormenta, es necesario mantener la calma y moverse en la dirección correcta. Y precisamente, queremos dar un mensaje de esperanza: mantengamos la calma, y conservemos la serenidad. Este año hay muchos asuntos importantes que tratar. Y como tendremos más de 50 delegados de los operadores, conjuntamente con una lista de magníficos conferencistas, el tiempo de contacto profesional será vital. En primer lugar, Gustavo Fagundes, Presidente de ASUTIL, hablará sobre la situación actual en Brasil. Posteriormente, analizaré los temas que afectan nuestra región. Luego, Peter Mohn nos informará sobre su estudio referente a lo que impulsa a comprar a los clientes duty free suramericanos. Asimismo, Enrique Urioste analizará las fronteras, la realidad actual y la perspectiva a largo plazo; mientras que Olga San Jacinto, Directora de Google para Latinoamérica, hablará sobre los próximos pasos en tecnología, y el impacto en nuestra industria. La agenda ha cambiado este año, para que los delegados puedan aprovechar al máximo su tiempo. La mañana del jueves se dedicará al contacto profesional, mientras que la conferencia de ese mismo 4

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

El flujo de pasajeros se ha debilitado en la región, cambiando la tendencia positiva de los últimos años. Creo que este será el desafío principal que enfrentamos como industria. Nuestra región también tiene una enorme oportunidad que aprovechar. En agosto, Rio de Janeiro será la sede de los primeros Juegos Olímpicos en Latinoamérica. Es imperativo que cada operador aproveche al máximo este evento. Creo que toda la región se beneficiará. Los viajeros que nunca antes habrían considerado visitar nuestros países, estarán más abiertos a hacerlo. Sin duda alguna, los Juegos Olímpicos generarán una gran publicidad para nuestra región. En mi primer año como Presidente, quiero agradecerle a Enrique Urioste por su apoyo, así como el de los participantes, patrocinadores, conferencistas, la prensa, la Junta de Directores, y el personal de ASUTIL. Un saludo afectuoso,

Gustavo Fagundes Presidente ASUTIL

día en horas de la tarde, tendrá como ponente al economista argentino Carlos Melconian, Presidente del Banco Nación, quien nos ofrecerá su visión del futuro de Argentina bajo el mandato de su nuevo presidente. Por su parte, Dufry Brazil hará una presentación de sus nuevas tiendas y su expansión en el aeropuerto de Rio de Janeiro, como preparación para los Juegos Olímpicos que comenzarán en agosto. Además, las innovaciones de Dufry en el aeropuerto de Lima estarán en la agenda, conjuntamente con el popular tema del comercio minorista en un mundo de canales múltiples. El orador final será Roberto Canessa, sobreviviente del famoso accidente aéreo de 1972, y uno de los que caminó por los Andes en busca de la salvación— paso a paso en la dirección correcta— además de recuperarse la Navidad de ese año en el mismo hotel donde se llevará a cabo la conferencia ASUTIL. La mañana del viernes también estará dedicada al contacto entre colegas. Quiero agradecerles a todos por asistir a ASUTIL, y espero escuchar sus opiniones sobre nuestro valeroso tránsito en la dirección correcta.

José Luis Donagaray Secretario General ASUTIL

www.ateliercologne.com

LETTER FROM THE EDITOR

A bittersweet gathering A

s we prepare to meet in Santiago for ASUTIL 2016, any message about the duty free industry in the region can only begin with an expression of deep sadness at the loss of Alberto “Pancho” Motta earlier this year. Over the last decade or more, I interviewed Alberto Motta many times and was always struck by how friendly, approachable and willing to talk he was. He had the uncanny ability to make you feel like you were chatting to a friend; you could almost forget that you were talking to a living legend in the world of travel retail. Alberto Motta opened the region’s first duty free store in 1940 and gave those that came after him a template from which to borrow where crafting a successful travel retail business was concerned. His many achievements live on in the form of Motta Internacional, and on page 16 we discuss the company and the man behind it all as we say goodbye to a true duty free pioneer. And on the theme of building a family business from the ground up, Americas Duty Free speaks with Deepu Dayanani L., CEO of DPG Duty Free, on page 20. The family has opened two new stores in the past seven months in Peru and Chile, and has ambitions for more in the near future. There is more big news, this time in airports, from operator ASUR. On page 38, we talk to Manuel Gutiérrez Sola Aguilera, the group’s Commercial Director, about Cancun International Airport’s new US$1 billion state-of-the-art Terminal 4. Construction started a year ago and he gives us an update on what has been done, what remains to be done and what the new terminal will mean for travelers, and for the economy of the surrounding area, when work is completed. Of course, added to the above you’ll be able to read all of the latest brand news across categories in this ASUTIL 2016 issue of Americas Duty Free, as well as commentary from a number of industry experts on what we can expect to see in the region in the months and years ahead. The general consensus is that volatility will continue for some time, but nonetheless there are a number of success stories—the Latin American duty free industry has always been excellent at navigating external shocks and landing on its feet. We have no doubt it will continue to do so. Change is the constant, not only in this region, but also worldwide. Of course, as we well know from Alberto Motta’s passing, some changes are easier to take than others. I look forward to seeing you in Santiago as we take charge of the events that we can influence, concede that there are some that we can’t, and most importantly, be thankful for the memories we have and how they inform our decisions moving forward. Kindest Regards,

Hibah Noor Editor-in-Chief hibah@dutyfreemagazine.ca

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

JUNE 2016 · ASUTIL · VOL 26 · NO 2

The Americas Duty Free & Travel Retailing magazine (ISSN 0962-0699) is published five times a year March, April, June, October and November by Global Marketing Company Ltd. 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed throughout Central America, South America, the United States, Canada, U.S. Virgin Islands, U.S. Pacific islands, and the islands in the Caribbean. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or the editor. June 2016, Vol 26. No. 2. Printed in Canada. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2016 Global Marketing Company Ltd.

AMERICAS DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor hibah@dutyfreemagazine.ca SENIOR EDITOR Wendy Morley wendy@dutyfreemagazine.ca ART DIRECTOR Jessica Hearn jessica@globalmarketingcom.ca CONTRIBUTORS Ryan White Katherine Yaun

ADVERTISING SALES ADVERTISING & MARKETING EXECUTIVE Jacqueline Hammill jacqueline@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER accounts@globalmarketingcom.ca

LETTER FROM THE EDITOR

Una reunión con recuerdos tristes

y alegres E

n medio de los preparativos para la reunión en Santiago de Chile con motivo de ASUTIL 2016, todo mensaje referente al sector duty free en la región solo puede comenzar con una expresión de profunda tristeza por el fallecimiento de Alberto “Pancho” Motta, a principios de año. Durante la última década o más, entrevisté en numerosas ocasiones a Alberto Motta, y siempre me maravilló lo amistoso, accesible y dispuesto a hablar que se mostró en todo momento. Tenía la rara habilidad de hacernos sentir que estábamos hablando con un amigo. Tanto, que casi nos olvidábamos de tener ante nosotros a una leyenda viviente del mundo minorista de viajes. Alberto Motta inauguró la primera tienda duty free de la región en 1940, dándole a todo el que vino después el ejemplo a seguir de cómo crear con éxito un negocio minorista de viajes. Sus innumerables logros se mantienen vivos en la forma de Motta Internacional. En la página 16 describimos la compañía y el hombre tras ella, en una despedida a un auténtico pionero del sector duty free. Y precisamente sobre el tema de la creación de un negocio familiar desde cero, Americas Duty Free habla con Deepu Dayanani L., Director Ejecutivo de DPG Duty Free, en la página 20. En los últimos siete meses, la familia ha inaugurado dos nuevos establecimientos en Perú y Chile, y tiene ambiciones de crear más en un futuro cercano. Pero hay más buenas noticias, esta vez en materia de aeropuertos, provenientes del operador ASUR. En la página 38, hablamos con Manuel Gutiérrez Sola Aguilera,

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Director Comercial del grupo, sobre la nueva y moderna Terminal 4 del Aeropuerto Internacional de Cancún, valorada en US$1 mil millones, cuya construcción comenzó hace un año. Sola Aguilera nos actualiza con respecto a lo que se ha hecho, lo que falta por hacer, y lo que significará la nueva terminal para los viajeros y para la economía de las zonas aledañas, una vez terminada. Por supuesto, además de lo anterior, podrá leer las noticias más recientes de marcas en diferentes categorías en este número de Americas Duty Free dedicado a ASUTIL 2016, así como comentarios de varios expertos del sector con respecto a lo que podemos esperar en la región durante los próximos meses y años. El consenso general es que la volatilidad persistirá por algún tiempo, aunque, sin embargo, hay varias historias de éxito, pues el sector duty free latinoamericano ha maniobrado con mano experta para enfrentar conmociones externas y recuperarse. No tenemos la menor duda de que seguirá lográndolo. El cambio es la constante, no solo en esta región, sino también en el mundo. Por supuesto, como todos sabemos a partir del fallecimiento de Alberto Motta, algunos cambios son más fáciles de asumir que otros. Espero verlos en Santiago, donde nos haremos cargo de los acontecimientos en los que podamos influir, donde aceptaremos que hay algunos en lo que eso no es posible, y, sobre todo, donde agradeceremos los recuerdos que tenemos, y cómo éstos nos ayudarán a tomar decisiones en nuestro avance futuro Un cordial saludo,

Hibah Noor Editora en Jefe hibah@dutyfreemagazine.ca

Wonderful fragrances Collecta able cosmetics Exquisite jewellery One way to have it all

www.duba aidutyfree.com

CONTENTS

What’s inside LEAD STORIES 16 In Memoriam: Alberto “Pancho” Motta Jr. SAYING GOODBYE

Alberto “Pancho” Motta left a legacy across the globe in the duty free industry. Here, industry leaders remember the great man

20 DPG Duty Free CONQUERING NEW MARKETS: A BUSINESSORIENTED FAMILY AFFAIR

From two new stores in the past seven months to exciting future plans for expansion, DPG Duty Free’s family-run, duty-free airport retail business conquers new corners of Chile and Peru at strategic trade points

34 London Supply STRATEGIC VICTORY

In its 70+ year history, London Supply has become very talented at making the most of economic downturns

38 ASUR CANCÚN TERMINAL 4 TAKES OFF

Following a revamp of Terminals 2 and 3 at Cancún International Airport, ASUR has started building its new, US$1 billion stateof-the art T4 amid a passenger boom at the popular Mexican resort

42 Dufry: Rene Riedi WESTERN DOMINATION

Dufry’s South American strength has become more balanced with the company’s acquisition of World Duty Free’s stores in Lima and Santiago, discussed here with Rene Riedi, the travel retail giant’s Chief Operating Officer at Dufry Americas

50 RIOgaleão SOUTH PIER OPENS

RIOgaleão is just completing the R$2 billion first phase of redevelopment at one of the country’s busiest airports, just in time for the Olympic games, starting with the inauguration of the brand new South Pier

FEATURES Carlos Melconian discusses challenges TFWA talks P&C

28 32

Mannah emerges stronger

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CONTENTS

8 LEAD STORIES 58 Moroccanoil GROOMED FOR SUCCESS

Premium brand Moroccanoil is taking its distribution up a notch, as it strikes new agreements with leading duty free operators and emphasizes its head-to-toe beauty approach

62 Porsche Design AHEAD OF ITS TIME

In a major milestone for the German company, Porsche Design presented its exclusive new timepieces at Baselworld 2016, following the establishment of a watchmaking subsidiary in Switzerland

64 China International Duty Free CIDF CHIEF VOICES HIS VISION

China International Duty Free is keeping up with the fast-moving world of the Chinese traveler with an exciting array of new products in its portfolio – some of which have never been seen before in travel retail

74 72

72 MONARQ TENACIOUS FOR 10

A strong and growing portfolio, relentless determination and amiability have combined to make MONARQ a true force in the western hemisphere

74 Villiger GLOBAL ADVANCE

Strong in Europe and Asia, Villiger is working hard to solidify its position in Latin America

76 China i2i Group SHOPPING AROUND

A fascinating new Chinese luxury shopping survey sheds light on what Chinese affluent travelers want as shoppers, and how they shop

FEATURES Airport News Baylis & Harding kicks off

56 60

Costa makes a splash in travel retail Liquor News

66 68

IN MEMORIAM: ALBERTO “PANCHO” MOTTA JR.

Alberto “Pancho” Motta, a friend and mentor for the duty free industry

Saying goodbye Alberto “Pancho” Motta left a legacy across the globe in the duty free industry. Here, industry leaders remember the great man by

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

WENDY MORLEY

arly in April of this year, Alberto “Pancho” Motta shook the hands and spoke to many in the travel retail industry while fulfilling his duties as IAADFS President at the Duty Free Show of the Americas in Orlando. He cut the ribbon to open the show floor, he was his usual approachable and energetic self, and he officiated at the Gala dinner. The next week, those same industry people who had spent time with him were stunned to hear of his sudden, untimely passing at the age of 69. Alberto “Pancho” Motta’s role in the duty free industry cannot be overstated. It could be argued that if it weren’t for the Motta family, the global travel retail industry would not be what it is today. Alberto Motta Sr. opened Motta and Motta in 1940, selling duty-free liquors and perfumes to tourists as they traveled the Panama Canal. Motta Internacional SA opened the first true duty free store at the Tocumen Airport in 1949, and then one in the free zone in Colon, which would become the model for duty free stores around the world. Under Motta Jr.’s control, the company has continued to grow in size, scope and focus. Motta Internacional, S.A. stores can be found in more than 20 countries in Central America, the Caribbean and South America. In addition, the company has now taken on a leadership role, helping other duty free stores to begin operations and thrive. In a statement following Motta’s death, Motta Internacional CEO Erasmo Orillac said: “It is with our deepest sorrow we regret to inform you of the passing of Alberto ‘Pancho’ Motta Jr. Pancho will be truly missed by all who had the pleasure of knowing him. The offices of Motta Internacional S.A. will be closed on Tuesday and will reopen on Wednesday to continue to carry on Pancho’s legacy.” Motta is survived by his wife Lorraine, and his three children, Alberto “Tito,” Giuliana and Georgette. Here, some people who worked closely with Motta Jr. express their thoughts.

Erik Juul-Mortensen, President, TFWA Motta Internacional was one of the first companies to open a duty free shop after the industry’s inception in Shannon in 1947. Personally, I had the pleasure and privilege of knowing Pancho throughout all time I have been associated with TFWA, which is more than 30 years. During many of those years I was also a supplier to Motta Internacional. Throughout this time IAADFS and TFWA have enjoyed an excellent relationship and cooperation, not least down to Pancho. As we set up the DFWC, Pancho kindly accepted to be part of a small executive together with Frank O’Connell and myself to ensure that everything was moving forward between board meetings. Pancho, like his father before him, was one of the true great individuals and indeed a doyen of this industry. He was always approachable and he had time for everybody. In debates he would always listen and contribute his balanced views, often with a sparkle of humor that enlightened serious debates. On a more personal level, my wife, Sarah, and I have had the pleasure of meeting Pancho and his wonderful wife Loraine many times. In addition to running a huge and successful busi-

ness empire, he was first and foremost a true family man. His devotion to Loraine, their children, grandchildren and family in general was always clearly there and an important part of Pancho. We shall all miss him.

