Asia Duty Free magazine

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SEPTEMBER 2012 • VOL 16, NO 3

Retailer rising in China p.

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King Power bulks up p.

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Swarovski branches out p.

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An eye for exclusives p.

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Letter from the Editor

Asia Free & Travel Retailing (ISSN 1360-9548) is published annually by Global Marketing Company Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2 Canada. It is distributed in the following countries, states, regions and territories on the Asian continent and in the Pacific Rim: Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, Fiji, French Polynesia, Guam, Hawaii, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, Maldive Islands, Myanmar, Nepal, New Caledonia, New Guinea, New Zealand, Philippines, Saipan, Samoa, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

Asian acceleration elcome to the second digital edition of Asia Duty Free & Travel Retailing, which will be sent directly into the inboxes of over 4,400 industry subscribers. Compatible with all smartphones, tablets and web browsers, the digital magazine will be presented in a flip format with the look and feel of a traditional magazine.

In this edition we look at some top retailers in the region, in particular Nuance-Watson Asia. Fresh from the disappointing loss of its core-category concessions at Hong Kong International Airport (HKIA), the operator now has more positive news: Nuance has been awarded contracts at Singapore's Changi Airport and at the HKIA hub.

Nuance will open an Emporio Armani boutique at Changi under a contract running until 2015. The store, which boasts a floor area of 104 square meters, is located in Changi Terminal 2's Departure/Transit Lounge Central.

The three-year HKIA contract gives Nuance-Watson (HK) a 53-square-meter Longchamp boutique and a 119-square-meter gourmet boutique, both in the West Hall of T1. The gourmet boutique is the only multi-branded standalone store dedicated to the category at the airport.

Turning to China in general, reports indicate that the country is poised for continued growth in the travel market. According to Chinese government statistics, 38.6 million mainland Chinese traveled abroad in the first half of 2012, up almost 20% from the corresponding period in 2011.

The spending power of Chinese travelers is also impressive, at around US$1,000 per traveler, per trip. This means the Chinese travel market will soon be worth close to US$100 billion annually. In 2009, mainland Chinese travelers spent an average of just under US$900 per trip.

As the spending power of Chinese travelers continues to soar, China Duty Free Group (CDFG) is also growing, eyeing the borders of other nations and territories. The giant retailer believes it can lend its expertise outside of its comfort zone.

There’s a lot going on in this part of the world. Get a good look at all the action by reading the many feature articles we have for you in this issue.

W

The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. September 2012, Vol. 16, No. 3. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. Š 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 ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Patrick Balanquit patrick@globalmarketingcom.ca CONTRIBUTORS

Enjoy!

Kind regards,

Zuhair Kashmeri

ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca

Hibah Noor Editor hibah@dutyfreemagazine.ca

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

18 SEPTEMBER 2012 • VOL 16, NO 3

8 16

IN BRIEF Yves Rocher joins the travel retail world ■ Brisbane International Airport takes a global turn ■ Renovations to ease congestion at Jakarta Airport have begun ■ DFS Group offers luxury shopping at Hysan Place ■ Puig paves the way for Valentina Assoluto line extension ■ Tourists flock to Philippines, as arrivals increase in the first half of 2012 ■ Tesco premiers virtual grocery in UK at Gatwick ■ Science fuels YSL’s new Forever Youth Liberator Eye Zone Serum

30 28 Asian angles COLLISTAR

Collistar enters Asia travel retail, takes lead from local markets

SEKONDA

30 Sekonda aims for first

Top UK watch brand targets Asian success as part of global travel retail push

CHINA DUTY FREE GROUP

Retailer rising China Duty Free Group's ambitions reflect the growing global clout of China itself, as the retailer looks to internationalize its brand

18 Eyes on the prize

THE NUANCE GROUP (INDIA) The Nuance Group (India) has been showing the way forward in Bangalore for four years. Now it's poised to lead the field in other Indian airports

32 Branding up, branching out SWAROVSKI

Swarovski: new brands and new men’s products drive success in travel retail

34 In living color PICA LÉLA

Armed with colorful collections and tailored visual merchandising, Pica LéLa is on its way to increasing brand awareness and connecting with promising new regions

20 Nuance-Watson Asia wins big 40 Underberg targets Asia after European success NUANCE-WATSON ASIA

UNDERBERG

Nuance-Watson Asia’s win will see the inclusion of an Emporio Armani boutique at Changi Airport and a Longchamp boutique and fine food concept at Hong Kong International Airport

22 Bulking up

Underberg, makers of a fifth generation digestif from Germany that tastes good and targets indigestion, is pushing its products in Asia

KING POWER (HK)

King Power (HK) may not be pushing into new markets for the time being, but it's keenly focused on boosting its merchandising muscle

42 A noble pursuit BELUGA VODKA

Beluga Vodka’s strong performance in Moscow’s biggest airports and a concentration on duty free exclusives bode well for the brand’s future in travel retail

LS TRAVEL RETAIL ASPAC

24 Three’s a charm

COO of LS travel retail ASPAC Emmanuel de Place discusses the company’s three-pronged strategy for continued growth in Asia Pacific travel retail

44 An eye for exclusives THE EDRINGTON GROUP

The latest Masters of Photography limited edition from The Macallan proves that The Edrington Group has an eye for stunning art in addition to a passion for rarified drams

26 The devil’s in the details AVIATION NEWS

Reports indicate that British Airways and China Southern have come to a codeshare agreement, but the depth and breadth of the cooperation has yet to be officially announced

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

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Part of the Cure Solutions collection, Yves Rocher’s Elixir 7.9 Youth Intensifier uses seven plants and nine anti-aging patents to boost the effectiveness of anti-aging skincare

So Elixir Purple

by Yves Rocher

In Brief Yves Rocher joins the travel retail world Although the brand has been around for 50 years, it was only recently that Yves Rocher decided to respond to the worldwide demand for natural cosmetics by creating its own travel retail division.

Known for creating botanical beauty, the brand felt the division would be the ideal platform for increasing its visibility in untapped regions.

“We see all over the world that women are more and more sensitive to and in search for natural cosmetics,” says Yves Rocher’s General Manager Eastern and Nordic Countries, Henri Bernard Bedoin. “Our brand has over 50 years experience within the field, entering travel retail is an opportunity to become visible and available to all these women around the world. For us it's very important to show to the largest number of people the superiority of botanical beauty and increase the visibility of our brand.”

Already having a strong presence in Europe, within many different distribution channels, Yves Rocher hopes to achieve success with its new venture in Turkey, Russia, the Nordic countries and Asia. The brand plans to focus on its “pillars”—skincare, body care and fragrances, all of which are rooted in the power of botanicals— the brand’s foundation and what it’s most known for.

At the upcoming TFWA World Exhibition in Cannes, Yves Rocher has a number of launches planned. For skincare, the brand will display several collections and products: Anti-Age Global collection, a world premier in its botanical beauty, which offers products with botanical native cells derived from Echinacea; the Cure Solutions collection, which includes Elixir 7.9 Youth Intensifier; the Ovale Lifting collection, which includes the sandthorn active serum, and Riche Crème, which is made with 30 precious oils and is rich in antiaging active ingredients for skin regeneration.

As for fragrances, Yves Rocher will unveil three scents: Comme Une Evidence, which offers notes of bergamot, petitgrain, rose, jasmine and patchouli; Moment du Bonheur, featuring Centifolia rose absolute and Infusion from Grasse, and So Elixir Purple, which features an infusion of tuberose and vetiver essential oils in a floralwoody elixir.

Mastering every aspect of its operations from agriculture, botanical and scientific research on plants, to manufacturing, packaging, shipping and distribution, it’s quite possible that Yves Rocher may soon add travel retail to its mastering list.

DFS Group offers luxury shopping at Hysan Place Leading luxury travel retailer DFS Group opened its third downtown Hong Kong Galleria at Hysan Place in Causeway Bay, the first on Hong Kong Island.

DFS opened its first store at Hong Kong International Airport in 1960 and has operated two large downtown stores in Hong Kong on Canton Road since 1966 and on Mody Road since 1988.

In opening the Traveler’s Galleria—also regarded as T Galleria— DFS becomes one of the first Hong Kong retailers to be pre-certified under the “Leadership in Energy and Environmental Design” (LEED) standard.

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T Galleria consists of two levels. The first level offers a range of 50 of the most coveted beauty brands, including cosmetics, skincare and fragrances. Beauty consultations and services are also available on this floor.

The second level offers a selection of luxury watch and jewelry brands.

As part of the opening celebrations, DFS partnered up with Foodlink Foundation and donated 5% of T Galleria’s sales to the charity from August 17 to 23, in support of its operations in Hong Kong.

To further celebrate, Hysan Place and T Galleria have extended store hours to midnight.

In Brief

Tourists flock to Philippines, as arrivals increase in the first half of 2012 A record high of over two million foreign tourists visited the Philippines in just the first half of 2012, reports the Department of Tourism (DOT).

According to a local source, Tourism Secretary Ramon Jimenez said the number of visitors from January to June (2,143,506) is 11.68% higher compared to the number of international arrivals during the same period in 2011.

Jimenez reportedly said all key markets recorded positive growth, with Korea, the United States, Japan, China, and Taiwan maintaining their positions as the country’s top tourist generators.

According to Jimenez, South Korea continues to be the largest source for tourism, contributing 474,685 visitors for a share of 22.15% of the total volume and posting a 10.50% increase.

Second behind South Korea is the US, with a total of 354,259 arrivals or 16.53% share and a 4.80% increase from last year’s figure, while Japan yielded 195,504 or 9.12% of the total visitors, with an increase of 7.79%.

China and Taiwan produced the highest growth rates of 42.99% and 34.47%, respectively, contributing 150,749 and 114,269 tourists.

Other markets providing consistent and significant volume and positive growth are said

to include Australia with 92,648 arrivals (11.95%), Singapore with 73,015 (10.36%), Canada with 65,503 (7.12%), Hong Kong with 57,790 (2.36%), United Kingdom with 57,181 (11.30%), Malaysia with 49,788 (11.96%), and Germany with 34,189 (12.61%).

Reports also indicate that overseas Filipinos contributed 5.16% to the total tourist traffic at 110,703 arrivals, demonstrating a steady growth of 4.46%.

According to data collected by DOT, the months of March to May 2012 recorded a total of 105,766 foreign tourists. This figure demonstrates a 10% increase from the same period in 2011.

Renovations to ease congestion at Jakarta Airport have begun Jakarta’s Soekarno-Hatta International Airport has started its expansion project to reduce overcrowding according to local sources.

State-owned airport operator Angkasa Pura II has set aside 7.2 trillion rupiah (US$766 million) for the project, which includes expanding Terminal 3 and renovating Terminals 1 and 2, as well as the addition of apron capacity.

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Angkasa Pura II Managing Director, Tri Sunoko says that Soekarno-Hatta was the 12th busiest airport in the world in 2011 with 51.5 million passengers, exceeding its capacity of 22 million passengers a year.

Indonesian president Susilo Bambang Yudhoyono believes the revitalized airport will help to enhance regional connectivity.

Aldeasa and World Duty Free together, global strength in depth EUROPE - AMERICAS - ASIA - MIDDLE EAST - AFRICA

In Brief

Puig paves the way for Valentina Assoluto line extension Puig’s second Valentino fragrance launch, Valentina Assoluto (an intense range of Valentina) is exceeding even the highest of expectations, winning over consumers in many travel retail locations.

The fragrance, created by the master perfumer Olivier Cresp, delivers the freshness of bergamot and white Alba truffle, with a hint of Smeggia peach. Added touches of jasmine, tuberose and vanilla contribute to the scent’s delicate nature, while cedar, oak moss and patchouli contribute to its overall effect.

The fragrance is contained in a linear bottle made of brown opaline glass and illuminated with amber. Adorned with one large flower, the bottle’s finishing touches include an ornate copper cap, topped with a black pearl.

With such features, the allure of Valentina Assoluto is no surprise. In light of past Valentina success, Lyndea Dew, Travel Retail Marketing Director, Puig commented: "The success of Puig's inaugural Valentino launch, Valentina, has

paved the way for the Valentina Assoluto line extension. We're already seeing the Valentino brand rank among our top performers and it is currently the third line in the Puig portfolio, despite a selective distribution.

In many travel retail locations, including major hubs such as Dubai, Moscow and Singapore Changi, Valentina is even outperforming the still-growing feminine fragrance icon Lady Million, showing the potential of the Valentino brand.

The Assoluto initiative in Middle East Travel Retail is growing the business by over 200%. We have big expectations for the future of Valentino fragrances."

Valentina Assoluto 80 mL, with flower and black pearl adornments and box decorated with a floral pattern

Tesco premiers virtual grocery in UK at Gatwick Coming home from holiday is bad enough without the added hassle of returning to an empty fridge. Today at Gatwick Airport, Tesco is revealing a new solution by opening the UK’s first interactive virtual grocery store in Gatwick’s North Terminal.

The Gatwick opening builds on Tesco’s launch of the world’s first virtual store in South Korea last year, an innovation which generated 25 million online posts around the globe.

The Korean virtual store allowed commuters to shop in subways and at bus stops by pointing their mobile phones at billboards. Tesco is now trialing the concept for the first time in the UK, but this time using interactive digital displays.

The Gatwick virtual store will allow passengers passing through the North Terminal to combine browsing, as they would in a physical store, with the convenience of an online grocery shop and home delivery. Customers will be able to view a range of everyday products by scrolling through the unique moving screens on large virtual fridges. By scanning the barcodes with their smartphones they can add their chosen products to their online baskets, book a home delivery slot and checkout. Their shopping will then be delivered when they return from holiday.

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

Tesco is the first retailer to offer passengers a service of this kind.

Around 30,000 people depart from Gatwick’s North Terminal each day and each has an average of 70 minutes of downtime while waiting for flights. They can now use this time to ensure they don’t have to make a trip to the shops on their way home.

The virtual store will be open for business in Gatwick Airport’s North Terminal departure lounge during the two busiest weeks of the year, from August 6 to 19. Staff will be on hand to help customers with the scanning and ordering process on their smartphones.

Tesco’s Internet Retailing Director, Ken Towle, said: “Our business in Korea is teaching us a lot about how customers and technology are transforming shopping. It gives us a unique window into the future and the chance to try out exciting new concepts. The virtual store blends clicks and bricks, bringing together our love of browsing with the convenience of online shopping.

“It’s a chance to showcase what we can do to the 30,000 people a day who will depart from Gatwick’s North Terminal, many of whom will need to fill their fridges when they get home, and we’re looking forward to hearing what they think,” he added.

Senior Marketing Manager for Tesco.com, Mandy Minichiello, said: “As a busy working mum of two, I know that planning holidays can be stressful. The last thing you want is an empty fridge when you get back. When we came up with the idea for the virtual store at Gatwick, we really wanted to provide a helpful service for busy families. You can book a delivery slot up to three weeks in advance, do a full grocery shop while waiting for a flight and it’ll be delivered to your home when you get back.”

In Brief

Science fuels YSL’s new Forever Youth Liberator Eye Zone Serum Yves Saint Laurent (YSL) Skinscience has taken an advanced approach to skincare by applying glycobiology to the skin for the very first time.

Targeted specifically toward the Asian markets, Forever Youth Liberator incorporates Glycanactif, an exclusive complex of active ingredients, to “unlock” the cells and release rejuvenating messages. Already displaying impressive results, having become a bestseller in France and the UK, Forever Youth Liberator Serum has won women over with its exceptional anti-wrinkle lift, plump, radiance results as well as the formula’s effectiveness and sensorial appeal. As a result, YSL is approaching the extension of the Forever Youth Liberator line by presenting their new Forever Youth Liberator Eye Zone Serum.

The serum is designed to counteract all signs of ageing in the eye area, from frown lines to wrinkles around and below the eyes. At the core of the Forever Youth Liberator line is Aquatoril, a multisensorial hydrating active ingredient with three patents that fuse with the skin through its perfect affinity with the components of the intercellular substance in the epidermis. The formula deposits a highly specific and hydrating veil on the fragile skin in the butterfly area (temple-to-tem-

ple, including the eyelids, frown lines and wrinkles around the eyes) for targeted action and a sophisticated finish on the skin. A genuinely active link, the formula releases Glycanactif in a targeted way on the butterfly area.

Glycanactif acts at the three cutaneous levels: the thickness of the epidermis is better, the synthesis of glycans in the Dermo-Epidermal Junction (DEJ) allows for better communication between the dermis and epidermis resulting in improved overall skin function and the synthesis of glycosaminoglycans is promoted for its proper structure, a determining factor for optimal circulation.

As a result, the eye contour appears to be “lifted,” the skin looks more supple and firmer and the eyes look rested. After three days, wrinkles are reduced, puffiness diminishes and dark circles are less noticeable. After one month, the eyes are redefined and appear larger and younger, while wrinkles are reduced, eyelids lifted and eyes are radiant.

Forever Youth Liberator Eye Zone Serum will be launched in September in Asian travel retail markets, and introduced into Americas in January 2013 and in February for Europe, Middle East and Africa.

Brisbane International Airport takes a global turn Brisbane Airport Corporation (BAC) has put plans into motion for a major redevelopment of the retail space in the arrivals and departures zones of its International Terminal. BAC’s aim is to set a new global standard by transforming these high traffic spaces into vibrant, interactive and engaging, quintessential Queensland areas.

Working with The Design Solution, the UK’s leading airport retail architecture firm and the S-A-P Group, a specialist airport retailing planning consultant from Asia and the US, BAC plans to include larger walk-through duty free tenancies for arrivals and departures, central seating zones and new speciality food and beverage opportunities, which will capitalize on the direct aerobridge access to the retail area.

BAC General Manager Terminal Retail and Commercial, Andrew Brodie, said the redevelopment will deliver an exceptional retail environment that will enhance the passenger journey as well as encourage dwell time and repeat visitation to retail stores.

“Exhaustive research has been conducted to ensure the final design produces a world-class environment that creates a memorable and uniquely ‘Brisbane’ experience for travelers, while maximizing sales for retailers.

“Essentially we have completely changed the way we look at retail, going from traditional to a more homogenous approach that stimulates, entertains and engages travelers, providing opportunities for activity, education and retail interaction,” said Brodie.

