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SEPTEMBER/OCTOBER 2011 • V OL 15, NO 2
TFWA WE 2011
Big in China p.
18
Buy in the sky p.
24
Celebrating p. scents
44
E-cigarettes: The p. new alternative
59
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63
Letter from the Editor
Asian boom eporting on new developments and growth in Asia, specifically in China, is a task that never grows old. China Duty Free, for instance, the biggest retailer in the country, is moving forward with amazing speed. It is almost surpassing the growth of the economy with all the new openings it has planned. China International Travel Service, its parent company, will be opening the world's biggest duty free complex at Haitang Bay, on Hainan, an island province in China's far south. It is a region that the central government in Beijing aims to transform into a tourist magnet. The new complex will be between 350,000-square-meters and 400,000-square-meters in size and will house a mix of duty free and duty paid stores. In other big news, Hong Kong International Airport (HKIA) has opened the bidding
Asia Free Free && Travel Travel Retailing Retailing (ISSN (ISSN 1360-9548) 1360-9548) isis Asia published annually by Global Marketing published annually Marketing Company Company Ltd., Ltd., 26 26 Pearl Pearl Street, Street, Mississauga, Mississauga, Ontario Ontario L5M L5M 1X2 1X2 Canada. Canada. ItIt isis distributed distributed in in the the following following countries, countries, states, regions and territories on the Asian continent states, regions and territories on the Asian continent and in the Pacific Rim: Australia, Bangladesh, Bhutan, and in the Pacific Rim: Australia, Bangladesh, Brunei, Cambodia, China, Fiji, French Polynesia,Bhutan, Guam, Brunei, Cambodia, French Polynesia, Guam, Hawaii, Hong Kong,China, India,Fiji, Indonesia, Japan, Macao, Hawaii, Hong Kong,Islands, India, Indonesia, Malaysia, Maldive Myanmar,Japan, Nepal,Macao, New Caledonia, New Guinea, NewMyanmar, Zealand, Nepal, Philippines, Malaysia, Maldive Islands, New Saipan, Samoa, South Korea,Philippines, Sri Lanka, Caledonia, NewSingapore, Guinea, New Zealand, Taiwan, Vanuatu andKorea, Vietnam. Saipan,Thailand, Samoa, Tonga, Singapore, South SriPostage Lanka, is paid at London, England. Taiwan, Thailand, Tonga, Vanuatu and Vietnam.
The views expressed in this magazine do not necessarily The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or reflect Spring/TFAP the views and opinions of No. the 1. publisher or editor. 2008, Vol. 12, All rights editor. TFWA WE September/October Vol.or 15, reserved. Nothing may be reprinted in2011, whole in part without written permission from No. 2. All rights reserved. Nothing maythebepublisher. reprinted © & Travel Retailing. in 2008 wholeAsia or inDuty partFree without written permission from the publisher. © 2011 Asia&Duty FreeRetailing & Travel Retailing. Asia Duty Free Travel 26 Pearl Street Asia Duty Free & Travel Retailing Mississauga, Ontario L5M 1X2 Canada 26 Pearl Street Tel: 1 905 821 3344; Fax: 1 905 821 2777 Mississauga, Ontario L5M 1X2 Canada www.dutyfreemagazine.ca
Tel: 1 905 821 3344; Fax: 1 905 821 2777 PUBLISHER www.dutyfreemagazine.ca Aijaz Khan aijaz@globalmarketingcom.ca PUBLISHER Aijaz Khan
process for its core duty free concessions. The move is part of a major shake-up of the
aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT
airport’s travel retail operations and is likely to spark a fierce bidding battle between re-
EDITOR EDITORIAL HibahDEPARTMENT Noor hibah@dutyfreemagazine.ca EDITOR Liquor and Noor Tobacco Hibah Rick Lundstrom hibah@dutyfreemagazine.ca rick@dutyfreemagazine.ca ASIA ASSOCIATE EDITOR ART DIRECTOR P. Convery Patrick Balanquit padraic.asiadutyfree@gmail.com patrick@globalmarketingcom.ca
tailers vying for the contracts. Airport operator Airport Authority Hong Kong (AAHK) has called tenders for the liquor and tobacco, perfumes and cosmetics, and airside general merchandise concessions. The liquor and tobacco concession is currently operated by Sky Connection, while Nuance Watson (HK) runs perfumes and cosmetics and airside general merchandise concessions. The existing two concessionaires that operate the three categories have confirmed that they will bid again, but are expected to face competition from rivals, including Dufry, Autogrill, Lagardère Services Travel Retail and Gebr Heinemann. South Korean retailers, including Lotte Duty Free and Shilla Duty Free, are also expected to bid, along with Chinese retailers China Duty Free Group and Sunrise. Industry insiders are also predicting a strong showing by locally-based retailers DFS and King Power Group (HK). Bidding for the concessions closes on October 28 at 11 a.m. Hong Kong time. All in all, prepare yourselves for a busy season ahead in Asia! See you in Cannes. Kind regards,
CONCESSIONS,CONTRIBUTORS LIQUOR, & TOBACCO EDITOR Elizabeth Kerr Ryan White Lorna Strickland ryan@dutyfreemagazine.ca ART DIRECTOR ADVERTISING SALES Patrick Balanquit ADVERTISING & MARKETING MANAGER, patrick@globalmarketingcom.ca DUTY FREE TITLES, AMERICAS CONTRIBUTORS Beatrice Pitocco Andrew Brooks Tel: 1 416 908 1734 bpitocco@rogers.com James Ross Dan Ridout DIRECTOR OF SALES, DUTY FREE TITLES, EUROPE Meena Bedi ADVERTISING SALES Tel: +33 5 53702538 Mob: &+33 6 78343767MANAGER ADVERTISING MARKETING meenabedi@wanadoo.fr Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Teresa Garrity CIRCULATION & SUBSCRIPTION MANAGER teresa@globalmarketingcom.ca Deepa J
Hibah Noor Editor hibah@dutyfreemagazine.ca
6
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
deepa@globalmarketingcom.ca
18
SEPTEMBER/OCTOBER 2011
•
VOL 15, NO 2
Content 10 18 24
8
IN BRIEF HKIA issues three retail licence tender invitations ■ Nuance-Watson (HK) unveils Talika at HKIA ■ LATR’s work on the Parker and Guess brands confirms them as market winners ■ The Wandering Monkey is back in Cannes ■ New members and sponsors for MEDFA conference
TOP STORY: CHINA DUTY FREE
Big in China China Duty Free has a virtual monopoly in its huge home market. But that doesn't mean it's sitting on its hands
OPERATOR NEWS: KOREAN AIR
Buy in the sky Korean Air’s revolutionary Duty-Free Showcase opens a new front in the fight for inflight sales
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
28 34
OPERATOR NEWS: DELHI DUTY FREE SERVICES
Capital gains It's been just over a year since Delhi got an airport terminal fit for the seat of power in a major emerging economy. And the anchor retailer in its world-class T3 has wasted no time in profiting from a unique opportunity
OPERATOR NEWS: KING POWER GROUP
Betting big A renovation program in the casino enclave of Macau seems to have prompted King Power (HK) to take a serious punt on expansion. Asia Duty Free spoke to the group's Travel Retail & Duty Free Managing Director, Sunil Tuli
24
36 38 42
AIRPORT NEWS: CHANGI AIRPORT GROUP
Singapore zing Changi Airport Group's retail record over the past 12 months is enviable - again. How does the airport operator do it?