Michael Payne, Executive Director, IAADFS I have known Pancho for well over 20 years. He was on the board when I first became involved with IAADFS and subsequently served as President for 16 years. So I had the pleasure and honor to know him as a good friend but also to work with him as the Executive Director of the organization for which he was President. He has always been a true pleasure to work with. Pancho was all about the industry. His father was an early pioneer of duty free, well respected and loved. For Pancho it was the same. Alberto Motta Sr. was an early founder of the IAADFS, and his son was engaged in various roles with the organization from the beginning. He had an intuitive knack for the business and a great sense about people. Pancho’s leadership helped expand the duty free industry throughout the Americas from Motta’s base in Panama. He understood the nuances of the industry, and with his personality and knowledge continued to shape it until his untimely passing. His leadership will be missed by many, many people. Personally, I’ve lost a great friend and mentor. He was such an upbeat person. He found a way to make everyone feel good about themselves, and treated people with respect regardless of their position in life. He cared about everyone although it was always clear that his wife Loraine and his family were his highest priority. He has left behind too many friends to count and a legacy that will be remembered and honored for generations. I will miss him. The world was a better place with him in it.

José Donagaray, Secretary General, ASUTIL I’ve known Pancho Motta since 2001. We at ASUTIL worked with Pancho and Michael at IAADFS on various issues over the years. In the past three years Pancho and I also worked together quite a lot with the DFWC. He was one of the most knowledgeable people in this industry, a real mentor. Always available to speak with and exchange information, he was very human and a real pleasure to work with.

Aijaz Khan, Publisher, Americas Duty Free & Travel Retailing Magazine Almost anyone who’s been in the travel retail industry for any period of time would know Alberto Motta Jr., known as “Pancho.” He and his father recognized the industry’s potential early on, and they were instrumental in bringing duty free to South America. Pancho was always willing to get involved in order to help the industry as a whole, and did so with his involvement in IAADFS over many years. Pancho was a great businessman, but he was also a likeable man. He had a great sense of humor, always treated other people with respect, and never gave the impression that he was too busy either to speak or to listen. The industry has lost a great leader, and the people within the industry have lost a great friend.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

DPG DUTY FREE

Duty-free shopping at DPG offers customers all the benefits of the travel retail while en route

two new stores in the past seven Conquering new From months to exciting future plans for expansion, DPG Duty Free’s familyduty-free airport retail business markets: A business- run, conquers new corners of Chile and Peru at strategic trade points oriented family affair by

ith two new airport stores added in Peru and Chile just since October 2015, there is no doubt that DPG Duty Free has its eye on growth and expansion and is thriving at both in rapid-fire succession. Founded by Ramesh Dayanani in the early 1990s in the Zona Franca area of Iquique, a coastal port city in northwestern Chile, DPG Duty Free had already carved out a robust national travel retail business focused on fine fragrances and liquors before enjoying its recent growth spurt.

CEO of family-run DPG Duty Free, Deepu Dayanani L

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

KATHERINE YAUN

Drawing upon its strength as a familyowned and trusted Chilean business, DPG Duty Free was able to reach across the border into Tacna, Peru in October 2015 and into Antofagasta, Chile in February 2016. Now well-positioned in these strategic trade points, DPG is quickly transforming from a trusted regional presence in Chile to a trusted and respected international force to be reckoned with, attracting clients from all over Latin America and beyond. Americas Duty Free recently connected with Deepu Dayanani L., CEO of DPG Duty Free, to learn more about the company’s background and latest initiatives. “Since 1994, DPG has focused on offering maximum satisfaction for all of our contributors and customers,” says Dayanani. “Our main virtue is having one of the country’s widest distribution channels, covering all of Chile and southern Peru. That’s why there is so much headroom for our stores to grow.” Four years after its establishment and with firm footing as a family-run business, DPG incorporated global fragrances into its business plan in 1998 alongside other internationallyrenowned brands of liquors, sunglasses, watches, electronics, and cosmetics.

Today DPG’s best-selling items are fragrances and liquors, primarily utilizing Coty and Diageo brands. Its headquarters and distribution center remain in Zona Franca of Iquique, Chile. The company has a staff consisting of 65 employees dedicating their efforts across three major divisions: the free zone division, travel retail, and domestic markets in Chile. Altogether, the divisions are in two countries and four cities: Iquique, Santiago, and Antofagasta, Chile; and Tacna, Peru.

Getting situated DPG Duty Free is now available in two airports: the Cerro Moreno International Airport (also known as Andrés Sabella Gálvez International Airport) in Antofagasta, Chile, and the Coronel FAP Carlos Ciriani Santa Rosa International Airport in Tacna, Peru, with additional locations expected to open soon. The fact that each store is situated within the international airport of a commercially viable and attractive city signals momentum and success for DPG. As a port city, international commerce center, industrial hub, and capital of its Antofagasta Province, the city of Antofagasta, Chile, is not surprisingly an excellent place to do business.

At Tacnas International Airport Carlos Ciriani, over 200 worldwide brands await duty-free customers at the DGP Duty Free store

Tacna is also the capital of its Peruvian region located 30 miles north of the Chilean border but further inland, just east of the Pacific Ocean and nestled in the valley of the Caplina River. Its geographically diverse region boasts vineyards, volcanoes, and hot springs at the foot of the Andes. Tacna is also an active commercial center given its proximity to the Chilean border. Additionally, both cities are easily accessible by way of the Pan-American highway. Clearly, both locations offer many options for border-crossing tourists interested in lush scenery, providing plenty of fertile ground for duty free retail. According to Dayanani, “The interest to enter to the airport travel retail markets was born from the idea of growth together with two of the most important airports in the region. We landed on duty free stores in these airports because we wanted to bring recognized brands to

interesting corners of these countries, along with our own quality of service.”

Store highlights The Antofagasta storefront is about 70 square meters, while the Tacna operation is over 200 square meters. DPG’s main customers in these locations are Chilean, Peruvian, and Bolivian passengers. The average customer spends approximately US$75 per visit. Four of DPG team members work on sales in Antofagasta, and 10 are employed in Tacna. The DPG Duty Free Tacna storefront is the primary chain of duty free airport retailers in southern Peru, and was part of an innovative project and investment in cooperation with the concessionaire of Aeropuertos Andinos del Perú (Andean Airports of Peru/AAP). This organization aims to establish businesses and position companies in the main cities of the

region. While its mission is focused on quality airport and commercial services, and as such specializes in infrastructure and security for its clients, AAP’s vision is to be the most regionally connected Latin American airport system with a hand in social, economic, and cultural initiatives. This is good news for DPG Duty Free, who is enjoying the positive effects of expansion in Peru largely resulting from the joint effort with AAP. “We are now part of one of the most important zones in Peru,” says Dayanani. “As a strategic border point and principal commercial hub of the country, Tacna receives an influx of approximately 5,000 Chilean tourists daily.” These border-crossing tourists travel to Tacna to shop and enjoy the attractive options and services that the city offers. In Chile, the main draws over at DPG Duty Free Antofagasta retail store are

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

DPG DUTY FREE

found in the natural attributes of the port city itself. “We believe that what brings people into our store is what brings them to Antofagasta in the first place: beaches and good weather all year round,” says Dayanani. Since DPG has been in business since the 1990s, customer satisfaction and strong contributor relationships came easily when setting up shop in Tacna and Antofagasta. In its relationships with store contributors, the company’s main focus is to achieve the best brand development possible through comprehensive distribution work. This means that customer focus reigns supreme whether serving domestic or foreign clients. “In both locations, our key drivers are effort, quality, communication, and

good service,” says Dayanani. “We seek to develop a strategic partnership with our suppliers in order to achieve one main objective: to make our customers happy.”

Future prospects DPG is a family company that knows where it has been and where it is heading, and its two new stores are just the beginning for the DPG expansion story. The company is getting the word out by building a strong online presence through social media outlets (https://www. facebook.com/dpgdutyfree) and a slick website (http://dpgdutyfree.com). DPG is also looking to expand its product mix by adding more tobacco suppliers and brand houses of fragrances. Day by day the team is working to

improve its existing stores and conquer new locations, so there are plans in motion to grow in Peru and Chile. Future projects will continue to prioritize offering the best customer service through investments in brand development with key contributors. For Dayanani, all of this growth and success is possible because of the company’s family roots. “Right now, we’re a company with a strong familyfocus run by four directors,” says Dayanani. “Since we’re family, we know how to work together to meet specific goals through teamwork, efficiency, and understanding the important role each team member plays.” Indeed, when family dynamics are in synch then business booms.

Tacnas DPG Duty Free store’s position within the international airport of a city connected to the Pan-American Highway facilitates strong sales

DPG customers can

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

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Designs and brands cover all of the needs of the Latin American luxury-item market

A la conquista de nuevos mercados: un asunto familiar orientado a los negocios

o hay dudas de que DPG Duty Free, con dos nuevas tiendas en Perú y Chile desde octubre del 2015, está enfocada en el crecimiento y la expansión, y está prosperando en ambos campos en rápida sucesión. La compañía, fundada por Ramesh Dayanani a inicios de los años noventa en el área de la Zona Franca de Iquique, ciudad portuaria en el noroeste de Chile, ya había logrado una robusta operación minorista de viajes nacional, enfocada en fragancias de lujo y licores antes de disfrutar de su reciente brote de crecimiento. Aprovechando su potencial como negocio chileno familiar y confiable, DPG Duty Free pudo extenderse al otro lado de la frontera en Tacna, Perú, en octubre del 2015; y Antofagasta, Chile, en febrero del 2016. DPG, bien ubicada actualmente en esos puntos estratégicos, se está transformando rápidamente de una presencia regional confiable en Chile, a una fuerza internacional respetada y confiable a considerar, que atrae clientes de Latinoamérica y otros países. Americas Duty Free conversó recientemente con Deepu Dayanani L.,

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

DPG Duty Free, negocio familiar minorista duty free de aeropuertos, conquista nuevos rincones de Chile y Perú en puntos comerciales estratégicos, desde dos nuevas tiendas en los últimos siete meses, a atractivos planes futuros de expansión

Director Ejecutivo de DPG Duty Free, para conocer más detalles sobre los antecedentes e iniciativas más recientes de la compañía. “Desde 1994, DPG se ha enfocado en ofrecer la máxima satisfacción para todos nuestros proveedores y clientes”, afirma Dayanani. “Nuestra principal virtud es tener uno de los canales de distribución más amplios del país, con cobertura a Chile y el sur de Perú. Por esa razón contamos con tanto espacio de crecimiento para nuestras tiendas”. Al cabo de cuatro años de su creación, y con pasos firmes como negocio familiar, DPG incorporó fragancias globales a su plan comercial en 1998, conjuntamente con otras marcas de licores, relojes, electrodomésticos y cosméticos de renombre mundial. En la actualidad, los artículos de mayor venta de DPG son las fragancias y los licores, utilizando primordialmente las marcas Coty y Diageo. Sus oficinas centrales y centro de distribución siguen ubicados en la Zona Franca de Iquique, Chile. La compañía cuenta con un equipo de 65 empleados que trabajan en tres importantes divisiones: zona franca,

minorista de viajes y mercados nacionales en Chile. Además, las divisiones tienen representación en dos países y cuatro ciudades: Iquique, Santiago, y Antofagasta, en Chile; y Tacna, Perú.

La ubicación DPG Duty Free está operando en dos aeropuertos: el Aeropuerto Internacional Cerro Moreno (también conocido como Aeropuerto Internacional Andrés Sabella Gálvez) en Antofagasta, Chile; y el Aeropuerto Internacional Coronel FAP Carlos Ciriani Santa Rosa de Tacna, Perú. Además, próximamente se inaugurarán instalaciones adicionales. El hecho de que cada tienda está ubicada dentro del aeropuerto internacional de una ciudad comercialmente viable y atractiva señala impulso y éxito para DPG. Como Antofagasta, es ciudad portuaria, centro comercial internacional e industrial y capital de la provincia de Antofagasta, Chile, no sorprende que sea un sitio excelente para hacer negocios. Tacna es también la capital de la región peruana ubicada 30 miles al norte de la frontera con Chile pero más hacia

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el interior, al este del Océano Pacífico, en el valle del río Caplina. Su región geográficamente diversa está compuesta por viñedos, volcanes y manantiales de aguas termales al pie de los Andes. Tacna es además un activo centro comercial, dada su cercanía a la frontera con Chile. Asimismo, ambas ciudades son fácilmente accesibles gracias a la Carretera Panamericana. Claramente, ambos sitios ofrecen numerosas opciones para los turistas que cruzan la frontera, interesados en la exuberante naturaleza, lo cual implica abundantes oportunidades para los negocios duty free. “El interés por entrar en los mercados minoristas de viajes de aeropuertos nació de la idea de crecer conjuntamente con dos de los aeropuertos más importantes de la región. Instalamos tiendas duty free en esos aeropuertos porque quisimos ofrecer marcas reconocidas a rincones interesantes de esos países, conjuntamente con nuestra calidad de servicio”, añade Dayanani.

Características de las tiendas La tienda de Antofagasta cuenta con 70 metros cuadrados, mientras que la de Tacna abarca más de 200 metros cuadrados. Los principales clientes de DPG en estas instalaciones son pasajeros chilenos, peruanos y bolivianos. El cliente promedio gasta aproximadamente US$75 por visita. En las ventas de Antofagasta trabajan cuatro miembros del equipo DPG, mientras que la de Tacna emplea a diez. La tienda DPG Duty Free Tacna es la cadena primaria de minoristas duty free aeroportuarios del sur de Perú, y formó parte de un proyecto e inversión innovadores en colaboración con el concesionario de Aeropuertos Andinos del Perú. Esta organización tiene el objetivo de crear negocios y ubicar compañías en las principales ciudades de la región. Si bien su misión está enfocada en servicios aeroportuarios y comerciales de calidad, y como tal se especializa en infraestructura y seguridad para sus clientes, la visión de AAP es ser el sistema de aeropuertos latinoamericanos con más conexiones regionales, y poder de acción en iniciativas sociales, económicas y culturales. Una buena noticia para DPG Duty Free, que ya disfruta de los efectos

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

positivos de la expansión en Perú, producto en gran medida de la iniciativa conjunta con AAP. “Ahora formamos parte de una de las zonas más importantes del Perú”, asegura Dayanani. “Tacna, punto fronterizo estratégico y centro comercial principal del país, recibe diariamente una cifra aproximada de 5,000 turistas chilenos”. Estos turistas cruzan la frontera y viajan a Tacna para hacer compras y disfrutar las atractivas opciones y servicios que les ofrece la ciudad. En Chile, los principales atractivos de la tienda minorista DPG Duty Free Antofagasta residen en los atributos naturales de la ciudad portuaria. “Creemos que lo que atrae clientes a nuestra tienda es lo que les llama la atención a Antofagasta en primer lugar: las playas y el buen clima todo el año”, explica Dayanani. Como DPG opera desde los años noventa, la satisfacción del cliente y las sólidas relaciones con los proveedores fueron cosa fácil a la hora de instalar las tiendas en Tacna y Antofagasta. En sus relaciones con los proveedores de la tienda, el enfoque fundamental de la compañía es lograr el mejor desarrollo de marca posible por medio de un trabajo integral de distribución. Esto equivale a que el enfoque del cliente sea primordial a la hora de prestar servicios a visitantes nacionales o extranjeros. “En ambas instalaciones, nuestros principios clave son: esfuerzo, calidad, comunicación y buen servicio”, agrega Dayanani. “Nos proponemos crear una alianza estratégica con

nuestros proveedores para lograr un objetivo primordial: hacer felices a nuestros clientes”.