Fundamental to the redevelopment—and for interaction between

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

passengers and retail— is the creation of a new, larger 1600-squaremeter walk-through duty free outlet and centrally located seating in the departures area, creating an exceptional shopping experience.

“There will also be exceptional food and beverage opportunities to cater for the 4.5 million passengers who travel through our International Terminal each year,” Brodie continued.

These opportunities couldn’t come at a better time, since for the past 10 years, Brisbane Airport has recorded an average 5% year-on-year growth with passenger numbers increasing from 5.2 million in 1991 to 21 million in FY2011-12.

Internationally, passenger growth increased by 4.6% to nearly 4.5 million or an extra 195,000+ passengers in FY2011-12, with Chinese travelers the fourth largest passenger market representing 4% of total passenger numbers and recording 24% increase on FY11.

Seat capacity on international routes was also up by 4.9% (over 300,000 additional seats) in FY2011-12, with several airlines increasing frequency on direct services between Brisbane and mainland China and US this year, and Hawaiian Airlines launching new direct services between Brisbane and Honolulu in November.

A longer term forecast predicts annual passenger numbers to more than double to 50 million passengers by 2029, with BAC planning to invest more than US$2.5 billion in infrastructure over the next 10 years to meet expected future demand.

Construction is expected to commence mid-2014, in line with the expiry of the retail contracts, and will be complete by mid-2015.

THE

November 26-27, 2012

MEDFA CONFERENCE

JUMEIRAH CREEKSIDE HOTEL, DUBAI

China Duty Free Group

BY

CDFG Marketing Director Gu Naxin says the retailer intends to follow its success in Sanya with the world's biggest duty-free complex at Haitang Bay

P. CONVERY

Retailer rising China Duty Free Group's ambitions reflect the growing global clout of China itself, as the retailer looks to internationalize its brand

China Duty Free Group has been expanding inside China as well as looking abroad, having recently opened stores at Changshui International Airport in the southern city of Kunming

CDFG's stores at Kunming's new international airport demonstrate the retailer's commitment to taking its offer upmarket

China Duty Free's business in Sanya, on Hainan island, has been a major focus for the company as it seeks to shift its business up a gear

A

s the spending power of Chinese travelers continues to grow apace, China Duty Free Group (CDFG), which has long enjoyed a virtual monopoly in its home market, is poised to move on to even bigger things.

No longer content with selling merchandise merely to travelers crossing China's borders, it now has its sights set on travelers passing through the borders of other nations and territories.

And in a move that's savvy – and which capitalizes on its strong reputation at home and a global travel trend – it's mounting a particularly strong push to sell to Chinese nationals traveling abroad.

When the three core-category concessions at Hong Kong International Airport were put out to tender last year, CDFG was quick off the mark getting its bid in. The contracts were awarded to global duty-free giant DFS in June, with CDFG and many others losing out, but CDFG’s ambitions to expand outside mainland China have likely only been sharpened by the experience.

CDFG Marketing Director Gu Naxin says: "It was a valuable experience for us. From day one we did not think that the task was easy, because we were competing with international operators [for the concessions]. And now we are keeping our eyes on many other markets."

Gu is reluctant to say where CDFG is planning its next pitch, but its primary targets are destinations favored by Chinese travelers.

"We are in a good position in terms of our offer to Chinese customers," says Gu. "Over the past 30 years, we have built a strong reputation among Chinese travelers and we understand their spending psychology better [than other retailers]. That also holds true for overseas operations - we're going to serve mainly Chinese customers if we're going abroad."

And CDFG's bet on continued growth in the Chinese travel market seems sound. China's recent economic slowdown has yet to affect passenger traffic from the Chinese mainland. According to

CDFG's duty-free store in Sanya has enjoyed an unbroken run of sales success

Chinese government statistics, 38.6 million mainland Chinese traveled abroad in the first half of 2012, up almost 20% from the corresponding period in 2011.

The spending power of Chinese travelers is also impressive, at around US$1,000 per traveler, per trip, meaning that the Chinese travel market will soon be worth close to US$100 billion annually. In 2009, mainland Chinese travelers spent an average of just under US$900 per trip.

According to the China Outbound Tourism Research Institute, Chinese tourists abroad will represent more than 10% of the global tourism market by 2020. And among their top destinations are Hong Kong Macau, Taiwan, South Korea and Japan.

Wise to this, CDFG has already opened outlets on the Taiwanese island of Kinmen and in Taiwan's second city, Taichung, and it's set for expansion on the island.

"We're looking at the possibility of expanding our operations in Taiwan," says Gu, "but it depends on many issues. The political problem is only one of them."

CDFG owes much of its recent good fortune to the runaway success of its major store in Sanya, on the southern Chinese island of Hainan, which Beijing is developing as a resort destination, and which has served as a testing ground for the nation's first domestic duty-free retail.

But CDFG's duty-free dominance on Hainan is being challenged by new domestic retailers. Not long after CDFG opened its store in Sanya, Hainan Province Duty Free Co. Ltd. (HNDF), owned by the provincial government of the island, was granted a license to operate a duty-free store. HNDF duly opened a 2,200 square meter store at Haikou Meilan International Airport last December.

Gu concedes that CDFG will face increased competition in domestic-market duty-free, but says that CDFG's competitors are more likely to increase the size of the pie rather than merely take a bigger slice of it.

"The way we see this is that the overall duty-free market in China – from the airside facilities to the services of the duty-free store operators – is still underdeveloped, so there is so much potential for all of us to grow together," he explains.

Gu points out that sales growth in CDFG's Sanya duty-free store has outpaced the increase in the number of travelers, which he says may even have slowed down in the past few months. He says that sales growth has come thanks to CDFG's efforts to offer in a wider range of products through close partnerships with suppliers.

Gu says the average customer spend at CDFG's Sanya stores is 2,100 yuan (US$330) and rising.

"I think [our sales growth] reflects the fact that the domestic market remains very strong," he says. "And my general feeling is that the global economic slowdown will have a limited impact on the Chinese consumer market. Compared to last year, we have enjoyed an extraordinary sales boom since the beginning of the second half."

Yet even as its monopoly power begins to fade, CDFG has not rested on its laurels, and it has a plan to build what it says will be the world's

biggest duty-free complex at Haitang Bay, also on Hainan, over the next two to three years.

And CDFG's operations in Hainan are likely to benefit from a relaxation of the regulations that govern the country's fledgling domestic duty-free market. According to state media sources, the provincial government of Hainan is considering easing restrictions in the island's duty-free stores to counter a possible downturn in local tourism. A recent report in the China Daily said the tax-free allowance for domestic visitors to Hainan may be raised to 8,000-10,000 yuan (US$1,250-$1,560), and be good for four visits annually. Under the current rules, Chinese nationals can spend up to 5,000 yuan (US$584) per trip in duty free when traveling domestically to or from the island province.

"Such a relaxation will eventually take place and will be exciting news for us," says Gu. "We may adjust our product mix by that time, by offering more big-ticket items, as Chinese customers are well known for their strong appetite for luxury goods."

CDFG is bullish about the prospects for its domestic-market duty-free business, but in some ways, its hands are tied. For instance, its downtown store in Beijing, which is due to open next year, will be permitted to sell only to foreign visitors, as Chinese law bans downtown duty-free retailers from selling to domestic customers.

Gu isn't betting on a big sales boost from the Beijing downtown store, saying its contribution to CDFG's overall sales revenues will be "insignificant", as less than 5% of the company's sales are to foreign visitors. But he believes the government will eventually relax restrictions on downtown duty free – at least in Beijing – following the precedent set on Hainan.

"We want to trial [downtown duty free] for foreign customers at the moment," Gu explains, "but I think it won't be too long until such rules are eased."

And there's plenty of money at stake. China is set to overtake Japan as the world's biggest luxury goods market this year, with Chinese spending on luxury goods reaching US$10.7 billion internally, according to a report by the World Luxury Association. And that spending, bolstered by continuing appreciation of the Chinese currency, is only half the story, as around 50% of luxury purchases by Chinese nationals are made outside the Chinese mainland.

That's something the Chinese government is keen to reverse, and CDFG's expansion can be seen as part of a policy to bring some of that money back into the domestic economy.

The same might also be said of China's duty-free market policy, which sees CDFG's foreign competitors firmly locked out of the world's most coveted travel-retail market. There are some signs of change, although nothing on a scale that threatens CDFG's enviable position as the Chinese mainland's pre-eminent duty-free retailer.

Gu says: "I think the direction is clear. China will eventually open up the duty-free market to foreign operators, but for now there's no sign of any swift change in the policy, so we are not very concerned about that at the moment."

As the spending power of Chinese travelers continues its seemingly inexorable rise, and as Chinese travelers continue to fan out across the globe, CDFG is uniquely well placed not only to capture their retail renminbi, but also to expand its ambitions beyond its home market. China is rising, and the country's top travel retailer is risc ing along with it. www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

17

The Nuance Group (India)

Nuance has honed its business model in India's first major PPP airport and is now ready to move onto even bigger things

Eyes on the prize The Nuance Group (India) has been showing the way forward in Bangalore for four years. Now it's poised to lead the field in other Indian airports BY P. CONVERY

F

ewer than 10 years have passed since the first purely private retailer set up in Indian duty free, breaking a state-run monopoly and kick-starting a paradigm shift in the local industry.

The pace of change has since accelerated, with the opening of India's first public-private-partnership (PPP) airport in Bangalore in 2008, a development that has proven so successful that it has spawned a wave of similar projects, from the southern reaches of Kerala to the northerly setting of the capital.

The Nuance Group (India) has been at the center of the action in Bangalore during those four years, fine-tuning its business model and waiting for the country's airport boom to reach critical mass before launching a program of expansion. Now, Nuance Group (India) Country Head Anirban Chowdhury believes the moment to strike has finally arrived.

"There are quite a number of tenders that'll be out in the next six months," he says. "Kolkata is expected and Mumbai's new terminal is nearly ready. That's something the whole travel-retail world will have its eyes on."

It's something Nuance will certainly have its eyes on, and Chowdhury is frank about the company's ambitions in India's commercial capital.

"Everybody's looking at Mumbai, and so 18

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

are we," he says.

Closer to home, Nuance is already going after a contract at Hyderabad's Rajiv Gandhi International Airport.

"They put out a notice in the press, and we expressed our interest, but they haven't made a decision yet," he explains. "We put in a proposal, but the [retail operation] is still being run by the airport. When [the tender] happens, though, we are ready."

Nuance used to operate the duty free at Hyderabad, but pulled out following the global financial crisis of 2008, which Chowdhury blames for the drop in passenger traffic that prompted the retailer to depart and the airport's operator to take over the stores. Now, however, he's sanguine about returning there.

"For us there are a lot of synergies - in terms of volumes, and it's near to Bangalore.

That was the main reason we got interested in Hyderabad in the first place," he says. "I don't think there would be a lot of difference in terms of the people who would be buying. Hyderabad has a lot of laborers flying to the Middle East [to work], but they also have a very good share of very high-spending people – people who buy – and the people who buy wouldn't be very different from Bangalore, and that's something that could be leveraged."

And then, of course, there's Chennai, where a new terminal is expected to be up and running by September.

"We're expecting the Chennai tender to be

Spirit of India is a concept Nuance has developed to give cohesion and a string identity to its destination product offer

out any day now," Chowdhury says. "There's been a delay, but the terminal is ready for its test runs now, so I'm expecting the tender out very shortly. I'd say that if the airport is going to be operational by the end of September, I'll be looking forward to having at least the request for proposals pretty soon.

"It's a new terminal that AAI [state-run Airports Authority of India] has built," he says. "It seems as though it's going to be a high-class terminal compared to any of the other AAI airports in India, so I would expect to make a proper travel-retail offer.

It's also the fourth-largest airport in the country and a gateway to the southern part of India, so I would expect a larger retail space than they have in the current terminal, and I think there's an opportunity to make a very good retail offer."

But it's not just the low-hanging fruit that interests Chowdhury, and he makes no secret of his desire to set up not only in India's big hubs, but also elsewhere in the country.

Destination merchandise is a key part of Nuance's offer at Bangalore

"AAI is building a lot of new terminals in smaller airports, and that's another area of interest," he explains, adding that even the state-owned airport operator has taken cues from the success of PPP airport development.

"Some of the new airports that have already come up are interesting," he says. "I think they offer a very good service to the people and the opportunity to put together a very good retail offer. There are airports where there's a lot of activity – where there are not necessarily concrete plans, but I've seen in the press that there's activity in airports like Goa [Vasco da Gama Airport] and other airports up north. When these new terminals come up, I'm hopeful there'll be tenders and that'll be interesting and something to look at businesswise.

"We have done a lot of research into that

market in the past few months, with all the upcoming tenders in mind," Chowdhury explains.

And he's already forming plans to adapt Nuance's existing Indian business model to suit the rather different operating environments of non-metropolitan airports.

"What I believe is that the most important factor in a smaller airport is that the space is going to be smaller, and the biggest challenge is to arrive at the right merchandise mix," he says. "I would assume – and now I have some data to support this supposition – that a lot of the people traveling out of smaller airports are actually high-networth individuals who indulge in a lot of premium, luxury brands. If you go and Google 'BMW dealers in India', it'll throw up many places that are difficult to find on a map. But they're there, and those car companies are not setting up car dealerships to sell one or two cars a year. The manufacturing sector is strong in smaller cities that have some of those smaller airports – there are a lot of exporters and a lot of people who have become wealthy from agriculture.

"Obviously the number of people flying out of smaller airports is less, so I would align my offer more towards premium products," he says. "One thing is clear from the studies we've done is that there is a strong appetite [in regional airports] for premium products."

Chowdhury may have the outlines of how to tap the market in India's smaller airports, but he says getting the details right will be an iterative process. And not only that; it'll also mean blazing a trail.

"You'll always have your 'bread and butter' in your basic whiskies and your basic tobacco, but how do you give that a premium feel, customized to the area, which people are looking for," he asks. "I think that's not something that already exists. You have to learn as you go," adding that a key challenge will be fielding an adequate range of products in a limited amount of retail space.

He sees these airports as a key growth area, citing the development of Goa's new airport,

“There are quite a number of tenders that'll be out in the next six months.

Kolkata is expected and Mumbai's new terminal is nearly ready. That's something the whole travel-retail world will have its eyes on.”

Anirban Chowdhury, Country Head, Nuance Group (India)

alongside projects in the northern cities of Amritsar and Ahmedabad.

"There are so many other airports, too," he says. "There are 28 states in India, and as and when airports in all the state capitals [are built or upgraded], there will be a lot of opportunities."

Amid all the buzz in India's airport sector, however, there are some clouds on the horizon. The country's economy, which had been growing at a rate of around 9% annually until relatively recently, has experienced a sustained deceleration, and is forecast to expand at its slowest pace in a decade in 2012. And even as new airports continue to be built, an economic slowdown could easily crimp retail revenues at India's airports. But Chowdhury isn't losing any sleep over that prospect.

He says: "Things are slowing, but I have to ask, how bad is it? If the growth figure that comes out at the end of the year is 7% or 6.5% or whatever, it's still very good compared to some of the developed economies.

We haven't seen any fall in passenger traffic, so we're still optimistic. I'm a little bit cautious though. I fear that [Nuance] may slow down in terms of our growth rate next year."

And what of the widely reported troubles of India's airlines? What effect will their cashflow problems have on Nuance's business?

"Indian carriers have never had a big share of the market for international travel," Chowdhury says. "Most of the international travelers come in on foreign airlines, so on that side of the business I don't think we've been hit by any kind of traffic [slump]. We've seen growth, month on month, all of this year so far, and most Indian airlines don't have big operations and key routes out of Bangalore.

It's not too much of a problem here at all.

Whatever happens in the wider economy, Chowdhury says, Nuance has built a sufficiently robust business in India to adapt to changes in the retail environment.

"Having been here for four years, we now have a very strong hold on the business model," he explains. "We understand how to respond to the market, what does and doesn't sell and how the customer thinks. But the most important thing is that we have a very, very good knowledge of [Indian] logistics management and the regulatory environment, which can make it difficult to succeed in India. That has been our strong point.

"There are so many opportunities coming, and we have a very, very stable business model.

From our perspective, it's a great thing."

If Chowdhury's bullishness is any bellwether for how India's travel-retail scene is c set to develop, the future's bright.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

19

Nuance-Watson Asia

Nuance-Watson Asia wins big Nuance-Watson Asia’s win will see the inclusion of an Emporio Armani boutique at Changi Airport and a Longchamp boutique and fine food concept at Hong Kong International Airport MELISSA SILVA BY

N

uance-Watson Asia (NW Asia) was awarded a luxury brand name concession at Singapore’s Changi Airport as well as two specialty licenses at Hong Kong International Airport (HKIA). These achievements will see the inclusion of an Emporio Armani boutique at Changi Airport and a Longchamp boutique and fine food concept at HKIA. The new licenses will run for 3 years until 2015.

The Emporio Armani boutique covers 104 square meters at terminal 2 departure/transit lounge central, located on the immediate right-hand side after the departure immigration gate.

The Longchamp boutique covers around 53 square meters at HKIA terminal 1 airside departures west hall, while the fine food boutique embraces 119 square meters of space in the same hall. The latter will be the only multi-brand fine food standalone store at HKIA. NW Asia is eager to invest and expand its general merchandise offers in Asian airports by leveraging Nuance-Watson (HK) (NWHK)’s skills and expertise in the related categories, as well as its strong vendor relations developed in the past 14 years, as a result of managing 280 general merchandise brands at global general merchandise stores, boutiques and specialty shops at HKIA. Over the years, NWHK has resourcefully provided 32 leading brands to HKIA’s East Hall Boutiques’ statement.

These latest successes in two major Asian hubs are solidly grounded in NW Asia regional management team’s undivided partnerships with brands and well-versed customer knowledge.

Securing the luxury brand name concession with Emporio Armani at Changi Airport is viewed internally as a major strategic step to further expand and solidify Nuance-Watson (Singapore) (NWS)’s general merchandise brand business beyond perfumes and cosmetics in Changi Airport, after the preceding launches of Bally and MCM brands’ boutiques.