COMPANY NEWS: L’ORÉAL GROUP
On the radar From exhibitors to brands to attendees, Asia Duty Free has your inside scoop on what’s in store for some of this year’s leading brands
COMPANY NEWS
Lancôme releases Visionnaire based on LR 2412 molecule L'Oréal breaks new ground with a revolutionary skincare product
44 45
BEAUTY BEAT: FRAGRANCES
Celebrating scents
46 52 56 58
Introducing the newest fragrances for the season
BEAUTY BEAT: SKINCARE & COSMETICS
The allure of beauty
60
34 COMPANY NEWS: FERRERO
Global appeal For Ferrero Travel Market, standardization and localization make a great mix
ASIAN FAVORITES
Supply and demand When the Asia market declares a preference, travel retail’s market makers take note
COMPANY NEWS: DIAGEO
A powerhouse in the making Sales of Shui Jing Fang in Asia travel retail have tripled in the past two years, and if Diageo has any say in the matter, this is will be the beginning of a much longer success story
REVITALIZING TOBACCO
Changing times The tobacco industry balances growth, regulatory restrictions and social responsibility
NEW & NOTABLE Kilbeggan 18 Year Old ■ Davidoff Chinese New Year pack ■ Chupa Chups Travel Tin
Cutting edge creams and colorful cosmetics promise to deliver optimum results for traveling consumers
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
9
In Brief Airport Authority Hong Kong has invited in- Tracking Survey for April 2011, over 70% of medium-priced popular brands. terested duty free operators to participate for passengers at HKIA are Asian, of which 27% Furthermore, 84% of the discerning, high-net anchor retail tenders including the airside gen- are from the Chinese Mainland.
worth passengers are tertiary educated and
eral merchandise, the perfumes and cosmetics, The outlets for airside general merchandise 55% of them are professionals, managers, execand the liquor and tobacco concessions – at demonstrate a high penetration rate of 75% utives or proprietors. The corresponding high both Terminal 1 and Terminal 2 of Hong Kong with customer spending of HK$888 (US$114) spending ability of this passenger group offers International Airport (HKIA).
on average. A balanced mix of high-end and solid business prospects for potential busi-
Comprising 10 to 15 outlets with sizes from 20- medium-priced brands is designed to cater to nesses. square-meters to over 750-square-meters for the diverse customer demand.
HKIA is one of the world’s busiest international
each tender licence, these three anchor tenders Meanwhile, customers spend HK$1,050 airports, with passenger volume up 8% year on comprise one of the biggest invitations ever in (US$135) on average on perfumes and cosmet- year to over 52 million passengers in the 12 HKIA since the airport opened. Most of the ics with a 50% penetration rate, reassuring the months ended on July 31 this year. Passengers tendered outlets are located in the restricted growth with sophisticated demand for both would spend over four hours at HKIA with an areas on Level 5 and 6 of the North Satellite breadth of desirable brands and depth of prod- average shopping spending of approximately Concourse and SkyPier in Terminal 1, with one uct offerings within individual brands. store located in Terminal 2.
HK$1,118 (US$143) per person per visit.
As a key attraction amongst HKIA’s visitors, The tender will close on October 28, 2011 at
These three licences (airside general merchan- liquor and tobacco shows a 46% penetration 11:00 a.m. Hong Kong time. For details visit dise, perfumes and cosmetics, and liquor and rate while customers spend HK$608 (US$78) “Tenders & Notices section” at www.hongkontobacco) offer incomparable business opportu- on average on the category. A positive accom- gairport.com or call +852 2183 3326, +852 nities at HKIA. According to HKIA Retail panying demand is seen for luxury and 2183 3072, +852 2183 3296 or +852 2183 3208.
Nuance-Watson (HK) unveils Talika at HKIA Nuance-Watson (HK) announced the launch of leading French skincare specialist, Talika’s new Light Duo technological skincare system, at Temptation Duty Free shops at Hong Kong International Airport (HKIA). Light Duo is an innovative blended product that satisfies users’ growing demand for a top quality solution to their whitening and anti-aging needs.
Talika’s new Light Duo technological skincare system
This is the first time that Nuance-Watson (HK) has showcased such an advanced technology-based beauty treatment device at its Temptation Duty Free shops. In further enhancing the launch’s vital initial impact, Nuance-Watson (HK) and Talika have pioneered a slate of innovative marketing activities targeted at both HKIA passengers and the airport community as a whole.
To this end, those who work at the airport will be invited to come and learn about Talika at the tailored workshop for the travel retail industry. At the consumer level, Nuance-Watson (HK) has set up eye-catching promotional area at Temptation Duty Free shop. In addition to introducing products to passengers, a helpful Talika skincare specialist will be on hand and giving out attractive promotional offers. At the same time, beauty advisors at Temptation Duty Free shops are standing by with up-to-the-minute Talika technologies and product knowledge. continued on pg 14 10
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Malaysia Airports (Niaga) Sdn. Bhd. (281310-V) (A Wholly-Owned Subsidiary of Malaysia Airports Holdings Berhad) 3rd Floor, Airport Management Centre, KL International Airport, 64000 KLIA, Selangor Darul Ehsan, Malaysia. http://eraman-malaysia.klia.com.my www.eramandutyfree.com
12
ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2011
Where Else But Eraman! The Premier Name In Travel Retail & Duty Free in Malaysia
ItÂ’s only natural if you prefer to shop with us. Given our amazing variety of products, competitive prices and attentive service, we promise you it will be a travel retail, fashion and F&B experience like no other!
