ASIA Volume 16 No. 2a

APRIL 2012 • VOL 16, NO 1

New digit al ed ition

China’s Eastern promıse 10

Shilla gains momentum 14 Asian accent

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Star in the east

41 W W W. D U T Y F R E E M A G A Z I N E . C A

Letter from the Editor

Asia Duty Free & Travel Retailing (ISSN 1360-9548) is published annually by Global Marketing Company Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2

Booming business ’d like to welcome you to our first ever digital magazine across all magazines, distributed right to your inboxes. Needless to say, the Asian market is on the up and up, and it only felt right to introduce two new Asia DF & TR digital editions, one prior to the TFAP show and the other in the run-up to the TFWA WE Cannes show.

Compatible with all smartphones, tablets and web browsers, the digital magazine is presented in a flip format, which has the look and feel of a traditional magazine. However, it offers a lot more. You can use the search engine to find relevant words, topics and articles effortlessly. Furthermore, embedded video, easily accessed with the touch of a button, enhances the presentation and depth of the magazine’s content. You can share content with colleagues by emailing, tweeting or posting the digital edition— or by simply sharing a file, and bookmarks enable you to retrieve the most relevant content anytime, quickly and easily. Finally, content links to relevant web pages where you can learn more about topics of particular interest.

Each edition is sent directly to 3,350 industry subscribers specifically in the AsiaPacific region, and contains exclusive regional reports, interviews with leading airlines doing business in the Asian market and feature articles highlighting the latest trends in the top duty free categories in Asia, including skincare, confectionery, cosmetics, jewelry, liquor, tobacco and more.

In this edition, we look at China’s ongoing economic growth, which continues to outpace most of the world. China Duty Free Group (CDFG) has for a long time been by far the biggest player in the tightly controlled Chinese market, but things are beginning to change for CDFG as the Chinese government shows signs of loosening the rules for the nation’s duty free businesses, allowing more retailers into the market and expanding the opportunities for existing businesses.

A large part of the market-oriented activity in China is concentrated on Hainan, which has quickly become a vital testing ground for the nation’s first domestic market duty free retail operations. What happens there could set the tone for broader reform and revitalization throughout China.

We’re also taking a close look at India. DDF has clearly broken new ground in Indian travel retail in recent years, but that didn’t stop it from having a rough go at first as it fought to keep pace with an incredible surge of customer demand. Fortunately for the pioneering retailer, it has now mastered the many idiosyncrasies of doing business in the market and today is thriving. Indeed, that kind of news is encouraging for everyone in travel retail.

Enjoy our first digital edition and please let us know what you think!

I

Canada. It is distributed in the following countries, states, regions and territories on the Asian continent and in the Pacific Rim: Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, Fiji, French Polynesia, Guam, Hawaii, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, Maldive Islands, Myanmar, Nepal, New Caledonia, New Guinea, New Zealand, Philippines, Saipan, Samoa, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. April digital edition 2012, Vol. 16, No. 1. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. © 2012 Asia Duty Free & Travel Retailing.

Asia 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 Hibah Noor hibah@dutyfreemagazine.ca ASIA ASSOCIATE EDITOR P. Convery padraic.asiadutyfree@gmail.com CONCESSIONS, LIQUOR, & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca LAYOUT Jeff Zuk jeff.zuk@me.com CONTRIBUTORS Andrew Brooks Lorna Strickland-Cook

ADVERTISING SALES

Kind regards,

ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J

Hibah Noor Editor hibah@dutyfreemagazine.ca 4

ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

deepa@globalmarketingcom.ca

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APRIL 2012 • VOL 16, NO 1

8 10

IN BRIEF Aigner fast out of the gate at Changi • China Travel Retail event to change venue due to increased attendee interest • TFWA Asia Pacific offers online preview of products

Eastern promise

Korea move

Separating the men from the boys As perfume company Mäurer and Wirtz buys the Baldessarini license from P&G, we find out what the name means to the company and its plans for growth

23

KIEHL’S

Kiehl’s announces “Travel-Tested Solutions”

DELHI DUTY FREE

Taming a tiger

NUANCE-WATSON (HK)

Don’t look down As Nuance-Watson (HK) prepares for the results of one of the most hard-fought tender races in the history of travel retail, it’s striving for ever higher peaks of performance

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MÄURER AND WIRTZ

Unisex skin collection offers remediation for physical and psychological impact of travel

Delhi Duty Free’s stores at Delhi airport’s T3 have been a wild success, revealing the pent-up demand for topnotch airport retail in India

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The Lion City’s hub operator, Changi Airport Group, is once again showing the travel-retail trade how it’s done, with a drive for success that’s keener than ever

SHILLA DUTY FREE

Seoul-based travel retailer Shilla Duty Free is going from strength to strength as it launches an ambitious bid to join the top table of global duty-free players

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Roar energy

TOP STORY: CHINA REPORT

China’s duty-free sector may still be off limits to foreign firms, but local retailers are ramping up their activities to take advantage of growing demand in arguably the world’s hottest market - and savvy foreign operators are taking the long view

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CHANGI AIRPORT GROUP

ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

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BEAUTY BEAT: FRAGRANCES

Beauty boosters A host of alluring scents fill the air as the new season approaches

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BEAUTY BEAT: SKINCARE & COSMETICS

Beauty regime Creative cosmetics and revolutionary skincare: traveling consumers will have plenty of options to choose from this season

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WHITEHOUSE TRAVEL RETAIL

Hello Asia It’s been a solidly strong year for Whitehouse Travel Retail as the prolific supplier and distributor prepares for its first ever TFAP Show, bringing jewelry, watches, sunglasses gadgets and plush to the Asia market

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MISAKI

Watch this space As Misaki prepares for another TFAP exhibition, the company gives Asia Duty Free the lowdown on how its Asia business has fared over the last year and new plans in the pipeline

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MARS ITR

Room to grow For Mars ITR’s Jack Tabbers, the favorite category in retail can still benefit from more focused execution

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WORLD OF PATRIA

Bringing the best World of Patria International brings a stable of high-end and well respected brands for its first visit to the TFWA AP exhibition in Singapore

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PATRÓN

The lure of the East Patrón courts the massive, and growing, Asian market

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CAMUS

Asian accent Camus Cognac’s brand recognition in Asia is boosted by the popularity of the category

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RAYS TOBACCO

Star in the east

26 42

NEW & NOTABLE Bottega Diamond • Chase Marmalade Vodka • Aloha Mix

Born in a tough economy, Ray Tobacco knows how to survive—and thrive

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www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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In Brief

Aigner fast out of the gate at Changi German high fashion house Aigner says that it’s off to a flying start at Singapore’s Changi Airport, one of the most important air hubs in Asian duty free. The company opened a representative 30 square meter Aigner corner at Changi in February, and the company says that the first month of operations has been highly successful.

Aigner has also announced two new listings for March. Silk Air has listed Aigner’s multi-functional wallet while Air Asia has taken on Aigner’s reversible hat.

TFWA Asia Pacific offers online preview of products TFWA has announced the TFWA Product Showcase, a new service for visitors and journalists who want to preview the products to be exhibited at TFWA Asia Pacific & GATE ONE2ONE (Singapore, May 13-17). The TFWA Product Showcase is available on TFWA’s website and features images and information about products that will debut or be highlighted at the event.

Accessible at www.tfwaproductshowcase.com, the service offers news from leading brands.

Companies exhibiting at the show can upload the key product details themselves, as well as photographs and press releases, directly to a dedicated section of the website by following online instructions.

Journalists, buyers and other visitors can search the Showcase by product category, company or brand and use the information to plan their visit or for their show preview articles. The free service, which is linked to the online Exhibition Directory, went live on Tuesday April 10 and will be updated with new entries during the month leading up to the show.

TFWA says it will monitor the site to ensure that only exhibiting brands are featured.

Pre-registration for TFWA Asia Pacific & GATE ONE2ONE exhibition and conference event is now open at www.tfwa.com.

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

China Travel Retail event to change venue due to increased attendee interest Ink, the global leader in connecting companies with travelers, and GIS Events, an event’s organizer in the Chinese travel industry, announced that due to increased demand for exhibition space, The China Travel Retail Event will now be taking place at the Marriott City Centre in Shanghai on July 23 to 25 2012.

The two day China Travel Retail event (CTR) has now been expanded to host 20 sponsors, over 200 delegates and a world class line up of speakers.

“We have been completely overwhelmed with the demand for attendance and exhibition space since announcing the original dates,” said Nick Tan, Managing Director of GIS. “As such, we are delighted that we have had to move the event to a fantastic new venue at the Marriott City Centre. This conference is the first of its kind in China and we are really excited about the demand for attendance that has shaped our event.”

This inaugural CTR conference will bring together decision makers from airports, airlines, seaports, cruise/ferry companies, and travel retail brands seeking to understand and market to the rapidly growing Chinese travel retail market. CTR will showcase best practices both domestically inside China at Chinese airports and airlines, at sea, as well as how companies are successfully selling to Chinese consumers travelling overseas.

Jeffrey O’Rourke, Chief Executive of Ink commented, “with Asia Pacific set to overtake Europe as the largest travel retail market in 2012 and Chinese consumers making up the largest part of the Asian market, We believe that the China Travel Retail event is a must attend event for travel retailers and concessionaires, health and beauty, gifts, confectionery, eyewear, fashion & accessories, tobacco and wine and spirits brands alike. We believe that with the delegates already signed up as well as the world class speakers we have on board, CTR will become a highly successful event for many years to come.”

China Travel Retail event has moved to the Marriott City Centre in Shanghai

WWW.LAPRAIRIE.COM Š 2012 LA PRAIRIE INC.

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Top Story: China Duty Free

Eastern promıse China’s duty-free sector may still be off limits to foreign firms, but local retailers are ramping up their activities to take advantage of growing demand in arguably the world’s hottest market - and savvy foreign operators are taking the long view BY P. CONVERY s China’s economic growth continues to outpace that of most of the rest of the world, the nation’s travel retailers are among the big winners, with enviable sales increases in a market where the purchasing power of local travelers is growing rapidly.

For years, China Duty Free Group (CDFG) has been far and away the biggest

A

China Duty Free is the biggest duty free retailer in China, operating 209 outlets

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

player in China’s tightly controlled market, operating 209 duty-free outlets and dwarfing its longtime smaller rival, Sunrise Duty Free. However, the travel-retail heavyweight is beginning to show signs of changing as China’s central government begins to relax the rules that govern the country’s duty-free market, allowing more retailers entry and opportunities to expand existing businesses.

Much of the action has taken place on the

southern island of Hainan, which has been a focus of the central government’s efforts to develop a resort industry, and which has served as a testing ground for the nation’s first domestic market duty-free retail.

Almost a year after legislation came into effect permitting Chinese nationals to buy up to 5,000 yuan (US$789) of duty-free goods when traveling domestically from the island province, the Hainan “experiment” has become a fully-fledged duty-free phenom-

enon, following a trail blazed by other domestic duty-free hotspots such as South Korea’s Jeju island, Okinawa in Japan and the Malaysian holiday island of Langkawi.

CDFG, which was the sole duty-free operator on the island at the time the policy went into effect, has witnessed an extraordinary shopping boom at its duty free-store in the Hainanese city of Sanya. On the day the new policy came into force, crowds had gathered outside CDFG’s Sanya store even before it opened its doors, and by December, the store was welcoming more than 14,000 customers and processing over 5,000 transactions every day.