While the winning of the specialty licenses at HKIA clearly display NWHK’s unwavering commitment to adding value to the Hong Kong International Airport, where it operates with 12 boutiques and specialty stores, two licenses of technology, namely sound and vision and fortress stores in both terminals, besides the core licenses of perfumes and cosmetics and general merchandise.

Alessandra Piovesana, Regional Managing Director of NuanceWatson Asia says: “The introduction of Emporio Armani boutique at Changi Airport is only one of the first steps where we commit to expand in such a strategic location, whereas our two new specialty offers at HKIA see us embarking on a path of rebuilding a versatile business against challenges. Ultimately, these three new offerings are sure to enhance Asian passengers’ travel choices and appreciation.

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

Alessandra Piovesana, Regional Managing Director of NuanceWatson Asia

I am pleased to see that our teams cooperation is genuine, well rooted and that there is vivid commitment to move on strengthening, rebuilding and expanding in Asia.”

Nuance-Watson (Singapore) Managing Director, Ken Tse says: “We have studied the current, and soon-to-change terminal 2 passengers profile and found Emporio Armani to be an excellent fit to exploit on the growing affluence of the Singapore young executives, and the new generation of luxury-conscious consumers. We are excited about winning and operating this new unique concession and believe it will enhance the total Changi Airport experience.”

Nuance-Watson (HK) General Manager, Clarice Au says: “As a result of investigating the most updated passengers’ and consumers’ movements and purchasing habits at HKIA West Hall, we are truly pleased to have won and soon be operating this unique multibrand Fine Food standalone offer and to be able to broaden the customers’ reach to such a most-favored and performing Longchamp c brand at our Airport.”

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King Power (HK)

Singapore's Changi Airport is one of King Power's key locations, with almost one in five of the retailer's outlets, and it's planning more retail pitches to airport operator Changi Airport Group

Bulking up

King Power (HK) may not be pushing into new markets for the time being, but it's keenly focused on boosting its merchandising muscle BY P. CONVERY

W

hen people in Hong Kong talk about their city's sister special administrative region and former Portuguese enclave, they often say, "What happens in Macau stays in Macau", referring to some Hongkongers' propensity for having just a little too much of a good time in the nearby gambling hub, and to their desire to keep their exploits quiet.

That expression certainly couldn't be applied to King Power (HK), which is in the midst of upgrading its stores at Macau's international airport. On the contrary, King Power's Managing Director of Duty Free & Travel Retail, Sunil Tuli, is keen to talk about the project, and bullish about the retailer's prospects in the city.

22

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

"We're going through a major refurbishment process in Macau at the moment," he says. "Half the airport stores are done.

We're doubling the size of the shops and we've got new branding.

"Our business in Macau has doubled since we renovated the shops [that are open thus far]," he says. "We've doubled the size and our turnover has gone up. Macau anyway is growing [as a travel retail market].

They've got a population of 400,000 people and 39 million visitors [annually], so everything there is travel retail."

King Power's project in Macau is emblematic of the retailer's current approach to business development, with a focus on expansion in the locations where it already operates stores rather than launching forays

into new and untested markets. The company operates more than duty-free and travel-retail stores throughout the AsiaPacific region, with a potential customer base of 250 million travelers annually.

One of its stronger locations is Singapore's Changi Airport, where it runs 15 stores across all three of the airport's full-service carrier terminals, and recently won contracts to begin operating three more. King Power's brand portfolio at the city-state's muchpraised airport includes such recognizable names as Harrods and La Perla, and the company is always on the lookout to add more.

"Changi is constantly holding tenders," says Tuli, "and we continue to expand in Singapore."

King Power also set up a joint venture with

King Power brought Harrods to Changi in 2009, and is expanding the the iconic brand's footprint at the airport

King Power has boosted Changi's fashion proposition with international brands such as Tommy Hilfiger, Harrods, La Perla and Paul & Shark

Yam Seng, a company owned by the Tuli family, to operate a golf-themed cafe in Changi's T3. It's named Pitch 'n' Chips, and is King Power's first food & beverage outlet at the airport.

Tuli says: "At the airport there would have been a conflict of interest [if Yam Seng had set up on its own], so I did a joint venture with King Power. It's a golfing cafe like a football-themed bar. We do all-day breakfasts, sandwiches, wraps, pies, coffee, all that sort of thing - easy stuff for the airport customers. It's a 24-hour operation. It's a small thing, but it's doing very well indeed."

He says the joint venture, King Power Yam Seng, has plans to build on the success of Pitch 'n' Chips at Changi.

"We have plans to roll the concept out elsewhere. It'll be a full cafe with a golf simulator," Tuli says referring to Greens on Screens,

the cafe/bar Yam Seng operates downtown in Singapore and which spawned the idea of opening something similar at the airport.

He says one branch will open at an airport and the other at "another travel-retail location", declining to be more specific as King Power is in the midst of planning the two openings.

King Power also has retail outlets in Hong Kong, and bid for all three of the airport's core category concessions in the recently awarded tender, although Tuli describes the retailer's footprint at Hong Kong International Airport as small. But on the Chinese mainland, King Power has more of a presence - albeit not in duty free.

"We've got a lot of duty paid stores in airports in China," says Tuli. "We're at Shanghai Pudong, Chongqing, Xian, Chengdu and Harbin."

He says the retailer also looked at the recently opened international airport in the southern city of Kunming.

"It's a nice big building and there were great predictions about the numbers of travelers, but it just wasn't the right time for us to bid," he says. "However, we're looking at expanding in China."

Opportunities for non-Chinese retailers to operate in the duty-free channel on the Chinese mainland are scarce, thanks to legal restrictions. But Tuli, in line with King Power's strategy of building on its strengths, says the company will work with what it has.

"Duty paid is something we'll continue to look at," he says. "Where it's an option and where it makes sense, we'll go for it."

As Chinese aviation continues to grow, c Tuli seems to have his work cut out.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

23

LS travel retail ASPAC The Fashion Gallery at Changi Airport in Singapore; Luxury retailing is a key pillar in LS travel retail ASPAC’s overall strategy

Three’s a charm

BY

RYAN WHITE

COO of LS travel retail ASPAC Emmanuel de Place discusses the company’s three-pronged strategy for continued growth in Asia Pacific travel retail

W

ith recent openings in Noumea Airport, the acquisition of Duty Free Stores Wellington’s business, a number of new tenders on the horizon and the continued growth of its existent locations, LS travel retail ASPAC certainly has a lot on its plate.

Below Asia Duty Free speaks with Emmanuel de Place, COO of LS travel retail ASPAC, about how the company is managing its growth and what’s on the drawing board for the rest of the year.

Asia Duty Free: What is LS travel retail ASPAC’s strategy for managing growth and growing the business further?

Emmanuel de Place, COO, LS travel retail ASPAC: Lagardère Services’ global strategy perfectly translates into LS travel retail ASPAC’s ambitions. We have a three-fold strategy. The first pillar of our strategy includes continuing to consolidate the News, Gifts, Convenience and Specialty businesses.

Historically, we are very strong with regard to this in North America and Europe. And of course, we started this implementation in the Asia-Pacific region more than 20 years ago; in Australia with the Newslink brand and since then growing across Asia. In Singapore, our recent development has been with specialty stores such as Pandora or Discover gift and souvenir stores and we are very proud to have renewed our Relay concessions for news, books and convenience across all of Changi Airport’s three terminals.

In Australia, we are actively developing new concepts in the gifting and accessories segment. The acquisition of The Purely Group last year (49% of the remaining shares) is a great opportunity to answer the need for premium Australian-made gifting and apparel. With tech2go, we have developed a brand new concept for technology accessories. It’s a concept that is working very well and for sure will expand further in Asia soon. And we continue with successful expansion and localization in the Gifts and Souvenirs category with Discover Xi’an and Discover Shanghai in China, giving one of the fastest growing economies in Asia a tailored airport experience with a local sense of place.

ADF: Of course, the News, Gifts, Convenience and Specialty categories are just one part of a very robust retailing platform...

EDP: Yes, the second pillar of our strategy is duty free, including Luxury Fashion and Confectionery. In Asia-Pacific these categories are especially very strong. Luxury is clearly the engine of growth in Asia travel retail. There are many opportunities in airports throughout the 24

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

region’s growing economies, from China and Malaysia to Singapore.

We are happy with the strong start and continued momentum of our duty free growth, from the recent opening of Aelia Duty Free, a multi-store duty free concession in Noumea, New Caledonia, to our recent opening of a Hugo Boss mono-brand concession in Changi Airport.

Further exciting and upcoming developments in Asia Pacific include launching four major fashion houses in China; a new luxury fashion development in Kuala Lumpur, Malaysia; and an expansion on our award-winning concept store, called So Chocolate, in Changi.

LS travel retail will also assume full responsibility for Duty Free Stores Wellington’s (DFSWL) duty free operations at Gold Coast and Adelaide Airports in Australia, and Queenstown, Dunedin, Hamilton and Rotorua Airports in New Zealand. It also includes the company's successful online duty free business and downtown Hamilton store.

ADF: What is the third pillar of the group’s strategy?

EDP: The third pillar of our group strategy is Food and Beverage. Within Europe, for instance, we are already very active in relation to F&B in travel retail. We have also started in Australia with our own concept, Trib’s, which is opening in Cairns, as well as a new franchise agreement with Aroma coffee. We have plans to concentrate on this exciting category in Asia Pacific later this year or next.

The key element of success for this ambitious plan is definitely the strong local teams we have in each country were we operate, in relation of course to the worldwide expertise of our group. It is also about operational excellence, customer service and innovation, which are at the heart of our strategy. Fundamentally, it relies on our existing strong level of partnership with landlords and brands, constant development on our customer insights and fresh concept developments in our daily c retail operations.

“Luxury is clearly the engine of growth in Asia travel retail.

There are many opportunities in airports throughout the region’s growing economies.”

Emmanuel de Place, COO, LS travel retail ASPAC

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Aviation News

The devil’s in the details

Guangzhou, despite being considered a secondary city in China in terms of aviation, could significantly impact BA’s business if it were added as a destination

Reports indicate that British Airways and China Southern have come to a codeshare agreement, but the depth and breadth of the cooperation has yet to be officially announced

T

he Centre for Aviation (CAPA) recently reported that British Airways (BA) appears to finally be considering entering into secondary Chinese cities, which would make it the last major European airline to do so. CAPA notes that the move may certainly be worth BA’s while as many of these cities are secondary only by Chinese standards and often have a greater population than major European cities. Reports indicate that London Heathrow slots added from BA’s acquisition of bmi combined with the introduction of more long-haul aircraft are bringing metropolitan centers such as Chengdu, Chongqing, Guangzhou and X'ian into sharper focus as possible destinations.

BA has also had its share of troubles when it comes to the important point of finding a carrier to be its mainland partner.

However, local reports indicate that a codeshare agreement with SkyTeam's China Southern has been reached, although CAPA notes that the details of the agreement aren’t clear at this point.

According to CAPA, BA stands to gain from a partnership with China Southern: “China Southern's Australia/New Zealand network consists of Auckland, Brisbane, Melbourne, Perth and Sydney, with Cairns to be introduced in late 2012,” a recent CAPA report explains. “The Chinese carrier is looking to grow its Australia/New Zealand network to 55 return services a week—potentially greater access between Australia and Asia than BA could hope to achieve with Qantas.”

CAPA says that British Airways plans on raising northern winter capacity on its Beijing and Shanghai routes while considering using its forthcoming A380s for the Beijing, Johannesburg, Hong Kong and Los Angeles routes. While a final decision hasn’t been made yet in this regard, CAPA cites 26

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

a recent interview with former BA East Asia Regional General Manager Kevin McQuillan where the information was provided.

For the most part, says CAPA, Beijing and Shanghai are now essentially closed to foreign carriers with the exception of midnight hour timeslots, which are usually passed over by long-haul airlines as these timeslots tend to limit connections and convenience. “Up-gauging of aircraft becomes the primary growth mechanism and BA has already moved its Beijing service from a 777-200 to 747-400 and Shanghai from 777200 to 777-300ER. The A380 is BA's last up-gauge option,” opines CAPA. According to CAPA’s report, McQuillan cited Chengdu, Chongqing, Guangzhou and X'ian as cities BA would consider servicing, perhaps with the 787. Chengdu and X'ian do not currently have links to Europe, and Guangzhou's sheer size may allow it to support BA service, especially if the China Southern (Guangzhou's dominant airline) codeshare deal does in fact go through.

It has been reported that for BA, the prime objective in relation to any codeshare agreement in the region is to win greater feed from the mainland, which BA currently lacks because of the absence of a mainland partner. China Eastern has been brought up in the past, but CAPA reports that inter-

est in a codeshare partnership with BA on the part of the airline has been relatively low due to questionable reciprocity benefits.

“China Eastern would be interested in potentially securing more London Heathrow slots, but that is outside of BA's jurisdiction (unless BA, in an unlikely move, swapped slots),” says CAPA. “SkyTeam, which China Eastern is a member of, has no hub at Heathrow but connections to Europe via Heathrow are seen as too circuitous. China Eastern also serves Frankfurt, Hamburg, Moscow, Paris CDG and Rome, and has a continental European codeshare deal with Air France from Paris CDG.” China Southern, on the other hand, is said to be considering deploying its A380 to London. However, CAPA says that this is more of a last resort for China Southern; the airline wanted to use its A380s on routes that were more profitable, but as a result of Air China rebuffing the application, China Southern has limited options when it comes to its A380 service.

It appears, then, that a codeshare agreement between BA and China Southern may benefit both carriers. The industry now waits for an official word on the depth and breadth of the cooperation as a means of determining just what benefits each party will c reap from the proposed alliance.

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4

Collistar

Asian angles

Collistar enters Asia travel retail, takes lead from local markets

R

iding atop the beauty category in the Italian market for the ninth year running, Collistar is setting its sights on the burgeoning Asian market. As of July, Collistar’s products are being distributed into the Chinese local market exclusively through perfume, cosmetics and skincare chain Sephora.

While ambitious, this latest expansion simply reflects Collistar’s determination to maintain the pace of expansion it has established over the past decade, in Asia as well as elsewhere, says Daniela Sacerdote, who has been running the company since 1983.

“Our company, which has today become a symbol of ‘made in Italy’ cosmetics, took the path of internationalization many years ago, beginning with Europe and continuing with the Middle East. Our arrival in the Far East dates back to 2007, when we began distributing to Hong Kong, and this was such a success that we decided to move on to Taiwan and subsequently to Malaysia.”

Bevegni says he’s noticed good growth in cruise line business, a market the company first entered five years ago, with passenger numbers on the rise in Europe and South America.

Collistar entered the local markets in Asia five years ago, and is still taking its first steps in cracking the travel retail side there.

At the end of the year, Bevegni says, the company will be present in local markets in Malaysia, Taiwan, Hong Kong and China.

Collistar will pursue Indonesia and Singapore in the near future.

“The last big step we’re making is in China’s local market. We’re thinking about seriously expanding in duty free, but first we wanted to get into the local markets.” As the travel retail expansion unfolds, China will be the first target.

Collistar’s bestsellers are cosmetics, body products, face products, sun care and men’s products, in that order. These star performers will have top billing in the promotional kit that’s being launched in Asia.

The kit contains man and body products in special sizes. The hyper-protection collection is definitely a top contender, Bevegni

Paolo Bevegni, International Director, Collistar

28

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

says, having been studied beforehand against the needs of the Asian market. The product focuses solely on protection, and doesn’t add a tanning or bronzing component as many products designed for western markets do.

Collistar is also launching a new Biorevitalizing Face Cream with massager.

The press materials for this product stress the product’s technological advancement inspired by revitalizing micro-injections of cosmetic medicine.

“After extensive experimenting

HIBAH NOOR

and in-depth studies on the techniques of face biostimulation, Collistar researchers created a completely innovative formula capable of penetrating into the ‘heart’ of skin cells to revitalize the skin,” Bevegni says. “The effectiveness of the product is based on two factors: a superconcentrated cocktail of active principals and the revolutionary ‘Matrice Vettore,’ which carries this cocktail directly into the skin tissues to stimulate the production of collagen and hyaluronic acid.”

New body products include shaping treatments and a night bust firming gel. For men, in 2012 Collistar has launched a men’s filler product, based on the same concept as for women—Bevegni says that this is the first filler for men launched worldwide.

“Worldwide 3 to 5% of our business is for men. It’s not much, but men are looking more and more for skincare,” Bevegni says.

“Obviously they’ll go to basics like shaving foam, some basic body products, but little by little we are educating them to more complicated products. Ladies arrived here 30 years ago but this is where men are now. It’s like pioneering.” c

“Worldwide 3 to 5% of our business is for men. It’s not much, but men are looking more and more for skincare.”

Collistar’s International Director Paolo Bevegni notes that when it comes to travel retail, the pattern is set by what’s happening in local markets.

Europe right now is “so-so,” he says. But local markets don’t tell the whole story: while Collistar is posting healthy 8% growth rates overall, the number in travel retail is an impressive 20%.

Most of Collistar’s business is in Italy and the Mediterranean region, and Northern Europe.

BY

Collistar launches new Biorevitalizing Face Cream with massager

Sekonda Sekonda POS displays in World Duty Free

David Merriman, Managing Director, Sekonda

Sekonda

aims for first

Top UK watch brand targets Asian success as part of global travel retail push HIBAH NOOR BY

S

ince its founding almost five decades ago, Sekonda has become the best selling watch brand in the UK, with an always expanding range of watches that the company says provide “outstanding value for money.” Some notable extensions to the brand line over the years include Xpose, Safari and, more recently, Seksy and Partytime. Sekonda describes its brand mandate as a commitment to producing “high quality watches by using top quality movements, strict manufacturing specifications, rigorous testing, quality control and providing a two year guarantee.” The brand is always reviewing and expanding its range of offerings.

Asia Duty Free recently caught up with Sekonda’s Managing Director, David Merriman, who took time out of his busy schedule to tell us about the brand’s keys to success. He discussed Sekonda’s developing Asian profile and introduced us to some of the top sellers.