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
13
continued from pg 10
“At Nuance-Watson (HK), we always aspire to bring to our passengers at HKIA exciting and innovative products,” says Lay Leng Tan, General Manager for Perfumes & Cosmetics, Technology, Nuance-Watson (HK). “As the airport’s leading retail operator, we also do everything possible to entice people who work in the airport with unprecedented privileges. The Talika launch is the latest example of how we are continuing to work closely with brand and vendor partners to deliver on these goals at Asia’s premier transportation hub.” she added. Talika’s award-winning Light Duo is an LED-based therapy device that harnesses the power of light wavelengths to resolve common skin concerns. Its attractive and compact design is easy to use, small enough to pack in hand luggage and easy to recharge. In launching the product at HKIA, Talika is adding other star items to the personal care range that currently includes the Lipocils unique treatment for eyelash growth, Bust Serum and Hand/Feet Therapy treatment. In making such best-selling technology-based high-performance skincare devices available at HKIA, Nuance-Watson (HK) is proud to add yet another dimension to its unrivalled beauty product range.
14
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
LATR’s work on the Parker and Guess brands confirms them as market winners Les Accessoires Travel Retail (LATR) has been very busy lately getting the Parker and Guess brands into more airport locations. International Director David Dayan reports that Parker setups are rolling along nicely with six to eight new openings a month and an overall increase of 38%. More than 50 new points of sales have opened in eight months in the Americas, in locations such as Seattle, New York, Washington, Montevideo and Miami. “These first implantations showed a sellout of more than 88%,” Dayan says. And with the recent “Parker 5th Technology” launch, he adds, further rapid growth seems assured. continued on pg 16
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
15
Parker’s “5th Technology” system promises to drive category growth
continued from pg 14
The first half of 2011 has been very positive for the European territory and MEA, Dayan says, enumerating just some of the successes: contracts with Dufry Group in Moscow, Saveria in Vienna, Dee Tax Fashion in Beirut, Aer Rianta in Greece, Zainab Ltd. in Pakistan, Iraq Duty Free in Iraq, etc. For the second half of the year, LATR will focus on developing Parker’s presence in Asia even further. The brand is already firmly and very visibly ensconced in signal locations such as Hong Kong, Singapore and Bangkok, but LATR
wants to get the most out of other markets in the region such as the Philippines, China, Taiwan, Malaysia and Indonesia. After signing a distribution agreement with Guess Jewelry in March, Dayan is happy to announce openings at airports in Moscow, Montevideo, Panama, Sharjah, Punta Cana, Manila, Kuala Lumpur, China and more. To help maintain the momentum, LATR will be showcasing Guess Fall 2011 and Spring 2012 jewelry collections in Cannes.
“LATR, with its team, will continue to strengthen our presence with new openings throughout the global travel retail market,” Dayan says. “In addition to keeping up the pace of openings for Parker and Guess in airport duty free locations, for 2012 we’re working on special collections of each brand that we’ll be taking into the inflight and cruise markets.”
The Wandering Monkey is back in Cannes This year the Wandering Monkey will have a new stand, which will be unveiled at the TFWA show in Cannes. It will be the start of a new adventure for Wandering Monkey followers and will show the company’s dedication to providing products that are educational, fun, interactive and portable for boys and girls from three years and older, and tailor made with travel retail in mind. Wandering Monkey will be launching a selection of games and gifting items to sit alongside its Activity Pack and coloring/stickers range of products, all with the traveling child in mind. Working in partnership with customers has been a key strategy of the company for 2011 and one that they intend to continue in 2012 and beyond. One example of this is the joint promotion with Condor Ferries this year in their summer brochure. Using the colorful vibrant graphics associated with the Wandering Monkey, the company has supported games and fun for kids onboard as well as a coloring competition for all the children to get involved in. Having won the recent Airline Retail Award at ARC this year for the most promising supplier to inflight retail, the Wandering Monkey invites buyers to visit at Marine Village S4. For more information contact Jonathan Corbett on +447786 950139 or email him at sales@wanderingmonkey.com
16
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
F O R I N F O R M AT I O N , P L E A S E C O N TA C T : T R A V E L . R E TA I L @ TO M M Y. C O M
Regional Report: China
China Duty Free stores in Hangzhou airport
Big in China By P. Convery
A
China Duty Free has a virtual monopoly in its huge home market. But that doesn't mean it's sitting on its hands
s China's turbo-powered
350,000-square-meters and 400,000-square-
cafes. We're talking with the brands and an-
economy
meters in size and house a mix of duty-free
alyzing budgets and many other things, so it's
and duty-paid stores.
very complicated.
continues
to
surge ahead, the country's biggest duty-free retailer is
It will be located at Haitang Bay, on
"We'll be making an announcement at
doing more than just grow-
Hainan, an island province in China's far
[the TFWA World Exhibition in] Cannes," he
ing with it. That retailer - China Duty Free
south that the central government in Beijing
says.
Group - looks set to steal a march on the
aims to transform into a tourist magnet to
Apart from retail and F&B, Chen says the
economy that's supporting its rapid expan-
rival the likes of resort destinations in Thai-
complex will also include a luxury brand ex-
sion. The Chinese economy is widely ex-
land and South Korea - although with dis-
hibition area and a designer hotel. He says
pected to become the world's biggest
tinctly Chinese characteristics.
the opening is planned for 2013 or 2014.
sometime around 2020, but more than half a
"The size of [the] Haitang Bay [complex]
Opening such a large project may strike
decade before that date, China Duty Free
hasn't been decided yet," says China Duty
some as overambitious, but CDFG has good
Group's parent company, China Interna-
Free Group (CDFG) Vice-President Charles
reason to be bullish. The retailer already op-
tional Travel Service, plans to open the
Chen. "It will depend on the requirements of
erates a 7,000-square-meter duty-free retail
world's biggest duty-free complex.
the different brands, and on those of the local
complex in the city of Sanya, also on Hainan,
partners for things like restaurants, bars and
which has proved to be a huge success.
The new complex will be between
Regional Report: China
Customers waiting for China Duty Free to open doors at the Sanya Complex
CDFG put the finishing touches to its Sanya Galleria in September last year, in anticipation of a change in China's duty-free rules that have seen sales there go through the roof. On April 20, that change arrived - a tax rebate scheme allowing mainland Chinese visi-
of the complex from 5am and more than 60,000 cramming into it on the third day alone.
those airports. CDFG first adopted this approach at
Chen expects strong sales to continue, thanks
Hangzhou's Xiaoshan International Airport
in part to the school holiday season, and says the
just over a year ago, and Chen regards it as
brands sold in the complex have enjoyed a sub-
both a success in its own right and as a step-
stantial boost.
ping stone on the way to securing more multi-
tors to the island to save up to 35% on
"The brands - especially the luxury brands -
domestic-market prices when purchasing at
are very satisfied," he says. "Just a few years ago,
"In the past we operated only some of the
CDFG's Sanya complex.
store concessions.
they were very reluctant and very hesitant about
duty-free shops [at Hangzhou], and the duty-
The response among consumers was imme-
[listing in] our shop [in Sanya], but now they're
paid and other retail and F&B were operated by
diate and overwhelming, and CDFG Marketing
very active and interested, and asking whether it's
other retailers," he explains. "This produced dif-
Director Antonio Hau admits the retailer wasn't
possible to supply their products to our shop.
ferent styles of decoration. We told the airport au-
prepared for such an onslaught.