CDFG Marketing Director Gu Naxin says the retailer’s emphasis has been on providing top-notch service. “Our focus is to upgrade the quality of service and bring more convenience to customers,” he says. “We [operate on] the principle of ‘service comes first at the Sanya duty-free shop, and we have upgraded the shopping environment.

We are also detail-oriented. Our staff are properly trained to answer queries and calls from customers.”

And he says CDFG has been a keen observer of the development of the offshore duty-free hubs in South Korea and Japan, regarding them not as competitors but as examples to follow.

“We communicate all the time with Jeju island duty free,” says Gu. “We learn a lot from them.”

CDFG has wasted no time in building on the opportunities presented by China’s burgeoning duty-free market. During last Christmas and New Year, the Sanya duty-free shop and more than 20 other stores offered a range of free gifts, discounts and promotions, with 30% off the prices of a number of

high-end, international brands, including Coach, Gucci, Bally, and Emporio Armani.

Other brands such as Sisley, Fossil, Kiehl’s and La Mer set up promotion counters for the festive season.

The retailer launches promotional campaigns at its Sanya duty-free store on a regular basis in order to boost brand recognition, says Gu. Some of the most successful of the past year include Clinique’s “Happy Day” campaign, which gave customers an opportunity to have their photograph taken at counters draped in orange, the brand’s signature color, and shoppers buying five or more Clinique items received an accessories box.

CDFG also launched a very popular lucky draw in more than 20 stores in 2011, the top prize being a seven-day holiday in France for 10 lucky customers.

“We had a special treat for them to go to Europe, and customers were very happy,” says Gu. “We had very good feedback, so we’re likely to repeat the campaign this year, with the prize of a trip to the London Olympics.”

And to celebrate the first anniversary of domestic duty-free, CDFG held a promotion that offered discounts and gifts-with-purchase at the Sanya Duty Free Store in April.

Like some other travel retailers, CDFG is moving away from a brand-specific promotional strategy and towards promotions aimed at boosting sales across entire categories.

“We’re now more likely to promote our brands all together instead of doing it one by one,” says Gu. “We negotiate with our suppliers before initiating these promotions, and we have also upgraded our logistics, commodity clearance, warehousing management, distribution, and replenishment in order to support them.”

The results of all this activity are plain to see in CDFG’s accounts. For 2011, the retailer announced a 40% surge in its net profit, to 2.3 billion yuan (US$363 million), on revenue that was up by more than one-third, to 12 billion yuan (US$1.9 billion).

Now, CDFG is taking its next step on Hainan, building what it says will be the world’s biggest duty-free complex at Haitang Bay, in Sanya. The complex will offer 350,000 square meter of space, including 150,000 square meters dedicated to commercial services, featuring a massive retail complex, a luxury brand exhibition area, a designer hotel and a large food and beverage area.

“It will be the biggest duty-free [complex] in the world after its completion,” says Gu. “We believe that it will have a positive effect on driving forward the [development] of Hainan as an international destination and on the consumption of luxury goods by Chinese residents.”

Phase one of the project is due to open in 2014.

And domestic duty free doesn’t end with Hainan. Authorities in the city of Tianjin, keen to emulate the island province’s success, are planning a duty-free shopping zone on nearby Dongjiang island. Dongjiang is just a 45-minute car journey from downtown Tianjin and less than two hours from Beijing, and setting up a duty-free zone there is likely to make it a big draw for the region’s residents, who will no longer need to travel to Hainan or Hong Kong, or internationally, to shop duty free.

Gu says that the Dongjiang project is still under discussion, and that CDFG is not currently involved. But the retailer is pursuing other opportunities for expansion. It operates and supplies duty-free shops in Taiwan,

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Top Story: China Duty Free

Dufry China has been actively growing floor space in its existing stores

on Kinmen island, and in Taichung, and it has high hopes for its bids for concessions at Hong Kong International Airport.

“We’re trying to expand, and Hong Kong International Airport is our first step,” says Gu. “In Hong Kong, we’re competing with worldwide duty-free companies. We have many things to learn compared to these companies.”

If CDFG wins concessions at Hong Kong International Airport, Gu says, “it will put us on the map with other well-known international duty-free operators.”

For the near future, however, CDFG will maintain its focus on its Sanya duty-free store and the upcoming Haitang Bay complex.

“We have to focus on domestic duty free, as Hainan opens up a window for Chinese consumers to buy luxury goods inside China, so they don’t have to buy overseas,” Gu says.

As CDFG goes from strength to strength, China’s central government is keen not to see too much valuable foreign exchange flow out of the country, and is encouraging Chinese travelers to spend their travel-retail budgets at home. This may well mean more competition in Chinese travel retail in future, although for now foreign retailers remain firmly locked out of the duty-free market and operate instead in duty-paid and as suppliers to local partners.

It is a timely policy development, as the World Luxury Association forecasts that the size of China’s luxury goods market will overtake Japan’s this year.

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This consumption boom has prompted China’s central government to allow more retailers into the country’s duty-free market.

Last December, for instance, a new domestic duty-free store opened at Haikou Meilan International Airport, on Hainan island.

The 2,200 square meter store was opened

by Hainan Provincial Duty Free Co. Ltd (HNDF), with international duty-free giant DFS acting as its exclusive supplier and providing a range of management services. And in an echo of CDFG’s runaway success in Sanya, it was jam-packed with travelers less than an hour after the doors swung open.

Although it’s smaller than CDFG’s Sanya store, HNDF’s airport outlet has the advantage that customers can take their purchases with them immediately rather than having to collect them at the airport.

HNDF - the fifth firm to be granted a duty-free license in China after CDFG, Sunrise Duty Free, Shenzhen Duty Free and Zhuhai Duty Free - has ambitious plans for further duty-free operations on Hainan, including downtown stores, although each new opening will require approval from China’s central government.

Even though foreign firms remain barred from operating their own duty-free stores, as such, Dufry is one non-Chinese retailer that has made some progress in breaking into Chinese travel retail. Dufry operates 20 dutypaid stores in the domestic areas of Shanghai’s Hongqiao Airport and Beijing Capital International Airport , under a seven-year

concession agreement, and the company was recently granted concessions for duty-paid perfumes, cosmetics, fashion and accessories stores at Chengdu International Airport.

But Dufry, like other foreign retailers, is biding its time when it comes to any opening of the duty-free market to non-Chinese players.

“We are looking into any opportunity in China that fits our strategic direction and appears to be commercially viable,” says Rene Riedi, Dufry’s Chief Operating Officer for Eurasia. “At the moment we’re focused on duty paid, but we would also be happy to look at duty free once the market opens.”

Despite the limitations imposed on foreign retailers, Riedi remains upbeat on the outlook for the market.

“There is indeed an increased focus on China, and we expect that we will continue to see more competition in the travel-retail space,” he says. “We are quite confident that the travel-retail market in China will in the long run deliver good returns to us.”

And Dufry hasn’t been idle, waiting for change to come. Instead, it has been preparing itself to compete in an increasingly crowded market.

“We have been active in growing [our] floor space, on the one hand, and establishing relationships with decision-makers, on the other hand,” Riedi says. “We think we have gained a good understanding of the market particularities and we are well prepared for future market challenges.”

Sunrise Duty Free, the second retailer to be granted a duty-free license, and which operates duty-free shops at Shanghai Pudong, Shanghai Hongqiao and Beijing Capital International airports, has also benefited from China’s economic boom. It’s seen what one of its most senior executives describes as a “healthy” increase in revenue over the past decade.

“We’re pleased with the fact that the Chinese are buying more,” says the executive, who asked not to be named. “The revenue certainly depends on what the economic outlook and conditions are, but we’re optimistic about China’s travel-retail market.”

“We want to expand, but cautiously,” he says. “We do not expand for expansion’s sake, though. It’s our intention to run what we have well, rather than giving more and more, because sometimes [in such circumstances] you tend to pay less attention to your core business,” he says.

“We’ll work on what we have, increasing the number of brands, including international luxury brands,” he says. “We always have worked closely with our brands on advertising campaigns, promotions and product launches.”

The executive points out that Sunrise targets a broader market than Chinese travelers alone.

“The Japanese and Koreans are also buying a lot, so we focus on Asian customers in general,” he says.

That focus does not, however, include

the burgeoning action on Hainan.

“We could have gone to Hainan if we wanted to,” he says, “but we choose not to, due to the fact that it’s quite far away and difficult for us to control properly. Also, Hainan

ers don’t have, such as local knowledge and so forth. From that standpoint, we can run our business our own way and we can keep it flexible.”

“The growth of the business is positive

“We are looking into any opportunity in China that fits our strategic direction and appears to be commercially viable.

At the moment we’re focused on duty paid, but we would also be happy to look at duty free once the market opens.”

Rene Riedi, Dufry’s Chief Operating Officer for Eurasia

is in a development stage, so we don’t know where it’s going to go.”

But he’s positive about the market overall, and about prospects for other travel retailers.

“Zhuhai Duty Free is huge, Shenzhen Duty Free is huge, CDFG is even bigger,” he says. “We are little brothers, but being little we can do fine. There’s a lot out there.

Every competitor has advantages that oth-

for everyone,” the executive says. “And I think that growth will take care of itself and the participants in the market.”

As China’s economy continues to grow, albeit at a slightly slower pace, and as the government steers it from an export-driven focus to a model based more on domestic consumption, travel retailers look set to cash in - so long as they pinpoint their position in this huge and exciting market. c

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Shilla Duty Free

Korea move Seoul-based travel retailer Shilla Duty Free is going from strength to strength as it launches an ambitious bid to join the top table of global duty-free players BY

outh Korean travel retailer Shilla Duty Free had a remarkable year in 2011, building on its portfolio of the world’s most coveted brands and launching ambitious expansion plans.

Perhaps Shilla’s biggest single accomplishment last year was its victory over its larger rival, Lotte Duty Free, in a two-horse race for a partnership with luxury fashion house Louis Vuitton. In September, Shilla opened the world’s first Louis Vuitton store in an airport - at Seoul ‘s Incheon - causing quite an upset at Lotte.

Opening the 550 square meter store was a coup for Shilla, but it came at a cost, as other high-end brands reacted angrily to the preferential treatment Shilla extended to Louis Vuitton in order to clinch the deal. The award of the best retail space in the airport to Louis Vuitton and a rental of 6-7% - as opposed to the 20% paid by other brands - proved too much for Gucci to stomach, prompting it to close the stores it operated with Shilla and team up with Lotte. Chanel also refused to renew its contract with Shilla, and pulled out of the airport in mid-September.

Shilla is reluctant to reveal how much revenue its Louis Vuitton store - the largest of its kind worldwide - is bringing in, due to commercial sensitivities, but it is estimated that it could generate as much as US$65 million sales annually, thanks largely to growing numbers of high-spending Chinese travelers.

Shilla’s sales to Chinese travelers have

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P. CONVERY

become increasingly important in recent years, says Shilla Vice President Jason Cha. “Sales to Chinese have been rising since the second quarter of 2010, turning the tables between sales receipts from Chinese and Japanese travelers for the first time,” he says.

“Sales to Chinese travelers rose 23% in 2011.”

The Chinese are now the biggest customer group in Shilla’s duty-free stores, accounting for around 42% of the retailer’s sales.