Asia Duty Free: Can you give me some background on the company?

David Merriman: The Sekonda brand started in 1966, when the company was making watches in several factories in Russia. The fellow that ran the company in the UK at the time decided to bring all the different watches that were being imported from all these different factories under one brand name. He decided on the name Sekonda because it’s the Russian word for “second”—as in hours, minutes, seconds.

Production was in Russia until the early 80s. Then it moved to Hong Kong and China.

We sell two million watches a year overall worldwide. We bring all of them to the UK and we do 100% quality control. We have an enormous quality control department and as a result of this rigorous checking our return rate is less than half of 1%.

ADF: Where are you based? Can you give me a breakdown of the different brands you carry?

30

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

DM: The company is based in Leicester which is in the central UK. We have 150 staff and that includes three divisions: Sekonda and its sister brand called Seksy; a company called Limit which makes fashion and low-price watches; and Apollo, which is straps, batteries, bracelets, spare parts for jewelry and watch making tools.

The entire Leicester operation is the division of a holding company which is Time Products. Time Products has two divisions.

It is the volume watch division to which I have referred. The other is a luxury division where we have the distribution in the UK for Hublot, which is a luxury brand, and for Franck Muller. That division also has three shops, two of which are on Bond Street – Marcus and Hublot and then there’s a smaller shop dealing in vintage watches, which is called Almar. That’s on Burlington Arcade, a famous street in London.

ADF: Tell me about your products. What’s your philosophy?

DM: Our watches retail at between US$30 and $200. It’s very much a volume product.

There’s a very small percentage traveling through airports who can afford to spend thousands of dollars on a watch. We look at ourselves being a little more ‘democratic.’ Our aim is volume and to make it as easy as possible for the consumer and the retailer.

ADF: How did you get into travel retail?

DM: The main thrust of our entry into

ADF: How do you catch the eye of your consumer?

travel retail has been since 2004. In fact, Sekonda has done a fair amount of work with travel retail from about 1990. With what is now World Duty Free at Heathrow, we pioneered a self select unit, and that has been the basis of our development. From 2004, we thought it was about time to go overseas.

We started to approach various people in the industry who we felt would understand our concept on the back of our self-select unit.

Sekonda’s best-selling gent’s watch is the Rose Gold chronograph, which retails for US$115-$159

Best seller for Seksy is the Hidden Hearts watch which is available on many airlines

Marketing Corp. Their main business is Montblanc and they also do Monte Grappa.

They work with us for Dubai Duty Free as well as a number of airlines in the Middle East.

We decided about four years ago to use the services of Consulting for Retail, in the person of Liz Woodland-Griggs. Liz has been in the travel retail business for 25 years and has worked for DFS, Nuance, Weitnauer and many others. We decided to use Liz because she is well respected, she’s handled a lot of categories and is fizzing with ideas on how to develop our travel retail business.

Trendy and affordable: Electra watch

by Seksy

DM: In the self select unit there are dummy samples in a presentation box at the top: the customer will have a look at those and select and find the watch that suits them. It’s a gravity fed system, so when a customer takes one away another one drops down. It’s also easy for sales staff and merchandisers. When they receive the stock from the warehouse all they have to do is look at the dummy sample, look at where it is on the selection and put it in.

The other system is for lower priced watches

Sekonda’s new circular self serve unit

is the Euro hanger system. There’s a price point mentioned at the top of the display and all the watches below it are under that price.

There are pictures down the middle and then on either side there are watches.

ADF: Your system seems practical and inviting. What’s your policy on working with new and existing partners?

DM: When a new airport retailer decides to have one of these displays, we supply it free of charge. We obviously don’t know what watches sell in a particular country, but we do know what our best-sellers are. So we do the first selection and after six months we send somebody in who works with the buyer and the merchandising team to decide which watches are selling. We take back the watches which are not selling free of charge and replace them with watches that we think will work. We’ve got 150 of these units around the world in 50 countries in travel retail.

ADF: What’s your travel retail and duty free distribution like?

DM: We’re on about 60 airlines around the world. We’re also on 70 cruise ships. We have 121 locations in 50 countries on the ground.

We change the range twice a year. Every year about 40% of the range changes and the main change happens in September. If there’s a particular fashion or trend, we will very quickly latch onto it and implement it.

It is difficult for operators like Sekonda in the low to mid-price segment as operators want the highest ticket price possible, but there’s a volume business out there and it’s huge.

We haven’t really targeted the Americas yet. We’re in Miami, Sanford, Orlando, one terminal in JFK, and we’re in the Canadian and Mexican border stores. In the Middle East we work with a company called Arabian

ADF: How’s business in Asia?

DM: It’s only this year we started targeting Asia and Tony Daintry from French Gray in Singapore is helping us. Tony has 35 years of experience in travel retail primarily in the liquor/tobacco category but his focus now is on Sekonda. He looks after all our affairs in Asia, where we have significant business on Asian airlines, the biggest one being Thai Airways where we sell a good volume every month of our gent’s Rose Gold Chrono.

One of our biggest supporters in Asia has been King Power in Thailand. They understood incredibly quickly how important self select was with the volume of traffic going through Bangkok. They put six units around the airport and sales have been fantastic.

And Dufry in Basel: after three months of sales we’re their number one brand by value above all others in that airport.

On the ground we’re in Delhi, Islamabad, Cambodia, Sydney, Melbourne, Perth, Brisbane. We’d like to build relationships with Korean, Japanese and Chinese duty free operators and Tony is working hard on this. We have meetings with China Duty Free, Dufry and Sunrise and have just appointed a Korean agent called SE International. Fifty-two percent of departures from Korea are international passengers—50% of these are Chinese, 40% are Japanese and 10% others.

ADF: What are your best-sellers?

DM: The best-selling gent’s watch is the Rose Gold chronograph, which retails for US$115-$159 depending on location. Best selling on the ladies’ side is Twilight Pearl at US$125. In Seksy the Hidden Hearts is available on many airlines at US$130-$150. The original Seksy pieces have sold well over the years and Partytime which is a fun collection is very popular. Xpose watches have a plastic case and a Velcro strap specifically designed to splash around on holiday for US$40-$50. It’s a holiday watch that’s been c on the market for 25 years.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

31

Swarovski

line, suspended from a black PVD chain—the associated ring in stainless steel features two sections of black pavé mini-crystals and a lily motif outlined in pavé crystal on a black base.

The “N the skull” pendant reappears from previous collections, this time sporting earphones. And the “Sympathy” lucky charm bracelet offers a combination of strung beads in dark brown wood and gray crystal ceramic, hand-applied using Swarovski’s “Pointiage” technique with a ruthenium finish. All lines are rounded out with associated key rings, bracelets or pendants in various sizes. A USB Swarovski introduces key is also available. new men’s jewelry and Swarovski has also introduced a line of accessories collection for Fall/Winter leather accessories in soft lambskin with a bicolor ribbon in black and orange, which ties into the Octea Abyssal flagship piece from the new men’s watch collection launched last year.

“Men’s jewelry I think is a stable segment of the market,” Zottl says.

“This is new to us and we want to tap into it—just like with cosmetics and skincare like L’Oréal is doing. We’re also Peter Zottl, Vice President trying to open up the marTravel Retail, Swarovski ket to men.” Zottl says that it will be interesting to watch how this new foray into men’s jewelry and watches develops, given the brand’s strong footprint on the Eclectic Earrings and cuff women’s side. from Swarovski’s new Distribution is growing rapidly, lola&grace collection with branded stores appearing in the growing Asia market as well as in the Americas. “As far as we observe, the Chinese traveler prefers fine and delicate designs,” two years after Swarovski first made its Zottl says. “Some like traditional designs. debut in the men’s jewelry market.

Anything in a circle goes well with these cusThe new lines echo previous tomers as it’s part of the Chinese design collections, with what language.” More broadly, Zottl notes Swarovski describes as the importance of the self-service edgy themes and conoption in high-traffic travel retail temporary styles. locations, where customers don’t Dark-toned crystal is have a lot of loiter time. used, worked in filiAsia and the Americas are the top gree and paired with performers for Swarovski, Zottl says, materials such as leather helping to underpin double-digit and metal. growth rates. He believes the remainHeading up the range is the der of the year will continue on an “Sinous” leather bracelet shaped like a snake, upbeat note and will weather featuring a cobra rendered in grooved some of the insecurities matt stainless steel with a head covmanifesting themselves ered in black pavé crystal. The in European markets. design is also available on a penPercentage-wise, Latin dant, with the snake reworked America is showing the in a corkscrew shape. The cross c strongest growth. symbol dominates the “Somber”

Swarovski: new brands and new men’s products drive success in travel retail

S

warovski’s recently launched fashion jewelry brand lola&grace, targeted at teenage customers, presented its Summer 2012 range in May. The offering includes a seasonal collection based on mixed fabrics, strong patterning and summer hues, offering designs ranging from tribal to candy stripes and hardware, with stacked bangles, layered necklaces and rings.

The lola&grace “Festival Fever” range features a laid back, eclectic look using mixed materials and clashing prints. Bold turquoise is heavily employed in tribal elements and wishbone shapes, with Aztec designs, polka dots and Paisley prints teamed with pearls and multiple chains. The look is highlighted with Swarovski crystal in turquoise, deep blue, burnt orange, khaki and pastel accents.

The “Global Friendship” line offers friendship inspired bracelets intertwined with colors of burnt orange, yellow, deep blue and emerald green, utilizing mixed materials, rope details and Swarovski crystals.

“Lola&grace is a brand on its own, which we launched for the young market at entry value,” says Peter Zottl, Vice President Travel Retail, Swarovski. “It’s nice, modern jewelry.

We’re starting to test with the first store in the UK offering a full assortment of the brand.”

Swarovski has also premiered a new men’s jewelry and accessories collection for Fall/Winter 2012/2013. The collection appears 32

ASIA DUTY FREE & TRAVEL RETAILING TFWA WE SEPTEMBER 2012

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Pica LéLa

In living color

BY

MELISSA SILVA

Armed with colorful collections and tailored visual merchandising, Pica LéLa is on its way to increasing brand awareness and connecting with promising new regions

K

nown for keeping a close eye on market trends by sending design teams to local jewelry workshops and global trade fairs, Australian fashion jeweler Pica LéLa seems to be reaping the benefits of such labor, as the brand’s success in the Middle East continues to grow.

The jewelry company has recently rolled out its brand to eight department stores in Saudi Arabia with the support of its partners, Hussein Gazzaz & Co., and has also increased its product range within Iran International Airport. In addition, Pica LéLa is currently working with other partners for further growth in the near future.

“The Middle Eastern market is really embracing our brand right now. We are constantly growing within this region with our products in demand,” says Pica LéLa’s Peggy Wu, Manag“Hypnotic” 18K ing Director. “The Aurora penRose Gold Plated dant has been the star of the Purple Crystal show so far, stealing all the focus Pendant, from the Mosaic collection with listings in airlines such as

a devoted team of specialists in both Sydney and “Aurora” 18K Rose Gold Plated Shanghai researching and inventing the next Multicolor Crystal market demand. With such dedication, it is no Pendant, from the wonder the jeweler is being embraced by the Mosaic collection Middle East market.

“We have different production teams specializing in our products to ensure we offer the best quality to the market, hence the reason we are confidently offering up to a five year international warranty on all our pieces,” Wu tells Asia Duty Free.

Pica LéLa’s success isn’t limited to just the Middle East. The Asian duty free market has also been quite promising for the brand.

Pica LéLa has enjoyed a fruitful partnership with Qantas, Malaysia Airlines, Air China, Eva Air and Eraman for years. Therefore, the brand is in no doubt a famous icon in travel retail market of Australia, China and Taiwan. Furthermore, in 2012 Pica LéLa also teamed up with DFASS and King Power International to feature their jewelry on board Air Asia Group, Peach Aviation (Japan), SilkAir, and Thai Airways.

“We are finding that business in the Asian duty

“The Middle Eastern market is really embracing our brand right now. We are constantly growing within this region with our products in demand.”

Peggy Wu, Managing Director, Pica LéLa

Etihad Airways, Kuwait Airways as well as a few others in the pipeline.”

Wu says by focusing on the Middle East market over the past year— as it experienced extreme growth in all categories—has allowed the brand to achieve great success within the region. In addition, the new fashion-forward styles and designs Pica LéLa has introduced are being warmly embraced by the Middle East.

Although designing collections for the world market, Pica LéLa makes a conscious effort to incorporate unique elements to appeal to consumers within the varying market spaces. With that said, the brand is focusing on separating regions and styling pieces to suit respective desires.

“Overall we believe that a combination of the right connections in partners combined with up to date fashion pieces has brought us to our double digit growth and this is only the first stage of our presence within the Middle Eastern regions,” says Wu. Undoubtedly contributing to the brand’s success is the extensive process through which Pica LéLa operates to ensure it remains current with the latest fashion trends and styles. This process involves 34

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

free market is shifting into two segmentations,” explains Wu. “There is a defined split from the traditional operations when it comes to the offerings of the market. Premium carriers are now focusing on improved revenue per space gaining better dollar margins, so there is clear movement on higher price within their offerings. On the other front there are the low cost carriers who are more focused on value and style, which have specific options to fill that created space.”

The duty free and travel retail business is an industry Pica LéLa knows quite well, having been first launched roughly 10 years ago.

“We consider the travel retail and duty free business an open door way to gain a wider market coverage reaching travelers from all over the world at any time,” Wu says.

Speaking of coverage, Pica LéLa will be covering the TFWA World Exhibition in Cannes this October, where it plans to reveal a lot of color.

“2012/13 is certainly the year of colors,” comments Wu. “In Cannes we will be launching bright glistening pieces that sparkle and attract attention.”

Taking center stage will be Pica LéLa’s Mosaic collection—exclusive to travel retail— and the introduction of some standout new feature pieces, both of which feature ample color, since for Wu, this season is all about creating colorful fashion.

Pica LéLa’s main goal at the TFWA WE Cannes show is to focus on meeting new clients and creating long-standing partnerships, in addition to connecting with existing clients.

Wu feels the show provides an opportunity for growth, specifically regarding regional awareness.

“At TFWA we strive for brand awareness and it gives us the opportunity to The Glamour explore new regions that are normally pieces are from an harder to connect to. The TFWA World earlier collection which mark a Exhibition is a great platform for everyone to change from have full experience of our brand which is traditional pearl sometimes hard to portray through general jewelry and signal a renewed desire communication. Our clients are able to see the to depict natural latest and greatest pieces and we are able to beauty discuss business opportunities in a more personalized way. We are also excited to be meeting management teams and sharing our visions to achieve mutual successes,” Wu says.

In regards to current success, Wu shares that within only a month of

launching its top-selling Aurora pendant—inspired by the aurora display in the night sky—Pica LéLa confirmed two major listings on Etihad Airways and Kuwait Airways. Due to a continuous and over-whelming response from the launch, the jeweler has now introduced new, unique styles to compliment this show-stopping piece in the Mosaic collection.

As the brand continues to become stronger, it plans to expand its product lines to offer more and more to the market. Wu also reveals plans to introduce a selection of watches within their portfolio to meet customer demand, all of which will keep with the current theme and latest colors of the season.

Color isn’t the brand’s only attractive force at the moment, as Pica LéLa has recreated its point of sale (POS) material to reflect both current fashion trends and the growth experienced by the brand.

“Being that we have had extreme growth within the market we have now tailored our POS to be suitable for any stage and platform. With new inter-changeable stands and more space for visual image this will help gain the impact from our brand to the c end consumer,” explains Wu. For more information, email: Candice Hickson Business Development Manager sales@picalela.com

Want more? Visit us online to catch up on regional industry developments in our e.Newsletters and read recent print issues. w

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35

Confectionery News Ferrero’s latest Tic Tacs

have something for all travelers Ferrero Travel Market is gearing up for its fall offerings in Asia and elsewhere: a portfolio based around the world-famous Tic Tac collection with four flavors and even a specially designed travel pack aimed at souvenir hunters. The new products will be presented to buyers at the TFWA World Exhibition from October 22 to 26 on stand J35, the Green Village.

“These travel retail exclusive items are designed to appeal to all ages and cultures,” says Marketing Manager Alberto Donnini. “The Tic Tac collection will be a major focus for us in the years to come and will drive the growth not just for Ferrero but for the whole sugar category in confectionery.”

In keeping with its marketing strategy in past years, the new offerings are backed by stylish point-of-sale material designed for maximum visibility. For instance, to get immediate visibility from consumers, the entire selection will be presented in a stand shaped like the original Tic Tac pack with a flip-top lid.

Travelers at airports, ferries and border stores can look forward to four innovative Tic Tac formats.

■ A large 234g Tic Tac flip-top box containing 60 cute mini boxes inside feature all four flavors set to be launched: freshmint, spearmint, orange and acerola cherry.

Only travelers will be able to purchase this large box, which will retail for €8.90 (US$10.90).

■ A 98g bottle shaped like an ultralarge Tic Tac and housing 200 pills in the orange or freshmint flavor – easy to carry and fun to share, says Ferrero.

Retail price: €3.90 (US$4.80).

■ Souvenir box collectors can reach for the new Tic Tac T100 49g travel pack again in orange or freshmint flavor for €2.50 (US$3). A departures/arrivals sleeve to house these boxes will ensure that this fits in with airport stores around the world.

■ And last, and again for €2.50 (US$3) you can pick up the sugar-free 25g Liberty mouth freshener in coolmint and wildberries mint flavors – pocket sized tins for treats as you head towards your destination.

Ferrero’s Tic Tac collection

Perfetti Van Melle brings Smurfs to

Cannes as part of increased product portfolio Perfetti Van Melle (PVM) will be exhibiting a new range of travel exclusive products at the forthcoming TFWA World Exhibition including a new Chupa Chups license for popular cartoon characters The Smurfs (N11, Mediterranean Village).

New to the Chupa Chups selection is the Chupa Chups Smurfs Markers, a travel pack containing eight markers, seven lollipops and one Smurf coloring book which will be hitting duty free shops in April 2013. Also new in the Chupa Chups range is the Chupa Chups Pouch Bag Exotic Tropic, consisting of 25 lollipops in Banana & Strawberry and Coconut & Pineapple flavors. The lollipops

are covered with little spots that give the lolly a different outlook, feeling and flavor sensation. New as well are the Chupa Chups Backpacks, a red monkey backback and a blue crocodile backpack with yellow straps for children.