Now they realize that the purchasing power of
thority it wasn't good for the duty-free shopping
"There were so many people that we had to
Chinese people is real, and that it's just amazing."
and that it would be better to expand our deco-
close the shop temporarily to limit the number
Even though Hainan continues to be one of
ration in a higher-class way. Now, under just one
of customers in it," he says. "The level of sales ab-
CDFG's main areas of focus, the retailer has been
operator, we've been able to use the same decor,
solutely surprised us."
no slouch when it comes to pursuing growth op-
the same colors and the same sales staff, and it's
portunities in other parts of China.
now a beautiful airport.
And the sales surge has proved to be more than just opening-week excitement, with contin-
One of its business strategies is to target air-
"Hangzhou has been very successful, and the
ued strong demand and a May Day holiday that
ports in China's so-called second-tier cities, and
airport authority has seen that CDFG can do not
saw lines of shoppers waiting outside the doors
to bid for the entire airside retail proposition at
only duty free, but also duty paid and F&B as well.
Regional Report: China business must have its limits. So how does the retailer propose to overcome the organic barriers to further expansion as its airport portfolio becomes more developed? One answer seems to lie in China's much-vaunted high-speed railway revolution. With nearly 10,000km of track, China already has the world's longest high-speed rail network, and the government plans to more than double its size by 2020. And with tickets priced at about half the cost of most airfares, fast rail is already becoming a popThe bustling perfume and cosmetics area by the cashier in the Sanya Complex
ular alternative to flying. CDFG hasn't missed this, and Chen says its first travel-retail stores on the high-speed rail network
That's changed other airports' [attitudes to
"[Those] other airports will also be likely to
the single-operator model], too, like at Nanjing,
pursue [the single-operator] arrangement, be-
"We're investigating opportunities in venues
where we do everything - duty free, duty paid
cause now they realize that CDFG can do it all,"
such as railway stations," he says. "On the high-
and F&B," Chen says, referring to CDFG's re-
he says.
speed railway and in airports, the customers are
cently launched operations at the city's Lukou International Airport.
Chen emphasizes that CDFG's approach to this business model has been based on creating
Chen says CDFG is pursuing a similar strat-
a better airport experience for passengers rather
egy at the yet-to-be-named new international
than just a single-minded focus on the bottom
airport in the southwestern city of Kunming.
line.
should open in August.
the same - they're in the upper income bracket and they're people that travel a lot." It's on that upper income bracket that CDFG has set its sights. "Next year, China may become the world's
"We've just signed an agreement to run all
"It's been very important to tell the airports
the retail - duty free and duty paid - in interna-
that we really want to help them," he says. It's
The country has already overtaken the US,
tional departures," he says. "We'll sign the actual
not just about generating money for our com-
previously the second-biggest luxury market,
contract very soon. The new airport [in Kun-
pany - we want to help them improve every-
and now stands behind only label-obsessed
ming] is very beautiful - maybe even better
thing in the environment in [the passenger]
Japan. It's a development that, despite giving a
than T3 in Beijing. And it's bigger. It should of-
areas. We try to convince them that we can do
huge boost to CDFG's business, Chen finds
ficially open on January 1, and that's when our
better, and that as a result of the profits will also
hard to fathom.
stores will open there, too."
be better than before."
biggest market for luxury goods," says Chen.
"We can't understand why people are so
CDFG has also signed a strategic coopera-
He says that as airport operators in coun-
crazy for those things - even me, and I'm selling
tion agreement with Dalian's Zhoushuizi Inter-
tries such as China and other rapidly develop-
these goods," he explains. "People see a logo and
national Airport. Chen says the retailer will be
ing economies begin to appreciate the potential
say, 'Yes, I want that'. I really can't explain why!"
taking part in "some form of partnership" in
of non-aeronautical revenues, "we're on the
For a fast-expanding duty-free retailer with
the northeastern city's airport, adding that it is
edge of quite a big change in the airport busi-
a virtual monopoly in a turbo-charged econ-
in discussions with other airports in the cities
ness."
omy where travelers' spending power is soar-
of Chongqing, Xian and Chengdu.
Yet surely all this growth in CDFG's airport
ing, it must be a vexing problem to have.
Operator News: Korean Air
Buy in the sky Korean Air’s revolutionary Duty-Free Showcase opens a new front in the fight for inflight sales By Andrew Brooks
E
veryone had to push themselves
and engineers aircraft interiors, and of course
have been its key contributions to the inflight
to the limit,” says Heather Cho of
Airbus Industrie. Much of the design and devel-
store project.
her brainchild. The Senior Vice
opment work took place at the main Airbus fa-
Sebastien Guesney, who was Scental's Retail
President of the Catering & In-
cility in Toulouse, in addition to the outfitting of
Design and Merchandising Director during the
flight Sales Business Division of
the A380 prior to delivery.
six-year development process, recalls the role
Korean Air was the person who initially con-
“The challenge was enormous: create a de-
ceived of an inflight Duty-Free Showcase located
sign that was compact but still offered a genuine
aboard the carrier's massive Airbus A380 airlin-
consumer experience,” Cho says. “Korean Air
ers. After several years of development by a con-
had to think like a boutique retailer, Airbus was
sortium of partners from around the world, the
to accommodate the first real boutique on
first Duty-Free Showcase took flight on June 17
board, and AIM Aviation, the engineer
this year.
maximize the limited space available.
and manufacturer, had to de-
Duty-Free Showcase means that, for the first
velop numerous technical
time in history, passengers can browse a product
innovations to allow this
showcase while en route to their destination. The
whole novelty to fit within
concept was unveiled in a dramatic mockup dis-
the extremely rigorous technical
play at the TFWA Asia Pacific exhibition in Sin-
and safety requirements of the in-
gapore in May, a few weeks before the first
dustry.”
Duty-Free Showcase took to the skies aboard a
Korean Air approached Scental
KAL flight from Seoul’s Incheon International
to handle the design of SkyShop
Airport to Tokyo Narita International. The flight
because of its known expertise and
was flown by the first of KAL’s planned 10
experience in the luxury market
A380s, just days after the airline took delivery of
and retail design. Scental was
the airliner at a ceremony at Airbus headquarters
quick to sign on, immediately see-
in Toulouse, France.
ing the idea's huge potential.