Shilla has responded to this demographic trend by hiring Chinese-speaking sales staff, and it is looking to hire more.

“Arranging Chinese-speaking staff to help Chinese tourists to shop conveniently is something we consider very important,” says Cha. “Our Chinese-speaking staff at our main downtown store in Seoul wear special “panda” badges so they’re easily recognizable, and we have Chinese-speaking sales staff at our Korean cosmetics zone to help Chinese visitors chose products. Also, about 30% of our sales representatives at our Louis Vuitton store at Incheon are Chinese speakers.”

The retailer has also organized events and promotions targeting Chinese travelers, including a card game event during Lunar New Year, with winners using coupons they won to make purchases in its stores. Shilla says it plans similar events in the future, especially during the peak travel season and around Chinese national holidays.

In March, Shilla started using social media to drive sales to Chinese travelers, with a mar-

keting campaign on Sina Weibo - the Chinese equivalent of Twitter - offering shopping information and promotions.

“We are working on establishing a relationship with Sina Weibo [for a presence on] their homepage,” says Cha. Among the best-selling products to the Chinese, Shilla says, are cosmetics from South Korean brands such as Misha, The Face Shop and Innisfree, as well as high-end international brands including Estée Lauder, Sulhwasoo and Dior. And it says its Louis Vuitton venture has been a hit among Chinese travelers.

As its customers’ tastes have become more diversified, Shilla’s brand portfolio has continued to grow. In March, Shilla partnered with another famous brand – women’s apparel label Tory Burch – to open an outlet alongside the cosmetics zone at its main Seoul store.

Shilla’s success at home is something it would very much like to replicate abroad, as rival Lotte is already attempting with two foreign store openings to date. But Cha is modest, saying the retailer still has some way to go before it becomes a global player in travel retail.

“We are currently in the trial and learning process with regard to going global,” he says. “But if an opportunity comes our way,

Shilla opened the world’s first Louis Vuitton store in Incheon International Airport

we will do our best to submit either a concession proposal or joint-venture equivalent with a local partner.”

Shilla may be on a learning curve when it comes to moving beyond its home market, but the signs so far are certainly encouraging. The retailer has submitted bids for the airside general merchandise concession at Hong Kong International Airport, and for the duty-free concession at Los Angeles International Airport - a contract for many years held by DFS. If Shilla is successful in securing those concessions, the stage will be set for even bigger things than this ambitious retailer has c achieved so far.

Delhi Duty Free

Delhi Duty Free in Indira Gandhi International Airport’s Terminal 3

TAMING A TIGER Delhi Duty Free’s stores at Delhi airport’s T3 have been a wild success, revealing the pent-up demand for top-notch airport retail in India BY P. CONVERY hen Delhi Duty Free opened its doors at Indira Gandhi International Airport’s Terminal 3 a little over 18 months ago, it struggled initially to keep up with roaring demand for an offer that broke new ground in Indian travel retail. Now, in 2012, the More than 50% of Delhi Duty Free’s sales are from arrivals retailer - a joint venture between Aer Rianta International, In-Flight Duty and to trade up. O’Connor says the fact that Free Services and Delhi International Air- domestic market duties are so high in India port Ltd. (Dial) - has mastered the many has facilitated this. idiosyncrasies of doing business in a market “If US$15 or $20 can take you up to the that’s full of both possibility and potential next level that links in well with [perceppitfalls. And it’s thriving. tions of] status here and the prestige of a “We’ve had double-digit sales growth brand. We work with the support of brands over the past year,” says DDF’s Chief Exec- and our suppliers and put on promotions that utive Steve O’Connor. “We’re doing well, encourage them to move up. Once customers and we’re up on passenger figures.” have tried it, they’ve got a taste for it. But peo“More than 50% of our sales are from ple won’t definitely move up [with liquor] if arrivals,” he says. “It’s a big chunk of our busi- they’re buying a bottle downtown, because ness. It’s generally the same [across airports] the duty’s just so much - an extra US$30 or in India, because duties are so high down- $40. For that money you might be able to get town, and because people don’t trust the two bottles of what you normally buy.” product downtown - they’re not sure if it’s Liquor - especially whisky - is a big part copied or if it’s counterfeit. of Delhi Duty Free’s business, and it has O’Connor says the less-than-spotless rep- focused on training its staff to explain the utation of many retailers in India’s domes- differences between different bottles and to tic market has helped Delhi Duty Free to set encourage customers to trade up. The retailer itself apart as a trusted brand, and that even has plans to send staff to distilleries in working closely with suppliers has helped to Scotland in the coming year, to deepen their enhance its reputation - particularly in its knowledge of the product. strong arrivals business, in which most cus“We have 144 varieties of Scotch,” O’Contomers are Indians. nor says. “It’s a fantastic range, particu“It’s about having consistency of prod- larly in departures, because people have uct, and new launches have helped support time to explore.” that [by demonstrating] to people that it’s He says that’s where Delhi Duty Free’s genuine,” he says.

“Shop N Collect” scheme comes into its Delhi Duty Free has been quick to build own, encouraging travelers to purchase boton that trust, encouraging its customers to tles they might otherwise be reluctant to experiment with new products and brands, buy due to concerns about LAGs regula-

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tions at other airports and the need to carry their purchases around for their entire trip.

“It’s like being guaranteed a sale in arrivals. And what we’ve found is that when we have a specific promotion coming to an end, people don’t want to lose the benefit of the promotion, so people buy going out and collect the product in arrivals on their return.”

Shop N Collect has been operating for just over seven months, and the retailer has plans to follow it with other initiatives to drive sales, including loyalty cards, new outlets, more broadly focused promotions and the extension of its product range into other categories.

“We’re looking at mobile units to operate at the gates and talking to Dial about other opportunities,” says O’Connor. “We’re also looking at opening another shop at the end of our existing retail area.”

He says Delhi Duty Free has an agreement with Dial on destination merchandise, and that the retailer is especially focused on tea.

“Tea is really big business for us here, and at the moment it’s still fairly basic,” he says. “But we see huge potential for the category. We’re talking to suppliers at the moment, and we need to come up with something different from just stocking it on the shelves in packets. I want containers of loose tea, from which you can get the aroma, for people to sample it and have tea tastings and bring a bit of theatre into the category. Tea will be an element of people’s gifting, and we know we can generate a lot more revenue from it.”

Delhi Duty Free’s success in the short time since it opened has been impressive, and as it prepares to diversify into categories such as tea, it’s hard to escape the notion that c something positive is brewing.

13-17 MA AY Y 2012 – SI NGAP

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free & the stry u d n i l i eta travel ific i in As

Nuance-Watson (HK)

Don’t

look

down T

he past few years have demonstrated how volatile business can be in travel retail, yet the team at Nuance Watson (HK) have soldiered on at Asia’s busiest international air hub, in Hong Kong, to turn their business into a remarkable success story.

And even as Nuance awaits the outcome of Airport Authority Hong Kong’s core-category tenders - one of the most hotly contested duty-free bidding contests in the industry’s history - the retailer is certainly not sitting on its hands. Faced with the possible loss of key concessions, some retailers might be expected to let their business development slow. Not Nuance.

The retailer’s Asia Regional Managing Director, Alessandra Piovesana, says: “Having undergone all the ups and downs within the travel retail business at Hong Kong International Airport [HKIA] over the past 13 years, we have learned to remain confident and optimistic towards our business, with the same belief, passion and commitment to win.

“Over the years, even amid running licenses, we have constantly invested in upgrading and revitalizing passengers’ enjoyment of HKIA’s shopping experience via activities such as store fit-outs and facility upgrades, staff training, market research, customer relationship management tools, logistics infrastructure and point of sale system enhancements.

“Our energy and commitment to grow and extend the life span of our airport business at every opportunity is well demon18

ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Nuance-Watson (HK) is committed to offering its consumers top notch service

As Nuance-Watson (HK) prepares for the results of one of the most hard-fought tender races in the history of travel retail, it’s striving for ever higher peaks of performance BY P. CONVERY strated through our active participations in 68 tenders with 35 wins since beginning operation at HKIA in 1998.”

In mid-2011, Nuance invested heavily in upgrading its Temptation Duty Free beauty stores, dramatically improving the presentation of its offer, and has since launched a number of debuts and firsts, including the unveiling of Agnès b.’s new beauty line, new additions Aura by Swarovski, Coach, Jill Stuart, Cosme Decorte and Hello Kitty, and the first Bottega Veneta fragrance. Among its other brand debuts are fashion labels Tommy Hilfiger and Escada, and Italian leather luggage brand Piquadro.

“All of these have generated very positive sales results and, even more importantly, good customer responses,” says Piovesana. “Our primary objective for these kinds of firsts and exclusive launches is to satisfy customers’ rapidly changing wants and needs, which in turn will help to enhance HKIA’s reputation for providing new choices that constantly exceed customers’ expectations. All these successful launches have built up a proven track record of our category insights and remarkable sales and marketing capabilities, which has further strengthened our brand partnerships to secure more top brands’ premiere launches in future.”

Nuance has not, however, assumed it will emerge victorious in the airport’s tender, the results of which are due any day now, and has opted to hold off from extending its customer loyalty scheme.

“Due to the tender uncertainty, we did not further expand our customer loyalty program in 2011, as we feel we bear the responsibility for protecting the interests and managing the expectations of our customers,” Piovesana says, adding that the programs as they stand make a “substantial” contribution to sales.

Further uncertainty has come with the impact of the eurozone’s debt crisis, but Piovesana says HKIA has nevertheless achieved passenger traffic growth.

“Passenger volume at HKIA set new record in 2011,” she says. “For the year, HKIA welcomed 53.9 million passengers, among which passenger traffic to and from the Chinese mainland, Southeast Asia and South Korea performed particularly well, with growth of 19%, 10% and 15% respectively, compared to 2010. These customers also belong to the higher spending group within the airport mall. European and American traffic growth remained slow and their spending is still relatively weak as a result of their weak economic conditions.

“But we expect a gradual slowdown in both passenger traffic and spending growth in 2012, partly cushioned by the relative strength of the Chinese and Southeast Asian economies compared with those in Europe and the US.” Whatever the coming months bring, it’s hard to see how Nuance could be better prepared for the future in an industry characterized by a constantly changing operatc ing environment.

Changi Airport Group

Roar energy The Lion City’s hub operator, Changi Airport Group, is once again showing the travel-retail trade how it’s done, with a drive for success that’s keener than ever BY P. CONVERY

hangi Airport Group (CAG), the operator of Singapore’s eponymous hub airport, never disappoints with its seemingly endless energy, and it’s redoubling its efforts to build on its success with an ambitious program of expansion and development.

The airport operator is currently putting the finishing touches to a revamp of Terminal 3, focusing on the landside areas of the terminal’s Basement Level 3.

“The last phase of the revamp of Terminal 3’s public areas, which focuses on Level 3 of the terminal, will be completed in the coming months,” says CAG Executive Vice President of Commercial Lim Peck Hoon.”

There will be a total of seven restaurants and two retail anchor tenants located in this area.”

That follows an upgrade to T3’s Basement Level 2, which added more than 20 new shops and which was completed late last year, bringing the number of retail brands to almost 30 and the count of F&B outlets to more than 10.

“The upgrading of T1 is also near completion, with the finishing enhancements being done,” says Lim. “Final completion is expected to be by the end of the second quarter this year.