Perspectivas futuras DPG es una compañía familiar que sabe adónde ha llegado y hacia dónde se dirige. Sus dos nuevas tiendas son solo el comienzo de la historia de expansión de DPG. La compañía está transmitiendo su mensaje creando una sólida presencia en los medios sociales (https://www.facebook. com/dpgdutyfree) y con un sofisticado sitio Web (http://dpgdutyfree.com). DPG también busca expandir su mezcla de productos incorporando más proveedores de tabaco y casas de marcas de fragancias. Día tras día, el equipo se esfuerza en mejorar las tiendas ya existentes y conquistar nuevas instalaciones, por lo que hay planes en marcha para crecer en Perú y Chile. Los proyectos futuros seguirán priorizando el mejor servicio al cliente mediante inversiones en desarrollo de marca con proveedores vitales. Para Dayanani, todo ese crecimiento y éxito es posible por las raíces familiares de la compañía. “En la actualidad somos una compañía con un sólido enfoque familiar, administrada por cuatro directores”, explica. “Al ser una familia, sabemos cómo trabajar unidos para lograr objetivos específicos con trabajo de grupo, eficiencia y comprensión del papel importante que desempeña cada miembro del grupo”. Sin duda alguna, cuando la dinámica familiar está sincronizada, el negocio florece.

Customers can expect personalized service in line with DPG’s mission of business values and taking care of brand images

In Memoriam Alberto â&#x20AC;&#x2DC;Panchoâ&#x20AC;&#x2122; Motta, Jr., IAADFS President

Pancho Motta was one of the most respected and beloved figures in our industry. He served as the IAADFS President for 16 years, and will be truly missed by everyone who had the good fortune to know him. He made the world a better place.

LATIN AMERICAN ECONOMY

Challenging

TIMES Americas Duty Free speaks with Carlos Melconian, President of the National Bank of Argentina, about the challenges that currently abound in Latin American economies

mericas Duty Free had the opportunity to speak with economist Carlos Melconian ahead of this year’s ASUTIL conference in Santiago. Formerly the founder of M&S Consultores, in December of 2015 Melconian was named President of the National Bank of Argentina. Melconian, a staple at the annual ASUTIL conference, will speak again this year, giving his opinion on the economic situation in the Latin America region. Below is a snapshot of themes that will be discussed. Americas Duty Free: Some are saying that the economic crisis in Argentina may be reaching an end. What is your opinion on this?

Carlos Melconian, President, National Bank of Argentina: The Argentinian economy has gone through 12 years of profound macroeconomic imbalances resulting in extreme state measures—especially in 2008 and from 2011 to 2015. President Macri’s administration, which has been in power for just six months, has set a plan in action to correct these problems. Of course, this process isn’t something that happens quickly—it takes time. We need to understand the importance of sowing the seeds now so that we can reap the benefits in the future. Argentina is on an upward trajectory but it will take time.

“The world has entered a period where the US Dollar is stronger and the price of raw materials is lower. These are the two factors that most strongly influence the economies of Latin American countries. Of course, the slowdown in China is another element, but this really has its roots in the first two causes.” CARLOS MELCONIAN, PRESIDENT, NATIONAL BANK OF ARGENTINA

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

ADF: With regard to Venezuela, the outlook doesn’t appear to be good. The country is dependent on oil exports, but are there other reasons for the economic crisis there? Further, how are the issues in Venezuela affecting the region as a whole? CM: Venezuela is an extreme case. The majority of countries in the region opted for an economic strategy that consists of inserting themselves in the worldwide economy, maintaining a certain level of fiscal discipline and currency stability, as well as prudent and advisable state intervention. Venezuela, on the other hand, chose to take a vastly different road—political and economic populism, unpredictability and inconsistency. Years and years of economic imprudence combined with a short-term view has resulted in a crisis characterized by extremely high inflation, capital flight, currency shortages, recession and social unrest. It could potentially be a political and economic crises that remains within the country, without affecting the rest of the region, but only time will tell; we need to continue watching these developments closely. ADF: As I understand it the Government of Brazil has introduced a robust package of macro-economic measures. Can you explain what this means for the country and the region? Do you have faith that these measures will work? CM: Brazil is in the middle of a political crisis with an ending that is still very much open. Of course, this will have economic consequences, and in fact,

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LATIN AMERICAN ECONOMY

this is already playing out. The Brazilian economy has experienced the largest recession we’ve seen in recent decades and it is important to note that there still isn’t a light at the end of the tunnel. Given the current state of affairs, it is very unlikely that these measures will be successful. Moreover, the fiscal problem in Brazil is huge, but at the same time focused on debt interest. What has happened is that the Treasury has been borrowing from the local market to pay these high interest rates; the Central Bank isn’t lowering the rates to keep inflation from rising. It’s a vicious circle that at some point or another will have to be stopped. ADF: What countries in the region are doing well economically at the moment?

How have they avoided the economic crisis plaguing the region and what can we learn from these countries? CM: The entire region is complicated from an economic standpoint because of cyclical changes in the worldwide economy. The world has become more selective and restrictive in terms of economic policies. For Latin American countries, this means it’s harder to grow, export, and maintain fiscal and monetary discipline. Some of the countries in the region that are overcoming these challenges include Chile, Peru, Colombia and Uruguay. Of course, this doesn’t mean that they don’t have their problems. Chile, for example, is dealing with its lowest period of economic growth in 25 years. Uruguay, too, is seeing very low growth and an inflation rate that

can’t seem to get below 10% per annum. The world has entered a period where the US Dollar is stronger and the price of raw materials is lower. These are the two factors that most strongly influence the economies of Latin American countries. Of course, the slowdown in China is another element, but this really has its roots in the first two causes I mentioned. ADF: Can you give us a preview of what you’ll be discussing at this year’s ASUTIL conference? CM: I’ll be discussing what we’ve only touched on here, which just how the region is adjusting itself to this new, tougher reality in the context of the international economy.

GDP (var. % annual)

Chile Uruguay Argentina Brasil Average

Average 2011-2013

Average 2014-2016 (e)

2014

2015

2016 (e)

5.1

1.9

2.1

1.8

2.9

-1.3

-2.5

0.7

-2.0

3.1

-1.9

-0.1

-2.2

-2.9

4.4

1.9

2.9

-2.6

3.2

0.1

Evolution of the GDP of selected Latin American countries

1.0

-3.8

1.5

-4.0

In>lation (var. % annual)

Argentina Uruguay Brasil Chile Average

Average 2011-2013

Average 2014-2016 (e)

2014

2015

2016 (e)

26.1

34.1

38.0

28.4

36.0

6.1

8.4

6.4

10.7

8.0

11.1

13.8

13.0

8.2

3.0 8.9

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

8.9

4.2

12.8

8.3

4.6

Evolution of inflation in selected Latin American countries

9.4

4.4

9.0

3.5

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â&#x20AC;&#x201A;TFWA DISCUSSES P&C

Glamor and growth potential Opportunities still exist in many areas of the already buoyant perfume and cosmetics category in travel retail, explains TFWA President Erik Juul-Mortensen

Erik Juul-Mortensen, President, TFWA

tâ&#x20AC;&#x2122;s a well-known fact that many women pre-plan their purchases in the perfume and cosmetics (P&C) category. But with some canny marketing tactics around impulse purchase and gifting, sales could climb even further, according to Erik Juul-Mortensen, President of the Tax Free World Association (TFWA). TFWA has conducted in-depth research into consumer buying behavior in the P&C category. Here, JuulMortensen divulges the latest developments in a vibrant and trend-driven sector of the duty free market. Americas Duty Free: How is the perfume and cosmetics category performing in duty free and travel retail overall? Erik Juul-Mortensen: According to Generation Research, perfumery and cosmetics sales account for around 30% of all travel retail revenue, standing at a very healthy US$20 million. Make-up sales are around US$3 million, skincare US$7 million and fragrance accounts for a substantial US$9 million. P&C is also one of the fastest-growing travel retail channels, and with net revenue growth of around 15% to 20%, depending on the brand, the pace of growth is far outstripping that in most local markets.

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

ADF: How is the category evolving? EJM: This is a dynamic business, and a detailed understanding of the vagaries and complexities of the sector is vital. The pace of change can be rapid, and brands that wish to compete here will need to anticipate and respond quickly to trends if they are to thrive. ADF: Do you feel affordable luxury P&C is more relevant during this economic climate? EJM: Yes. Whereas passengers may not be able to afford a top-end handbag or designer clothing, P&C is an accessible treat. Offering glamor and indulgence at an affordable price, it also plays a vital role in the all-important gifting market. Airport passengers are not, however, just looking for the high end. The increasing democratization of air travel and the ever-widening profile of the air passenger means the airport can be the perfect outlet for the more mid-market name, too.

ADF: Do you have any statistics you can share on P&C? EJM: A study conducted by Counter Intelligence Retail for TFWA revealed scope for further growth of this important channel and demonstrated that the sector presents the ideal opportunity to encourage a move to investing in a more top-of-the-range beauty regime. Just over half of beauty shoppers at airports plan their visit to the beauty counters, and a high proportion (seven out of 10) of pre-planners know exactly what they will buy. However, a very small proportion of shoppers buy both planned and impulse items. In addition, planned beauty buyers spend more, on average, on planned items than impulse items. This points the way to potential to encourage sales via promotions and marketing campaigns aimed at encouraging additional impulse buying alongside the planned purchase, according to TFWA.

Perfumery and cosmetics sales account for around 30% of all travel retail revenue

While seven out of 10 women shoppers buy for themselves, only two in five trade up to a more expensive product and a high proportion know exactly what they will buy. This would suggest that there is advantage to be had in communicating that travel away from home is the perfect time to try a more high-end beauty regime, and encouraging women to treat themselves to a product that is that little bit more indulgent. Half of beauty shoppers like the idea of the travel retail exclusive, and yet only three in 10 notice them in the beauty category. Good value for money is their main appeal, and this was cited by nearly two thirds (64%) as a trigger to buy, while just under half (49%) liked the opportunity to own something that wasn’t available

anywhere else. Once again, this would suggest potential to boost sales. Promotion of value for money, the convenience and exclusivity of these products will help to raise understanding and awareness, prompting shoppers to actively look for them. “Looking for a gift” is one of the key reasons for visiting beauty among shoppers (31%), and while six out of 10 purchase for themselves, only three out of 10 buy for a gift. With one in four shoppers saying that gift solutions would encourage them to buy beauty items in the future, it would appear that offering appropriate gifting solutions and targeted communications will also help to drive footfall and sales in the category.

ADF: Are there any emerging regions for the category? EJM: Asia, accounting for around 40% of global travel retail sales and roughly the same percentage of P&C sales, is where most of the big brands are looking for growth now. The heaviest-hitting airport in terms of P&C sales is Seoul Incheon in Korea, with Dubai a close second, and of the all top 20 airports, nearly half are in Asia. The potential of Europe, however, should not be underestimated. While growth here is less dramatic, Europe, as a more established market, is less volatile than the Asian region and other emerging markets in South America.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

LONDON SUPPLY

Carnival is always an especially vibrant time in London Supply’s Puerto Iguazu store and this year was no exception; 22 performers celebrated the history

Strategic victory W by

WENDY MORLEY

hen much of South America fell into an economic tailspin throughout 2014 and into 2015, London Supply’s Puerto Iguazu store held steady. The store’s sales were up 24% in 2014, thanks in part to a massive renovation, and in the first quarter of 2015 were up 20% again. That trend has not continued in 2016. “We closed the first quarter of 2016 with sales 30% lower than the same time period in 2015,” says Maggie Ducos, London Supply’s Commercial Director. “Customers during the first quarter also fell 17%, which is the same drop seen by the national park in visitors.” Because Iguazu Falls is a top tourist destination for both Brazilians and Argentineans and because of the store’s reputation in terms of “retailtainment” and as a destination unto itself, London Supply Puerto Iguazu often finds itself in a bit of a bubble when it comes to economic fluctuations. “When we see difficult times economically in our region, Argentinean and Brazilian people stop traveling abroad and this benefits us,” says Ducos. “And then there we are, in one of the best tourist destinations in the region, right next to the falls. So in bad times, we have the opportunity to receive many tourists looking for two or three vacation days – effortless in terms of cost.” In recent months, however, even this economically magical area could not avoid the region’s difficulties. “In December 2015, Argentina elected a new president,” says Ducos. “With this change, as expected, the country was brought in a new economic direction. The currency suffered a devaluation of more than 40%, and this, of course, reduced consumer spending power.”

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

In its 70+ year history, London Supply has become very talented at making the most of economic downturns The region’s ravaged economy and the Argentinean election were far from the only problems battering the border this year. The northern part of the country also saw a dengue fever sanitary emergency, which affected tourism in the area and directly caused a decrease of visitors to the region. Be all this as it may, Ducos is sanguine about the future. “London Supply has seen many different crises in its more than 70 years in business,” she says. “We were expecting the economic changes, given what was happening politically and economically, and we took precautions to be ready for the new scenario.”

Move toward perceived value As with retailers around the globe, London Supply is seeing customers moving toward more perceived value and away from the highest luxury items. “With the current situations in Brazil and Argentina, customer preferences have definitely changed,” she says. “They are looking for higher perceived value items and have reduced their luxury budgets. In the past they used to buy more luxury items in all categories. Today they expend this money on certain special items and take fewer chances, purchasing well known and good branding only.” Because London Supply expected the economic changes, the company has planned well in advance. “We are very flexible and adapt our movements when we perceive changes in the market are coming. For the past year we have been adapting our stocks and exhibits to this new profile, offering new high-perceivedvalue items and maintaining the very well known luxury products in strategic areas of each category.”

Carolina Herrera 212VIP took over the store with a massive activation that even included the water fountain outside

During Easter, a French singer engaged the audience to try Cointreau, and a special promotion was offered

The Chivas Regal activation was interactive; customers could sample and take photos to be emailed to them later.