Cho came up with the Duty-Free Showcase
“It is clearly the first time an
idea in 2005, the same year the Airbus A380
airline is investing so much cre-
made its maiden flight. As you might imagine,
ativity and time to propose such a
the steps that had to be gone through in design-
new experience to its customers,”
ing Duty-Free Showcase, and the number of
says Olivier Dubois, former
partners who had to work closely as a team to
L’Oréal Luxury Products Interna-
make the idea a reality, made the project a daunt-
tional Asia/Pacific Travel Retail Division Scen-
ing one.
tal General Manager. “We are really proud at
In addition to Korean Air, primary team
L'Oréal to have been considered the best part-
members included Scental – the L'Oréal Luxury
ners.” Dubois considers Scental's knowledge of
Products Division Travel Retail Asia Pacific –
travel retail, especially when it comes to cus-
AIM Aviation, an English company that designs
tomer behavior and category management, to
24
that Scental played in devising the best way to
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
The ‘dovecote’ fragrance display: the wall behind each shelf is sold as advertising space
Operator News : Korea Air
The inflight boutique maximizes every available square foot of space
“Our first input was in the architecture it-
AIM Aviation, explained some of the details
self,” he says, “defining the Duty-Free Show-
of Duty-Free Showcase to aviation magazine
The Duty-Free Showcase will be aboard all
case and all its technical constraints with
airliners.de at Aircraft Interiors Expo in Ham-
ten of the A380s that Korean Air has on order.
Airbus cabin definition and engineering team
burg in April. Whetter noted that the Duty-
The initial service to Japan has started to be
in Toulouse, France. Then we studied the cat-
Free Showcase in fact consists of five separate
complemented by flights to Hong Kong and
egory management in detail, to ensure the
units, each weighing about 130 kg (286 lbs.)
New York, after which Paris and Los Angeles
best and most attractive product catalog
and capable of storing some 30kg (66 lbs.) of
will be added.
would be visible and palpable.”
are brought to them later in the flight.
product. Each unit has a dedicated purpose.
The launching of the inflight Duty-Free
Duty-Free Showcase offers five main cate-
One consists of nine LCD screens which can
Showcase comes at a time when inflight duty
gories of display items: perfumes, liquors,
be used, for example, to display a ‘brand of
free sales for Korean Air have been struggling.
cosmetics, accessories and health supple-
the month’ promotion depending on which
After an uptick in the first half of 2010 occa-
ments. Items for sale are selected from the
brands have promotions planned.
sioned by a rise in passenger numbers, sales
best-selling products in Korean Air’s duty free
Another ‘dovecote’ style unit holds and
fell off in the latter part of the year and have
catalog. At the moment, perfumes and cos-
displays fragrances. This consists of 24 small
continued soft through 2011, Cho says. Ko-
metics account for about one-third of Korean
shelves, each of which can hold a sample. The
rean Air attributes this at least in part to in-
Air’s inflight duty free sales, while liquor ac-
back facing can be sold as ad space. There’s a
discriminate promotion on the part of
counts for about a quarter.
liquor unit, and dedicated units for particu-
airport duty free shops, which have eroded
Duty-Free Showcase has enough room to
larly high-value items like watches and jew-
the inflight business. The monthly revenue
display up to 54 items in full view. Alcohol
elry, where the products are displayed behind
has gradually decreased since June 2010 and
products are available in limited amounts,
clear PPSC (polyphenylsulphone) plastic
the slump is still continuing, the airline says.
and Duty-Free Showcase does not feature any
doors. The staircase from the upper deck en-
Nonetheless, Duty-Free Showcase repre-
tobacco goods. A cabin crew member is as-
ters the Duty-Free Showcase space between
sents an imaginative new step for inflight
signed to work sales in Duty-Free Showcase,
the liquor and cosmetics units.
duty free, one that KAL, which leads the
while traditional inflight catalog sales con-
Passengers can browse, try samples if they
global market in inflight duty-free sales,
tinue to be offered by cart as usual in addition
want, and then place their order with the
hopes will create a substantial new revenue
to Duty-Free Showcase.
cabin member staffing the counter. They re-
stream in addition to offering a totally new
turn to their seats and their bagged purchases
approach to the inflight market.
Chris Whetter, Sales/Project Director for
26
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Operator News : Delhi Duty Free Services
By P. Convery
Delhi Duty Free Services celebrates its first birthday in Terminal 3 of Delhi International Airport Ltd.
It's been just over a year since Delhi got an airport terminal fit for the seat of power in a major emerging economy. And the anchor retailer in its world-class T3 has wasted no time in profiting from a unique opportunity
D
elhi Duty Free Services (DDFS) may be just over a year
"It's making sure we have everything right with what we're operating
old, but it's come a long way in a very short time. The
at the moment and that all our ducks are in line when it comes to meeting
retailer - a joint venture between Aer Rianta Interna-
the customers' requirement in service, speed, efficiency and product
tional (ARI), local retailer Indian Duty Free Services
ranges," he says. "And likewise with our suppliers - making sure they're
(IDFS) and airport operator Delhi International Air-
getting the exposure that's been agreed and the presentation and the
port Ltd (Dial) - celebrated its first birthday in Terminal 3 of the Indian
branding, making sure they're getting exactly what's required."
capital's Indira Gandhi International Airport at the end of July, and it's
O'Connor says that India's reputation has sometimes suffered as a result
now looking to consolidate the stellar gains it has made since it burst onto
of shoddy business practices, and that reliability and consistency are the
the Indian travel-retail scene.
key foundations on which to build a strong duty-free business in the coun-
DDFS Chief Executive Steve O'Connor says: "Two or three months
try.
back, there was phenomenal growth the whole time. Now it's tapering off
"With our suppliers, it's important that what has been agreed is also
a bit, so we're getting a bit of breathing space, but up until then we were
honored," he says. "The same goes for our customers - it's important that
just chasing our tails the whole time.
they get used to the products being there and that those products are ex-
"Like most stores, you open and you get the surge, because it's all new and exciting and everybody wants to see it," he says. "[A reduction in sales growth] is almost inevitable. It's not that sales growth is stopping, by any means, but it's tapering off and we're getting to grips with the volumes and we're more at ease with the levels of expectation." O'Connor says that now the business has begun to settle down after its frenetic first year, the priority is fine-tuning.
28
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
actly the same as they are everywhere else in the region. It's very important that there are no discrepancies and that they're of the same standard." He says the fact that T3 is so well designed has been a major boost to DDFS's business. "If you'd seen Delhi a few years ago, the shop looked like a cold store. It didn't matter what they had on the shelves, you didn't trust it, you didn't believe it, no matter what they told you. So you just bought elsewhere.