“The number of concessions at T1, across both the landside and airside areas, has increased by about 25%, and total concession space has gone up by more than 10%.

There are [now] over 70 retail shops and more than 30 F&B outlets in the terminal.”

And if all that revamping weren’t enough, CAG is demolishing its Budget Terminal to make way for a new Terminal 4, geared to quick aircraft turnaround and with capacity for almost four times the 2011 passen-

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ger traffic at the terminal it is replacing.

“The Budget Terminal will be closed on September 25, 2012,” says Lim. “The new terminal ... will have capacity for 16 million passengers per annum [and] will have a wide choice of retail and F&B offerings, as well as passenger amenities that will better serve the needs of travelers.”

Construction of T4 will begin in 2013 and CAG expects it to be completed by 2017.

If CAG seems to have targeted low-cost carriers (LCCs) with the quick-turnaround, no-aerobridges T4, it’s certainly not on a whim. LCCs have become a major part of Changi’s traffic in recent years, and that growth show no signs of slowing.

mainlanders, who contributed about 20% to total concession sales at Changi in 2011, representing impressive growth of 40% year on year.

Lim says they’re among the top five customer groups at the airport, and that their favored product categories are liquor & tobacco, perfumes & cosmetics and luxury & watches.

No doubt with this key passenger segment in mind, CAG has in the past 12 months opened airside stores such as Gassan Watches & Jewellery, wine and cigar concept Vine & Leaf and upscale Chinese lifestyle brand Shanghai Tang, among many others.

Later this year it plans to open an airside wine bar named La Cave, and the airport’s first fully-fledged electronics store, Elec-

“The upgrading of T1 is also near completion, with the finishing enhancements being done.”

Lim Peck Hoon, Executive Vice President of Commercial, Changi Airport Group

“The traffic volumes of LCCs have shown growth of about 35% over the past five years,” says Lim. “Today, LCCs contribute a 25% share of Changi’s total passenger volume, compared to about 8% in 2006. In 2011, LCCs carried 26% more passengers compared to 2010.”

She adds that traffic on full-service carriers also showed healthy growth of around 6% in 2011, from a much larger base than that of LCC traffic.

In aggregate, Lim says, traffic at Changi grew 10.7% year on year in 2011, to 46.5 million passenger movements.

Notable among those passengers were the increasingly commercially important Chinese

tronics Hub@T3, landside, in May. And to coax shoppers into making purchases at the airport’s large lineup of retailers, CAG will be running its hugely successful “Be a Changi Millionaire” promotion for a third time this year, alongside its GST absorption program, its Changi Rewards loyalty scheme and a host of other promotions throughout the year.

With all this activity on the agenda, it’s hard to see how Lim and her colleagues find the time to answer questions from journalists. The fact that they do is yet more testimony to the commitment and drive of the team that make Changi Airport one of travel retail’s most respected success stories. c

&OKPZ UIF $IPDPMBUF 4JEF

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Mäurer and Wirtz

SEPARATING the men from As perfume company Mäurer and Wirtz buys the Baldessarini license from P&G, we find out what the name means to the company and its plans for growth BY

LORNA STRICKLAND-COOK

ast year Mäurer and Wirtz (M&W) decided to overhaul its business and develop three divisions. Creating this triumvirate has brought with it the opportunity to acquire the Baldessarini licence from P&G. At the time of going to press, M&W was days away from taking over the operations of the brand.

Dr Hermann Wirtz, M&W Managing Partner says “the key change (for the company) has been the introduction of three restructured corporate units. The segment BEAUTY stands for our own classic fragrances, as well as our popular licensed products from the world of fashion. The PRESTIGE unit looks after our premium fragrances in the selective segment. For the products from Cologne’s Glockengasse such as 4711 Original Eau de Cologne and the ACQUA COLONIA range, we have set up the 4711 unit.”

“This step was necessary in order to adapt the company to the diverse needs of the market,” he says. “The new structure shows very clearly that we are completely at home both in the bridge and the premium segment, and that we can offer our partners customized solutions for both markets. It is a move that sees us laying the foundation stone for continued success.”

Fabian Krone, M&W Managing Director reveals that over “the next few years we will be aiming to drive forward the company’s increasing internationalization. We aim to continue to strengthen our existing successful partnerships and gain new partners, especially in the prestige segment.

“We have gained Windsor as a license partner and will be launching a ladies and men’s perfume for the brand in 2013. We also see great potential for our own brands, which include Tosca, Nonchalance and Tabac Original. And naturally 4711 and ACQUA COLONIA both on the domestic and international markets. We are currently working on promoting line extensions and subbrands,” he says.

The Baldessarini fragrance line is ten years young and the company says it is committed to managing and developing the unmis-

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the boys

takable profile of this premium brand.

The brand, which is aimed at the discerning man, was originally launched by Hugo Boss back in 2002 and has reached out past Germany to attract a worldwide fan base.

A new lease of life Giving the brand “fresh impetus,” the company will be retaining established brand elements such as the tagline: “separates the men from the boys.”

This self-assured statement anchors and positions the brand clearly for its target audience: “men of character, men who stand firm in their masculinity,” says the company. This clear, unmistakable position has helped to secure the success of the brand, even in the past decade of metro sexuality, as a fragrance brand that does not believe in fleeting trends but remains faithful to its strong masculine ideal.

M&W will continue to work with Charles Schumann as the brand ambassador. The stylish, new, monochrome key visual of the first fragrance Baldessarini Classic will feature both the claim and Charles Schumann, presenting them in a classic setting.

As the licensor and the man the brand is named after, Werner Baldessarini welcomed the acquisition of the license by M&W. He reveals: “Baldessarini is a fragrance line that is very close to my heart, and I am delighted that the brand will in future be managed and developed by such a highly experienced and competent partner. It is a good feeling to know that the brand I once established is in such good hands.”

Fabian Krone concludes: “We see potential for international growth in all three corporate units. However, the focus is quite clearly on the PRESTIGE unit where we plan to expand globally and gain new international partners in the luxury segment.” Baldessarini c will test the mettle of M&W’s expectations and plans.

Kiehl’s

KIEHL’S ANNOUNCES

“Travel-Tested Solutions” Unisex skin collection offers remediation for physical and psychological impact of travel BY

HIBAH NOOR

or the first time, New York skin and hair care products maker Kiehl’s is offering a collection of FAA-compliant, travel-tested formulas titled “Travel-Tested Solutions.” This unisex collection is designed to infuse skin with essential moisture and nutrients during harsh travel and post-travel conditions.

Kiehl’s Travel-Tested Solutions is available exclusively at Kiehl’s airport shops, downtown duty-free shops and onboard with Asiana Airlines, Air China, Air Hainan, China Southern and China Eastern airlines from May of this year.

Seasoned and infrequent travelers notice the direct effects travel can have on skin including dehydration and skin sensitivity.

These stresses start during travel and can affect skin for days afterward. “Preventing hydration loss during a flight is only half of the battle,” says Cammie Canella, Kiehl’s

F

Vice President Education and Customer Relations. “Just as jet lag must be tended to for days following travel, travelers should actively nurture aggravated skin two to four days post-travel to restore their skin’s natural balance.”

Extended exposure to confined environments such as trains and planes often leaves passengers feeling psychological and physiological effects on their skin. Travelers face conditions that include low humidity, low air pressure and recycled air, which cause severely parched skin. The typical relative humidity in aircraft cabins for flights over an hour is below 10% for most of the journey—as dry as desert air—often dropping to less than 5% on longer flights.

To combat these effects, Travel-Tested Solutions employs soothing and anti-microbial properties to help defend skin immediately against these adverse environmental conditions. The collection also contains cactus flower extract, which is

known to deliver 24/7 hydration, and Tibetan ginseng, a mountain plant that increases skin-cell respiration at high altitudes. In combination with the blend of essential oils (lavender, geranium and rosemary), the products help to protect against dehydration.

Kiehl’s says that all four products in the collection have been tested in-flight by pilots and crew members of Air China, Air Hainan, China Eastern and China Southern.

The In-Flight Refreshing Facial Mist is designed to restore complexions irritated by severe in-flight cabin conditions. The mist is formulated with cactus flower, Tibetan ginseng and a blend of lavender, geranium and rosemary. The 24/7 Activated Moisturizer hydrates skin and helps shield it from extreme in-flight skin dryness and dullness.

The First Class Purifying Hand Treatment is designed to help protect hands from impurities commonly encountered during travel.

The Eucalyptus Lip Relief Class has been formulated with eucalyptus, along with cactus flower and Tibetan ginseng.

Each product is available for individual purchase or they can all be bought together as a travel set, which includes a complimentar y limited edition luggage tag. c

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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Beauty Beat: Fragrances

Beauty boosters

True Reflection Company: Five Star Fragrance Company Description: An oriental fragrance that opens with a burst of sparkling Italian bergamot, plum and peach. The floral heart blends night blooming gardenia, chocolate orchid and lotus flower for a unique mix, while the earthy finish of textured woods, patchouli and skin musk rounds out the scent

A host of alluring scents fill the air as the new season approaches

L’Eau d’Issey pour Homme Sport by Issey Miyake Company: Beauté Prestige International Description: With bergamot and grapefruit, L’Eau d’Issey pour Homme Sport evokes the freshness of the open air and high altitudes. The heart emanates a spicy note of nutmeg, and the fragrance derives the smoky notes of vetiver roots and the woody essence of cedar

L’eau De Chloé Company: Coty Prestige Description: The iconic Chloé bottle houses distilled rose water with citrus and hints of patchouli. The flacon features a soft green ribbon finished with a silver metal cap

Sheer Beauty by Calvin Klein Company: Coty Prestige Description: The fruity floral Sheer Beauty follows up on the statement made by Calvin Klein’s Beauty. This edition features the signature Beauty flacon with a blush-colored gradient and a clear cap is set on top

Marc Jacobs Daisy Petite Flowers On The Go Company: Coty Prestige Description: Marc Jacobs offers Daisy and Daisy Eau So Fresh in a unique new limited edition package. The whimsical packaging mimics the original daisy bottle. These portable posies sport retro-chic petals

Ombre Platine

Bois d’Orient

Success by Trump Company: Five Star Fragrance Company Description: Inspired by Donald Trump’s own success in real estate, business, publishing and television, his fragrance is described as an empowering scent.

Created in collaboration with Yann Vasnier from Givaudan and developer Jennifer Mullarkey, this fragrance was carefully crafted with a unique blend of notes

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Company: Jean-Charles Brosseau Description: The citrus beginning is a fresh cocktail of lemon and mandarin accompanied by spearmint and juniper berries. Mediterranean fig with oriental cinnamon and juicy raspberries makes up the middle notes. The dry down consists of cedarwood, sandalwood and white musk with a hint of cistus and praline Booth: 1708

Company: Jean-Charles Brosseau Description: A floral oriental, fruity and powdery composition is hereby added to JeanCharles Brosseau’s portfolio. Fragrance notes include lily, tuberose, sandalwood and pink pepper combined with bergamot, coconut and vanilla

Beauty Beat: Skincare & Cosmetics

Beauty regime

Revitalift Repair 10 Night Cream Company: L’Oréal Paris Description: After the success of Revitalift Repair 10 Day cream, L’Oréal Paris completes the range with a night cream, the first integral skincare that fights 10 signs of aging and UV damage during sleep

Creative cosmetics and revolutionary skincare: traveling consumers will have plenty of options to choose from this season Revitalift Repair 10 Instant Serum Company: L’Oréal Paris Description: This breakthrough serum is concentrated with anti-aging actives that start fighting 10 signs of aging within an hour of application. The formula leaves the skin firmer, toned and supple, preparing it for the application of the Revitalift Repair 10 Day or Night cream

Daywear AntiOxidant Beauty Benefit Creme SPF 35 Company: Estée Lauder Description: Estée Lauder says this is “a whole new approach to achieving beautiful skin.”