The Mentos brand sees some new arrivals with the Mentos Jumborolls Tutti Frutti, each Jumboroll contains six single rolls of Bubblegum flavored candy.

Also new from PVM is the Mix of Minis Bag; a combination bag of Perfetti's best selling sweets: Mentos Mini rolls (Strawberry/ Orange/Lemon and Cola flavors), Chupa Chups Mini Lollipops (Strawberry/Orange/

Cherry and Cola flavors) and Fruittella pixels. Each Mix of Minis bag contains 36 pieces in total.

PVM will also be showcasing a new product by Russian brand Meller called Meller White Jumboroll, a delicious combination of chewy caramel with a soft white chocolate filling on the inside. Each Jumboroll contains six single rolls.

Mark Laros, Travel Retail Director, PVM says: “This has been a successful year for PVM with business growing globally with significant increases in the Asia Pacific and Americas regions with new distributors, as well as growth with our existing distributors. We are excited to display our new products this year at TFWA World Exhibition.”

Mentos Jumboroll Tutti Frutti

36

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

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Confectionery News

Hawaiian Host’s

Macadamia Truffles to take on Asia Macadamia Truffles, which were introduced to the world of duty free during Christmas 2011 in a limited edition by Hawaiian Host and then shared with the company’s Asian distributors at TFAP in May 2012, will now be widely available at duty free stores in Asia and around the world because of the huge popularity they generated.

Read a description of the product with a suggested RRP for travel retail of US$10 and one can understand why. Here is how Rosalie Char, Director of Marketing, describes this offering: “Each carefully crafted Macadamia Truffle features a perfect blend of creamy Macadamia butter, grounded from roasted Macadamias, and dark chocolate, enrobed in a layer of Hawaiian Host's legendary

The Aloha Mix is exclusive to travel retail

premium milk chocolate.”

The company sells 12 pieces of Macadamia Truffles in boxes suited to be placed as tabletop treats at parties or gifts for lucky recipients. Or, says Char, “simply devour them as an afternoon indulgence for yourself.”

But that is not all in store for Asia from this company. Hawaiian Host is also offering an exclusive to travel retail called Aloha Mix, which comprises an assortment of individually wrapped macadamia favorites 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.

Char says: “Presentation is in an easy to carry bag with a convenient handle that’s perfect as a gift. Each bag weighs 227g, all individually wrapped and freshness sealed.”

Hawaiian Host’s Macadamia Truffles

Nut Alert: France’s Cointreau joins Australia’s Macadamia magic If you found Australia’s macadamia-based confectionery offered by Paton’s irresistible, think of what it will mean to nut confectionery aficionados when the same offering is laced with Cointreau. Yes, Paton’s has announced a partnership with one of the world’s most famous liqueur brands, Cointreau of France.

The deal will see the 35-year-old Australian confectioner dipping its well-known toffee-coated whole macadamia nuts in smooth milk chocolate laced with everybody’s favorite liqueur, Cointreau. The French liqueur is made entirely from natural ingredients, blending sweet oranges and bitter orange peel, a combination that has made it a sought-after cocktail base and an afterdinner drink for 160 years.

Paton’s Macadamia Royals in Cointreau flavored Milk Chocolate is set to make its appearance in 15-piece gift boxes at Asia’s duty free stores. The addition of Paton’s Cointreau Royals to the portfolio follows

38

the successful launch in May 2012 of Paton’s Salted Milk Macadamia Royals and Paton’s Salted Milk Almond Royals (170g).

These new offerings join the hugely popular Paton’s Royals collection, which already features Macadamia and Almond Royals in Milk or Dark Chocolate in 170g and 110g boxes and 150g oval tins.

The Paton’s Royals collection also boasts two new formats: a large 330g Paton’s Macadamia Royals in Milk Chocolate containing 30 pieces for an extra-special gift and a two-piece flow wrap Macadamia Royals pack in either Milk or Dark Chocolate (22g). The flow wraps are presented in 20piece counter display boxes as a perfect

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

impulse purchase for the traveling consumer.

Melbourne-based Paton’s boasts the largest range of macadamia products now available in duty free and domestic markets in more than 40 countries.

Macadamia is indigenous to Australia, whose natives have relied on what they call “kindal kindal” as a source of food for thousands of years. Often, the macadamiabased confectionery is given alternate flavors to suit the tastes of different markets.

Paton’s Macadamia Royals in Cointreau flavored Milk

Chocolate

Angry Birds is a registered trademark of Rovio Entertainment Ltd. All Rights Reserved.

Copyright Š2009-2012 Rovio Entertainment Ltd. All Rights Reserved.

6 different -Collect them all!

Underberg

Underberg targets Asia after European success

Amarula, a cream liqueur from Africa, recently brought home a gold medal from the International Wine & Spirits Challenge

Underberg, makers of a fifth generation digestif from Germany that tastes good and targets indigestion, is pushing its product in Asia

W

atch out Asia, Underberg is starting to push its herbal remedy that brings a smile to the face of Germans: Little portion-sized bottles containing a tasty brew that can be had with beer or wine, or any alcohol for that matter, generally as an after-dinner digestive aid. The good news for consumers is that in addition to its taste it actually works.

“Underberg is a famous duty free item and a natural herbal digestive and this is what travelers like because it helps all travelers to digest foreign food and to create well-being,” Explains Jürgen Scholz, Deputy Sales Director in charge of the duty free business for the company. “In Asia we are in some duty free outlets but we are working hard to get more listings.”

As travelers from Asia come of age and begin their forays to the West and other parts of the world, Underberg has decided that this large market needs to be exploited to its fullest.

And it has the kind of product history that lends itself to unique marketing.

Its herbal digestive remedy is applauded in many countries. It has a long history—five generations to be exact—starting in 1846, and has won numerous awards. The recipe, a blend of aromatic herbs from several countries, is kept secret by the Underberg family, which again adds to the mystery and cache of the product.

Says Scholz: “Two things contribute to the Underberg’s distinctive character: its unique soothing effect and the unmistakable portion-sized bottle wrapped in straw-colored paper, giving drinkers just the right amount for well-being. In fact, Underberg has become a symbol of well-being throughout the world.”

Marketing literature provided by

40

the company emphasizes that the drink is a fit in any situation, whether it be a beer garden, a pub or as an afterdinner digestif. The drink is largely sugar free and gluten free and contains natural anti-oxidants. And it is sold in bottles that contain the exact amount of Underberg the company believes is needed to promote digestion and well-being.

The second most popular drink that Underberg is pushing in Asia is the renowned XUXU, which has more than made its mark in Russia, Turkey and of course in Germany. XUXU has a freshness guaranty of 12 months and is fast becoming the preferred drink of young women. Necessarily, this means that it is fast becoming the preferred present that young men buy for young women.

XUXU is a unique drink that contains at least 55% strawberries, and “the only one with real strawberry seeds,” says the company’s literature. It is sweetened with fruit juices rather than sugar and Scholz describes it as a “Vodka Strawberry Cocktail with only 15% ABV,” unlike some of the more heavy vodka-laden drinks sold in North America. “Russians really like the taste of strawberry,” says Scholz, “and the freshness date is as long as 12 months.”

Some of the other company brands are Asbach, the most famous German Brandy; Grasovka, the premium bison grass vodka from Poland; Amarula, a cream liqueur from Africa that recently brought home a gold medal from the International Wine & Spirits Challenge; and Schlumberger, the famous sparkling wine from Austria.

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

The latter is produced using some very traditional methods.

While in Asia the company has still to obtain proper samples to figure out its buyer age groups, Scholz says that in Scandinavia, for instance, its brands are most popular among the 30-something age group, far younger than its German buyers.

Clearly the brand’s popularity is due in large part to the family history behind Underberg, the secrecy with which the current generation of Underbergs guards the recipe of its decades-old digestif and the warm family portraits of the Underbergs that continue to grace the media and keep the company’s products movc ing at a constant pace.

As travelers from Asia come of age and begin their forays to the West and other parts of the world, Underberg has decided that this large market needs to be exploited to its fullest

Visit us on stand J24 (Red Village) from October 21-24 at TFWA WE

The Transatlantic Racing gift pack was inspired by the successes of the Russian sailing team

Beluga Vodka

Beluga Vodka’s strong performance in Moscow’s biggest airports and a concentration on duty free exclusives bode well for the brand’s future in travel retail

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uty Free Manager for Beluga Noble Russian Vodka Victoria Naumenko tells Asia Duty Free that Beluga is actually the number one super premium vodka in Russia—no mean feat considering Russians certainly know their vodka. Produced by Synergy, an open joint-stock company based in Russia, Beluga is set on expanding its duty free footprint in Asia and other markets around the world. The brand has already increased its visibility dramatically in European markets over the last couple of years and has also secured a respectable foothold in the US market. Synergy itself also solidified its presence on its home turf with the March 2012 signing of a five-year agreement to distribute Camus Cognac in Russia.

Eastern promise “Asia is a new market for us,” says Naumenko.

“We're negotiating with companies now regarding listings.” Beluga is already distributed into Asian retail markets by Singapore Straits Wine Company Private Limited in Singapore and PT. Pantja Artha Niaga in Indonesia.

Domestically in Asia, Naumenko tells us that Beluga has already gained some traction in Vietnam, Thailand and Indonesia, and the company is hoping for more positive results after having exhibited the entire Beluga range at TFWA AP, held this past May at the iconic Suntec Centre in Singapore.

“The negotiation process and organizing the logistics takes some time and at the moment we’re not in a position to announce any listings,” says Naumenko. “We can’t give details yet but we were pleased with our participation in the show.”

In addition to being the number one super premium vodka in Russia, it’s clear that Beluga is a brand that can succeed in the highly competitive travel retail market. In Moscow’s Sheremetyevo, Domodedovo and Vnukovo Airports the one-liter size is a bestseller and at these airports alone an average of 220 bottles are sold a day to travelers. Given the fact that these are three of Russia’s busiest international airports, it’s clear that Beluga appeals to consumers hailing from all corners of the globe.

Quality and luxury Naumenko says the brand’s universal appeal has a lot to do with flavor profile. “Beluga has a soft and harmonious flavor that doesn’t burn and has a sweet aftertaste,” she explains. In fact, the unique42

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ness of Beluga’s flavor gives it some distinct malty notes, which is a rarity for a vodka to say the least.

Other than Beluga Noble, Naumenko tells us that the Beluga Gold line, which represents 5-10% of the company’s volume and up to 50% in terms of value depending on the market, is also doing well, especially in the Middle East. The quality of the liquid and the high-end packaging is cited as the main reason for the Gold range’s success in the luxurydriven Middle Eastern market.

Focusing on travel retail

The flagship brand

Beluga Noble "The duty free market is growing by 30% for us every year,” Naumenko says. To maintain the growth pace the brand relies on strong POS materials, solid sales training for local staff and the preparation of gift pack promotions in any new markets that it enters,” she adds.

Beluga often develops on-pack promo products, gifts and decorations exclusively for operators. Naumenko tells Asia Duty Free that the Beluga Travel Pack, currently sold in duty free shops throughout the Commonwealth of Independent States (CIS) and Europe, has helped to significantly raise awareness of the product. She also notes that the Transatlantic Racing gift pack, which was inspired by the successes of the Russian sailing team, was originally released in Russia but has gone on to see healthy sales in Turkey and Beirut as well.

Finally, in addition to possible future duty free exclusives, Naumenko explains that Beluga is planning on releasing a new variant called Allure by the end of this year. “Allure was inspired by the numerous victories of Russia’s Beluga Polo Team in international competitions,” she explains. “For many years Beluga has professed the principles of craftsmanship, tradition and dignity, and for this series a special recipe was developed that includes maple syrup and fig extract. These ingredients give Beluga Allure its inimitable c flavor and outstanding aroma.”

The Beluga Gold line is doing especially well in the Middle East

Visit us on stand J24 (Red Village) from October 21-24 at TFWA WE

The Edrington Group

An eye for exclusives

The Macallan Masters of Photography: Annie Leibovitz Edition comprises 1,000 limited edition bottles, of which there are four different versions

The latest Masters of Photography limited edition from The Macallan proves that The Edrington Group has an eye for stunning art in addition to a passion for rarified drams

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he Edrington Group’s profile in duty free continues to rise, and while the company has any number of sought after brands, arguably none is more lauded than The Macallan. A high-end whisky lover’s dream, The Macallan’s presence in travel retail has been staccatoed this year with limited editions and travel retail exclusives.

Most recently, The Macallan commissioned the world’s most famous photographer, Annie Leibovitz, for the third edition of its award-winning Masters of Photography series, which went on shelf in August at Paris Charles de Gaulle, the first listing in travel retail.

The Masters of Photography: Annie Leibovitz Edition sees Leibovitz bring to life the essence of the brand through her unique photographer’s eye, with renowned Scottish actor Kevin McKidd cast in the role of leading man.

The Macallan Masters of Photography series features exclusive collaborations, conjoining the art of whiskymaking with the artist’s interpretation of the world of The Macallan. Previous editions were authored by iconic photographers Rankin and Albert Watson.

This year, Annie Leibovitz, chosen for her exceptional skill and inimitable style, has interpreted four single cask variants released for the first time, resulting in four powerful images. Shot against dramatic backdrops in and around New York City, Annie Leibovitz captures the brilliance of a moment where everything comes together, showcasing the stature of whisky as an icon of taste and masculinity and confirming The Macallan as “The Last Word” in luxury.

“I am the first color photographer chosen by The Macallan for its Master of Photography series. Prior to this I hadn’t realized how complicated and deep the distilling process is,” comments Leibovitz. “That warmth and richness is what I tried to bring to the photographs. Kevin McKidd drove the imagery. Where Kevin comes from and his rugged good looks are what the photographs are all about.

It wasn’t casting, it’s authentic.”

The Macallan Masters of Photography: Annie Leibovitz Edition comprises 1,000 limited edition bottles, of which there are four different versions. Each bottle contains one of four unique single malts, crafted to reflect the mood of the signed Annie Leibovitz print that it is paired with. The four single cask whiskies have been matured in different cask types to be completely unique and original. The bottle and print are presented in a bespoke photo-archival box, stamped with The Macallan brand and Annie Leibovitz’s name.

Charismatic actor Kevin McKidd, acclaimed star of US TV drama Grey’s Anatomy and cult film Trainspotting, hails 44

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from Elgin, just a few miles away from The Macallan Distillery on Speyside where he even worked as a young man, making him an authentic choice for the role. He says: “This project is very special to me. Having worked at The Macallan distillery in my youth I remain a Macallan drinker to this day so to be asked by The Macallan to be part of this campaign was a huge honor. Annie Leibovitz is a living legend so to be photographed by her is a once in a lifetime experience.”

A further four individually customized bottles of The Macallan 1949 from its exquisite and highly collectable Fine and Rare Collection and celebrating the year Annie Leibovitz was born will also be released. Accompanied by a signed one-off gallery-sized print, they will be available with a reserve price of US$25,000 following a world exhibition tour which will take place in Hong Kong, Moscow and New York.

Ken Grier, Director of Malts, The Edrington Group, said: “Working with one of the world’s most influential photographers has exceeded all expectations. The Masters of Photography series is hugely important to The Macallan brand and Annie Leibovitz has captured The Macallan moment in her own unique way. The fact that our leading actor, Kevin McKidd, is not only a fervent Macallan drinker but actually worked at the distillery is a wonderful and authentic story. His evolution from an Elgin boy to internationally famous actor mirrors the success The Macallan has enjoyed from its Speyside roots to global fame, making him perfect c for the brand.”

For this edition, charismatic actor Kevin McKidd is photographed by Annie Leibovitz against dramatic backdrops in and around New York City

DISCOVER PATRIA INSIGNIS Our exceptional collection of award-winning spirits

We search the world to bring travellers extraordinary products to discover. Each innovative brand has its own unique personality and all embrace values of quality and exclusivity, differentiated by small batch and limited release production.

Visit us at Stand G13, Blue Village at TFWA World Exhibition worldofpatria.com

+44 (0)1892 890202

Itâ&#x20AC;&#x2122;s all in the mix

Liquor News

Cointreau Mabille is a limited edition bottle designed by French haute couture fashion designer Alexis Mabille

Rémy Cointreau plans a number

of new innovations for TFWA WE Asia Duty Free recently had the opportunity to speak with Matthew Hodges, Marketing and Business Development Director for Remy Cointreau GTR, about what the company has planned for this year’s TFWA WE in Cannes. He tells us that as usual, Rémy Cointreau is constantly innovating and will have a number of new products this year.

A limited edition Rémy Martin bottle with a pop culture theme that will appeal to the younger Cognac drinker is set to make its debut at TFWA WE, and the most recent upmarket treatment of Cointreau, called Mabille, will be showcased at the show as well.

Additionally, Russian Standard continues making waves in duty free with a new design for Russian Standard Gold, and champagne fans can find the Piper Heidsieck range on Rémy Cointreau’s stand as well.

On the shop floor, Hodges tells us that Rémy Cointreau makes an effort to stay in front of the traveler in key locations. “Rémy Martin goes from strength to strength in Asia and we have invested in high visibility, high quality promotional displays, some with screened presentations of the brand’s heritage and consumption proposals,” he explains. “These encourage Asian consumers to explore new ways to enjoy Rémy Martin and also to trade up to the more premium expressions.”

Of course, another great way to make sure that consumers are keeping an eye on your brand is to have a brand ambassador like Dita von Teese. In support of Cointreau von Teese will be making appearances in various parts of Asia in the autumn as a means of putting the brand in the spotlight. She has also worked with Cointreau to design an elegant and sophisticated fashion item which will create a real stir among the brand’s female consumers, says Hodges. Unfortunately, details on this development are under wraps until later in the year.

We finished our conversation by asking Hodges about Rémy Cointreau’s performance in the region over the first half of the year. He told us in no uncertain terms that the company’s brands, especially Rémy Martin, are in high demand.