The company has also created some non-traditional areas in the store to capitalize on trends. “We created a Pet section, which covers the needs of dog and cat lovers,” says Ducos. “We offer affordable fashion items in a specific corner, and we opened a Victoria´s Secret Exclusive shop to help meet customers’ requirements. These all work to complete a wide and varied range of options, guaranteeing that our customers find something to add in the basket after purchasing the traditional items.”

mance. Customers enjoyed this special environment created with color, scenography and an associated promotion.” Given its optimal location, London Supply could simply exist, but special activations are an integral part of the store’s character and part of the reason for its ongoing success. “You know us, always thinking,” says Ducos. “We feel that difficult times are the best times to be creative, find new ways to astonish customers and ultimately transform their good mood in more sales.”

Exciting activations

New directions

Carnival is always an especially important time for London Supply. “As is the case every year, we had a special event for Carnival. This year we made a spectacular show with Chivas Regal called CHIVAS AGES, where customers enjoyed watching 22 dancers in performances representing the different ages of Chivas Regal,” says Ducos. “It was an incredible show and people of all ages enjoyed it. The event was interactive; customers took photos and received them by email. Of course they were also able to taste different drinks made with Chivas that were adapted to each performance. “It was an exquisite event and gave excellent results in terms of sales and extra value, because the experience brought happiness to the customers. We are always working to make the shopping experience in our store different, positive and special.” Easter is also an especially vibrant time in the store. “In Easter we created an event together with Cointreau: a very special French singer motivated the customers to try different drinks with Cointreau while she offered an exclusive, quiet perfor-

Exciting activations and new sections within the store are all well and good, but London Supply has plenty more up its sleeve. “The duty free shop in Rio Gallegos is currently under construction,” says Ducos. “It’s supposed to be open at the end of 2016. A store of 1,000 square meters offering the classic categories will be our first challenge there.” London Supply Group is also branching off in other new directions. Early this year the company launched a new domestic distribution division. “We have been the new distributors for Lindt in Argentina domestic market since January, and we are moving forward with other brands to complete a premium products portfolio. We managed this division many years ago and now, with these excellent brands, we putting forth great effort to make this new division a success for London Supply Group. We also recently buy a well-known gourmet store chain in Argentina. We currently have eight stores, projected to 15. This will be an excellent POS for our new division, in addition to the development of the ON and OFF Premise channel in Argentina for the products we will distribute.ww

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

MANNAH DUTY FREE

Emerging stronger After a challenging 2015, Mannah Duty Free sees sales increase during the first quarter of this year and more travelers through Silvio Pettirossi Airport by

RYAN WHITE

head of this year’s ASUTIL conference in Santiago, Americas Duty Free spoke with Mohamed Mannah, President of Paraguayan airport and border retailer Mannah Duty Free, to discuss the company’s business over the first quarter of 2016. He tells us that he believes the worst of the economic crisis that has hit neighboring countries, most notably Brazil, is over. “2015 was a tough year for sales given that Brazil and Argentina were hit with an economic crisis,” he says. “Sales in the first quarter of 2016 are up over the same period in 2015, so this is certainly good news.” Average ticket at the retailer’s stores is US$100, while the three most popular categories in terms of sales are Chocolates, Perfumes and Spirits. What’s more, despite the economic woes that have befallen Brazil, travelers from the country remain Mannah Duty Free’s top customers in terms of spend, with Germans and Paraguayans rounding out the top three respectively. While passenger traffic statistics for Silvio Pettirossi International Airport have only been released so far for January 2016, it appears that the airport is off to a good start, with 95,310 passengers this year versus 89,332 last year, representing an increase of 6.69%. While border traffic data wasn’t available at the time of the interview, Mannah tells us that the approximately 1.7 million tourists cross the border into Paraguay each year.

Keeping things fresh Part of the reason why Mannah Duty Free’s sales have remained strong is its concentration on developing timely promotions. Near the end of last year, the retailer offered discounts on spirits and GWPs with perfume purchases, but perhaps the most effective initiative had to do with exchange rates. 36

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Mannah Duty Free’s store in Silvio Pettirossi International Airport, Paraguay

The Perfume section of Mannah Duty Free’s Silvio Pettirossi store; the category is currently the retailer’s second-largest in terms of sales

“Given the devaluation of the Real, we maintained our exchange rate at R$3.00 equal to US$1.00, even though official rates were R$4.00 for US$1.00,” Mannah explains. “This effectively represented a discount for our Brazilian clientele, which went a long way towards ensuring that they continued to shop.” At the time of the our interview, the retailer was preparing an Easter promotion set to feature the best and most popular chocolates from around the world, as well as a selection of fine wines. The retailer was also looking ahead to its Mother’s Day promotion. “We’ve seen great success in tailoring our promotions to align with popular celebrations such as Easter or Mother’s Day,” explains Mannah. Of course, another way that Mannah Duty Free keeps things fresh for shoppers is through regular renovations. The operator has lately added 150 meters to

its La Petisquera store in Ciudad del Este. The renovation consisted of enlarging the Spirits, Accessories and Electronics sections. “It was about ensuring a comfortable shopping experience for our clients,” Mannah explains. Much like the theme of this year’s ASUTIL conference, “Step by step in the right direction,” it appears that Mannah Duty Free is right where it needs to be at this moment in time. With sales up, economic tensions in the region easing if only slightly and a continued focus on enhancing service delivery, Mannah tells us he is hopeful for the coming year. “We’re continuing to grow despite a challenging 2015,” he concludes. “I think good things are ahead for the rest of this year and 2017. Whatever the operating environment may be, rest assured that we’ll continue to innovate with the ultimate goal of better serving our clients.”

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GRUPO AEROPORTUARIO DEL SURESTE

Cancún terminal 4

TAKES OFF by

HIBAH NOOR

Artistic renderings of ASUR’s Terminal 4

Following a revamp of Terminals 2 and 3 at Cancún International Airport, ASUR has started building its new, US$1 billion state-of-the art T4 amid a passenger boom at the popular Mexican resort

anuel Gutiérrez Sola Aguilera, Commercial Director at Mexican airport operator ASUR, has plenty to smile about these days. Passenger numbers are booming at the operator’s flagship Cancún International Airport, and construction is well under way for the new, US$1 billion Terminal 4 that is opening in June/July 2017. Originally intended to open in October 2017, ASUR has brought forward the opening date for this state-of-the-art terminal, which is expected to serve 25 million passengers in its final phase. The new facility is much-needed, as passenger traffic at Cancún hit nearly 20 million last year and is still growing fast. “The traffic in Cancún has been blasting,” says Gutiérrez Sola. “Passenger traffic has been growing in double digits in the past three 38

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

years. The number of passengers was close to 20 million last year, reaching over 19.6 million. Of this figure, 14.5 million were international passengers and the rest were domestic.” So why are passengers coming to the resort of Cancún? “They like the weather

and the amazing sea and sand. There are the Mayan ruins of Tulum, Chichen Itza one of the Seven Wonders, the Cenotes and, of course, the Mexican food and folklore... Plus they’ve been increasing rooms at the existing hotels, and they are also building new hotels. We have nearly 80,000 hotel rooms in the region of Cancún and Riviera Maya,” says Gutiérrez Sola. Some 70% of the 14.5 million international passengers at Cancún come from US and Canada, plus a large amount from

FLAVOURS of the World

GRUPO AEROPORTUARIO DEL SURESTE

Europe. The airport has direct flights from Spain, the UK, Norway, Russia, Germany, France, and Italy. South American cities are well served by the airlines COPA and Avianca, and there are services to Cancún through Panama, Colombia, Peru and Chile, along with charter airlines from Brazil. ASUR started the construction of T4 in May 2015 and the building is taking shape. The structure is finalized, and now, says Gutiérrez Sola: “We’re putting walls on the lower floor. The aprons are coming up fast, and we’re constructing the access roads, and parking lot.” In the first phase, T4 will serve 6.5 million passengers with 11 gates. In its later stages, T4 is intended to serve 25 million passengers, and this means Cancún Airport will have capacity for a total of 45 million passengers in the future. ASUR already has a plan to develop T4 following the opening of phase one. “If we keep on growing at 10%, 11%, 13% per year, pretty soon we’ll have to begin phase two,” says Gutiérrez Sola. The walkthrough duty free area in the new terminal will cover 21,000 square feet, plus another 5,400 square feet if the wide walkway is included. There will be additional last-minute shops at the piers. In terms of duty free concessionaires, ASUR’s contract with WDFG (now Dufry), signed 15 years ago, ends in May 2017. “Right now we’re launching the bidding process by invitation before the end of June 2016. The deadline for proposals is in August,” says Gutiérrez Sola, adding that the master duty free concession for both Cancún and Cozumel airports runs for 10 years. He continues: “In October 2016 at the latest, we’ll sign the contract with whoever wins the process and then begin construction of T4’s duty free facilities with the new concessionaire. There will be only one concessionaire for T2, T3 and T4, as T1 doesn’t have any international passengers. There’s already a lot of interest – Dufry, DFS, DFASS, Motta, DFA, the big players in America – as international passenger numbers are good and they have seen how we’ve grown over the last 15 years and have noticed what kind of partner ASUR can be. We intend to make a decision by the end of the third quarter of this year.” The duty free facilities are expected to include stand-alone shops with brands that are new to the airport. “We’d like the 40

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

operators to present their ideas. For the stand-alone stores I think fashion will do very well, and electronics. I think with an electronics store we will be blasting just by taking the VAT off the Apple products. It would be very good for the customers. They have done this in Brazil already and it’s amazing.” ASUR has already launched the process for the F&B operation and signed a contract for 10 years with the MERA group. “They’ve been in several airports and they have done a great job,” says Gutiérrez Sola. T4 airside will initially house two restaurants and a food court, a last-minute grab-and-go concept at the gates, plus a coffee shop and a restaurant in the checkin area. Overall, T4 is expected to be a stateof-the art facility, which will cost 2.5 billion pesos (US$150 million) to build in this first phase of T4. “We are doing a pretty smart and nice layout – it’s going to be superb, based on the good and bad experiences we’ve had in the other terminals we have worked on. We have worked on the design of T4 for more than 18 months already.” Turning to Cancún Airport’s other terminals, Terminal 2 hit maximum capacity in 2014, following an increase in traffic. ASUR remodeled the terminal’s commer-

cial space and built a new walkthrough area with WDFG. The last WDFG shops were finished in December 2015. The revamp also incorporated high-end brands in new stand-alone stores, including MAC cosmetics, Victoria’s Secret and Longchamp – each store covering 700 square feet. “It turned out very well; the numbers went up,” says Gutiérrez Sola. “It looks very nice. WDFG does the duty free in T2 and the rest of the travel retail is done by several concessionaires. It’s the same for T1, T2 and T3. We don’t have any international passengers in T1, but in T1 we have a duty paid operation with Dufry.” Last year, T3 reached maximum capacity as well. Works have included building six new jet bridges for wide-bodied aircraft, a wider finger pier and a wider concourse. ASUR also added more shops, covering close to 700,000 square feet in that terminal. A new concourse was constructed, along with additional duty paid stores. The duty free area remains as it was, but in the new section, ASUR celebrated the opening of the first restaurant outside the US for the famous chef Guy Fieri. “He’s very popular in the US on the Food Network. Now he has opened his first restaurant in Mexico and his first ever in Cancún and inside the airport, at Cancún T3,” Gutiérrez Sola says proudly.

DUFRY: RENE RIEDI

In Peru, Dufry has completed some of the changes. The departures store is still being transformed

Western domination by

WENDY MORLEY

n the past two years Dufry has gone from being an important player in global travel retail to being the biggest retailer in the world in that industry after purchasing both Nuance and World Duty Free Group (WDFG), two giants in their own right. While Dufry has always been strong in Latin America, its purchase of WDFG made it even stronger. Two stores in particular cemented Dufry’s place in the west of South America: WDFG’s stores in Jorge Chávez International Airport in Lima, Peru, and in Arturo Merino Benítez International Airport, in Santiago, Chile. As it happens, both of these airports are undergoing changes in order to better accommodate their growing passenger numbers, which have more than tripled in the past dozen years. Santiago’s airport in particular has big growth on the horizon. Nuevo Pudahuel, a consortium consisting of VINCI Airports, Aéroports de Paris (ADP) and Astaldi, took over operations in October, 2015, and will soon

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

commence building a new international terminal, which will increase the airport’s capacity to 30 million PAX. Meanwhile, Dufry is making changes to the stores in both of these airports. In Peru, the departures store is being transformed from a traditional duty free store of 1,107 square meters (net commercial space) to a walk-through store of 1,818 square meters and the arrivals store, which had already been operated as a walk-through, has been refurbished, growing from 230 square meters to 493

square meters. In Santiago work has yet to begin. Here, Rene Riedi, Chief Operating Officer at Dufry Americas, discusses this subregion. Americas Duty Free: How has the transition from Dufry to World Duty Free been going? Rene Riedi: The integration of all World Duty Free operations in Dufry is going very smoothly. We are already well advanced and do not foresee any major issues going forward.

Branding will stay the same for Dufry’s recently acquired World Duty Free stores

DUFRY: RENE RIEDI

plan that includes proposals for some changes to layout and assortment. ADF: What is traffic like at the airport? How is that expected to increase in coming years? RR: Year to date the passenger numbers have been growing substantially, in the range of +10%. We are confident that this trend will continue; to what extent, however, is difficult to predict.

In Santiago, Dufry operates a wine bin of 128 square meters in the international departure hall

ADF: Have you encountered anything especially interesting or surprising since taking over the Santiago store? RR: Late last year, just before we took over the operation, Nuevo Pudahuel took over the management of the airport. We had first to learn what the new operator’s expectations were before starting to make changes to the operation. ADF: The LATAM economy has been difficult over the past year. Has this affected your immediate plans for the store? Has anything been rethought? RR: The economic downturn has not affected our plans. To the contrary, we are committed to invest in the quality of the retail offer and support Nueva Pudahuel in the execution of their commercial strategy. ADF: What changes have been made, if any, and what are your priorities in the coming year? RR: No changes have been made yet. We are in a phase where we discuss with the airport operator opportunities to make significant improvements. Discussions are still progressing.

the benefits of these changes as long as possible. Remember, the airport plans to transfer the international passengers to a new terminal that is expected to become operational in 2020. ADF: When will work begin? When is it expected to be completed? RR: We expect that the work will be completed before the end of this year. This of course depends on how fast the airport will be able to obtain permits from the authorities to make the changes. ADF: What changes will be made to the store during renovation? Increased floor space? Different walking area relative to products/categories? RR: We do not plan to make significant changes to the space or the walking area; however, we have prepared a commercial

ADF: What is the proportion of international vs domestic at the airport? Do you have stores to serve both? RR: We operate four duty free stores in Santiago. One is a walk-through duty free departure store of 1,150 square meters, one is a walk-through duty free arrival store of 802 square meters. The others have the character of last-minute stores. Further, we operate four duty paid stores, of which one is a wine bin of 128 square meters in the international departure hall. The three other stores are located in the domestic passenger terminal, with two departure stores totaling 170 square meters and one walk-through arrivals store of nearly 90 square meters. Our total commercial space at the airport exceeds 2,500 square meters, of which duty free counts for around 2,100 square meters and duty paid for around 400 square meters. ADF: Has a decision been made on the name? When we last spoke you suggested it might be World Duty Free a Dufry company, for example. RR: The Group has taken a decision to keep company names as they are, just annexing “a Dufry company” as you mention.