Powered with an advanced complex of skin-essential antioxidants, Estée Lauder’s new Beauty Benefit Creme “does it all” in one step for even, healthylooking skin

Dr. Andrew Weil for Origins Mega-Bright Skin tone correcting serum Company: Estée Lauder Description: A formula that Estée Lauder says is clinically proven to instantly brighten skin and improve clarity and radiance, fighting the causes of skin discoloration while combating the existing visible signs (dark spots, uneven skin tone) and preventing their future development

Eyecing Fatigue-Fighting Eye Cream

by Freeze 24/7 Company: TPR Holdings LLC Description: Based on new technology, Eyecing heals, nourishes, revitalizes, detoxifies and moisturizes skin cells to restore a fresh, youthful appearance. This treatment battles the signs of weariness with specially formulated Hydroptix-171 Youth Boosting Complex, a proprietary, time-released polymer that works to revitalize skin and reduce the appearance of fine lines, puffiness, bags and dark circles around the eye area. Hydroptix-171 Youth Boosting Complex features Peptide 171, used here for the first time ever in skincare

Expert Color Palette Travel Retail Exclusive Company: Estée Lauder Description: This makeup palette is filled with strong shades. Pure Color Long Lasting Lipstick, Kissable LipShine, Pure Color EyeShadow and Estee Lauder Signature Silky Powder Blush are all available in one portable palette, complete with Magnascopic Maximum Volume Mascara

Pronto Heat Protect Spray by Oscar Blandi Company: TPR Holdings LLC Description: Offering 450-degree heat protection and safeguarding hair from all hot tools, this dry-spray formula is enriched with keratin proteins to nourish, strengthen and protect. It provides instant stylerefreshing benefits, enabling hair style to be easily and effortlessly reshaped

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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Whitehouse Travel Retail Butterflies are an on-trend theme this summer

Hello Asia

It’s been a solidly strong year for Whitehouse Travel Retail as the prolific supplier and distributor prepares for its first ever TFAP Show, bringing jewelry, watches, sunglasses gadgets and plush to the Asia market BY LORNA STRICKLAND-COOK

O

ver the past few months a host of new launches have emerged from the Whitehouse Travel Retail stable. While the distributor’s focus has mainly been Europe-based, this year after further investment and a new senior staff announcement, it is time for Whitehouse to look to Asia for growth.

And at this year’s TFAP show the industry can expect to see some of the new launches the distributor has been wowing the industry with. Some of the key developments that will be on show at the Whitehouse TFAP stand will include new collections from the Kroc’s two year guarantee makes it a winner in travel retail

distributor’s own-brand Adorn, easy but useful travel gadgets from Gadget Republic and a host of designer sunglasses including those from well-known racing brand McLaren.

McLaren is the latest big name to enter travel retail through the expertise of Whitehouse Travel Retail and its sunglasses division. The Formula 1 brand’s sunglasses range is suitable for those with or without a passion for racing. It is the first time the famous F1-affiliated brand has launched eyewear into the industry and the distributor has high hopes that F1 fans and lovers of good eyewear will pick up on the brand as it begins its travel retail roll out.

A variety of super sleek, lightweight and design led McLaren sunglasses will be available for both men and women. The designs resonate with the same sleek lines that the McLaren cars boast.

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Hutley reveals that the distributor has the license for worldwide travel retail sales. “Our strategy is to approach the key F1 hubs such as Shanghai, Singapore and Sao Paulo of course. The name McLaren has a great history behind it and is a really strong brand that transverses outside just the F1 fan base.”

Whitehouse has chosen nine skus to premier in travel retail, ranging from US$120$170 to make the brand widely accessible in the travel retail and duty free arena.

The company has extensive experience in eyewear distribution in travel retail and McLaren joins other prestigious brands currently distributed by Whitehouse Travel Retail.

But it is the newly-introduced sports watch brand KROC that Whitehouse is very proud of. After the successful launch of KROC watches in Cannes last year, the brand has picked up its first listings with TUIfly, Condor and Senegal Airways to name but a few; with more airlines due to sign up this exciting brand.

The low-priced sports ION watch brand has also now launched its extended two year warranty. Every travel retail customer who purchases a KROC watch has the added knowledge that their watch is protected against faults for a full two years, a competition busting rarity for a fashion watch in travel-retail.

The extended two year warranty is further reinforcing KROC’s position within travel retail in addition to demonstrating Whitehouse Travel Retail’s determination to promote KROC as not only a stylish value for money timepiece but also one which provides exceptional customer support.

Whitehouse Travel Retail Sales Manager Tim Jobber says: “The KROC brand offers a modern range that exudes style. Having confirmed a great number of retailers since Cannes, we are now even more confident that

the two year warranty will win us more hearts in travel retail. It is a rarity to find a fashion watch in the industry offering this length of guarantee period.”

The range of KROC watches includes a buckled negative ion model, a snap on strap with removable Citizen movement dials and the multi wrap-around snake models in various colorways.

As if the distributor needed any further reinforcement of its ability to deliver results for well-known brands, it was chosen to distribute Olympics 2012 mascots and toys in UK travel retail; A prestigious win in the competitive industry.

With Whitehouse’s successful growing portfolio, the company recently announced the appointment of Tim Jobber to the role of Sales Manager. With over 20 years in the industry mainly in the military arena, Jobber’s experience of household name watch brands, including Seiko and Casio put him in good stead to promote the brands in the Whitehouse portfolio.

With its track record of delivering results for a range of brands to a range of travel-retail customers, it is no surprise we can expect Whitehouse’s first TFAP show to be a good one as it brings brands old and new to this c competitive region.

Adorn’s latest collection is a must for Asian travel retail

Success in ITR comes in many colours.

As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision.

Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts.

For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.

Misaki

Watch

this space As Misaki prepares for another TFAP exhibition, the company gives Asia Duty Free the lowdown on how its Asia business has fared over the last year and new plans in the pipeline BY LORNA STRICKLAND-COOK company like Misaki is no stranger to a spot of brand diversification. It’s a brave company that does one thing, and one thing only, forever.

With a history of supplying elegant jewelry in travel retail, it’s no surprise that the brand has veered ever so slightly away from this territory and entered the fiercely competitive timepieces market.

But as it turns out, the decision has led to far greater things. As Paola Grazia, Misaki’s Director of Marketing and Communication reveals, the development of the watch range has led to the development of a new retail presence.

“We’re broadening our distribution and entering specialized retail watch stores with, for example, three new Misaki watch counters in Singapore in the last month. This gives us a new horizon with the high potential of growth for our watch category throughout Asia, notably in the near future in Hong Kong, India and Korea,” she says.

Thanks partly to the development of the watches range, which sees new collections introduced twice a year in both the men’s and women’s categories, one of Misaki’s best performing markets in travel retail is China.

Grazia makes special mention of Sanya Downtown Duty Free, where “sales have outperformed Shanghai’s sell-out,” she says.

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The brand has also enjoyed very promising results in Korean duty free over the last six months, where its success in the jewelry category has given Misaki the platform to pursue its development in the country’s travel retail segment further.

All about the inflight But it’s the inflight channel where Misaki has really gained ground over the years. In fact, Misaki’s original business was all about inflight when it started 25 years ago. As Grazia says, “our inflight presence is already mature and well implemented worldwide,” founded on 25 years’ experience in this space-competitive retail channel. Can there be any airlines left for Misaki to gain new listings with? In Asia the answer is yes, as it recently scooped up listings with Kingfisher Airlines and Air Asia—“one of the fastest growing airlines in the area,” Grazia says.

The brand has been able to secure and renew listings over the years with all the main airlines in the Asia Pacific market.

“Misaki is therefore a leader in its field, and the upcoming challenges will be to maintain our position and be on board the few airlines that are not yet part of our portfolio,” Grazia says.

It can be tougher to become a winner in inflight than it can be on the ground. Brand presence is harder to build when you’re forced

to rely on the testing combination of cabin crew and a brochure to sell your product.

Investment on the ground is essential as Misaki prepares to roll out additional visibility tools for the brand in key locations in the region, using consistent POS materials and visuals such as light boxes to enhance brand awareness and create a stronger image.

But Misaki doesn’t just rely on the strength of the brand to achieve sales success. Grazia reveals that what “definitely” works best are staff incentive programs as well as strong merchandising and training.

Attracting a younger audience It’s good to hear that Misaki has overcome one of the age-old problems when selling pearls: attracting a younger crowd. It’s never easy to do, but recent trends show that pearls have good sales potential with young buyers as well as with older generations. “Wearing pearls is now a real fashion statement,” says Grazia, “and Misaki is right on track with a collection that proposes both timeless items and modern pieces that suit all age groups.”

With a new generation of pearl-wearing women purchasing Misaki’s jewels, and the development of the timepieces side, the brand shows a promising ability to reinvent itself at a time when the world econc omy is still on the slide.

Company News: Mars

Room

to grow

Mars ITR recently launched two branded store-in-stores at Changi’s Terminals 1 and 3

For Mars ITR’s Jack Tabbers, the favorite category in retail can still benefit from more focused execution BY HIBAH NOOR

T

he confectionery category has one huge, obvious advantage: most people in most parts of the world have a sweet tooth, at least to some degree. That advantage is something that Mars ITR can work with in building the foundations of success in the Asian duty free market, where prospects for success are reinforced by a healthy dose of know-how, according to Jack Tabbers, General Manager, Mars ITR. “The category in Asia is progressing very well,” Tabbers says. “It’s absolutely a fastgrowing business, mainly driven by the fact that the Asians understand how to sell confectionery at an airport. They’ve learned quickly from the European executions and they really are taking it to the next level.”

Tabbers points to Singapore’s Changi International Airport as an example, with the positioning driven by the understanding that driving the impulse buy is key to success.

“A lot of European retailers are more and more putting chocolate as a grocery execution in their store,” Tabbers says. “I don’t think that’s the way of the future. It doesn’t really attract consumers. You only buy chocolate for a few simple reasons—for yourself if you’re hungry or when you’re on a trip with your family, to keep your kids quiet or as a gift.”

The entrepreneurial Asian mindset means that retailers here forge very direct relationships with airport authorities, with less emphasis on price considerations above all else. “If you walk into a European airport, it’s all about price, price, price,” Tabbers says.

“Duty free in Europe hardly exists due to the

disappearing of all the boundaries. If you go to Asia, price is not that relevant because the availability on the domestic market is less as well.” For Tabbers, price is well down the list as a purchase driver in confectionery, with the category’s firm position as a favorite and its high brand recognition around the world motivating buyers, along with the massive impulse factor.

There’s still a lot of work that can be done to build confectionery’s presence and sales performance, Tabbers believes. He says the category is still focused too strongly on value and is still too oriented towards buyers who are making pre-planned purchases. One strategy to build on the category’s inherent strengths, he says, is to leverage the high degree of brand loyalty among buyers by presenting the confectionery offer through two or three “hero” brands that can create a vivid sense of engagement and in-store theater.