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Operator News : Delhi Duty Free Services
`"[But] the new T3 is spectacular. The whole focus right through is
"There's no point going charging over the hill if you're not too sure
really good. The longest walk for passengers is from duty free to the gates
what's on the other side. That's why I'd say our approach here has been
- everything else is pretty close together. You get into the airport and
calculated. Linking up with our local partner, IDFS, which has been op-
check-in is right in front of you, then Immigration and Security are di-
erating here for a number of years, has been a benefit because they know
rectly behind that, and straight ahead is duty free. It's maybe 100 meters
the local market and likewise with Dial, the airport operator."
from check-in to the duty free, so that helps us. And also, people can look into duty free while they're waiting at Immigration and Security. They have a view into the entrance of the duty free area, so that helps build anticipation and it whets travelers' appetites a little bit."
And O'Connor says the passengers aren't the only ones on a learning curve. "We're still trying to better understand the mentality of the Indian consumer and all the nuances we need to come to terms with that don't
O'Connor says another underpinning of DDFS's success at T3 has
necessarily hold true elsewhere," he explains. "They're simple things,
been, quite simply, awareness of the quality of the new duty-free oper-
like the fact that people don't buy tobacco when their kids are with
ation.
them, because they don't want to encourage them to smoke. It's also
"The key element is that you have individuals knowing that we have
like that with alcohol, to a degree. We wouldn't have an issue with those
an airport of international standard and duty free of an international
things in the West, but here these are things that people look at differ-
standard here in Delhi," he explains. "It's a learning curve for people
ently. These are the types of things we need to come to terms with."
who are so used to not having it. When they travel from Delhi T3 the
He observes that another key difference between the Indian duty-
first time, obviously they're not too sure of what's in arrivals, so you lose
free market and those in other countries is the importance of the arrivals
sales [among those first-time T3 travelers]. But more and more we're
business.
seeing our arrivals business growing as travelers become familiar with
"It's just the sheer volume that Indian travelers buy in arrivals," he
it. That's made our arrivals business almost as big as our departures
says. "There are allowances, but the vast majority of people use up their
business."
allowances because the [domestic market] duties are just so high. And
Asked if DDFS has taken a bold approach to launching its operations
there's always that feeling when you're shopping downtown, that you're
at T3, O'Connor laughs and says: "I'd say 'calculated'," adding that the
never too sure whether what you're buying is a legitimate product or
retailer didn't rush into its new and relatively undeveloped market.
whether it's counterfeit, so there's an emphasis on having that duty-free
"The key is waiting for the right moment," he says. "For the right op-
stamp, indicating quality and authenticity."
portunity and linking up with the right partners, who, going forward,
O'Connor says that in the time DDFS has been operating at T3, in-
will bring value to the table, rather than jumping in too quickly only to
creasing awareness of the new retail proposition among Indian travelers
find that it doesn't work or that you don't have the right partners or the
has given the retailer scope to develop the nature of its offer, encouraging
right facilities.
its customers to trade up and try new products.
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Operator News : Delhi Duty Free Services
DDFS Beauty Festival
"Indian consumers have spare cash now, and opportunity, and are no longer so restricted in their buying behavior because they can't afford
He's candid about DDFS's plans to grow its business in other airports in India.
things," he explains. "If [for example] you only have Johnnie Walker
"Our objective is to use DDFS as a springboard for launching other
Black [Label], they'll all drink that, so it's about giving them alternatives.
operations by showing the airport operators that this is the standard we
They're eager to try new things. And it's also a matter of prestige,
can provide," he says. "We're looking at all the main airports as oppor-
which revolves not just around the family but also around work and
tunities come up. People can come in and have a look and see that we're
friends and people's social networks. It's a part of showing your success
not just talking the talk but actually doing it. That's one of our strong
and your ability and part of a desire to move up, as well, and get the lat-
selling points. And that's particularly true here in Delhi, even in terms
est and the newest.
of just getting our products here. Other airports are near the sea, but
"To separate yourself from the herd in India is difficult, because the
we're inland, so the logistics are an even greater nightmare [than for
herd is huge. So anything you can do to advance your image or prestige
other airport retailers]. But even with all of that, we're still achieving
or social standing is always beneficial, and trading up is one way of doing
substantial growth.
that. With things like alcohol, there are some things that people at a
"So we have that in our back pocket when we're talking to [airport
middle-class level can afford to move up to, in order to give themselves
operators]. We can play the ARI and the ARI Middle East card as well.
that element of prestige and status."
From a regional perspective we have very strong local partnerships. We
If Delhi's international airport now offers an opportunity for Indian travelers to set themselves apart from the crowd with prestige purchases at DDFS's store, surely status-minded travelers in Mumbai, India's commercial capital, with its mix of Bollywood flashiness and deeply flawed modernity, are a fertile market for more of the same. O'Connor says the duty-free offer at Mumbai's Chhatrapati Shivaji International Airport would probably be more like that at Delhi if the
also have IDFS as a strong local partner, and that can support us as well, which is very important, too. So should we be looking out for a Delhi Duty Free shop at Mumbai's international airport anytime soon? "Historically, Aer Rianta has used its brand all over," O'Connor says. "But there's not much point in being in Mumbai and being called Delhi Duty Free!"
airport reflected the same kind of aspirational lifestyle. And with a new
If Delhi Duty Free's rapid rise to the top tier of India's duty-free in-
terminal in development, that may be about to happen. So is DDFS
dustry is any indication of the company's ability to fulfill its ambitions,
looking south to expand in India's business capital?
you might want to be looking out for "Mumbai Duty Free" in the not
"Of course," says O'Connor. "We're as greedy as the next man!"
32
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
too distant future.
Operator News: King Power
By P. Convery
A renovation program in the casino enclave of Macau seems to have prompted King Power (HK) to take a serious punt on expansion. Asia Duty Free spoke to the group's Travel Retail & Duty Free Managing Director, Sunil Tuli King Power operates domestic stores in Chinese airports including Xian and Harbin (pictured)
K
ing Power Group (HK) Travel
King Power is in the midst of renovating its
Nevertheless, Tuli says that Chinese mainlan-
Retail & Duty Free Managing Di-
stores at Macau's international airport, adopting
ders remain King Power's most important cus-
rector Sunil Tuli is a man with
a casino theme to reflect the main lure of the ter-
tomer group at present, across almost all
growth on his mind.
ritory.
categories but especially in luxury goods.