ADF: At what point is the planning of the renovation right now? RR: We do not plan to renovate the store entirely; however, there are some ideas we discuss with the airport that will give better access to our store for certain passenger segments. This is connected with some investments. Our objective is to start as quickly as possible to enjoy

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Promotions are always key to increased sales

Visit our Stand at Salon San Cristobal of the Sheraton Hotel in Santiago during ASUTIL.

Itâ&#x20AC;&#x2122;s all about the journey

DUFRY: RENE RIEDI

In Santiago Dufry first to learn about the new operator’s expectations before starting to make changes to the operation

Dominio en el oeste

n los últimos dos años, Dufry ha pasado de ser un factor importante en el sector minorista de viajes global, a convertirse en el principal operador minorista del mundo, luego de adquirir Nuance y World Duty Free Group (WDFG), dos gigantes por naturaleza propia. Si bien Dufry ha ocupado una sólida posición en Latinoamérica, la compra de WDFG la fortaleció aún más.

Dos tiendas en particular cimentaron el lugar de Dufry en la región oeste de Suramérica: los establecimientos de WDFG en el Aeropuerto Internacional Jorge Chávez de Lima, Perú; y en el Aeropuerto Internacional Arturo Merino Benítez en Santiago de Chile. Mientras esto ocurre, ambos aeropuertos están siendo sujetos a cambios para una mejor recepción de crecientes cifras de pasajeros, las cuales

Dufry gives considerable autonomy to store management for regional purchasing

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

La fortaleza de Dufry en Suramérica se ha hecho más balanceada con su adquisición de las tiendas World Duty Free en Lima y Santiago. De este tema hablamos con René Riedi, director de operaciones del gigante minorista de viajes en Dufry Americas han rebasado el triple de su potencial en los últimos doce años. En particular, el aeropuerto de Santiago tiene un gran crecimiento en el horizonte. Nuevo Pudahuel, consorcio integrado por VINCI Airports, Aéroports de Paris (ADP) y Astaldi, asumió las operaciones en octubre del 2015, e iniciará próximamente la construcción de una nueva terminal internacional, que incrementará la capacidad del aeropuerto a treinta millones de pasajeros. Entretanto, Dufry está llevando a cabo cambios en las tiendas de los dos aeropuertos. en el Perú, la tienda ubicada en el área de salida está siendo transformada de una instalación tradicional duty free de 1,107 metros cuadrados (espacio comercial neto) a una tienda de tráfico continuo de 1,818 metros cuadrados; mientras que la tienda en la zona de llegadas, que ya se opera como instalación de tráfico continuo, ha sido remodelada, creciendo de 230 a 493 metros cuadrados. Por su parte, en Santiago, aunque no se ha comenzado el trabajo, los cambios serán significativos. Rene Riedi, Director de Operaciones de Dufry Americas, comenta sobre los cambios en esta subregión.

DUFRY: RENE RIEDI

Americas Duty Free: ¿Cómo se ha llevado a cabo la transición de Dufry a World Duty Free? Rene Riedi: La integración de todas las operaciones de World Duty Free en Dufry está marchando a la perfección. Hemos avanzado mucho y no pronóstico problema alguno de ahora en adelante. ADF: ¿Ha encontrado algo especialmente interesante o sorprendente desde que asumieron las operaciones de la tienda de Santiago? RR: A finales del año pasado, justo antes de asumir las operaciones, Nuevo Pudahuel se hizo cargo de la administración del aeropuerto. Por tanto, antes de hacerle cambios, tuvimos que conocer cuáles eran las expectativas del nuevo operador. ADF: La economía de Latinoamérica pasó por momentos difíciles el año pasado. ¿Ha afectado esta situación sus planes inmediatos para la tienda? ¿Han tenido que reconsiderar algún aspecto de la operación? RR: La crisis económica no ha afectado nuestros planes. Por el contrario, tenemos el compromiso de invertir en la calidad de la oferta minorista, y respaldar a Nueva Pudahuel en la ejecución de su estrategia comercial. ADF: ¿Qué cambios han hecho (si es que los hubo) y cuáles son sus prioridades para el año que transcurre?

Dufry has prepared a commercial plan that includes proposals for some changes to layout and assortment

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

RR: No hemos hecho cambios hasta ahora. Estamos en una fase de análisis de oportunidades con el operador del aeropuerto, para hacer mejoras significativas. Las conversaciones siguen en progreso.

RR: No nos proponemos hacer cambios significativos al espacio ni a la zona de tráfico. Sin embargo, hemos preparado un plan comercial que incluye propuestas de algunos cambios de distribución y variedad.

ADF: ¿En qué fase está actualmente la planificación de la renovación? RR: No nos proponemos renovar la tienda en su totalidad. Sin embargo, hay algunas ideas que debemos analizar con el aeropuerto, las cuales proporcionarán mejor acceso a nuestra tienda para ciertos segmentos de pasajeros. Esto está conectado con algunas inversiones. Nuestro objetivo es comenzar a disfrutar los beneficios de estos cambios lo antes posible y durante el mayor tiempo posible. Debemos recordar que los planes del aeropuerto de transferir los pasajeros internacionales a una nueva terminal deberían hacerse operativos en el 2020.

ADF: ¿Cómo es el tráfico en el aeropuerto? ¿Cómo esperan que se incremente en los próximos años? RR: Este año y hasta la fecha, las cifras de pasajeros han aumentado sustancialmente, en el rango de +10%. Confiamos en que esta tendencia continúe, aunque es difícil predecir su magnitud.

ADF: ¿Cuándo comenzarán las obras? ¿Cuándo se proponen terminarlas? RR: Esperamos que las obras se concluyan antes de que termine el año. Esto, por supuesto, depende de la rapidez con la que el aeropuerto pueda obtener los permisos de las autoridades para hacer los cambios. ADF: ¿Qué cambios se le harán a la tienda durante la renovación? ¿Diferentes áreas de tránsito relacionadas con productos/categorías?

ADF: ¿Cuál es la proporción de pasajeros internacionales en comparación con los nacionales en el aeropuerto? ¿Disponen de tiendas para prestar servicios a ambas categorías? RR: Operamos cuatro tiendas duty free en Santiago. La primera es un establecimiento duty free de tráfico continuo en la sección de salidas, con 1,150 metros cuadrados. La segunda es una tienda duty free de tráfico continuo de 802 metros cuadrados en el área de llegadas. Las demás son tiendas para compras de último minuto. Además, operamos cuatro tiendas con pago de aranceles, una de las cuales se especializa en vinos, abarca 128 metros cuadrados, y está ubicada en el salón de salidas internacionales. Las otras tres operan en la terminal de pasajeros nacionales: dos de ellas en el área de salidas, totalizando 170 metros cuadrados; y la cuarta, de tráfico continuo, en la sección de llegadas, con unos 90 metros cuadrados de extensión. El espacio comercial total de que disponemos en el aeropuerto supera los 2,500 metros cuadrados, de los cuales las tiendas duty free ocupan 2,100; y los establecimientos con pago de aranceles unos 400. ADF: ¿Qué decisión se ha tomado con respecto al nombre de la compañía? Por ejemplo, la última vez que hablamos usted sugirió que sería “World Duty Free, una compañía Dufry”. RR: El Grupo ha tomado la decisión de mantener los nombres de las compañías tal y como estaban, incorporando solamente “una compañía Dufry”, como acaba de mencionar.

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RIOGALEÃO

South pier

opens by

WENDY MORLEY

RIOgaleão’s renovations have upgraded the airport to high modern standards, making it one of the main hubs of the region

IOgaleão, a consortium of Odebrecht TransPort, Changi Airports and Infraero, the Brazilian government’s organization that until recent privatization ran Brazil’s commercial airports, has launched a new era, completing the latest phase of what will ultimately be a R$5.2 billion (US$1.45 billion at current exchange rate) infrastructure improvement for Tom Jobim International Airport, which serves about 17 million passengers per year. The phase being completed this year totaled R$2 billion (US560 million).

New South Pier now open The airport’s new South Pier, inaugurated in May, is larger than 100,000 square meters, with 26 new boarding fingers and about 6,000 square meters of dedicated VIP lounges in addition to new washrooms and child care stations, all to increase customer comfort. To help move those passengers, the pier offers 14 new conveyors, four elevators and six escalators. Three of the 26 new boarding fingers have technical specifications to accommodate code F aircraft, A-380 and 747-8, the largest passenger aircraft in the world. In fact, RIOgaleão was the first airport in Brazil to receive authorization from ANAC for landing and takeoff of the A-380.

Entire airport being updated While the opening of South Pier is the biggest news at the airport, Terminals 1 and 2 are also being revitalized for passenger transport, comfort and shopping, some of which is already operational and some to be completed before the Olympics begin in August. This includes a new garage building with direct access to Terminal 2, with seven floors and over 2,000 new parking places and an automatized information system for parking places

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

available in every floor, which opened in January. The power, air conditioning and signaling systems have been upgraded and automated. “The new equipment will be fully operational by the time passengers arrive for the Olympic Games,” says Sandro Fernandes, Chief Commericial Officer for RIOgaleão. “A new sound system, totally digital, shall be completely implemented by the end of the current year. Also, all 32 existing passenger boarding fingers were replaced in Terminals 1 and 2, and we have approximately 24,000 square meters destined to be new shops, between the Pier and Terminal 2.”

Commercial of enormous value As airports continue to recognize the enormous value of commercial revenue, so has RIOgaleão, says Fernandes. “Our target is The airport’s brand new South Pier was inaugurated in May of this year

RIOGALEÃO

The consortium’s colorful logo’s design elements appear throughout the beautiful new space

sidewalks of the access to boarding and arrivals halls will have the support of the Municipal Transportation Secretary (Secretaria Municipal de Transportes - SMTR) and CET Rio for organization of the transportation flow.” By the end of June the airport will offer two technological innovations to help organize and optimize passenger boarding and disembarking. Both terminals will have BCBP (bar-coded boarding pass) solution, automatic gates driven by reading the boarding pass barcode (printed or in mobile devices). The technology associates 3D depth sensors and high processing speed, which will block the passage of non-authorized people. “There will be 19 of such doors distributed throughout the entire airport (eight in terminal 1 and eleven in terminal 2), which besides allowing a flow of more than 50 passengers per minute, shall allot total access to persons in wheelchairs due to its dimensions,” says Fernandes. The Federal Police will also have an integrated solution for automated border control, with self-service electronic gates. “The eGates of Vision-Box will allow the passenger boarding or disembarking from international flights to perform migration control using passport authentication and identification by means of a camera for biometric acknowledgement. The process is performed in just a few seconds and the eGates will be integrated to advanced management software allowing the Federal Police to have real time control of the entire safety infrastructure, as well as immediate reaction to any hazard situation.” This new system may be used by any Brazilian citizen over 18 years of age with an electronic passport (with a chip), allowing for quick and efficient border control. Foreigners and Brazilians under 18 will use normal procedures presenting the passport in one of the counters. “Both solutions promise more fluid passenger flow, optimizing waiting lines and making RIOgaleão an airport even more modern and safe, aligned with the latest technological trends,” says Fernandes. RIOgaleão has already launched a free airport app, available on iOS and Android. With this app, passengers can receive notification in real time about the arrival or departure status, pay the parking without needing to go to a counter and consult the services within the airport, such as shops and airlines.

to increase our non-aeronautical revenue contribution significantly with the new commercial space, new concepts and new tenants. The fiscal results should be apparent after the first year of the new phase is complete.” The revamped Terminal 2 and the new Pier combined feature the world’s largest duty free shop with over 4,000 square meters of shopping in arrivals and close to another 3,000 square meters in the departure area. This includes a unique “Carioca Street” shopping concept, which recreates the streetscape in Rio de Janeiro and many of the favorite places in the city, and will showcase some of the top brands from Brazil and Rio. Shopping is high on the consortium’s list of priorities, and the offer is extensive. Some of the popular labels travelers can find at the airport include Havaianas, H.Stern and Maria Oiticica. Havaianas, a Brazilian brand of sandals and lifestyle wear, is very popular with locals and tourists. H.Stern started as a Carioca jewellery company that has made its name internationally. Maria Oiticica sells an eclectic, colorful range of fashion jewelry at price points that should prove popular with travelers. Passengers will also see a wide selection of food and beverage options. “Travelers can look forward to Palaphita, Mamma Jamma, The Green Kitchen, Delírio Tropical and more,” says Fernandes. “Delírio Tropical and The Green Kitchen sell a wide range of wholesome, healthy food that is very much a part of our Carioca culture cuisine. Such options will also appeal to the increasingly health-conscious travelers. Mamma Jamma sells the best pizza in Rio and we are also pleased to introduce Havanna Cafe from Argentina. Palaphita serves the best caipirinhas in town as well as finger food.” In line with the Olympics, for which the airport will soon welcome many

Olympic deadline “We are progressively rolling out these facilities and expect all commercial areas to be ready to welcome guests ahead of the Olympics,” says Fernandes, explaining that the airport has an especially important part to play in the Olympics as the official airport. “We will have a partnership with Rio 2016 in various areas, since RIOgaleão will be the Official Airport of the Games Rio 2016. During the Olympic period the airport will have about 900 volunteers of Rio 2016, assisting the delegations and other parties involved with the Games. Also, the entire airport – including the access ways – will have signaling installed by the committee, and the

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

thousands of visitors, RIOgaleão has its own colorful mascots

WWW.WORLDCLASSBRANDS.COM

RIOGALEÃO

Renovations include many modern conveniences to improve the comfort of the airport’s 17 million annual passengers

The app also maps the accurate location of the toilets, child diaper changing stations, elevators and stairs. The app will also provide information about the estimate time for arrival and traffic in the routes to the airport by integrating with Google Maps and Waze. Weather forecast and public transportation information are also included. The Welcome Center at Terminal 2 will have bilingual and trilingual staff to assist the foreign tourists expected to arrive for the Olympics Also, by contract the restaurants must provide at least one bilingual employee per shift and menus in English language. Regarding the decoration of the entire airport, RIOgaleão is working in partnership with Rio 2016. The details are still being finalized and will soon be presented. “We expect to receiving about 1.5 million passengers during the ‘Olympic period,’ arriving both via regular flights currently operated by the airport, and on more than 60 charter flights,” says Fernandes, “On peak days, before the opening of the Games and after the closure, we expect up to 85 thousand passengers circulating in our terminals. We will see up to 550 movements of aircraft during the same time we would normally expect 400 movements.” The airport currently has three official Olympics merchandise stores, and Olympics merchandise is also available at retailers like Hudson, Britt and Brazil, and some Dufry stores. “Olympics merchandise has been very popular and has been selling 54

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

extremely well over the last few months,” confirms Fernandes. “We are working with the retailers to expand the range and the size of the outlet to cater to the growing demand.” While Fernandes says the airport’s management recognizes that this will be a challenging year with the economic and political headwinds, their innovations, new facilities and new services at the airport will better serve their passengers. “We are confident that we have the right plans in place to capture growth and steer the airport to being one of the main hubs in Brazil and the region.”