“Asia is a very important market for Cognac and Rémy Martin has an excellent reputation there,” Hodges says. “Sales are phenomenal, especially of those expressions at the top end including Centaure de Diamant, the travel retail exclusive Premier Cru collection and of course Louis XIII, the pinnacle of the collection.”

This top-of-the-range Prosecco will only be retailed in a special gift pack through travel retail and will carry a special neck label declaring its unique positioning

Follador Prosecco launches travel retail exclusive Premier Italian Sparkling wine producer Follador has taken the flagship of its most superior varietals—Valdobbiadene Prosecco Superiore D.O.C.G Cuvee “Torri di Credazz”’ Extra Dry— and launched it as a travel retail exclusive variant. This topof-the-range premium Prosecco will only be retailed through travel retail from immediate effect, and will carry a special neck label declaring its unique positioning, whilst sold exclusively gift packed.

“We have chosen Torri di Credazzo as a travel exclusive variant because, apart from its superb quality, this Prosecco has a particularly interesting story which we believe will be of interest to travelers,” says Follador Marketing Director Cristina Follador. “The small vineyard area that this Prosecco exclusively comes from has a history that dates back to the 9th and 10th centuries when Credazzo castle in Treviso played a vital defense role against the Hungarian invasion.

“Credazzo comes from the local term ‘creda,’ which means ‘clay’ and refers to the type of soil in the area,” continues Follador. “Over the years the strategic position of the area, combined with the composition of the subsoil and shape of the land, have led to exceptional developments in vine growing and it has now become a key area in the Valdobbiadene D.O.C.G. zone.

The Follador family has the great privilege of owning the vine-

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yards directly below the castle towers and it is from here that the handpicked grapes of outstanding quality are used to produce our very fruity, exquisite Cuvée Torri di Credazzo.”

Each bottle will carry a story tag, adding interest to the brand. Pricing in travel retail will be €23 (US$28). Alongside Torri di Credazzo Extra Dry, Follador offers three other Superiore Prosecco varieties from the Conegliano-Valdobbiadene region—Valdobbiadene Prosecco Superiore Di Cartizze D.O.C.G, a fine sparkling wine named after the area where the grapes are cultivated; Valdobbiadene Prosecco Superiore D.O.C.G Millesimato Brut, a refined and noble quality wine boasting a very fine perlage amidst a splendid combination of bouquet and flavors; and Valdobbiadene Prosecco Superiore D.O.C.G Millesimato Extra Dry, an elegant extra dry wine with a balance of flavors.

For travel retail the wines are presented in a series of collectable and elegant monochrome printed tubes with a unique illustration designed to convey the brand’s understated, premium Italian credentials— perfect for gifting.

Follador notes that it will be pleased to share a glass or two of Prosecco on the World of Patria stand at TFWA WE (Blue G13) daily from 5 pm.

No artificial flavors are used in the mix to make Quita Penas as close as possible to a freshly prepared Margarita cocktail

The new Jameson Great Urban Escapes bottle is aimed at urban explorers who choose adventurous city breaks over beach holidays

Tequilera Corralejo Jameson releases mixes it up in Cannes limited edition Great Urban Escapes bottle exclusively in duty free

Jameson, the world’s number one Irish whiskey, has launched a new innovative limited edition bottle that captures urban iconography from some of the world’s most exciting cities while also highlighting some of the best bars to visit while in these cities. The Jameson Great Urban Escapes bottle is available exclusively through travel retail channels for a limited period starting this month.

The new bottle is aimed at urban explorers who choose adventurous city breaks over beach holidays. The contemporary bottle is adorned with logos and emblems from the top districts of seven cities across the world, including Dublin, the home of Jameson; London; New York; and Stockholm. It also highlights 11 top bars in these cities that locals would recommend you visit and where Jameson is a whiskey of choice.

To support the launch, a city guide app has been created that will provide travelers with an insider’s guide on what to see and do in four of the chosen cities. To access the app consumers will be directed to a QR code that will feature on supporting POS material. For those without access to smart technology, a traditional printed city guide will also be available alongside the bottle, which will further extend the reach of the campaign.

Glenfiddich wins triple gold medals

Tequilera Corralejo will be highlighting its latest spirits lines at the forthcoming TFWA World Exhibition (Stand E1, Blue Village), including a new ready-made Margarita Mix: Quita Penas.

No artificial flavors are used in the mix to make it as close as possible to a freshly prepared Margarita cocktail. Each 750ml bottle is 10% abv and is decorated with a bright pink and yellow floral motif. Simply serve over crushed ice for the perfect Margarita.

Says Tequilera Corralejo Managing Director Raffaele Berardi: “This is a really top quality cocktail mix with a very authentic, natural flavor. The first in a series of tequila-based cocktail drinks, we are delighted to say that we will be serving Quita Penas at this year's TFWA WE golf tournament organized by Heinemann and Estée Lauder.”

Also new to the show is Vodka Boker, a unique Mexican corn vodka presented in a highly attractive deep blue bottle with a twisting glass effect.

Initially launched to travel retail markets in India, Central America, Mexico and Canada, Vodka Boker is now available in New Zealand and Africa as well. Vodka Boker is now also listed in Mannah Duty free stores in Paraguay and in selected duty free stores on the Canadian Border.

Also on display at TFWA World Exhibition will be Tequilera Corralejo’s special commemorative edition premium tequila: 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 carafe style bottle and is designed for drinking neat on the rocks or in cocktails. On September 1, the brand will open the doors to its new warehouse, a 600-meter-long building which will be dedicated to the maturation of 99,000 Hours.

Sales have been growing steadily in the 74 countries where Corralejo is exported, with a 12% uplift in the last year alone.

The brand has been enjoying particular success in London's highend bars, the company says.

Glenfiddich Single Malt Scotch Whisky has been awarded a trio of gold medals at the International Spirits Challenge.

Impressing judges with its exceptional whisky making and against tough global competition, the premium whisky brand has won a staggering eleven awards in total. In what is becoming an extra special year for the Speyside distiller, the latest medals means that Glenfiddich has truly cemented its credentials as the world’s favorite and most awarded single malt Scotch whisky.

The highly prized gold medals were awarded to the Glenfiddich Age of Discovery Bourbon Cask 19 Year

Old, Glenfiddich Malt Master’s Edition and Glenfiddich 12 Year Old. Brian Kinsman, Glenfiddich’s Malt Master, commented: “This is a special year for the Glenfiddich Distillery as we celebrate our 125th anniversary. The outstanding awards are a testament to all the hard work and pioneering spirit from all our craftsmen who are dedicated to creating ‘the best dram in the valley.’”

This year, Glenfiddich celebrates its 125-year anniversary since founder William Grant built the Glenfiddich Distillery in 1887.

Glenfiddich’s Age of Discovery, among other Glenfiddich expressions, won a gold medal at this year’s International Spirits Challenge

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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Tobacco News KT&G releases Tonino Lamborghini cigarettes This month sees the launch of a new cigarette brand from KT&G developed as the result of a collaboration with the well known Italian luxury brand. The world’s first Tonino Lamborghini cigarettes contain premium smoking leaf tobacco—which represents only about 2% of the leaves grown in the world—and South European Orient leaves.

KT&G says that the cigarettes offer “a soft throat and enriched taste,” and are designed to retain the optimal level of moisture for an improved smoking experience.

Other high-end features include what KT&G calls an embossed “lip release filter.” The product features the familiar Toro emblem on the top of the package, the charismatic symbol of the Lamborghini family, to express strength, progressiveness and exclusivity. Two variants of Tonino Lamborghini have been released—L6 (6.0 mg of tar) and L8 (8.0mg of tar). Tonino Lamborghini will be available at China, Singapore and Hong Kong Airports from September 2012.

Also new this year from KT&G is Bohem Mojito Double. Bohem is made of 30% premium cigar leaves, giving the brand a unique taste and aroma. Showcasing a vintage package design, KT&G says that Bohem Mojito Double is targeted toward stylish professionals who prefer a refined smoke.

Lastly, Asia Duty Free spoke recently with In-Sun Hwang, KT&G’s General Manager, about the company’s performance so far this year. “We are doing quite well in the Asia Pacific region,” he said.

Tonino Lamborghini cigarettes were designed to be premium in every way and will be released this month at select airports throughout the Asia Pacific region

“Our top brand Esse is doing very well with Asian customers and has become a clear leader among the world’s superslim cigarettes.”

Hwang notes that Chinese and Korean nationalities make up the lion’s share of KT&G’s customers. While the company has enjoyed success throughout the Asia Pacific region, its brands are particularly popular in airports in China, Hong Kong and Japan.

JTI re-imagines iconic Mild Seven brand On the heels of solid first half numbers, Japan Tobacco recently announced a complete redesign and name change for global flagship brand (GFB) Mild Seven. The brand will now be called Mevius and have a globally unified design. With active investment to strengthen brand equity and a greater presence around the world, Mevius is aiming to become the number one global premium brand.

Mild Seven, known for its smooth cigarettes with a clean finish, has been the best selling brand in Japan since 1978, a year after it was launched.

JTI plans to roll out the new name and design across Japan, introducing the globally unified design in November 2012 while retaining the Mild Seven name, followed by the launch of the Mevius brand name in February 2013.

Internationally, Mild Seven enjoys consumer popularity in markets including Taiwan, Korea, Malaysia and Russia. In markets where the new package design has been introduced, it already enjoys consumer popularity. The company plans geographic expansion after completing

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introductions of the new brand in existing international markets over the next 12 months.

“The JT Group targets sustainable profit growth in the mid to long term, based on the ‘4S’ management principle of satisfying and fulfilling our responsibilities towards consumers, shareholders, employees and wider society,” said Mitsuomi Koizumi, President and Chief Executive Officer of JTI. “Tobacco is our core business and profit growth engine. By prioritizing investment in this business for quality top line growth and stronger business sustainability, we are targeting our tobacco business to grow EBITDA by mid to high single digits per year over the medium to long term.

“Mevius is moving forward with a new name across the world, a unified global design and an expanded product portfolio in order to command a greater international presence by enhancing brand equity, aiming to become the number one global premium brand,” Koizumi concluded.

JTI says Mild Seven is “moving forward with a new name across the world, a unified global design and an expanded product portfolio in order to command a greater international presence”

Diageo GTME

Liquor Report: Standout Spirits

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Just in time for TFWA AP in Singapore, Diageo releases two new expression in the iconic Johnnie Walker range of blended Scotch whiskies BY RYAN WHITE

A new limited edition release of the world’s leading blended Scotch whisky will be released exclusively in global travel retail: Johnnie Walker Blue Label – The Casks Edition. Crafted from some of Diageo’s rarest casks, each noted for their intensity and depth of flavor, this special edition, bottled at 55.8% ABV, has intensified wood flavors and “is a tribute to the perfect harmony of the oak casks used in the blending of Johnnie Walker Blue Label,” says Diageo.

Johnnie Walker Master Blender Jim Beveridge says: “This limited edition is a chance to enjoy the remarkable experience of Johnnie Walker Blue Label in a new way. Only one in ten thousand of our casks have sufficient character for Johnnie Walker Blue Label and in creating this special edition we really wanted to showcase the incredible flavors that come from the casks themselves. The flavors drawn from these carefully selected casks have intensified to produce a robust and powerfully fla-

Diageo’s second new addition to the Johnnie Walker range is Johnnie Walker Platinum Label. Inspired by the Walker family’s historic tradition of creating exclusive “private blends” for favored customers, directors of the company and select private gatherings, Johnnie Walker Platinum Label has been crafted by Jim Beveridge “for today’s increasingly sophisticated global consumers—the ‘new whisky set’—to enjoy at their own intimate gatherings,” says Diageo. It is a delicate, smoky blend that embodies the characteristic full flavors of the Johnnie Walker range of blended Scotch whiskies.

Jim Beveridge explains: “Like the rare and precious metal after which it is named, Johnnie Walker Platinum Label is rich and refined, delivering the distinctive depth and complexity that is synonymous with Johnnie Walker.

In fact, I believe that if John Walker were to create a whisky today, Johnnie Walker Platinum Label would be the result.

It is a bold, intense and smooth blend, crafted from some of our most treasured whiskies, for the evolving tastes of 92

iddle Eastern travelers are known for their love of whisky, and International Beverage Holdings (Interbev) is breathing new life into some promising brands with package redesigns and special editions that were introduced at this year’s TFWA WE in Cannes in September.

The standout Old Pulteney single malt whisky and Hankey Bannister blended Scotch whisky have been boldly redesigned. In addition, a special two-pack of Hankey Bannister Original and 12 Year Old was recently introduced and has been performing well in the Middle East.

Old Pulteney, which is one of the fastest growing malts in the industry, has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail

vored blended Scotch whisky that has rich woody notes, deep smoke, traces of spice and a long, lingering oak finish.”

Produced in limited quantities and blended in small batches, the bold blend is a contemporary expression of the powerful 19th century character pioneered by the Walker family, created for true connoisseurs who are seeking new depths of flavor.

Steve White, Marketing Director, Diageo GTME, said: “Johnnie Walker Blue Label – The Casks Edition is a Scotch whisky with a remarkably powerful flavor, the result of almost two centuries of unbroken blending expertise. This limited edition release is a rare opportunity to enjoy a bold amplification of the powerful cask flavors contained in Johnnie Walker Blue Label—it is rarity redefined.”

today’s global whisky consumer.”

“Johnnie Walker Platinum Label is the richest, most precious crafted 18 year old blended Scotch whisky John Walker & Sons has ever created—its price point reflects this,” says Steve White. “We believe that consumers will quickly develop a real affinity for Johnnie Walker Platinum Label and that it will offer real value for our trade partners.

“It is a thoroughly modern interpretation of the ‘private blends’ that our company has produced from the very beginning and is a contemporary blended Scotch whisky that is perfect for exclusive occasions,” he added.

Johnnie Walker Platinum Label is available now in 75cl size in limited Asian Duty Free locations with a global Duty Free launch of the 1L variant from June 2012. Priced at an RRP of USD $100 for 1 liter in duty free, Johnnie Walker Platinum Label is a premium whisky that will sit towards the top end of the Johnnie Walker range.

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onsumer preferences aren’t static, and thankfully for globetrotters the travel retail industry is especially good at staying ahead of trends and treating duty free shoppers to new and exciting experiences. Gulf-Africa Duty Free recently spoke with International Beverage Holdings, Bacardi Global Travel Retail and Brown-Forman about how they’re going about pleasing discerning spirits lovers in the Middle East.

Among the latest developments from these suppliers are new liveries for two iconic whisky brands, the introduction of a new spiced rum with a big heart and a collaboration between two American legends.

iageo recently announced that two new expressions of its iconic blended Scotch whisky Johnnie Walker will be available in travel retail. The first—a global travel retail exclusive—gives one of the brand’s legendary expressions a new woody, smoky twist, while the second—inspired by the Walker family tradition of creating exclusive “private” blends—offers consumers a strong, sweet and elegant spirit crafted in traditional Speyside style.

display while at the same time retaining Old Pulteney’s distinctive bottle shape and “Maritime Malt” positioning.

“Old Pulteney is distilled in Wick, Scotland,” says James Bateman, Global Travel Retail Manager at Interbev. “In fact, there are no other Scotch whisky distilleries there, so we’ve communicated Old Pulteney’s unique origins on the bottle. We’ve also taken the boat and put it to the back so that it can be seen through the front of the bottle. These changes, combined with the redesign of the words ‘Old Pulteney,’ have resulted in much more shelf standout.”

Hankey Bannister blended Scotch whisky has unveiled a striking, super-premium presentation pack of its 21 year old “Partner’s Reserve” that features an elegant black box, proprietary bottle and gold embossed label. The new limited edition Hankey Bannister 25 year old “Partnership Blend” was also previewed in Cannes. It comes beautifully encased in a Lochinver decanter and luxurious bordeaux-red presentation box.

This new expression has been specially selected by Master Blender Stuart Harvey using the very finest non-peated single malts, resulting in a distinctively delicate and smooth flavor.

Interbev is banking on increased traction in Asia duty free with the above super-premium Hankey Bannister offerings. Bateman told Gulf-Africa Duty Free that in the Middle East,

Hankey Bannister Original and 12 Year Old expressions are very popular, particularly with Indian travelers.

“For the Gulf we’ve introduced a gift pack featuring two one-liter bottles—Hankey Bannister Original and 12 Year Old,” Bateman explains. “It offers a savings to shoppers and has already been launched in airports in Dubai and Sharjah to great effect.

“Duty free is a great channel for us to generate awareness of these brands,” Bateman continues. “Hankey Bannister is a very regional brand that is popular in India. As such, it’s also popular with Indians living and working in Dubai, which helps us develop in the Middle East.”

Old Pulteney has revealed a vibrant new design with a bolder logo to drive a premium message and improve retail display

Pernod Ricard Asia Duty Free

Asian travelers are known for having a keen eye for luxury offerings and brown spirits, and Pernod Ricard caters to both tastes with a wide range of new releases BY RYAN WHITE sia Duty Free recently sat down with John O’Sullivan, Marketing Director at Pernod Ricard Asia Duty Free, to discuss the numerous new launches in the region that coincide with the TFWA AP exhibition in Singapore. We also took the opportunity to ask him about business in general in the region and get an update on last year’s big news during the exhibition, the Martell Experience Boutique.

Adding excitement to duty free Absolut Watkins, a limited edition exclusive to travel retail, was launched to the Asian market at Changi Airport in February 2011 and was then rolled out in Hong Kong, Thailand, Malaysia and Korea throughout March.

Absolut Watkins offers the distinct qualities of freshly ground coffee with notes of

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almond, caramel and warm chili. The detailed image on the limited edition bottle is created by celebrated Swedish fashion illustrator and artist Liselotte Watkins, famous for her designs for fashion brands such as Miu Miu, Anna Sui and Barney’s, as well as for magazines such as Vogue and The New Yorker.

In addition, Pernod Ricard Travel Retail launched its limited edition Chivas Regal 18 Year Old by Christian Lacroix in key Asian airports in March to showcase the new masterpiece and bring to life the brand values of luxury, craftsmanship and excellence. Only 3,000 bottles of this striking limited edition design were produced, of which a select number will be sold in Asia duty free.