Invigorated by his company's ongoing store
"It's all being done right now," he says. "We've
And that's something that's unlikely to change
renovation program at Macau International Air-
just completed our chocolate shop, decorated
going forward, as the retailer continues its push
port, Tuli says King Power is now targeting Hong
with playing cards. Our liquor & tobacco shop is
into the duty-paid business in China's domestic
Kong International Airport and Singapore's
not ready yet, but the plan is to decorate it with a
airport terminals.
Changi Airport for further expansion.
main light on the ceiling in the shape of a roulette
"All the tenders are up for Hong Kong," he
wheel.
King Power opened a 74-square-meter multibrand store with Tumi, Lacoste, Safilo and Lux-
says, "and we'll be bidding for the main ones -
"I'd say we're about 30% [of the way through
ottica at Shanghai's Pudong Airport in April last
liquor & tobacco, perfumes & cosmetics and gen-
the renovation program]. It's an ongoing process
year. That December it cut the ribbon on an 88-
eral merchandise."
and it's going to continue until early next year,"
square-meter China Gold boutique and a liquor,
Tuli explains.
tobacco and packaged foods store. And by April
He says that King Power has also put in bids at Changi, adding that the retailer will consider
"We've got a multi-brand fashion store that's
this year it had opened three boutiques - a 46-
bidding for concessions in any category, in any
been completed, and the confectionery and pack-
square-meter Swarovski store, a 46-square-meter
suitable locations, so long as there's a sound busi-
aged foods shop is complete and three boutiques
Nautica shop and a 25-square-meter Kiehl’s bou-
ness case to do so.
have been done - Dunhill, Burberry and Bally.
tique.
King Power has weathered the economic tur-
Now we've got to do the main liquor & tobacco
King Power is also at the airport in
moil of recent years well, and Tuli regarded the
store and the big perfumes & cosmetics shop.
Chongqing, operating a 56-square-meter Lacoste
recession as a chance to reassess and remodel the
Also we've got to do watches, we have three more
boutique and two L’OrÊal luxury cosmetics
company's business. He says that sales have re-
boutiques coming up - Coach, Ferragamo and
stores, each measuring 150-square-meters.
covered strongly, especially in Hong Kong and
another high-end brand - and then we've got an-
China, despite what he calls "ups and downs" in
other store opening selling general merchandise."
Singapore before a return to steady growth. But it's the company's Macau operations that have really taken off. "Sales have been fantastic," Tuli says. "They've shot through the roof - it's incredible."
But that's certainly not where the retailer's China ambitions end.
He says the passenger profile in Macau has
"We're also in domestic at the airports in Xian
changed, bringing in customers from a wider
and Harbin," says Tuli, "and we're looking at
range of countries than those in greater China.
other domestic terminal airport opportunities in
"Now there are all sorts of nationalities. The
different cities in China."
majority of passengers are still mainland Chinese
King Power's strategy is nothing if not a mil-
Asked which categories have shown the most
and Taiwanese, but with all the casinos that have
lion-dollar bet on growth in China and beyond.
spectacular sales growth, he answers: "Liquor &
opened in the past few years, there are also a
And that seems fairly appropriate, coming from
tobacco, luxury products, jewelry, perfumes &
whole lot of other people coming in - passengers
a travel-retailer flush with its recent winnings in
cosmetics, and now also confectionery."
from Japan, [South] Korea, Australia, India,
Macau.
In other words, almost all of them.
Malaysia, Indonesia..."
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
35
Airport News: Changi Airport Group
Singapore zing
F
Changi Airport Group's retail record over the past 12 months is enviable again. How does the airport operator do it?
Artistic rendering of T3, Changi Airport, Singapore
By P. Convery
or Singaporean airport operator Changi Airport Group (CAG), success seems to be simple: it's just a
She says the promotions the airport runs are a key driver of sales in its burgeoning retail business, citing the first run of the "Be a Changi Mil-
also played a key role in expanding and
matter of doing what you do well, and then doing it better. The airport ended 2010 having handled a record 42 million passengers – 13% more than the previous year – and with concession sales 15%
lionaire" draw last year, which boasted a cash prize of S$1 million (US$823,000) and which the airport operator is repeating this year. "In addition to the second run of the ‘Be a Changi Millionaire’ draw that we are organizing
improving the airport's retail offer, and in helping the airport maximize its already formidable nonaeronautical revenues, and Lim says there's plenty more of it to come. "The upgrading of Terminal 1 will be com-
higher. "We hope to see this trend continuing, says Changi Airport Group Executive Vice-President of Commercial Lim Peck Hoon. “In the first six months of this year, Changi Airport handled 22.4
in conjunction with Changi Airport’s 30th anniversary celebration, we have the ‘Fabulous Friday’ deals promotion," Lim explains. "It offers travelers and visitors at Changi the opportunity to grab some of the season’s hottest buys at a frac-
pleted in early 2012 after three-and-a-half years of extensive works," she says. "Upon completion, it will boost concession space by over 10% - more than 2,000-square-meters - and increase the number of concessions by about 25% in both the
million passengers, an increase of 10.7% com-
tion of their original retail prices."
transit and public areas, allowing Changi Airport
pared to the same period last year. If traffic growth at Changi maintains its course, we should also be looking forward to having our retail sales increase in tandem this year."
The promotion runs for 30 weeks until 30 November 2011 and will feature a different product at a bargain price every Friday. Shoppers must spend a minimum of S$30 (US$24) in a single
to expand its retail and F&B offerings. Across 20,000-square-meters of space, Terminal 1 will feature over 120 retail, F&B and service outlets.
One measure of CAG's success is the number of new brands it has attracted.
transaction at the airport using their Visa card or S$60 (US$49) by any other means to enjoy the
"In the public area, concession space will be increased and enhanced with a wide variety of retail
In November 2010, a new luxury fashion concept named The Fashion Gallery opened in the
Fabulous Fridays deals. Besides draws and discounts, Lim says CAG's
and F&B offerings," she adds. "We have also embarked on a development
airport's Terminal 2 Departure Transit Lounge. At 764-square-meters, it's one of the region’s biggest multi-brand airport fashion outlets, car-
experiential promotions and events have also helped to boost retail sales and raise the profile of the airport as a shopping destination.