Among other improvements are new passenger transport systems including walkways and elevators

Disfruta de un consumo responsable

¡NUEVO!

ESTE SUAVE Y CREMOSO LICOR ES LA FUSIÓN PERFECTA ENTRE LICOR 43 Y LA TRADICIONAL RECETA DE HORCHATA DE VALENCIA. ENTRE SUS DULCES Y DELICADOS SABORES SE APRECIAN NOTAS DE CHUFA, ESPECIAS Y CÍTRICOS.

AIRPORT NEWS

International flights to Rio triple for Summer Olympic Games Local media in Rio have reported that between July 25 and August 21, the number of expected arrivals has skyrocketed—an increase of 289% over the same period last year. The jump has been attributed to the 2016 Summer Olympic Games. In terms of foreign travelers flying into Rio’s Tom Jobim International Airport, Americans make up the majority (17%). Argentinians and Germans are tied for second place (10%), followed by British (9%). Although the number of travelers from Asia is comparatively smaller, the airport reports significant increases in travelers from China and Japan, up 20% and 15% respectively. There are some 45,400 trips scheduled for the period, and in anticipation of the increased number of travelers, improvements have been made at the airport, including new car parking areas, improved air conditioning, more stores and F&B locations, and a greater focus on customer service. Of course, Tom Jobim International isn’t the only airport that will be handling an increase in travelers; Rio’s domestic airport, Santos Dumont, has extended its operating hours during the Olympics to better accommodate travelers. Moreover, executive planes will be allowed to operate at night. This translates to the airport having the potential to serve 70,000 more travelers per day and 214 extra arrivals and departures.

Strong US Dollar creates opportunity to boost travel and tourism across the Americas Research published by the World Travel & Tourism Council (WTTC) shows the strong US Dollar has contributed heavily to travel and tourism growth in the Americas, as the United States outbound travel and tourism expenditure grew by 6.3% in 2015. The Economic Impact Reports, WTTC’s flagship annual research, provide economic data on the contribution of the travel and tourism sector on a global level, as well as for 184 countries and 24 regions. According to the Economic Impact Reports 2016, US neighboring countries, Canada and Mexico, saw their visitor exports (money spent by foreign visitors in the country) grow by 8.5% and 28.9% respectively in the last year. The Caribbean, as a key US destination market, also saw its visitor exports increase by 5.9% in 2015, which is significantly above global average of 2.4%. In South America, the strong US dollar and a growing regional middle class have also been driving sector growth, with 17 out of 19 countries experiencing growth in total travel and tourism contribution to GDP. Paraguay (+23.1%), Panama (+12.5%), and Nicaragua (+12.1%) achieved the fastest growth in the region. Venezuela and Brazil were the only South American countries that saw their travel and tourism economies decline in 2015, by 2.9% and 0.5% respectively. A strong currency depreciation in Brazil, and reduction in local disposable income, reduced outbound tourism spending by

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

5.1% in 2015. However, the country reported a strong increase in visitor exports due to depreciation making the country a cheaper destination. David Scowsill, President & CEO, WTTC, said: “Travel and tourism has been performing well in the majority of the economies in the Americas, with the US dollar being a big driver. There is a huge potential for countries to tap into the growing number of US tourists traveling abroad because of their strong currency. It is important that governments in the region prepare their countries to receive and facilitate this increased number of travelers by focusing on tourism investment, attracting human capital into the sector, ensuring their visa policies facilitate the international visitors and providing the right health, safety and security environments for the sector to thrive. “Brazil also has a great opportunity to take advantage of these favorable conditions for inbound tourism,” Scowsill added. “The infrastructure improvements made for the World Cup and the upcoming Olympics should allow Brazil to benefit from the socioeconomic contribution of our sector. There is also meaningful potential for domestic tourism to expand in Brazil now that the reduced spending power of the Real is discouraging Brazilians from foreign travel.”

Airbus’ fleet in Latin America to more than double by 2034 According to the latest Airbus Global Market Forecast (GMF), Latin America will need 2,540 new passenger and freighter aircraft between 2015 and 2034 to meet long-term growth in the region. This demand includes 1,990 single-aisle and 550 widebody like the A330, A3350 XWB and A380, worth an estimated US$330 billion. This demand will mean that the passenger and freighter fleet operated by the region’s airlines will more than double to nearly 3,000 aircraft in the next 20 years. Today, 53% of Latin America’s in-service fleet are Airbus aircraft operated by the region’s leading carriers. This includes the Americas’ first A350 XWB, delivered to LATAM Airlines Group in January, operated by TAM. Latin America’s traffic will grow at an average of 4.7% annually in the next 20 years, above the world average of 4.6 percent. Driving this growth are airlines domiciled in the region growing at 5.0 percent annually, placing them among the world’s top three fastest-growing group of airlines.

A visitor to FIDAE 2016, Latin America’s biggest airshow, shows off a boarding pass for the A350 XWB’s world tour

The region’s urbanization is a factor propelling this growth, as Latin America is one of the most urbanized in the world second only to North America, with some 80% of its population living in cities. A consistent economic growth will also prompt traffic growth in the region; according to the GMF, in the next 20 years, Latin America’s annual GDP is forecast to grow at a rate of 3.6%, above the world’s 3.2 percent. Furthermore, Latin American passengers will play a part in fueling traffic growth, taking on average over twice as many flights by 2034 as they do now. “Latin America’s long-haul route expansion is imminent, and we are already seeing airlines respond by opting for larger, longer-range and more efficient aircraft such as the A350 XWB and the A380, which both began operating in the region in 2016,” said Rafael Alonso, President of Airbus for Latin American and the Caribbean. “We are also seeing the region’s top airlines modernizing their fleets with the A320neo family, allowing them to achieve efficiency gains even in a less-than-favorable economic environment.”

MOROCCANOIL

Groomed

for success by

HIBAH NOOR

Moroccanoil is a lifestyle beauty brand that is able to offer consumers multiple categories including haircare, bodycare and suncare

Premium brand Moroccanoil is taking its distribution up a notch, as it strikes new agreements with leading duty free operators and emphasizes its head-to-toe beauty approach

John Gates, Vice President of Retail and Travel Retail Sales, Moroccanoil

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

oroccanoil, the premium award-winning argan oil-infused beauty brand, is continuing to expand in travel retail worldwide with major operators, following newly forged partnerships with DFS, Dufry and Duty Free Air & Ship Supply Co (DFASS). These 2016 partnerships will increase Moroccanoil’s points of sale by 55-65%, the company announced in April 2016. The beauty brand is aiming to continue growing its travel retail business presence with prestige duty-free airport stores as well as inflight, cruise and ferries around the world. “The expansion of Moroccanoil is supported by consumer and industry excitement and demand surrounding the introduction of categories outside traditional haircare,” explains John Gates, Vice President of Retail and Travel Retail Sales. “Moroccanoil is more than a leader in the oil-infused beauty industry; we are a lifestyle beauty brand that is able to offer consumers multiple categories including haircare, bodycare and suncare.” So what is the secret behind Moroccanoil’s substantial growth so far in travel retail? Gates reveals that the channel has been important for gaining new customers. “The secret behind our growth in travel retail thus far is that we are speaking to a new consumer that might not necessarily visit a hair salon within their local market,” he tells Americas Duty Free. “Also, this channel is providing the brand with the ability to showcase all of our categories outside of just haircare. This channel is truly a branding opportunity introducing the consumer to our multi-category ‘head-to-toe’ lifestyle beauty brand, Moroccanoil.” The company’s objective is to position itself as a luxury beauty company encompassing haircare, bodycare, and suncare, and Gates explains that duty free is a key vehicle for communicating

As its travel retail presence continues to grow, Moroccanoil will introduce key full-size haircare products to 90% of the worldwide premium airport destinations

this fact to consumers. “The travel retail/duty free channel is a key platform globally for us to introduce this new division, the beauty division, as a multi-category lifestyle beauty brand and growing. Currently, we offer the global traveler the opportunity to experience the Original Moroccanoil outside of just haircare. Now we offer a range of bodycare products in three unique scents, suncare in four unique SKUs with a focus on protection and hydration with our signature Argan Oil. This new beauty division of Moroccanoil will continue to expand in new categories that make sense with the DNA of the brand, while always having synergy back to our roots with our Professional division.” Moroccanoil has already seen success on Latin American airlines. The brand launched onboard Colombian flag carrier Avianca with its duty free partner DFASS this past year with the iconic, hero haircare product, a Moroccanoil Treatment called “The Traveler”, exclusively created for duty free and travel retail customers. Says Gates: “This partnership has been much more than we anticipated, although our sales data from our Latin American local market salons told us this consumer is not only haircaresavvy but embraces the brand, especially the iconic hero Moroccanoil Treatment. We are currently in talks with several other key Latin American airlines and should be ready to soar to new, friendly skies very soon.” Indeed, Chilean carrier LAN and Brazilian airline TAM will begin carrying the products in their inflight catalogs from October.

Latin American airport doors to open in June On the heels of “remarkable” results in territories launched with Gebr Heinemann and Duty Free Americas in 2014 and 2015, Moroccanoil is continuing to open in new locations through the United States and Latin America. DFASS will help make the Moroccanoil product line available in Dallas, Orlando and Fort Lauderdale airports. This will be followed by the opening of airport locations in Latin America in June/July 2016, including Brazil, Argentina and Uruguay with Dufry. In Asia, Moroccanoil partnered with DFS T Galleria in Hong Kong in early 2016 and in April the brand hit the shelves in Hong Kong International Airport.

As its travel retail presence continues to grow, Moroccanoil will introduce key full-size haircare products to 90% of the worldwide premium airport destinations. This revolutionizes the Moroccanoil footprint in travel retail, as previously only the travel-size hair care collection and hair care travel kits were available for purchase, with the full-size hair care collection exclusively sold in professional salons. With continued focus on Moroccanoil Body, all locations will be adding the Fleur de Rose and Fleur d’Oranger collections. Moroccanoil’s full-size hair care products were available beginning April 2016. “With the introduction of the full-size Moroccanoil hair care assortment to 90% of our worldwide points of sale, I anticipate immediate enhanced sales growth that will position the brand to outpace the travel retail competition within the haircare category globally,” says Gates. The brand’s first point of sale in travel retail was with James Richardson Israel in Tel Aviv Airport. In October 2014, the company made a decision to go aggressively after the travel retail channel, securing partnerships with Gebr Heinemann and Nuance in Switzerland, the EU and Russia. Moroccanoil expanded its partnerships further in early 2015 and established a presence in Macau, China, the US, South America with DFA and key Caribbean and island locations with Tairo International. During that same period, Moroccanoil became available for purchase onboard Swiss, Lufthansa and Austrian Air. As the pioneer of oil-infused haircare, the brand’s original Moroccanoil Treatment created a worldwide buzz on argan oil and paved the way for an extensive line of premium oil-infused hair care products to address the needs of all hair types. By popular demand, Moroccanoil has since continued to innovate and extend the line to include Moroccanoil Body, a luxurious oilinfused collection inspired by the sea, sand, breeze and scents of the Mediterranean. Featuring proprietary formulas that rejuvenate and replenish, Moroccanoil Body leaves skin nourished and naturally radiant. Established within the last decade, Moroccanoil is available in over 65 countries worldwide. On the back of this distribution, the brand’s ongoing success in duty free seems assured.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

BAYLIS & HARDING

Baylis & Harding

set for kickoff

IBBI will be representing and launching the brand in the Americas’ region this summer, and will have a road show in August, after the debut in ASUTIL

Already a global success story with its affordable luxury beauty gift sets, ambitious UK supplier Baylis & Harding is on course to conquer the travel retail market

aylis & Harding, the UK’s number one women’s gift brand, believes there is a gap in the growing travel retail market for its affordable luxury beauty gift sets. Hard work, passion, determination and strong family values have made Baylis & Harding one of the fastest-growing, awardwinning, multi-channel bath, body and gift manufacturers operating in the world. Today, one in two British households has a Baylis & Harding product in the bathroom – an impressive statistic for a company that was set up by a young couple back in 1969 in a barn in the heart of England. Almost 50 years later, Baylis & Harding is headed by the next generation brother and sister, Adrian and Tania Slater (Managing Director and Creative Director, respectively), who focus on affordability,

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

quality assurance and innovative design. Baylis & Harding is very aware how competitive the toiletries market has become in recent years, and continues to see strong year-on-year growth. A huge amount of time is spent working closely with retail partners to develop ranges that will work not only for them, their store space, supply chain and pricing models, but most importantly their customers. The company’s new product development is always on-trend and customerfocused to ensure that the gifting ranges remain as luxurious as possible but also affordable. Very much a growing global brand, Baylis & Harding is now in 52 territories, spanning the Americas, Europe and Asia. “We believe that now is the right time to explore the growing travel retail market and are in the process of reviewing our export business in general, with a

specific focus on travel retail,” says Adrian Slater, Managing Director and Co-owner. “Currently, our presence in the channel is small, but we recognize its potential as there is no other brand doing what we do in this sector. Travel retail is very much a gifting environment, particularly in the airport, maritime and inflight channels. People are traveling, looking for an easy gift; they’re looking for an impulse purchase, and the Baylis & Harding product range fits that demand perfectly.” Further commitment to developing relationships in this sector is demonstrated with Baylis & Harding’s debut participation in June’s ASUTIL travel retail conference in Chile. “This is a key opportunity for us to showcase our Autumn/Winter 2016 collection to potential travel retail partners and explore expansion within a growing industry,” concludes Slater.

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FASHION: PORSCHE DESIGN

Ahead of its

time In a major milestone for the German company, Porsche Design presented its exclusive new timepieces at Baselworld 2016, following the establishment of a watchmaking subsidiary in Switzerland

orsche Design is known for creating sporty, elegant and functional designer sportswear and accessories for the global business traveler, including titanium eyewear, watches, smartphones, bags and luggage. But in the watch segment, the company is hailing the beginning of a new era. Just over a year after the German company established a new, in-house watchmaking division, Porsche Design Timepieces AG in Solothurn, Switzerland, Porsche Design took its own booth at the prestigious Baselworld watch fair for the first time. Here, Porsche Design showcased the collections that are expected open a new chapter in its timepiece history. Dr Christian Kurtzke, CEO of the Porsche Design Group, sums up the company’s strategy: “There are many established companies that have positioned themselves successfully in the watch industry with technical complications or a sporty image. However, we see clear opportunities for a strong designer brand in the premium timepiece segment for men. That is precisely where we will position Porsche Design in the future – with the right mix of sporty elegance, function, technological innovation, and last but not least with an attractive price-quality ratio.”