The activity kicked off at Hong Kong International Airport and Singapore Changi Airport where elaborate displays were positioned in high traffic locations to generate impact. The product was rolled out in April to Incheon International Airport and Kuala Lumpur International Airport.

Also early this year, Royal Salute 62 Gun Salute was rolled out in Asia at Hong Kong International Airport, Taiwan Taoyuan Airport, Singapore Changi Airport and Korea Incheon Airport. The product was positioned on premium display units in the first class and business lounges of Korean Air. “Innovation is a key driver for Pernod Ricard and we have had some very successful recent launches,” says O’Sullivan. “As many have come to expect, Absolut has led the way with Glimmer and the travel retail exclusive Absolut Watkins.

“The Chivas 18 Year Old by Christian Lacroix, the latest release in the Chivas 18 designer series, was a huge success,” he continues. “The product is very limited and will only be in store for a short time before it is sold out. Probably the most high profile launch we had this year was for Royal Salute 62 Gun Salute, which was supported with luxurious

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help us to tell the brand story and increase interest.”

New launches are an important vehicle for creating excitement in the duty free channel and Pernod Ricard has released a number of new products in the past 12 months. Absolut has always been an active brand and its latest release was Absolut Mode, the fashion-themed bottling. Chivas is another brand that is regularly innovating and this is particularly evident with the Chivas 18 series of designer bottle releases. The latest was based on the work of British fashion designer Vivienne Westwood. Previous releases have been developed with fashion designers Christian Lacroix and Alexander McQueen.

Other recent launches from Pernod Ricard include the Master Distiller’s Reserve expression of The Glenlivet, exclusive to travel retail, which was particularly visible recently in Taiwan and Hong Kong.

And cognac brand Martell has recently benefited from the Centenary Edition of Martell Cordon Bleu with special packaging and, more recently, Chanteloup Perspective in the Extra category, named after the home of Martell.

Significantly, the travel retail team collaborated with the domestic side to launch Glenburgie Edition, a 17-year-old limited edition Ballantine’s celebrating one of four signature Ballantine’s distilleries.

The launch was initially focused on Korea, and response was “outstanding,” O’Sullivan says, with a high proportion of the travel retail allocation flying off the shelves in the first days.

O’Sullivan also notes the recent launch of a single Martell eau de vie in the two dedicated Martell Experience boutique airport shops in Hong Kong and Kuala Lumpur. Titled “Millésimes,” the very exclusive launch came out in December.

ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2012

Whisky Report

The “Dewar’s World of Discovery” promotion

BY

he Middle East continues to be an important market for Dewar's Scotch Whisky,” says Vinay Golikeri, Marketing Director for the Bacardi Global Travel Retail Division. The growth in the Middle East reflects a similar experience in Asia. Bacardi Global Travel Retail has employed strategic brand promotions to strengthen relationships with existing Dewar’s customers and create new ones, in the process helping to foster brand loyalty, Golikeri says.

In June, Bacardi Global Travel Retail announced a partnership between Dewar’s and the internationally renowned National Geographic Society. The new promotion, called “Dewar’s World of Discovery,” gives entrants in a prize draw the chance to win six travel experiences created by National Geographic Expeditions: Costa Rica; a New York photography trip; an insider’s tour of Italy; the Amazon; New Zealand; and the home of Dewar’s, the Highlands of Scotland. Depending on the market, entry may require the purchase of Dewar’s 12 Years Old. Part of Bacardi Global Travel Retail’s strategy to grow Dewar’s in the Middle East saw the launch last year of a training program with Dubai Duty Free, Middle East Airlines and Beirut Duty Free. Conducted once or twice

The Dewar’s brand has seen great success in the Middle East, largely as a result of creative promotional activity from brandowner Bacardi

a year with these organizations, the sessions are hosted by the Dewar’s Global Ambassador and consist of a tutorial on Scotch whisky production as well as a Dewar’s comparison tasting.

“Training provides Dewar’s with a unique opportunity to create brand advocates in each of its core markets,” Golikeri says. “As the Scotch market continues to grow in the Middle East, we want to ensure that our key partners are equipped with the tools and information they need to help drive sales in their outlets.”

“Of our brands there is one standout product across the Gulf and Africa as a wider region: Hankey Bannister Blended Scotch whisky,” says James Bateman, Global Travel Retail Manager for International Beverage Holdings (Interbev). Bateman’s focus right now is on improving the product’s distribution and visual displays. He says that premium expressions will be introduced, and the process is already underway with the launch this year of a new Hankey Bannister expression, 12 Years Old Regency.

This product constitutes an entry into the premium blended Scotch category and retails for about US$25 for 100cl. Bateman says that Interbev will aim to launch the Hankey Bannister 21 YO and 25 YO super-deluxe blends at Cannes this year. New twin packs (2 X 100cl) specifically for travel retail will also be premiered.

The majority of duty free consumers of Hankey Bannister in the Gulf are residents originally from the Indian subcontinent, Bateman says. In terms of the travel retail trade, the main buyers in the Gulf are Dubai Duty Free, Dufry at Sharjah and Aer Rianta International’s regional network.

Africa is a complex picture, but Bateman says Gebr Heinemann, Dufry and Flemingo are important network partners.“Egyptian airports are very important, and will be again once the tourists return in confidence. Big Five Duty Free in South Africa and Mauritius Duty Free are very important retailers of our products, and the expansion of Flemingo Duty Free has made it a real retail force on the continent.”

The new travel retail display for Hankey Bannister In addition to Hankey Bannister, which has been available in the Gulf and parts of Africa for many years, in the last few years single malt Scotch has been developing a presence with retailers that want to build the category, for example Qatar Duty Free and Muscat Duty Free. “The development potential for our portfolio in Sub-Saharan Africa is also of great interest,” Bateman adds.

2011 so far has been very good, Bateman says.

At press time, Interbev received some very welcome news that certainly won’t hurt its global presence. The company carried off no fewer than 16 awards at the 2011

GULF-AFRICA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

W E N

South Africa is a standout market for Jameson Irish Whiskey

International Wine & Spirits Competition.

Hankey Bannister was well represented with four awards, including a Gold for Hankey Bannister 40 YO. The brands represented by the Edrington Group are well liked in the Middle East and North Africa, says Keith Bonnington, Area Director, Africa and Middle East. However, the leading brand is Johnnie Walker, although Bonnington says the evidence points to future growth in the deluxe range—Black Label and above.

“Many of the major Scotch brands— including Johnnie Walker and Chivas, which together hold around 60% Scotch volume share—suffered significant volume losses in 2009 and into 2010,” he says. Other categories, such as vodka and cognac, also suffered. “The Edrington Group portfolio on the other hand performed very well with The Famous Grouse and The Macallan dining at the top table in their respective categories.”

The market has been buoyed by a more stable economic outlook after a tough 2010, Bonnington believes. Generally, travelers are returning, and one indication Bonnington takes some comfort in is the recent announcement that Dubai Duty Free has exceeded last year’s growth by 16%.

Standard Scotch remains the volume leader, driven by its traditional blue-collar customer base, largely from the Indian subcontinent. A decline in this category over the past year could be a result of the sudden and dramatic shutdown of construction in the region following the global slump, Bonnington believes. The other backbone demographic shopping at the super-premium level is likely to be Asian or Russian and favors destinations such as Dubai and Abu Dhabi for business and leisure travel.

“Our portfolio has shown stunning growth in recent years,” Bonnington says. The Famous Grouse family, which now includes Black Grouse and Snow Grouse, is number three in terms of total blended Scotch volumes, with a 6.5% market share. The Macallan, meanwhile, commands fully 15% of the malt Scotch category. Bonnington 80

Editorial Highlights: • Feature Report on Asian retailers and top selling whiskies • Trend Report: An in-depth overview of the year ahead in the whisky category • Whisky News: What’s new and noteworthy • Tasting Notes: All the seasons must haves from some of the top whisky brands • Company Profiles: Highlighting the industry’s heavy hitters

S PECIAL R EPOR T: WH ISKY

ernod Ricard Asia Duty Free (PRADF) is a leader in the Asian travel retail and duty free market. While it covers the full range of channels in the duty free market, airports are definitely the main focus of activity, says John O’Sullivan, Marketing Director, Pernod Ricard Asia Duty Free.

As air travel is especially strong in Asia these days—and growing— 2011 was a good year, O’Sullivan says, with the business rebounding quite well from the lows of the 2008-2009 economic crisis. According to the research that O’Sullivan and his team have access to, the Asia travel retail market is actually growing at a rate that puts it ahead of global trends in terms of passenger numbers, but also by volume and in terms of the value of the travel retail business overall.

Asia presents quite a complex and varied mix when it comes to the combination of nationality profiles and preferences. It’s even more complicated when you factor in the amount of intraregional travel done by passengers of different nationalities. Koreans favor aged whisky, which puts Pernod Ricard in the sweet spot, with premium brands like Ballantine’s, Chivas Regal and Royal Salute.

The big emerging market in Asia is of course China, and with Chinese passengers traveling more and more throughout the region, the Chinese buyer’s preference for premium brands represents a real opportunity for Asian travel retail. Here, O’Sullivan says, whisky and cognac are among the keys to success. In addition to the whiskies mentioned earlier, the Martell cognac marque in particular is a leading brand for the Chinese consumer.

Shopping is an important part of the travel experience for Chinese travelers, O’Sullivan says. “They’re brand-conscious—a luxury consumer category is developing. Our presence is strong and our brands are well recognized, so we’re in a good position. It’s a matter of making sure that when Chinese passengers travel elsewhere in Asia, we engage them at strategic airports like Hong Kong, Macau, Singapore and so on.”

Promotions play a double role. Of course they bring in added sales, but they also play an important part in boosting brand profile. “We work both levels with special packaging, limited editions, new launches, exclusive products,” O’Sullivan says. “All of these

Whisky Report

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Promotions, messaging and experience keep these whisky leaders on top in a rising market ANDREW BROOKS

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The growing luxury market in Asia means there’s more growth ahead for Pernod Ricard in the region BY ANDREW BROOKS

ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2011

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At this time last year, the Martell Experience Boutique concept at HKIA and Kuala Lumpur—designed to showcase Martell’s unique combination of traditional, cultural and modern attributes—was making headlines for its high-end, educational offering.

O’Sullivan tells Asia Duty Free that over the last year Pernod Ricard’s expectations have been exceeded, both in terms of sales and making quality connections with travelers.

“Selling was never a primary objective for the Martell Experience Boutique as this is the role of main duty free shops in the airports,” he explains. “Having said that, we have had some good sales, mainly to Chinese and Malaysian travelers. More importantly from a sales perspective our overall performance in Hong Kong and Kuala Lumpur International Airports has been very positive since the boutiques opened. The growth has been driven by our Prestige range, which consists of Martell Cordon Bleu, Martell XO, Martell Creation and L’Or de Jean Martell.”

Given the popularity of both brown spirits and luxury offerings in Asia, Pernod Ricard is certainly in a good position going into the second half of the year with brands such as Chivas Regal, Royal Salute, Ballantine’s, The Glenlivet, Jameson and Martell. O’Sullivan asserts that outside this subcategory, vodka continues to show growth on a smaller scale, and Pernod couldn’t be happier with the innovations coming from the team at The Absolut Company.

“All of these brands appeal to Asian customers because they are leading brands, if not the leading brands, in the categories,” O’Sullivan concludes. “They are also all premium brands, most of which fall into the super premium and above categories, which is important to the Asian customer.”

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displays in key airports.”

Luxury leanings

SPIRIT

The Whisky Supplement is designed as the most comprehensive whisky source for the travel retail industry in Asia Pacific. With indepth reports on the biggest brands and up-and-comers alike, as well as unparalleled coverage on innovation and trends, there is no doubt that the Whisky Supplement will provide both buyers and suppliers with an inside perspective on the iconic spirit.

ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2012

A

SUCCESSFUL New for 2013, presents an exclusive Whisky Supplement that will have bonus distribution at the 2013 TFWA WE exhibition in Cannes. Whisky is the spirit to watch in duty free given its wide popularity with high-spending travelers like the Chinese and the emerging Indian middle class.

The new presentation of Hankey Bannister 21 year old “Partner’s Reserve” features an elegant black box, proprietary bottle and gold embossed label

Company News: Pernod Ricard

THE

notes the brand’s huge franchise in Asia, Russia and the US. “In the next few years I believe consumers will see some very exciting developments across our malt whisky range,” Bonnington says. In particular, The Macallan will see the introduction of new super-premium concepts.

At Cannes, Edrington Group will focus heavily on its super premium offerings, with the presentation of the latest Macallan in Lalique decanter and attention on reinforcing the travel retail exclusive 1824 range, Bonnington says. “We also have some interesting developments in The Famous Grouse,” he says. “And Cutty Sark is waiting in the wings.” Bonnington considers the latter a “sleeping giant,” destined to become a key player once again.

“The key message from us is that 2010 was a ‘signature’ year for Jameson,” says Donagh McHenry, Regional Director Asia Pacific, Travel Retail and Africa/ME. “We’re up 16% in the calendar year, and we broke the 3 million case threshold. That’s overall, but there’s the same momentum in duty free— we’re up 14% there.”

Within the Gulf-Africa catchment area, there are some markets that stand out for Jameson. South Africa is one such, McHenry says, with a high recognition level for the brand: sales into the domestic market totaled over 180,000 cases in 2010. On the duty free side, McHenry commends the ranging and distribution work done on Jameson, from Classic to Reserve, by Big Five Duty Free in Johannesburg and Cape Town. Jameson Signature Reserve, exclusive to travel retail, is also selling well in Big Five outlets.

The consumer streams in South Africa are threefold: South Africans, international travelers and those traveling within

Africa. While South Africa is Jameson’s standard bearer in Africa’s southern cone, McHenry sees signs that Angola and Mozambique are approaching critical mass in the region too.

In the Middle East the strongest market is Israel with domestic strength reflected in healthy duty free presence and sales. Lebanon is now benefiting from initial marketing and promotions.

Other emerging markets recently showing potential for Jameson in the region are Egypt and Morocco. No one will be too surprised to hear that Dubai is the key Gulf market, posting a muscular 24% growth in 2010—a trend driven by international travelers who play a significant role in Jameson's current global momentum.

On Jameson promotional activity, “we’ll do new global promotions every 18 to 24 months or so, as a rule,” McHenry says, highlighting the recent “Experience Our World” promotion, which has run globally from 2010 through mid 2011. On special editions for the Travel Retail channel, McHenry points to the Jameson St. Patrick’s Day limited edition bottle that was introduced in Europe this spring as a notable success.

For Cannes, Jameson will be focusing on its successes in 2010 and its ongoing promotions, including some new promotional concepts and special editions that will hit in 2012. “We’re still working out the details,” McHenry says, “but we’ll have a bit more detail on those plans at Cannes.”

The core offerings in The Famous Grouse range (left) and The Macallan 1824

GULF-AFRICA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

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New & Notable LIQUOR

ACCESSORIES

Botran Reserva Company: Ron Añejo Botran Description: Botran Reserva is a complex blend of rums that have been aged between five and 14 years where flavors of freshness and aging are masterfully harmonised. With the aroma of oak and slight note of vanilla, Botran Reserva is best enjoyed as the main ingredient in the most sophisticated list of cocktails Booth: Yellow Village G45

Set Clarisse Company: Secret Wish Description: This new set includes a chain, three pendants and a pair of matching earrings. Ideally priced without compromising on quality, each piece is rhodium-plated, handpolished and incrusted with the best quality crystals Booth: Ambassador Village U6

The Macallan Masters of Photography: Annie Leibovitz Edition Company: Edrington Description: Each bottle contains one of four unique The Macallan single malts, crafted to reflect the mood of the signed Annie Leibovitz print with which it is paired. The whiskies have been matured in different cask types to be completely original Booth: Green Village M53

Levi’s Range Company: Scorpio Distributors Description: The globally renowned original and authentic jeans brand now has a stylish range of watches, designed to reflect the brand’s values of innovation and reinvention, while retaining its heritage roots. The LTHO5 timepiece features a simple design in white, black or purple enhanced with Swarovski crystals Booth: Mediterranean Village P8

Ted Baker Squintessential Company: Mondottica Description: Squintessential is a recollection of vintage eyewear styles with a contemporary twist. The temple tips feature the new Squitessential symbol and a seven-pin barrel hinge that further adds to the vintage feel and look of the designs Booth: Red Village K30

Copia de Boka Company: Tequilera Corralejo Fraternity Spirits World Description: An unusual Mexican corn vodka presented in an attractive and unusual deep blue bottle, which has a twisted effect. Made of corn that was discovered in Mexico from the Spanish conquistadors Booth: Blue Village E1

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ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER 2012

CONFECTIONERY Butlers 125g Jameson Truffles Company: Butlers Chocolate Description: Creamy milk chocolate truffles delicately flavored with the distinctive flavor of Jameson Irish Whiskey Booth: Green Village L73

Company News: Estée Lauder

Skincare News Traveller signs PIA, Shiseido deals Traveller Limited, a renowned in-flight services company within the well-established 50-year-old Chalhoub Group, has two important announcements to make: it has begun providing its services to Pakistan International Airways (PIA) and has signed a distribution deal with Shiseido, the Japanese skincare and cosmetics company that is a fixture in the most exclusive skincare establishments.

Although Traveller is geared to airlines in Middle East, it also deals with non-Middle Eastern but regional based airlines. Traveller Limited’s General Manager, Rami Madi, says that two years ago it began servicing airlines based in Iran, both Mahan Air and Iran Air, followed by PIA this year. Part of Traveller’s strategy is to analyze the passenger profile of airlines before offering it specific products anyway.

“We are open to working with all the airlines in the Middle East and the Near East,” Madi says. “Doing business with PIA was just another step for us… we are confident our new associations will flourish.”