Mars has developed a series of merchandising programs that can be tailored to the unique needs and challenges of different locations. These range from a core presentation for smaller locations to a large-scale tailored store-in-store platform for major airports.

Tabbers and his team have already worked with some of the more innovative retail partners at airports to reinforce the shopping experience and increase footfall, conversion and basket size. One notable example is the recent launch of the M&M’s store-in-store at JFK

International Airport, in cooperation with DFA and the New York Port Authority.

Mars ITR recently launched two branded store-in-stores at Changi’s Terminals 1 and 3, with discussions now underway for a third store in Terminal 2 that will be larger than either of the others. The Changi venues have been very successful since their launches in October 2011 (T1) and January 2012 (T3), and Mars is looking at using Changi as a pilot for further rollouts in other major Asia hubs in Kuala Lumpur, Thailand, Korea and China. “Any airport where passengers exceed 45 million is a potential target for us.”

The discussions that led to the new Changi stores came about as a result of what Tabbers believes is an inherent entrepreneurialism in the Asian market, a trait that augurs well for future innovation and success. “I held a presentation in Cannes last year which was all about driving conversion and how the next phase of what we’d like to do is create new store concepts. After that Changi Airport came to us and wanted to develop stores with us.”

“They’re willing to take risks—they just do it.”

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29

World of Patria

Bringing the best World of Patria International brings a stable of high-end and well respected brands for its first visit to the TFWA AP exhibition in Singapore BY RYAN WHITE

F

irst time exhibitor World of Patria International (WOPI) is introducing its portfolio of premium and super-premium spirits and wines, as well as food and electronic products, to the Asia Pacific market at this year’s TFWA AP exhibition (stand A26).

Singapore sees the introduction of the FirstCape range of wines to the Asian and Australasian markets.

FirstCape offers a range of white, red and rose wines plus a recently introduced lighter alcohol Café Collection which aims to become a 5 million-case brand in the UK. FirstCape is now setting its ambitions on the Far East following the decision to sponsor the Lions Tour in Hong Kong and Australia next year.

“We’re extremely pleased to be supporting FirstCape on its mission to secure distribution within Asia Pacific and Australia and the opportunities for high profile activations throughout airports in the region are amazing,” says WOPI Director Andy Butcher.

“While the brand is positioned more at the entry price level, it has a huge following in In Singapore WOPI will be giving one lucky visitor the chance to win a bottle of The Last Drop 1960 Blended Scotch Whisky

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

the UK and growing business in Europe, ucts which it believes have real potential for and its new lighter alcohol Café Collection travel retail. New in Singapore is a range of smoked Scottish salmon which introduces is proving extremely popular.”

Also new in WOPI’s wine portfolio some unique flavor combinations. St. James is the super-premium Lindhorst range of is a traditional smokehouse located in the wines, comprising six 2007 vin- Royal Burgh of Annan, Scotland. There are tage red wines, including eight varieties available, including garlic & the signature Shiraz- cracked pepper; Hendricks gin & tonic; pasNew to the WOPI portfolio dominated blend trami; whiskey & wild honey; zested lemon are unique products from “Statement” and a & cracked pepper; and zested orange & the British fresh 2011 Sauvi- cracked pepper. Original and gravadlax are based Chase Distillery, gnon Blanc. Other also offered. including award winning Chase “This is a top quality range—a tradiwines being highMarmalade lighted on the stand tional product yet again offering something Vodka include the popular Blos- a little different,” continues Butcher. “Food som Hill selection; Follador products are a growing offer in travel retail premium Prosecco selection, which and we’re sure this range has excellent potenincludes a special gift tube for travel retail; tial within the category.” and Champagne Penet Chardonnet availJuice-saving gadgets able as a Cuvee Diane Claire Also available from the company are Grand Cru and an Iphone 4 Charger and Case, as Grand Reser ve well as a Solar Powerstore from Grand Cru, both Outside its core offer of Powerpack Sales. The powerpresented in a gift spirits and wines, WOPI pack back-up charging case box. continues to incorporates a powerful backKey to the expand its portfolio with up battery built into its shell, WOPI portfolio products like St. James significantly increasing the availis its range of Scottish Smoked able usage time of the phone. niche, quirky and Salmon The cases are the thinnest profile innovative preavailable today and are extremely mium and superlightweight. premium spirits with The solar powerstore is a pocket sized, brands including The Last Drop, which is available worldwide. In Singapore the com- lightweight device designed to store energy pany will be giving one lucky visitor the for up to one month using the latest Li-ion chance to win a bottle of The Last Drop energy cell. Once fully charged using the 1960 Blended Scotch Whisky, with a sug- USB cable (included), the solar powerstore gested retail price of US$2,700, through a charges depleted mobile phones, iPods, MP3/4 players, PSPs, cameras and sat navs. simple business card draw.

Says WOPI Managing Director Rob New to the portfolio are unique products from the British based Chase Distillery, Nichols: “This is our first time at TFWA Asia including award winning five times Pacific and we’re really confident that our distilled Chase English Potato Vodka; portfolio is perfect for the Asian market, parChase Marmalade Vodka; and ticularly given our wealth of really unusual and innovative premium and super preWilliam’s Chase Gin. mium spirits brands. This is a fantastic Tempting tastes opportunity for World of Patria InternaOutside its core offer of spirits and tional and we’re determined to make the wines, WOPI continues to expand most of the opportunities that this event c its portfolio with additional prod- provides.”

Patrón

The

lure of the East

Patrón courts the massive, and growing, Asian market BY ANDREW BROOKS

atrón Spirits International’s “We’ve more than doubled presence in the Asia-Pacific our total business in the region,” duty free and travel retail says Santos. “It has been very channel continues to grow,” interesting to watch the relasays Vince Santos, Patrón’s Vice President tionship between our domestic for Asia/Pacific, who is based in the Philip- and duty free presence—as pines. “As of now we’re currently in 14 domestic penetration grows, that major airports in the region. We aren’t yet very much drives duty free. People in Hong Kong duty free, or Narita or air- will try our products at a bar or ports in China, [but] those are all top pri- restaurant, and then go to duty free orities, to encourage those duty free oper- to look for them.” Patrón’s duty free ators and buyers to consider the significant side is also supported by innovative profit potential of an ultra-premium lux- gift with purchase programs that ury white spirit like Patrón.”

Patrón develops in collaboration Patrón is doing well in Asia, Santos says, with travel retail operators. and the market is clearly growing quite rapidly, especially for high-end luxury prod- Travel retail focus ucts like Patrón. The company is showing At the 2012 IAADFS show in Orlando strong growth on both the domestic and in March, Patrón introduced a new duty free sides, and its top seller in Asia, as travel retail exclusive—a limitedwell as its fastest growing brand in the region, edition collectable tin containing has been the Patrón XO Café coffee liqueur, Patrón tequilas and Patrón XO which recently got its launch into the Chi- Café bottles. Designed for gifting, the tin is embossed with the same nese domestic market. The product has design, colors and graphics become Patrón’s top SKU in many airfound on the current Patrón carton, ports, including those in Singapore, and features a removable lid that Taiwan, Malaysia and Thailand. when closed looks exactly like the “The taste profile of Patrón XO Patrón box. The tin is available Café is so unique that once peoacross the Patrón portfolio ple try it, they’re very inclined to (Patrón Silver, Patrón Reposado purchase,” Santos says. Patrón XO and Patrón Añejo) and for Patrón Café is a coffee liqueur, but XO Café. because it’s tequila-based, it “We’ve long recognized has a dry taste, not the that duty free is a unique sweet taste of most other retail channel, and those coffee liqueurs. Santos who shop in duty free adds that Patrón’s stores are looking for aged marks—Patrón distinctive luxury Reposado and goods, gift ideas and Patrón Añejo tequiitems immediately uselas—are also quite ful while traveling,” said popular in the region, John McDonnell, Chief as Asian consumers Operating Officer at have historically Patrón Spirits Internabeen partial to aged tional, as the new brown spirits.

Patrón’s XO Café coffee liqueur is the brand’s top performer in Asia Patrón’s global tin was unveiled. travel retail sales increased 49% in 2011, out“In addition to providing a key compacing its total international business, which mercial channel with an exclusive offering, was up 45% for the year. The Asia market was we also hope to gain new consumers who a major factor in driving that impressive pace. have yet to try our high-quality ultra-pre-

“P

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Patrón display at Kuala Lumpur International Airport

mium spirits, while providing loyal Patrón consumers with something new, better and special,” added Jason Nussbaum, Patrón Spirits Director of International Marketing.

Other news includes the recent listing of some Patrón brands at Seoul-Incheon, including Patrón Reposado tequila and Gran Patrón Burdeos tequila, Patrón XO Cafe and the ultra-premium Pyrat rum.

Patrón has exhibited at the TFAP event in Singapore for several years now. This year the company will highlight new GWP offers, other new promotional programs and the limited edition tin, which hadn’t hit shelves at press time.

Santos says that while Patrón is growing very quickly across the globe, it’s still a very small company, which enables it to react and make decisions quickly. To position itself to make the most of the opportunities presented by the growing Asian market, Patrón recently hired a new Area Manager for North Asia, Thomas Cheng.

Cheng joined up in January and is based out c of Taiwan.

EXCEPTIONAL QUALITY AWARD-WINNING BRANDS

For a chance to win a bottle of The Last Drop 1960 Blended Scotch Whisky worth $2,700 (Suggested RSP)

Visit us at Booth A26 at the TFWA Asia Pacific Show

It’s all in the mix worldofpatria.com +44 (0)1892 890202

Camus

ASIAN ACCENT ‘‘I

Camus Cognac’s brand recognition in Asia is boosted by the popularity of the category BY

ANDREW BROOKS

n the Asia market, Camus is basically in every key airport in the region,” says Anne Blois, Commercial Director, Pacific for Camus Cognac. “We’re strong in Hong Kong, Kuala Lumpur, Singapore, Seoul, Bangkok—we’re doing very well in Asia.”

The brand is also onboard with many Asian airlines, mostly in China, Korea, Taiwan and Hong Kong.

China is definitely the locomotive, Blois says. Hong Kong, which benefits from the volume of Chinese passengers, is where Camus is particularly well established, while the duty free market throughout China is also a mainstay. In duty free, Camus works with all of the major operators, including DFS, Skyco, CDFG, King Power, Lotte and more.

“Asia is very buoyant,” Blois says. “It’s mainly driven by Chinese travelers in duty free. Russian and Korean passengers are strong too, but the backbone is the Chinese passengers, who are traveling more and more internationally.” Camus’ travel retail business has benefited, especially the highend and limited edition products.

Things did take a downturn after the 2008-2009 recession, but Camus has since turned that trend on its head, tripling its business in the last three years. Double digit growth is predicted for the Asian travel retail market next year, Blois says, with Chinese travelers again doing yeoman service. The average basket for the Chinese passenger is

The Camus Borderies XO Cognac

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

very, very high compared with the American or European passenger.

Solid range The Rarissimes collection, launched a few years ago, continues to be a standout seller for Camus.

Every vintage in the series comes in a wooden box bearing the trademark design of the whole series, and the bottles are individually numbered. Travel retail prices range from US$300 to $1,000.