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

The 1919 Collection was developed by the company’s Swiss subsidiary in Solothurn, in close cooperation with the Porsche Design Studio in Zell am See, Austria

He added: “Of course, we are not starting from scratch because we can build on our more than 40 years of timepiece history.” Designed in Austria and made in Switzerland, the new timepieces seek to celebrate iconic German design. The 1919 Datetimer Eternity, dubbed “Bauhaus meets Porsche 356”, is inspired by the puristic lines and the functional aesthetics of the legendary Porsche 356, conveying the elegance of the 1950s. Made from a mix of titanium, the watch has a real alligator leather strap, a grey-green face and a bronzed watch case. The 1919 Eternity Black Edition takes its inspiration from architecture and design, transferring the functionality of modern architecture to the design of high-end timepieces. The characteristic openings at the lugs and the transition to the precious alligator leather strap add lightness to the puristic aesthetics. The minimalistic design of the dial focuses the eye on the essentials of time and date. The new 1919 Datetimer Eternity Black Edition adds four models in titanium and black, typical for Porsche Design and a reference to the company’s iconic heritage.

Meanwhile, the 1919 Chronotimer evokes the company’s passion for motorsports and pure performance. With the introduction of the 1919 Chronotimer, Porsche Design creates an aesthetic link between architectural design, sporty elegance, and performance. The watch is powered by the mechanical Selitta SW 500 movement with a power re-serve of 48 hours and a date window at 4 o’clock. The black-tinted sapphire crystal case back allows for a view of the exclusive, energy-optimized Porsche Design Icon rotor. The diameter of the case is 42mm. The 1919 Chronotimer is available in the four typical Porsche Design variations in pure or black titanium carbide coating, with either a titanium or rubber strap. Just like the Chronotimer Collection, all timepieces of the 1919 Collection were developed by the company’s Swiss subsidiary in Solothurn, in close cooperation with the Porsche Design Studio in Zell am See, Austria. The collection epitomizes the future direction of the Porsche Design Group in this segment. The first models of the new 1919 Collection will be available in Porsche Design stores worldwide as well as in selected watch retailers in May 2016.

CHINA INTERNATIONAL DUTY FREE

CIDF chief

VOICES

his vision China International Duty Free is keeping up with the fast-moving world of the Chinese traveler with an exciting array of new products in its portfolio – some of which have never been seen before in travel retail by

HIBAH NOOR

Fred Combe, CEO and Co-Founder of CIDF

uty free distributor China International Duty Free Limited (CIDF) believes it knows the secret of the Chinese consumer’s shopping habits. And like the Chinese consumer’s ever-changing tastes, the company’s strategy is also evolving. CIDF specializes in supplying and marketing brands to the global travel retail trade in the categories of tobacco, spirits and, most recently, fragrances. These product categories may be diverse, but they all have one thing in common: they are specially selected by the company to target Chinese travelers. Top-selling brands include Furongwang Yellow cigarettes, and Tianzhilan baijiu. 64

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

CIDF distributes about 70-80% of all the Chinese tobacco globally in duty free

Here, Fred Combe, CEO and CoFounder of CIDF, explains the company’s philosophy and how it has honed its expertise in the shopping behavior of the Chinese consumer. “Our target market and the reason why we’re in duty free is because we’re targeting Chinese consumers, so we started with tobacco, and we distribute about 70-80% of all the Chinese tobacco globally in duty free. Then we moved into spirits, which is a natural product line to go alongside that; again, it was baijiu Chinese white spirits. Because we built up all these relationships with all the retailers globally, we started realizing that we were observing what the Chinese were buying and we were actually becoming the experts in understanding the Chinese consumer’s needs. So when they were going to airports, going to cruise ships, going to border shops, onboard airlines, we were observing what they were buying, and realized that they were buying other things beyond tobacco and spirits. So we started looking at what categories would they be interested in.” CIDF, which is headquartered in Dubai and has offices worldwide, started looking at several product categories and discovered that the biggest category for the Chinese was health and wellness. “It’s

a massive category, and we estimate that in China it will grow from about US$20 billion today to US$70 billion in the next three years,” enthuses Combe. “The growing, middle-income Chinese consumer is getting more and more interested in their health and managing their health.” Combe believes that the awareness of health has grown dramatically because of a number of food contamination scandals in China, including milk formula and meat. This has resulted in a shopping frenzy among the Chinese when they travel abroad. “Chinese travelers when they go overseas are literally buying up whatever they can find in terms of acceptable brands which meet those needs – so supplements, vitamins, food products… They’re bringing it back to China, and the basket size is pretty high when they’re buying it in these shops.” This market research led CIDF into the vitamins and supplements category. It is now distributing a brand called Blackmores, which is one of the biggest vitamin and supplement brands in Asia. “It’s a hot item, basically. When things go hot in China, they go really hot, then it goes crazy-hot. So you have Chinese people in Sydney going into supermarkets and buying up every single piece of Blackmores they can find,” says Combe.

Blackmores is one of the biggest vitamin and supplement brands in Asia

CIDF started distribution for Blackmores in February 2016. Since then, it has been looking at other categories, including perfumes and cosmetics. That led the firm to introduce The Voice fragrance into its portfolio – the company’s first-ever fragrance line. Combe describes The Voice TV talent program as a massive brand in Asia. “It’s a huge hit and when we saw the product, we said let’s test the category by trying that.” The company has successfully launched the fragrance in Indonesia and in China. Combe admits that the fragrance category is a departure from the company’s expertise in tobacco and spirits, but says: “We’re quite fortunate because we’re quite a small, entrepreneurial organization and we have a very can-do attitude, so we go for these things and we’re prepared to take risks.” Also in the beauty arena, CIDF is working with a Swedish company called Foreo, which makes facial cleansers. “They do a beautiful range of products including toothbrushes, and it’s very hot again in China – they’re buying it in Korea and a few other locations,” notes Combe. In a further product development, CIDF is creating its own, in-house brands for travel retail. The first is Novi e-cigarettes, which Combe describes as the only travel retail e-cigarette brand. The company has also created a super-

premium tobacco brand that has just launched in Hong Kong with DFS: the Mao cigarillo. Chairman Mao smoked a cigarillo exclusively made for him, but after his death, the brand was forgotten. CIDF rediscovered its history and has recreated the original recipe, which contains ginseng. “The Chinese loves these myths, these stories,” says Combe. “If the product’s good, it will sell… We’re looking at unique product stories which we feel can resonate with the Chinese consumer.” Now, CIDF is evolving yet again, with a new plan to import Australian food and wine brands into China. “We realized that there was a huge opportunity there branding food CIDF is working and produce like that, and with a Swedish selling that to China. It’s not company called Foreo, which necessarily a travel retail makes facial cleansers play; it’s also a domestic play as well.” The foods would include Wagyu beef, abalone, and seafood, such as crabs. The company recently held a gourmet dinner in Shenzhen centered on Western Australian produce at the Four Seasons Hotel with 150 guests from Australia and 150 guests from China. The aim is to market these food and wine products to

the Chinese consumer with the support of the Western Australian government. A number of travel retail executives attended the dinner, as part of the future strategy to market these brands in the travel retail channel. While CIDF’s strength has so far been global travel retail, the firm is focusing much more now on China travel retail, notably with China Duty Free, Sunrise, and at the border locations. Online platforms – including social media – are a key way to access the Chinese traveling consumer, believes Combe, so the company has a team working on how to monetize this opportunity.

www.dutyfreemagazine.ca AMERICAS DUTY FREE & TRAVEL RETAILING

ESSILOR, COSTA

Costa makes a splash in travel retail Things are looking sunny for the innovative optical company

Costa’s Copra and Anaa models are new for 2016

or an optical lens company that only just emerged into the spotlight at IAADFS last year, Costa is already outshining the competition and expanding into new travel retail markets. Known not only for its top-quality sun lenses but also for its environmental preservation initiatives and down-to-earth authenticity, Costa brings a unique perspective to the world of eyewear in travel retail. Built by and for outdoors enthusiasts over 30 years ago, Costa has long been recognized as a force in anti-glare lenses that can endure an athlete’s wear and tear, yet only recently has Costa shined a light into travel retail. Reflecting on the company’s past year of success, Jenny Gordillo, Export Manager for Costa, said the company had attended its first IAADFS exhibition last year, aiming to explore and identify opportunities. “This was a great opportunity for Costa to learn more about the market,” she enthused. Not only did the company learn about the travel retail market at IAADFS, but during the trade show it opened new accounts in Chile and Colombia and, soon after, in partnership with its new 66

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

sales force Travel Traders, also opened doors in the Caribbean and Puerto Rico. While Costa has been emerging in Latin American markets, the company is no stranger to success. Costa ranked in as one of the top innovative companies by Forbes Magazine for the third year in a row since 2013. Boasting new tri-fusion frame technology and bio resin frames, as well as its classic 580 lens technology that actually blocks yellow light at its highest peak, Costa’s product line-up is indeed innovative. The lenses work because they are centered around the needs of the fisherman, angler, athlete, and environment. They filter yellow light which enhances reds, blues and greens. This produces better contrast and definition while reducing glare and eye fatigue. These features become a necessity for the angler wrestling a fresh catch or battling intense heat. In fact, the bio-based resin produces increased durability, overall sunglasses weight reduction, and the ability for the frame to hold its shape in extreme heat and cold. The same qualities that have attracted the outdoor consumer are now in hot

demand among travel retail clients. “As a business traveler, I visit many airports worldwide each year,” says Gordillo. “I have seen how sunglasses are selling more on functionality and technology. We are seeing more fashion sunglasses offering polarized designs. Frames are also evolving in technology: lighter, ergonomic and more flexible/resistant to daily wear.” If the hardy outdoorsman can sport these lenses, then the average travel retail consumer can expect no less than an enduring, top-quality pair of sunglasses from Costa. “I think consumers nowadays are well educated and prefer to make an informed decision before purchasing a premium product. They want to know the benefits, especially when it comes to performance products like sunglasses.” Looking ahead, Costa will leverage its history of technology and performance in the optical and sporting channels of distribution into travel retail. Its strategy for growth will soon encompass other markets within the travel channel like in-flight shopping and cruise lines, where new listings will undoubtedly be reeled in.

LIQUOR NEWS

Flor de Caña celebrates 125 years

Flor de Caña Centenario 25 YO rum is the pinnacle of the Nicaraguan company’s portfolio

Nicaraguan Flor de Caña, one of the five Super Premium rums in the world, headlining this category in Central America, is holding a celebration this year, commemorating 125 years of existence, as well as its tradition of leadership, excellence and global recognition. The company is also observing its legacy as a fifth-generation rum demonstrating continuous commitment to the rum, the land and the people. It is this quality and legacy that lies behind the company’s current campaign: LAND MADE LEGACY REFINED. Flor de Caña is a slow-aged rum free of artificial additives or accelerators. The rum is aged in white oak barrels in naturally ventilated cellars and exposed to the high temperatures and humidity of its tropical home, creating a complex rum with flavor character beyond its age. In addition, all sugar cane is obtained from a specific land that belongs to SER Licorera, which is known as “Single Estate.” The rum has won multiple gold medals at the San Francisco World Spirits Competition, in addition to awards at the Rum Awards and International Wine Spirits Competition, make it one of the most award-winning rums in the world, with 170 awards to its name. An iconic brand in Nicaragua and emblem for the country abroad, Flor de Caña has presence in more than 50 countries over five continents. Sales have doubled over the past 10 years and annual sales sit at one million cases, 70 percent of which are in the international market.

Johnnie Walker unveils first blended malt Scotch for travelers Johnnie Walker, the world’s number one Scotch whisky and the biggest-selling spirits brand in travel retail, will launch a new malt whisky blend as a travel retail exclusive from July 2016. Retailing at US$60 for a one-liter bottle, Johnnie Walker Island Green showcases the same blended malt craftsmanship as Johnnie Walker Green Label, but with a greater influence of smoky, maritime malt whisky. Diageo states that, as the first blended-malt GTR exclusive from Johnnie Walker, Johnnie Walker Island Green is set to transform the category as a “game changer,” helping Scotch drinkers explore malts through a trusted and well-known brand. The company has announced that it will strongly support the launch in the channel with Johnnie Walker investment and marketing activation. Johnnie Walker Island Green is said to capture the distinctive style of individual mature malts from the four main whisky regions of Scotland, with added prominence given to island malts. In addition, it seeks to offer the character of single malt but with a wider flavor experience. Jim Beveridge, Johnnie Walker Master Blender, said: “We wanted to preserve the character of each of the malts in this whisky but at the same time create a different, more intense flavor experience for travelers.” Stuart Morrison, part of the Johnnie Walker blending team, said this was achieved by giving Caol Ila, from the island of Islay, a greater influence in the blend. The full-bodied blend has flavors of peat smoke combined with a rich, fruity sweetness and the warmth of pepper and spice. It can be enjoyed either neat or on the rocks. Johnnie Walker Island Green blended malt Scotch whisky seeks to capture the distinctive style of individual mature malts from the four main whisky regions of Scotland with added prominence given to island malts

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Licor 43 Orochata makes its debut in GTR Licor 43, the fastest growing imported liqueur in Mexico, has also been doing incredibly well in GTR. Diego Zamora Group is now introducing Licor 43 Orochata. Unlike traditional cream liqueurs it is vegetable based and contains no cream, offering an option for those who avoid dairy. Available exclusively in the Global Travel Retail channel from late May and in selected domestic markets in the autumn, Licor 43 Orochata is inspired by Horchata, the iconic national drink of Spain. Based on the traditional recipe from Valencia, Licor 43 Orochata is tastes of tiger nuts, spice and citrus. The distinctive bottle features a stunning mosaic, hand-drawn and painted by Spanish craftsmen. Its creamy pearlescent finish reflects the color of the liquid inside and also provides stand out on shelf. Licor 43 Orochata is primarily aimed at adventurous women aged 23-45 who love to enjoy life, and was very well received in consumer research. Licor 43 Orochata’s bottle was inspiredby the architecture of Valencia

Beam Suntory innovates with new travel retail exclusive Japanese grain whisky Beam Suntory Global Travel Retail (GTR) is set to launch its new Japanese Single Grain Whisky, The Chita. Previously available only in Japan, its popularity and the growing demand for Japanese whisky have combined to create the perfect opportunity for showcase around the world. The Chita will be released exclusively in GTR in Asia, Europe and in limited quantities in the Americas in July 2016. Suntory Whisky’s Master Blenders have created a “different, distinctive, light‐bodied spirit” using diverse unblended whisky distilling techniques at the distillery in Aichi Prefecture of Japan. A bright gold whisky with notes of cardamom, acacia honey and blossoming rose, The Chita is mild and smooth on the palate with a clean finish, offering subtle bittersweet hints of spiced oak. “The Chita demonstrates Beam Suntory GTR’s continued dedication to innovation in the Japanese whisky category and respect for the traditional values of The House of Suntory Whisky, offering Japanese whisky fans a versatile spirit with a smooth and floral taste profile,” the company said. Michael Cockram, Global Marketing Director, Travel Retail at Beam Suntory, said: “The Chita is a perfectly balanced Japanese whisky that reflects the artistry and diversity of The House of Suntory Whisky. With our rich history of innovation and award-winning Japanese releases, Global Travel Retail will continue to be a priority platform to showcase innovative new products from the Beam Suntory portfolio to the rest of the world.” Retailing at US$55 for 70cl, The Chita will be presented in an elegant indigo blue gift box.