The Shiseido deal is pegged to distributing the well-known skincare and cosmetics company’s products on airlines in the Mideast. Shiseido, which is publicly listed,

started in Japan in 1872, and today operates worldwide, with centers in several European cities as well. It was born in Tokyo’s Ginza district as Japan’s first Western-style pharmacy, at a time when herbal

Americas Duty Free joins MAC at its Pop-Up Store in Soho to feel the power of its new Wonder Woman collection BY HIBAH NOOR

Shiseido Bio-Performance Super Corrective Serum

Shiseido Benefiance Wrinkle Resist 24 Day Cream SPF 15

medicine was the norm, founded by the 23-year-old chief pharmacist of a navy hospital, Arinobu Kukuhara. He picked the name from the famous Chinese book of fortune telling Yi Ching.

The addition of Shiseido to Traveller’s coterie of renowned products is another feather in its cap, as it continues to strengthen its reputation of being the preferred and

reliable choice for airlines in the Mideast region. It provides brands with support in terms of implementing a marketing calendar for the supplier and only offers products to airlines after identifying and analyzing passenger profiles. It also helps in designing and implementing onboard sales procedures and then monitors the performance of the product.

Estée Lauder introduces Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 Clinique introduces a new foundation that creates a flawless complexion, softening the appearance of lines and wrinkles immediately and over time, and working to prevent the visible signs of aging.

The new Clinique Repairwear Laser Focus All-Smooth Makeup SPF 15 incorporates Clinique's advanced patented technology from its powerhouse de-aging serum, Repairwear Laser Focus Wrinkle & UV Damage Corrector. The result is an ultimate de-aging foundation that softens lines and covers imperfections.

Repairwear Laser Focus All-Smooth Makeup SPF 15 is also formulated with ingredients that prevent and repair visible UV damage, one of the leading culprits of lines and wrinkles. This foundation addresses past UV damage, with Ultrasomes that grad-

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AC has unveiled an exciting new limited edition collection inspired by the legendary heroine Wonder Woman. The highly anticipated collection was recently presented to journalists invited to a special launch at the brand’s popular location in Soho, New York.

“The iconic super heroine reminds us that within every woman there’s the mighty Aphrodite full of courage, confidence and great charisma,” said James Gager, Senior Vice President, Group Creative Director for MAC, La Mer and Jo Malone Worldwide.

With its legendary new line up, MAC takes us on an exotic trip to Wonder Woman’s home of Paradise Island. Included in the collection is super-sized Mineralize Skinfinish, bold Eye Shadow quads, Pigment, Opulash, Lipsticks and oversized Lipglass, jumbo-big Powder Blush and Penultimate Eye Liner, Nail Lacquer and Lash inspired by the larger-than-life bold babe.

Channelling the iconic heroine’s beautiful Paradise Island, MAC’s PopUp shop was transformed with bright red furniture, Wonder Woman lookalike models for makeup demonstrations, Wonder Woman comic books and other bold, eccentric decor.

Giving journalists a peek into the behind-the-scenes development of the new line were representatives of MAC’s Senior Creative Team, including Gager, Jennifer Balbier, Senior Vice President, Global Product Development, Artistry Brands, The Estée Lauder Companies; and Toni Lakis, Vice President of Creative at MAC Cosmetics.

The super-size makeup, combined with red, blue, yellow and gold outer packaging, symbolizes the strength of the Amazon princess. As Gager explained, “The collection shows you the power and force of a woman. That’s one of the reasons that we feel this collection is even more relevant today.

We have this amazing powerful woman Michelle Obama who is changing style... the women of Estée Lauder, women who run iconic companies.”

“In this collection we were lucky enough to release our own comic,” continued Gager. “We worked with an outside illustrator and a writer and wrote a little story on Wonder Woman. The whole story line is that Wonder Woman arrives in her little jet and sees all these gray looking ladies and she’s really disturbed by this. She learns that Medusa has begun to capture all these ladies and is turning them into “plain Janes.” Wonder Woman arrives with her full collection of MAC Wonder Woman and uses her powers to make the world and women beautiful again.”

The collection works with every skin tone and can go from ‘uber’ intense to really sheer.

Accessories such as makeup bags come in red and bulletproof blue.

The range was being sold exclusively at the New York City Spring Street Pop-Up store from January 27 through February 10, when it debuted at all MAC locations in North America. On March 1, the collection was launched internationally, including travel retail.

M

ually and visibly help repair damage resulting from direct UV exposure.

A cocktail of ingredients works to minimize the appearance of damage. Whey Protein helps minimize the appearance of lines and wrinkles, while Siegesbeckia Orientalis Extract and Palimitoyl Oligopeptide help to plump up and fill in lines.

Supporting ingredients to protect the skin include Vitamin E to provide antioxidant protection and SPF 15 to help protect skin from future UV damage.

Taking a 360° approach to age prevention, Repairwear Laser Focus All-Smooth Makeup SPF 15 will improve the texture of the skin while working to prevent future damage. The foundation is available at Clinique travel retail locations in Europe, the Middle East and Africa.

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

From left: Toni Lakis, Vice President of Creative at MAC Cosmetics, James Gager, Senior Vice President, Group Creative Director for MAC, La Mer and Jo Malone Worldwide and Jennifer Balbier, Senior Vice President, Global Product Development, Artistry Brands, The Estée Lauder Companies

MAC’s Pop-Up store in Soho, New York

A glimpse of MAC’s limited edition Wonder Woman collection

THE AMERICAS DUTY FREE & TRAVEL RETAILING MARCH/APRIL 2011

New for 2013, presents an exclusive Skincare & Cosmetics Supplement that will have bonus distribution at the 2013 TFWA AP exhibition in Singapore.

Beauty Beat: Skincare & Cosmetics

Sun Care Milk-Lotion Spray SPF50+ and Sun Wrinkle Control Cream for Face SPF50+ by Clarins

SPECIAL REPORT: SKINCARE AND COSMETICS

Company: Essence Corp.

Description: Achieving a golden tan while preserving the long-term health and beauty of skin has always been the Clarins sun care philosophy. Clarins goes further with two new, high protection (SPF 50+) products for face and body, formulated to protect the most delicate skin in intense sunlight.

Launches spring 2011 in travel retail the Americas and the Caribbean

Extra-Firming Body Cream and Lotion by Clarins Company : Essence Corp.

Description: A complete skin care action to ensure youthfullooking body contours thanks to firming and replenishing benefits. Skin is soft, firm, hydrated and visibly younger-looking, with a choice of two different textures to satisfy all women whatever their preference, skin type or season. Launches in spring 2011 in travel retail in the Americas and the Caribbean

Rouge Pur Couture Company: Yves Saint Laurent, Parbel Description: A new-generation lipstick inspired by Monsieur Saint Laurent’s iconic color palette – red, fuchsia and orange – in a collection of captivating couture shades that offer each complexion a customized look.

Lips are saturated with intense, stay-true color, thanks to the Coloreveal Technology, while natural extracts provide comforting moisture that lasts all day

Facial Fuel Age Combat Company: Kiehl’s, Parbel Description: Facial Fuel Age Combat is a revitalizing oil-free moisture gel in an easilyabsorbed, lightweight formula made from a blend of active, naturally-derived ingredients that help to visibly firm skin under the neck and diminish the appearance of fine lines, while improving skin’s tonicity for a firmer, brighter and smoother appearance

New Absolu Voyage Rose palette

Belvada Mascara Noir Company: Belvada Cosmetics Description: Unlike conventional mascaras, with the new Belvada package the reserve product is never exposed to the elements, only the brush and the product on the brush are exposed. The bottle remains closed and the reservoir material is kept fresh.

The mascara is also pushed on to the brush via a plunger, this ensures that virtually all the mascara is used

Company: Lancôme, Parbel Description: The black lacquered collectible box decorated with a rose carries a concealer, powder compact, blusher, six eye shadows, a black khôl eyeliner and the Virtuôse mascara. For the lips the set contains three lipsticks and a mini lip pencil. To complete the compact there’s an extra-large mirror and four professional-sized accessories (a lip brush, an eye shadow brush, a powder brush and a powder puff)

Phyto Star Eyes Palette Company: Sisley Paris Description: The new “gun metal” version offers four luminous and dazzling shades that can be used alone or combined for a natural or more sophisticated look. The colors include white pearl, black star, silver moon and blue lagoon

Source Defense Serum Company: Bvlgari Description: This cell-energy booster is designed to neutralize the effects of aging at its source by preserving mitochondria, the sole source of cell energy. Combined with a powerful anti-oxidant, this high-performance anti-aging weapon preserves skin’s youthfulness capital

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The Skincare & Cosmetics Supplement is dedicated to bringing readers the most current news for all things beautyrelated. With in-depth reports on the biggest brands and up-and-comers alike, as well as unparalleled coverage on innovation and trends, there is no doubt that the 2013 Skincare & Cosmetics Supplement will provide both buyers and suppliers with an inside perspective on the shimmering category.

THE AMERICAS DUTY FREE & TRAVEL RETAILING MARCH/APRIL 2011

Company News: L’Oréal Consumer Products

The

right mix

L’Oréal Consumer Products makes inroads in the Middle East with a varied portfolio BY HIBAH NOOR ur major development in the Middle East has been getting The Body Shop brand into the airport stores,” says Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products. “In the Middle East we have introduced The Body Shop brand in some new countries like Jordan and Egypt and will introduce it in Lebanon very soon.

“The Body Shop is available worldwide in 150 countries.” The brand is also in the local market in 66 countries and in 2,500 standalone stores worldwide, Berger adds.

“We hesitated a little bit about what to put on the shelves at first,” Berger says, “but after a while we discovered that the retailers prefer the body butters and all the body products. This is the way to hook the consumers.”

The Body Shop brand is especially well suited for gifting, Berger says.

The “Create Your Own” concept, introduced last October, allows the consumer to create their own tailored gift set by picking two Body Shop products and then receiving a third complimentary product. The complimentary item can be a mini shower gel or mini body butter.

In addition to The Body Shop, L’Oréal Consumer Products handles Roger Gallet, Maybelline and L’Oréal Paris. The latter is a good partner for The Body Shop, according to Berger: in fact The Body Shop was first introduced to the Middle East market following on the success that the L’Oréal Paris brand enjoyed there.

“The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers,” he says. “The idea is to bring additional business to the operators.” Travel retail remains an ideal market for luxury products, and Berger believes that because more and more people are traveling, operators continue to need brands like The Body Shop and L’Oréal Paris to attract new categories of buyers and increase revenue.

L’Oréal Paris is number one in Jordan, but Dubai is definitely one of the most important Middle Eastern markets for the brand. It’s in all the terminals at the airport, and is backed up by 16 on-site beauty advisors. “We have huge promotions,” Berger says. “Most of the time it’s skincare because skincare is more successful than makeup at this airport.” There are a lot of Chinese travelers who transit through

“O

“The link between The Body Shop and L’Oréal Paris lies in the fact that they are two affordable brands which are in the airports to attract new consumers.”

A radiant p. glow

Jacques Berger, Travel Retail Marketing Director, L’Oréal Consumer Products

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GULF-AFRICA DUTY FREE & TRAVEL RETAILING NOVEMBER/DECEMBER 2011

Beauty Beat: Skincare & Cosmetics

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he core of the L’Oréal Group’s Lancôme brand is skincare, and at the moment the most important news in that line is the release of Visionnaire [LR 4212 4%] Corrector Serum. Based on molecular research that has uncovered what L’Oréal calls “a miraculous new molecule” – the LR 4212 in the product’s name – Visionnaire promises to rejuvenate skin, imparting finer texture, erasing wrinkles, reducing pigmentary and vascular irregularities and tightening pores.

“There is a reason, why we call it the ‘Fundamental Corrector’ – for a ‘New Vision of skin perfection.’ Upon application, one can immediately see the skin being transformed,” explains Stefan Lehner, Brand Director Lancôme for Travel Retail Worldwide, L’Oréal Luxe. “Such major scientific breakthrough in skincare does not happen every three months.

We are particularly excited about this skincare launch and are putting all our energy, creativity and excitement in this successful launch.

We are convinced that we can recreate a similar success story as we continue building with Génifique Youth Activator.”

The “miracle molecule” in Visionnaire 'self-propels' through the layers of the epidermis, to set off what Lancôme calls a series of tissular micro-transformations. The result, the company says, is that “skin becomes finer, wrinkles are erased, pigmentary and vascular irregularities are reduced and pores are tightened.”

The company’s researchers have always paid attention to the processes that plants use to repair themselves. When damaged, plants produce a “signal molecule” called jasmonic acid, which activates healing processes in damaged tissues and makes them more resistant.

The performance of the new Visionnaire LR 2412 4% product has been tested on Hispanic,

Visionnaire [LR 4212 4%] Corrector Serum

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The fountain of youth p.

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Skincare Report

Kiehl’s

L'Oréal breaks new ground with a revolutionary skincare product

Cellular Radiance Emulsion SPF 30

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New and renewed p.

Company News: L’Oréal Group

HIBAH NOOR

Cellular Eye Cream Platinum Rare

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Lancôme releases Visionnaire based on LR 2412 molecule

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

Editorial Highlights: • Feature Report: Asian retailers and the skincare category • Trend Report: An in-depth overview of the year ahead in cosmetics • Beauty News: What’s new and noteworthy • Cosmetic Guide: Seasonal must haves from top brands

Revitalift Repair 10 combats 10 signs of aging, including UV damage

Dubai, and they favor whitening products, and a lot of routines like toners and cleaners.

Revitalift is one of the top sellers, and its market momentum was reinforced with the recent introduction of Revitalift Repair 10, which combats 10 signs of aging, including UV damage. The Revitalift line also includes Revitalift Program, which Berger says is the number one SKU worldwide.

In addition to anti-aging products, mascaras are one of the strong suits for L’Oréal Paris, and the brand introduced two new sets at TFWA WE this year. Mega Volume Collagene 24 Hour introduced new collagen biospheres for added lash volume, boasting an expansion factor of nine in addition to its 24-hour effectiveness. False Lash Telescopic delivers lengthening in addition to a false lash effect, based on the linking and binding of 1.2mm microfibers to create a telescopic ladder.

At TFWA WE L’Oréal also introduced a new promotional tool for retailers that leverages digital technology and the Internet.

It features a large-screen monitor and enables digital marketing content to be controlled over the Internet.

“We can change advertising from our office in all the airports around the world,” Berger says. “We can adapt to the type of travelers coming through the airport: for example, for Dubai Airport if there’s a flight coming from China we can make sure that the advertising is in Chinese with subtitles.” The unit is already in use in Paris, with French, English, Chinese and Russian options. Germany will follow soon, and L’Oréal is already sizing up other promising venues.

Caucasian, Asian and Afro-American complexions. Lancôme says that the product can be used on all skin types, including sensitive skin, and on the eye contour regardless of the time of year or time of day. Besides the uniqueness and newness of the new molecule, Visionnaire LR2412 4% is proven to be effective on every type of skin and on all different skin carnations.

“We have tested the product on four different ethnicities, always with outstanding results. Visionnaire LR2412 4% truly is a transversal skincare innovation for each and every woman on this planet – particularly those who are currently not Lancôme skin care users. Third, the powerful molecule LR2412 has 100% tolerance – even around the eye contour – and is active on 100% of the subjects tested, which makes it perfectly suitable even for sensitive skin types,” says Lehner.

He continues: “Test results on Asian women are just amazing. They especially love the visible skin perfecting properties of Visionnaire LR2412 4%. This product integrates itself perfectly in the Lancôme skincare routine. One starts with Génifique to activate, then applies Visionnaire LR2412 4% to correct, before using one’s skin care cream(s).

“Exclusively for the Asian clientele we have developed in addition a Visionnaire Emulsion and Lotion, to offer a complete ‘Skin Perfection’ Routine,’” says Lehner.

The bottle design is inspired by a hightechnology mix of glass and metal, centred on a fusion of silver and malachite green.

The company’s skincare focus for September and October will be on Visionnaire. Apart from the regular POS and animation programs, it will use different visuals, i.e., testimonials with different ethnicities at the same POS in order to communicate that Visionnaire LR2412 4% truly is a product for every woman.

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KIEHL’S ANNOUNCES

radiant

“Travel-Tested Solutions”

glow BY

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

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

JAMES ROSS

Skincare’s vitality is far from fading in Asian travel retail

HIBAH NOOR

I

t is worth remembering that during the global economic downturn of 2009, duty free sales in Asia Pacific continued to grow. In the beauty category, the region has become a core revenue earner for the big houses, and investment has poured in, particularly in the skincare sub-sector.

After 2010’s strong rebound, 2011’s beauty performance in duty-free proved equally robust, driven by skincare. For example, at Nuance Watson (Singapore), which operates the beauty concessions at Singapore Changi Airport – one of the biggest duty free locations in the region – skincare grew at over 20%, faster than make-up or fragrance. In terms of beauty share, skincare saw a +2% gain and Senior Category Manager Chillie Por says: “We predict skincare will probably increase by a further +1.5%

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.

Yves Le Breton, Vice President and Sales Strategy, La Prairie

points. Skincare will remain a strong driver in 2012, in tandem with the healthy sales trend from PRC travelers, our number one tourist nationality.”

Nuance Watson (Singapore) has in place several exclusive launches in the pipeline including the arrival of Coty’s US skincare acquisition Philosophy in May and, at the high end, another SKII world exclusive launch in June, part of a larger program of in-store promotions and animations that keeps the sub-sector buoyant. www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

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Corporate

Another luxury skincare brand, La Prairie, is seeing demand at the top end. “Generally we can say that our most precious collections such as Cellular Platinum Rare, Caviar and White Caviar Illuminating Système are the top sellers,” says Vice President Corporate and Sales Strategy Yves Le Breton. “Our launches have done extraordinarily well because Asian consumers like new developments in skincare.

They understand the luxury and high tech approach of La Prairie.”

This has helped La Prairie to establish itself well in the region. “While five years ago Asian travel retail was 25% less than the travel retail business in Europe, it is now doing 25% more than in Europe,” comments www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

For more information on how to participate, please contact:

Hibah Noor

Ryan White

Kim Carrera

Melissa Silva

Editor-In-Chief

Concessions, Liquor & Tobacco Editor

Advertising & Marketing Manager

Associate Editor

T: +1 905 821 3344 x. 29 F: +1 905 821 2777 E: hibah@dutyfreemagazine.ca

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They sell as good as they taste

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