Camus has also enjoyed the fruits of a strong partnership with Chinese stateowned Baiju producer Kweichow Moutai. An exclusive travel retail batch and blend was developed for Camus, which it distributes worldwide in travel retail.

“Moutai is the luxury brand of the Baiju white spirits—the ‘Lafitte’ of Baiju,” Blois says.

Chinese consumers know Moutai well and seek it out for gifting or consumption. For Camus, the task is not so much the raw selling, but how to position and display the brand properly to gain true international recognition.

In addition, every year Camus launches a Cuvée crystal decanter in a limited run. This does especially well in Asian duty free, Blois says, with the most recent edition priced at US$3,500 per bottle.

Another star is the Extra brand, which has been part of the portfolio for a decade, priced at US$360.

Recent launches include the new Camus Cuvee 2.105, in a crystal baccarat decanter. The release

features 1,220 individually numbered bottles, priced at US$4500 each.

Another notable new arrival is the Camus 1940 vintage Crystal Baccarat Decanter, with only 220 bottles released, also individually numbered and priced at US$4800.

Limited editions work especially well in the Asian market.

Cognac is very oriented to gifting, Blois says, and limited editions fit this bill perfectly, though they’re also favored as acquisition buys.

The way the travel retail market works tends to limit discretion when it comes to promotions, Blois says. Nonetheless, from time to time Camus will do GWP travel bags, as well as collectibles and use-oriented items. But promotion for Camus is really more a matter of careful positioning, and gaining the maximum space.

“The other type of ‘promotion’ we do is really more merchandising, where the airport or operator will allow us to display and give us more space to do it,” Blois says. “It’s not necessarily a promo for the consumer, but it gives us more visibility in the shop. We work very closely with operators to increase the sales rotation.” In some cases Camus will hire extra promoters to advise customers.

In packaging, it’s important to strike the right tone, Blois says—contemporary and luxurious, but not too ostentatious. It can be tempting to ‘chase’ customer preferences, such as the strong reds and golds that appeal to Asian customers, but the brand must preserve its identity.

“We try to be subtle,” Blois says. “In terms of positioning, we compare ourselves with Hermès—if we were a fashion brand we c would be Hermès.”

The recently launched limited run Camus Cuvee 2.105, in a crystal baccarat decanter

Liquor news

Tequilera Corralejo has been running a promotion at Delhi Duty Free Arrivals offering passengers the chance to win a trip to Mexico and a date with Miss Mexico

TEQUILERA CORRALEJO brings 99,000 Hours to Singapore, along with a modern vodka with ancient roots Continuing its passion for traditional production methods, Tequilera Corralejo is introducing a special commemorative edition premium tequila at this year’s TFWA Asia Pacific & GATE ONE2ONE exhibition (stand A15): 99,000 Hours.

99,000 Hours is aged in single Kentucky oak barrels (no bigger than 200 liters) for 18 months and double distilled in the traditional Corralejo Charente method using copper and column stills. This premium tequila is presented in a rounded carafestyle bottle and is designed for drinking neat on the rocks or in cocktails.

Also new at the show is Vodka Boker, an unusual Mexican corn vodka presented in a highly attractive and unusual deep blue bottle that has a twisted effect. Initially launched to travel retail markets in India, Central America, Mexico and Canada, Vodka Boker is described as versatile and smooth as any of its international rivals, but with the added bonus of a direct link with centuries of history and culture.

Tequilera Corralejo continues to build distribution in travel retail for its range of top quality Mexican tequilas produced by traditional methods using 100% pure Blue Weber Agave, including Blanco, Reposado, Añejo, Gran Corralejo and Triple Destilado.

Not surprisingly, the company’s key markets are in the Americas with solid distribution across all Mexican border stores and international/local airports through Aldeasa, Dufry and regional

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operators, as well as Caribbean duty free ports, Central America airports plus border stores in Brazil-Paraguay with Mannah Duty Free, Montevideo Uruguay and Argentina.

However, the company is steadily expanding outside the Americas and now reports significant duty free business in India, the Maldives and Sri Lanka, plus in Spain through Aldeasa and via Russian border stores. The Middle East and Asia Pacific are next on the hit list and the company is keen to make new contacts at this year’s Singapore show.

“We are very keen to work with retailers to promote Tequilera Corralejo,” says Raffaele Berardi, Managing Director of holding company Fraternity Spirits World Inc. “We are very active in creating consumer engagement with the brand. For example, currently throughout India we are running our first Corralejo Teqnicians Mixology Challenge 2012 with the finals taking place at The Park, New Delhi on April 9, where Miss Mexico will also be in attendance. The winner wins a trip to the distillery in Mexico and the winning recipe will feature in the Corralejo Teqnic Book.”

Tying in with this the company has been running a promotion at Delhi Duty Free Arrivals with Aer Rianta featuring giant bottles of Tequila Reposado, offering passengers the chance to win a trip to Mexico and a date with Miss Mexico. The company reports that a Corralejo display at Bangalore airport with Nuance has also worked extremely well.

Cointreau Mabille to be launched in travel retail Cointreau celebrates French elegance with a fashionable limited edition bottle designed

by French haute couture fashion designer Alexis Mabille. In the new limited edition Mabille revisits the bottle of the iconic French liqueur with a special sleeve decorated with his signature bow tie, his favorite emblem and a timeless symbol of sophistication and edginess, in lustrous gold.

Cointreau Mabille will be launched exclusively by Remy Cointreau GTR with Aelia in Paris in May before the product becomes available globally. There are promotional events planned in Brazil, USA, Italy, Greece, and all across Asia.

Cointreau was founded over 160 years ago in Angers, in the Loire Valley of France, and has become the most renowned and dis-

tinguished orange liqueur in the world. Its iconic square bottle with rounded shoulders and amber color is synonymous with heritage and quality.

The perfect balance between sweet and bitter orange peel sourced from various locations around the world, Cointreau has subtle characteristics and a unique quality.

The liqueur’s essential oils create a soft edge and turn cloudy upon contact with ice.

At the heart of almost every cocktail, Cointreau is versatile and timeless, playing a key role in some of the most popular drinks of all time, including the Margarita, Cosmopolitan, Sidecar and White Lady.

Cointreau can also be enjoyed neat, on ice with a twist of fresh lime, or mixed with tonic, lemonade, soda water or fruit juice.

Cointreau Mabille will be launched exclusively by Remy Cointreau GTR with Aelia in Paris in May before a global rollout with promotional events planned in Brazil, USA, Italy, Greece, and all across Asia

Pernod Ricard showcases exclusive products at Master of Spirits II Following their successful partnership at last year’s show, DFS Group invited Pernod Ricard Travel Retail to be part of the prestigious wine, spirits and champagne event Master of Spirits II. Held in The Gallery of the Grand Hyatt Singapore on March 31, the event drew VIPs from the global drinks industry to view an outstanding and exclusive showcase of luxury duty free products.

John O’Sullivan, Marketing Director, Pernod Ricard Asia Duty Free, comments: “Master of Spirits is an extraordinary event and we are proud to participate in it once again. Not only does it demonstrate the strength of our relationship with DFS Group, it provides the perfect arena in which to enhance our relationships with VIP customers. This unique environment gives buyers an opportunity to understand and appreciate the exceptional quality of our most premium expressions.”

Guests had the rare chance to converse with, as well as attend master classes with, the world’s premier wine and spirit makers from such brands as ABSOLUT, Royal Salute, Perrier-Jouët, Martell, Ballantine’s and Aberlour.

Pernod Ricard Travel Retail also exhibited some of the world’s most illustrious whiskies: Royal Salute 62 Gun Salute (special numbered bottles) with personalized engraving on the decanter; the second Royal Salute Hundred Cask Selection bottled into 222 bottles and engraved with the buyer’s name; the eighth bottle of the exclusive Ballantine’s 40; and the Aberlour Exclusive Archive Collection.

The No. 8 ABSOLUT Crystal Pinstripe Black Bottle was also showcased at the event. It is an ultra-limited edition of just 10 bottles. Furthermore, champagne connoisseurs were able to learn more about the exceptional Perrier-Jouët Bi-Centenaire and Perrier-Jouët Belle Epoque 1999 with Filigree Vase, and cognac enthusiasts experienced Martell’s iconic L’OR de Jean Martell 1715 Limited Edition (bottles no. 18, 38 and 98).

Royal Salute 62 Gun Salute (special numbered bottles), with personalized engraving available on the decanter, was exhibited at this year’s Master of Spirits II

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Liquor News

SPI Group celebrates re-launch of Stolichnaya in Delhi and Mumbai SPI Group recently celebrated the re-launch of Stolichnaya Premium vodka and the ultra-luxury elit by Stolichnaya in Mumbai and Delhi. The brand celebrated a new distribution agreement with Aspri Spirits Private Ltd. by throwing a star-studded party with local celebrities including Indian film and theatre actor Boman Irani, film actor Jimmy Shergil and acclaimed Bollywood choreographer Terrence Lewis. SPI Group partnered with India’s leading import, marketing and distribution company Aspri Spirits from the start of February 2012 to distribute Stolichnaya Premium vodka in India.

Val Mendeleev, CEO of SPI Group, commented: “We are delighted to be bringing Stolichnaya Premium vodka and elit by Stolichnaya into India alongside Aspri Spirits. We have already seen a great response to both Stoli and elit and are looking forward to expanding the breadth of awareness throughout the country with Aspri’s strong distribution network.”

Aspri Spirits Private Ltd. is one of the leading distributors of premium wines, spirits and beer in India and was established in 2004. With head offices based in Mumbai and branches in Delhi, Bangalore and Hyderabad, Aspri

From February, Stolichnaya Premium vodka and elit by Stolichnaya (pictured) have been distributed in India by Aspri Spirits Private Ltd.

Spirits will be working with SPI Group to build the brand in India across the domestic and duty-free markets.

In other SPI Group news, the company recently appointed Nigel Bath as Asia Pacific Regional Director.

In his new role Nigel will be responsible for the pan-regional commercial development of the SPI Group portfolio, with a strong focus on Stolichnaya Premium vodka and elit by Stolichnaya.

Robert Cullins, Global Commercial Director of SPI Group, comments on the new addition: “Nigel’s previous Asia Pacific experience—coupled with deep expertise within the beverage industry—will be instrumental in developing Stolichnaya Premium vodka and elit by Stolichnaya within key markets and further building its regional and global success. I am very pleased to be welcoming Nigel to the group.”

Nigel joins SPI Group from Del Monte Asia, where he was Managing Director of the region. Previous to Del Monte, Nigel spent over two decades in Asia Pacific, where he held increasingly senior roles with Diageo, Pernod Ricard/Seagram and Coca Cola. Originally from the UK, Nigel will be based in the new SPI regional headquarters in Singapore.

Glenfiddich takes centre stage in Australia with Nuance March 28 saw the unveiling of the latest Glenfiddich Crystal Stag Gondola at Sydney Airport through The Nuance Group Australia. The first in Australia, the Glenfiddich Crystal Stag Gondola has a high profile position in the main mega walkthrough store and forms part of a significant brand presence with a Glenfiddich 50 Year Old Plinth, branded tasting table and freestanding units, enabling promoters to offer tastings and brand information.

The Stag was presented to The Nuance Group Australia team by Glenfiddich Global Brand Ambassador Ian Millar following a day of staff The latest Crystal Stag Gondola was presented to The Nuance Group Australia by Glenfiddich Global Brand Ambassador Ian Millar (pictured) following a day of staff training

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training to ensure complete product knowledge and understanding.