The Chita Japanese Single Grain Whisky is Beam Suntory’s answer to growing demand for delicate Japanese whisky

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LIQUOR NEWS

Stoli® Gluten Free comes to LATAM At IAADFS, Stoli® Vodka launched its new edition, Stoli® Gluten Free. The brand was the first to bring the concept of a premium vodka to the world, it was the first to introduce flavored vodka and now it’s the first global vodka brand to create a completely new recipe and product made from naturally gluten-free ingredients: 88 percent corn and 12 percent buckwheat. This combination results in an ideal taste with a smooth and clean finish that was given an “exceptional” 92-point rating by the Beverage Testing Institute (BTI), the leading authority in independent spirits reviews. There are multiple reasons consumers might want a gluten free product, from having celiac disease (a disease in which consuming gluten causes an autoimmune response) to avoiding gluten because they feel the protein, which is found in all varieties of true wheat, is detrimental to their health. The gluten-free trend has exploded in recent years, and Stoli clearly feels this offers a great opportunity; most spirits use some strain of wheat, including rye and barley. “As more people are incorporating gluten-free options into their diets, we wanted to create a product that left no doubt to our consumers that the gluten-free label on the bottle meant the spirit inside was truly gluten free,” said Patrick Piana, President and CEO, Stoli Group USA. “We wanted to address this demand and ensure that our gluten-free recipe was not only made with 100 percent naturally gluten- free ingredients, but maintained Stoli’s signature bold character and smooth finish.” The ingredients in Stoli Gluten Free are distilled three times and filtered four times through quartz, sand and birchwood charcoal before being blended with pure, natural spring water. Stoli Gluten Free offers a crisp, clean finish with a hint of creamed corn and butterscotch.

Stoli has recognized that there is a huge population who avoid gluten but still want to enjoy a cocktail

Bacardi’s Facundo Rum Collection offers luxury to the discerning rum drinker in a growing category

Luxury Bacardi sipping rum tribute collection debuts Bacardi and DFS Group have introduced the Facundo Rum Collection, a limited release of four luxury blends sourced from rare rums in the Bacardi family’s private rum reserve, to create the definitive sipping rum collection. Available exclusively at DFS airport stores in Los Angeles, San Francisco and New York JFK until August 31, the Facundo Rum Collection pays tribute to Bacardi’s founder and is core to the company’s strategy to develop a premium take on the rum category. While celebrating the 150th anniversary of Bacardi, the family sampled some of the sipping rums from their private rum library. They committed to launch a collection of sipping rums as a tribute to the artistry and vision of Don Facundo Bacardí Massó, founder of Bacardi, Santiago de Cuba, 1862. In creating the collection, Bacardi Maestro de Ron (Master Blender) Manny Oliver crafted more than 40 blends from over 200 rums and presented them to Facundo L. Bacardi, a sampling of past Bacardi family master blenders and a panel of experts before selecting the final four. Each rum in the collection was traditionally aged in the Bahamas. Tropical aging can accelerate the creation of spirits in the barrels, and it also accelerates their evaporation to a point where just 5% of the liquid may remain after 23 years. This means that fewer than 10,000 bottles will be released. The collection is individually hand bottled and sealed. Each bottle features one-off Art Deco motifs inspired by Cuba’s Golden Era, when the magnificent Art Deco Edificio Bacardí in Havana (1929) housed one of the most exclusive bars of the time.

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DRINK RESPONSIBLY

COMPANY REPORT: MONARQ

Tenacious

for 10

A strong and growing portfolio, relentless determination and amiability have combined to make MONARQ a true force in the western hemisphere by WENDY MORLEY

his year MONARQ celebrates its 10th anniversary, and the celebrations are about much more than just longevity; each passing year has brought more growth to the company’s sales. Despite South America’s economic difficulties, 2015 brought much of the same, though 2016’s sales have leveled off somewhat. “We saw modest growth in South America duty free channel during 2015, which has stabilized during the first quarter of 2016,” says CEO Robert De Monchy. “The most heavily impacted area is duty free on the

Brazilian borders. Argentina continued to do well throughout 2015 but has also started to suffer in 2016.” Brazil and Argentina have traditionally been the collective economic engine in the region, but in recent years that power has diffused somewhat to other countries. “Other parts of Latin America continue to do quite well,” says De Monchy. “Colombia and Mexico are facing some challenges due to exchange rate issues, but the remaining socio-economic indicators remain positive for these markets.” While LATAM has had a difficult year, the same cannot be said for the Caribbean and US markets, which were both strong, and MONARQ definitely benefited from this strength. “The year 2015 has been another year of double-digit top-line growth, mostly coming from the Caribbean and US duty free,” he says. This year has been positive so far in those areas and also in Central America, whereas large swaths of South America remain challenging. “To my understanding, we will have a few more challenging years ahead of us in Brazil, since the country will need to undergo some serious restructuring,” he says. But sales are not the only things growing for MONARQ; the company’s portfolio is also expanding. “We presented a number of new premium and super premium brands during IAADFS,” says De Monchy. “Most notably, Tamdhu Speyside Single Malt Whisky, Tomatin Highland Single

MONARQ has added a number of single malts to its portfolio, including Tamdhu, which was presented at IAADFS

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Leblon Cachaça is one of the brands MONARQ is presenting in ASUTIL

Malt Whisky, Del Maguey Mezcal, St Germain liqueur and Cognac D’Ussé. During ASUTIL we will be presenting our newest exciting premium spirit brands Leblon Cachaça, Benromach Speyside Single Malt Whisky and Kilchoman Islay Single Malt Whisky.” The company is also offering some new travel retail-exclusive packaging, including a 4x5cl pack for Crystal Head Vodka, and is introducing 1 liter bottles for Opihr Oriental Spiced Gin and Bloom London Dry Gin. According to De Monchy, MONARQ’s main focus over the coming year is: “to continue on the same steep growth path as for the last 10 years, maintaining our investment level in our organization and our brands.” How does he intend to do that? “This business is about brands and people, so it’s clear where our focus is. We have recently been strengthening our organization in the Caribbean, Mexico and US duty free to better serve our clients and brand owners.” The importance of a strong portfolio in this equation has not escaped him. “We have also strengthened our portfolio with, above all, a number of really exciting Single Malt Whisky brands.”

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VILLIGER

Global advance

Strong in Europe and Asia, Villiger is working hard to solidify its position in Latin America by

WENDY MORLEY

illiger Söhne GmbH has made a bold move into Latin America over the past 18 months, by inviting Simone Hees to oversee the company’s growth in the region. Based in Germany, Hees began working for the company as Export Manager in 2001, promoted to Export Director of South and Southeast Europe and her role has now extended to include the Canary Islands and LATAM. “At the moment we are not busy in every country, but the intention is to widen our distribution wherever possible and wherever feasible,” she says. Currently, her focus is Argentina, Brazil and Chile for both domestic and GTR, Caribbean and Peru domestically, and duty free across the board. “Travel retail and duty free is an important channel for Villiger,” she says. As a European company, Villiger’s business is strongest in that region but the company is also robust in Hong Kong, Turkey and the UAE. Although the past year has been difficult for most in the duty free industry, Hees sees positive trends for the brand. “The performance in Asia in the past few years has been very positive whereas Russia was and still is a difficult country for various reasons. In Latin America, the performance could have been by far better if there had not been quite severe restrictions – for example, ingredient allowances and import limitations. Despite the devaluation of the Peso and the Real, we are positive about the future as we are working on establishing and also extending the distribution of our brands in both South America and the Caribbean,” she says. While Villiger has carried out a few specific promotions throughout the region, Hees says her priority is to get more on-shelf presence. Currently, the company is investing more in staff training. “I think it’s essential that the people selling our brands know them as well as

Simone Hees’ priority is to increase Villiger’s on-shelf presence throughout Latin America and the Caribbean

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

possible. I have been offering staff training and will do so more in the future,” she says. Villiger uses the most modern manufacturing equipment in the production of its cigars in Switzerland and Germany and also produces premium handmade cigars in the Caribbean, Central and South America, with a large facility in Brazil. The company purchases raw tobacco from almost every country in the world where tobacco is grown. “First there is Cuba, Brazil, Indonesia and Ecuador, followed by Mexico, Peru and a few other countries,” says Hees. “All these tobaccos are purchased locally by reliable suppliers with many years’ experience. This guarantees excellent quality of our raw material.” The company is still family owned. Mr. Heinrich Villiger is the third-generation owner, and is still actively working in the company at the age of almost 85 years. “We believe in tobacco as a semi-luxury good, particularly in its form of a cigar and its little sister the small cigar, and we will continue to try to offer those who enjoy this luxury a broad range of highquality products.”

Villiger will continue to offer those who enjoy the luxury of a cigar or small cigar a broad range of quality items

Villiger uses tobacco from every tobacco-growing country and offers both machinemade and handrolled selections

CHINA I2I GROUP

Shopping around

A fascinating new Chinese luxury shopping survey sheds light on what Chinese affluent travelers want as shoppers, and how they shop

hina i2i Group has shared the results of the first i2i COTRI Chinese Luxury Travel Shopper Survey, a monthly publication issued by China i2i Group and COTRI China Outbound Tourism Research Institute. Shanghai-based i2i is the largest Chinese media company specializing in producing media connection with outbound global Chinese travel shoppers. COTRI, the China Outbound Travel Research Institute in Hamburg, Germany, is the leading research consultancy focused on Chinese global travelers and shoppers. The survey offers monthly insights and trends into the shopping and travel behavior, preferences and trends of affluent Chinese. The survey respondents were drawn from i2i’s over 500,000 WeChat fans. WeChat is the largest online social media network in China, with 700 million users using the platform between 60 and 90 times daily. These fans have been developed through i2i’s six publications, with over 5 million annual readers in China. These publications are circulated exclusively to Chinese travelers applying for their travel visas to the US, Europe’s Schengen area and Australia. 99% of these WeChat fans have traveled internationally in the past 12 months and 80% have traveled in the past 90 days. “This makes it a highly qualified universe to sample for survey research on luxury shopping behavior,” says China i2i Group CEO Alexander Glos. 76

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Last year, Chinese shoppers purchased US$229 billion worth of luxury brands, approximately 50% of total global luxury purchases. 70-80% of these purchases occurred outside of China by global Chinese travel shoppers, of which i2i connects to over five million a year. These China i2i readers spend over US$16 billion a year on global luxury brands and can be reached through China i2i Media. i2i and COTRI conducted the April 2016 survey on Spring Festival Golden Week, between March 21 and April 3, and received 1,220 answers, of which 1,160 (95%) were deemed valid and complete. 54% of respondents were male and 46% female, with the majority aged between 20 and 39. Some 54% resided in either Beijing or Shanghai. The survey reveals four main characteristics of Chinese outbound luxury tourism: that international travel is a fixed element of the consumption patterns of affluent Chinese; luxury tourism is based on the ability and willingness to spend of the top 1% of the Chinese population; luxury tourism is used for selfaffirmation as well as for gaining prestige and “face” in the eyes of friends and business partners; and luxury tourism from China is younger and more activity-orientated than the global average. The survey unearths some interesting findings: 81% use WeChat while they are shopping internationally; for 81%, luxury shopping means traveling; 77% are aged between 20 and 39, rep-

resenting the highest-spending FIT (free independent traveler) segment, responsible for 50% of global luxury purchases; 46% live in second-tier cities, showcasing the growth of FIT travelers from these fastest economically growing markets in China. Other findings spotlight the power of the repeat traveler: 90% are repeat international travelers, having traveled as much as five times in the past year. Repeat travelers typically spend twice as much compared to first-time travelers. 50% spent more than RMB10,000 (US$1,554) on their travel shopping and 34% spent more than US$3,000. So why do the Chinese travel overseas to shop? According to the survey, 72% consider price and quality to be the most important reasons as to why they shop abroad. The survey also showed the growing diversity of brands purchased, with respondents citing Dior, Prada, Gucci, Coach, Burberry, Hugo Boss, Ralph Lauren, Hermes, Tiffany, Louis Vuitton, Cartier, Montblanc and Ports. The Other Brands category scored highly with 315 respondents, however. The Chinese Luxury Travel Shopper Survey is available to subscribers on a monthly basis and custom survey research is available on request.

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QUESTIONNAIRE

ALL ABOUT Mohamad Mannah, CEO, Mannah Where were you born and raised? I was born in Lebanon and raised in Paraguay.

Do you have a pet (or more than one)? If so, what animal and name? Yes, I have a pet dog named Pastor.

If you attended post-secondary school, what did you study? I didn’t attend post-secondary, only secondary school.

Do you prefer country or city? I prefer country.

Are you married? Do you have children? Yes I’m married and I have four children, three girls and one boy. What is your favorite movie? I have so many favorite movies. I prefer the romance genre.

What is your favorite place to vacation? I love beaches, so everywhere we go there is a nice beach. What’s the first thing you do in a new place? I look for the best restaurant.

What is the last book you read? History of the world.

If you could choose any place in the world to live, where would it be? Paraguay, definitely is the best place in the world to live.

What would you choose as your last meal? I would choose Dulce de leche which is sweetened milk.

Which living person do you most admire? A very close friend of mine and godfather.

Your favourite drink? Wine and vodka.

Do you have a passion in your life (or more than one)? What? Yes, I have more than one, raising cattle, farming and golf.

AMERICAS DUTY FREE & TRAVEL RETAILING JUNE 2016

Which historical figure do you most admire? I admire José Mujica the ex-president of Uruguay.

Where and when were you happiest in your life? It’s difficult to describe the happiest moments there were so many. I was happy when I bought my first car, my first big fish, my first house but I think one of the most important and happiest moments in my life was when my first child was born. What in the world would you most like to change? I want a world without borders, a global free world. What about yourself would you most like to change? Physically I prefer to be thinner, and mentally I would change my response to many things from “no” to “yes.” What is the most important piece of advice anyone ever gave you? It’s difficult to remember, there were a lot of good advices but in my earlier times I was a huge fan of cars and a friend of mine once told me, “be smart and change your car for a property real estate, the value of the property will go up but the value of the car will go down”. I followed his advice and it worked.