The placement is supported by advertising and imagery throughout the departure zone, including the Customs window and nearby pillar.

Sydney was a natural choice as the first Australian location for the Crystal Stag thanks to the strong partnership between William Grant & Sons and The Nuance Group Australia, says William Grant & Sons Regional Manager Asia Pacific Scott Hamilton: “We have an extremely good relationship with The Nuance Group Australia and are very pleased to be unveiling the latest Glenfiddich Crystal Stag Gondola here in Sydney. It’s part of an ongoing campaign of high profile activations for William Grant & Sons brands here at Sydney and Melbourne airports which we have developed in very close cooperation with Nuance Australia.”

Adds Derek Larsen, CEO of The Nuance Group Australia: “William Grant & Sons is undoubtedly one of the most proactive and innovative liquor suppliers that we work with and we’re delighted to be featuring the Glenfiddich Crystal Stag Gondola which is supported by such creative merchandising for the brand. We’ve had a very successful year so far with WGS brands here and at Melbourne Airport and are confident that the Crystal Stag will generate equally fantastic customer engagement and response.”

Tobacco news The first Romeo y Julieta Reserva closes the XIV Habanos Festival

Ana López, Marketing Director of Habanos, presents Romeo y Julieta Churchills Reserva 2008 at the close of the XIV Habanos Festival

During the Gala Evening at the XIV Habanos Festival, two new Habanos were launched and sampled by attendees: the Romeo y Julieta Churchills Reserva 2008—the first reserve of the brand—and Romeo y Julieta Petit Churchills, a new vitola that will delight connoisseurs with its characteristic aromatic and balanced flavor, suitable for any occasion.

Romeo y Julieta Churchills Reserva 2008 demands the most stringent selection criteria in creating the reserve, Habanos says. From the long, careful process of aging the best tobacco from Vuelta Abajo* (D.O.P.) for at least 3 years to the tasting committee comprised of more than 50 experts who have supervised the selected blend to guarantee a unique flavor that is harmonious, balanced and aromatic.

The Reserva of Romeo y Julieta is a unique product with an extremely limited production run of only 5,000 numbered cases, each containing 20 units.

The new Romeo y Julieta Petit Churchills vitola completes the current Romeo y Julieta offering by adding a format that has been highly favored in recent years by Habanos enthusiasts. The cigar can be smoked in twenty minutes.

Ahead of the dinner and the new Habanos tastings, the traditional Auction of Humidors took place. This year it raised US$963,506. The six humidors auctioned feature artisan-crafted designs of the most prestigious Habanos brands (Cohiba, Montecristo, Romeo y Julieta, Partagás, Hoyo de Monterrey and H. Upmann). Over the past 12 years the auction has raised almost US$10 million, all of which has been donated to the Cuban Public Health System. Other events during the festival included the XI Habanosommelier International Contest, the 2011 Habano Awards and the international contest “Habanos in images.”

J. Cortes announces new releases for TFWA AP exhibition J.Cortès Cigars has announced the launch of two new products that will be launched at this year’s TFWA AP & GATE ONE2ONE exhibition: Neos Mini Menthol Filter and J. Cortès Wood Tip cigarillos.

Neos Mini Menthol Filter cigarillos, packed in a bespoke tin, are made from a perfectly balanced tobacco blend and carry a premium Ecuadorian light shade wrapper. The fresh menthol flavor turns these filter cigarillos into a very accessible and pleasant smoke, says J. Cortes.

J. Cortès has also created a new concept involving wooden tip cigarillos, available in three different tastes: natural, vanilla and ginger. These rich and tasteful cigarillos come with a quality Java Besuki wrapper and are packaged in an innovative and exclusive box that holds eight smokes and features an easy-to-use magnetic closure system.

Attendees to this year’s show can learn more about these products, as well as the rest of the J. Cortes portfolio, at Booth F10.

Attendees to this year’s show can learn more about new J. Cortès Wood Tip cigarillos (pictured) and Neos Mini Menthol Filter at Booth F10.

IMPERIAL TOBACCO TO REVEAL “DAVIDOFF’S GREATEST IDEA” IN SINGAPORE Every great invention, every memorable song, every tear-jerking film, every stunning piece of artwork— starts with a great idea. At this year’s TFWA Asia Pacific & GATE ONE2ONE exhibition, Imperial Tobacco will be revealing its latest and greatest idea for premium brand Davidoff (stand J1).

The aim, says Imperial Tobacco, is to target a wider audience for Davidoff using an inspirational and artistic approach. The company notes that all details will be revealed in Singapore where Impe-

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

rial Tobacco will be presenting the new concept and celebrating with a special launch party.

“This is the most important launch from Davidoff for many years and we are incredibly excited about it as we believe it will open up the brand to a completely new audience of smokers,” says Jennifer Thanscheidt. “The initial launch announcement will take place in Singapore and we will further push this inspirational concept with another major presentation at TFWA World Exhibition in October.”

Imperial Tobacco calls “Davidoff’s Greatest Idea” the most important launch from the brand for many years

Ray Tobacco

STAR EAST IN THE

Born in a tough economy, Ray Tobacco knows how to survive—and thrive BY

ANDREW BROOKS

ay Tobacco is based in Hong Kong and only started in 2008, making it a genuine newcomer.

The bulk of Ray’s business is still domestic, says Chris Pfister, the recently appointed Export Director. Duty free strong points right now are in Malaysia, Laos, Thailand, Cambodia, Indonesia and Vietnam, but expansion plans are afoot.

The fact that the company started up in 2008 gives Pfister an interesting perspective on the 2008-2009 recession that spiked the plans of so many other companies in travel retail. Starting out during a recession is never part of any businessperson’s plans, but as Pfister points out, it had some advantages in Ray’s case.

R

Walton is Ray’s other main cigarette brand, which Ray has taken into whisky and beer products

“It was unfortunate timing, definitely,” Pfister says. “We started out right when the market was at its lowest point. But we were young and new and we didn’t feel the reces-

The Ray American Blend cigarette brand continues to be Ray Tobacco’s flag carrier

sion as much as older players in the market.

While they were losing business, we were getting our first listings. So we were growing when others were struggling.”

Now that the recession is more or less behind us, the growth prospects for Ray are inviting to say the least. The Asian portfolio is concentrated in airport and border shops, with inflight not yet on the scope.

Growth across all markets is good, Pfister says.

The company is young enough that growth potential is still strong in the markets where Ray is already present.

The company is continuing to make inroads in the Middle East, where it took its first steps outside of Asia and where it has already turned in positive results. In Egypt, Ray is present in airport and border stores, as well as in the high street, with its full range of products. Ray has also listed with border shops in Lebanon, Iran, Iraq, Turkey and most recently Libya. More Middle Eastern markets are in the offing.

Ray Tobacco’s main products in duty free— and generally—are the Walton Royal Blend and Ray American Blend cigarette brands. New products are under development, Pfister says.

Interestingly, two years ago Ray also ventured into the whisky market

under the Walton imprint, with a new blend produced at one of Scotland’s largest distilleries.

“It looks a bit like Johnnie Walker,” Pfister says. “The taste is also similar. The differentiator for us is the combination of high

quality with a very attractive price point.” With a new brand, and especially a new brand in a new category, Pfister says, you have to convince the customer first, and the low selling price is the way to go.

“People who try it are surprised by the quality of the product,” Pfister says. “We’re working with low margins so we can sell at a good price and build sales. So far the strategy is working very well for us.”

Echoing the experiences of so many others, Pfister finds that Asian customers are very interested in high-end items, but he notes that Ray’s price-active approach also reflects the reality that even here there are customers who can’t afford top-line purchases, and many operators in Asia are very much on the lookout for better pricing.

“There are always customers who can’t afford the big-ticket items and go for the cheaper ones,” Pfister says. “It’s a good opportunity—not everywhere of course, but in certain markets.”

Ray followed up on the success of its blended whisky last year when it introduced a new beer product, also under the Walton label. So far it’s been launched in Asia, the Middle East and Africa. The latter is a very beer-friendly market, and prospects are also good for South America, another region known to favor a good brew.

Ray is an active participant in the trade show circuit, and Pfister was pleased with the quality of new contacts he made at the latest IAADFS event. The trade show agenda for Ray always involves showcasing the full portfolio, instead of selecting a few “stars” from the lineup.

For the future, Ray remains focused on growing organically in Asia and its “newer” markets. Ray tends to work with smaller, locally oriented operators, where close cooperation and the intimate understanding of local markets pay big dividends. “They do a good job,” Pfister says.

“If we work closely with them it works out c well for us.”

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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New & Notable LIQUOR:

CONFECTIONERY:

Bottega Diamond

Aloha Mix

Company: Distilleria Bottega Description: The Diamond bottle is decorated with crystal diamonds that reproduce the Bottega logo. This dry, velvety sparkling wine is characterized by a thin and persistent perlage, as well as fruit scents of black cherry TFAP Booth Number: TBD

Company: Hawaiian Host Description: Aloha Mix includes an assortment of individually wrapped macadamia offerings including Hawaiian Host Signature Chocolate Macadamias, hand-selected macadamias covered in Hawaiian Host’s secret milk chocolate recipe and MacNut Crunch, a combination of diced macadamias, crisp rice and milk chocolate TFAP Booth Number: P13

The Balvenie Tun 1401 Company: William Grant & Sons Description: This expression includes rare liquid from a number of casks selected by the industry’s longestserving Malt Master David Stewart and married in Tun 1401 at The Balvenie distillery TFAP Booth Number: K21

Souvenir Company: Godiva Chocolatier Description: An assortment of Godiva chocolate pieces in a gold rigid box covered with a sleeve of different destinations, providing a souvenir of favorite destinations. The box contains 15 Godiva chocolates and is available with 16 different destination sleeves TFAP Booth Number: H2

Chupa Chups Binocular Company: Perfetti Van Melle Global Travel Retail Description: This pair of working binoculars includes a Chupa Chups lollipop. “An ideal gift to keep children amused whilst travelling and on holiday” TFAP Booth Number: N3

ACCESSORIES: Follador Prosecco Selection

Lip Smackers

Company: World of Patria International Description: The Follador wine-making family is known for combining traditional vineyard cultivation with modern production techniques. Follador’s Superior Line of wines includes 4 DOCGs in the “Torri di Credazzo” Cuvée, Cartizze, Brut and Extra-Dry categories TFAP Booth Number: A26

Company: Scorpio Distributors Description: Popular lip balms in multipacks for the travel retail market. Each balm has its own distinctive scent and flavor, including Coca Cola, Sprite, Fanta and other recognized names TFAP Booth Number: K28

Chase Marmalade Vodka Company: World of Patria International Description: Chase Marmalade Vodka marinates Seville oranges with vodka in a copper still for 24 hours. The vodka is then distilled a fourth time with the vapors passing through orange peel to give off the oils and color. This vodka has a bittersweet palate with a slightly syrupy mouth feel, rich orange zest and bitter marmalade notes. “An instant and delicious breakfast Martini” TFAP Booth Number: A26

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ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Candy Company: Furla Description: This distinctive PVC Boston bag combines modern technology and innovation. Candy mixes plain, strong fluorescent colors, metallic and rubber/gherpard (black/white spots) combinations TFAP Booth Number: E19

PERFECT TASTE. ALWAYS