project at Terminal 3 to expand and revamp the retail space in the public areas," Lim says. "Covering Basement 2 and Levels 2 and 3, the project will
rying 17 internationally renowned luxury designer fashion brands, including Changi Airport debutants such as agnès b., Loewe and Yves Saint
"The Master of Spirits event that DFS held in partnership with Changi Airport in March generated a lot interest in high-end collectible liquor,"
increase the total floor space for retail and F&B by about 20%, to more than 10,000-square-meters. At the Departure Check-in Hall on Level 2, a new
Laurent. Lim says: "Other notable brands that opened
she says. "Some of the products from the event were also showcased in the main concourse area
row of retail shops has been created. In addition, reconfiguration works are being undertaken on
in the transit area this year include So Chocolate, Polo Ralph Lauren, Hugo Boss, Shanghai Tang, Godiva, Candy Empire, Cedele, Bonia Natural
at Terminal 1, and that garnered quite a lot of buzz among our travelers. "And in May, we worked with DFS and Dia-
Level 3 to further optimize the retail layout." She says all the new spaces in the transit areas have already been leased, and that in the public
and Adidas. And in the second half of the year, new brands that will introduce their first stand-
geo to introduce a Johnnie Walker Greg Norman golf simulator booth in Terminal1. That initiative
areas there will also be leasing opportunities for newly created space in Terminal 3's Basement 2.
alone shops include Marc by Marc Jacobs, Longchamp and Alfred Dunhill in the transit area, and Cotton On, Home Fix and Souperlicious in the public areas."
contributed to a significant increase in sales of Johnny Walker Blue Label during the event period." Redevelopment of the airport's terminals has
As Changi looks forward to rounding out 2011 with another round of robust retail results, it seems there's no end to the apparently boundless energy of its commercial division.
Lim Peck Hoon, Executive Vice-President of Commercial Changi Airport Group
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TFWA News: Exhibitors
By Kim Carrera
From exhibitors to brands to attendees, Asia Duty Free has your inside scoop on what’s in store for some of this year’s leading brands
Fratelli Rosetti
Spring Summer 2012 Collection Sophie Weber, Area Manager, Fratelli Rosetti
Travalo
TRAVALO EXCEL Yusuf Okhai, Managing Director, Aydya Limited
Toscow
Celestial Cascade Golden Bangle Francis Ng, General Manager, Toscow
38
Where are you based? For the past 58 years, Fratelli Rossetti has been based in Parabiago near Milan, Italy. What are some new collections that you will be exhibiting during the show? We will be presenting some very representative models of our Spring/Summer 2012 Collection, many of which are iconic products that combine contemporary proposals of outstanding quality with a heritage built up over the course of 60 years of work. Working on colors and styles, we give a new take to tradition. Exclusively for travel retail, we have created a women’s jacquard handbag line. What are your best sellers in travel retail? Fratelli Rossetti’s new strategy is to focus on growing the brand in travel retail. We have experience with shoes in several points of sales in airports but this is our first Cannes exhibition. How long have you been supplying travel retail and duty free? We started some years ago, supplying shoes in Beirut and Brussels airports. In Beirut we sell around 800 pairs per season. Who are you reaching out to during the show? Consumers, travelers and tourists know our name but are not always aware of the contents of our products or our history. Giving the brand more exposure will enable us to educate people and let them discover that craftsmanship still exists with affordable prices. The TFWE exhibition is a great opportunity to meet duty free operators and local actors. Fratelli Rossetti’s big challenge today is to further expand in South East Asia and the Americas. Where are you based? Travalo’s parent company, Aydya Limited, is based in the U.K. What are some new collections that you will be exhibiting during the show? We will be exhibiting the new Travalo Excel refillable perfume spray. Travalo Excel carries up to 30% more fragrance than the Travalo Classic, so you can travel longer before refilling. The new display and storage case protects the Excel from scratches and optimizes cart and counter space. The advanced aluminum spray head is totally drip free and comfortable to press. What are your best sellers in travel retail? Currently the Travalo Classic refillable perfume spray with 185 travel retail listings globally. How long have you been supplying travel retail and duty free? We started in the spring of 2010 and have been going strong since. Who are you reaching out to during the show? It’s our first ever booth at the show, so our objectives are more generalized than some other exhibitors. The show allows us to demonstrate and showcase the Travalo opportunity to a wider audience, and also allows us to introduce the new Travalo Excel. We spent six months gathering feedback from tens of thousands of users, and then six months making an array of changes that, in terms of features, retain the best and improve the rest. Cannes is the perfect place to present the results of these efforts. Where are you based? Toscow is an Australian brand. The company was established in 1984 in Sydney. What are some new collections that you will be exhibiting during the show? We will launch our new collection Celestial Cascade at TFWA Cannes. This new collection is inspired by the shimmering elegance of a waterfall. Celestial Cascade includes pendants, rings, earrings and bangles. The bangles are designed to cater for the requirements of the travel retail, especially inflight sales where free size is preferred. The bangles are flexible and can fit almost any wrist. What are your best sellers in travel retail? From the debut launch of Glitter Glamour to the recent collection such as Spangle Splendour and Paradise Garden, our colorful crystal jewelry has always been popular and sell extremely well. How long have you been supplying travel retail and duty free? Ever since the company was established in 1984, we have been supplying to travel retail. As a matter of fact, the company was totally dedicated to travel retail when it was first established. Until now, travel retail is still the core of our business. Who are you reaching out to during the show? During the show, we would like to catch up with our existing customers. Due to the broad geographic locations of our customers, it is a good opportunity to meet our customers from all over the world.
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
39
Jack Russell Malletier
SS 2012 Collection Cederic Flachard, General Director Duty Free Manager Jack Russell Malletier
Pandora Jewelry A/S
Moments Charm Collection Julian Mullins, Travel Retail Director, Pandora Jewelry A/S
Polaroid
Where are you based? Jack Russell Malletier is based in Paris, France. What are some new collections that you will be exhibiting during the show? We will be promoting the new SS 2012 collection that includes a full line of trunks, bags, luggage and trolleys, SLG in leather, coated canvas in leather, as well as accessories for iPhone, iPad and other smartphones in leather, coated canvas or polycarbonate. What are your best sellers in travel retail? Some of our best sellers include travel items such as Travel Bag 48HOO, Trolley’s and SLG, iPhone Sleeves. How long have you been supplying travel retail and duty free? We started with Air France back in 2010. Who are you reaching out to during the show? We would like to reach new airline companies and duty free operators worldwide looking for original and exclusive products.
Where are you based? Pandora Travel retail is based in our head office on the outskirts of Copenhagen in an area called Glostrup. What are some new collections that you will be exhibiting during the show? We will be displaying a broad selection of products from all of our collections including Moments (Charm collection) through to Love Pods our 18kt gold collection. We will also have some very exciting new introductions. What are your best sellers in travel retail? Our Charm collection still is a major share of our business and within this, classic items such as hearts, our miniature airplane, suitcase, 'wrapped present' and Murano glass charms are always winners. However this year we have also seen a significant increase in sales of rings as we have introduced our Touch and Feel displays into an increasing number of outlets worldwide. How long have you been supplying travel retail and duty free? This is very new for Pandora as we only started just over two years ago. In that time we have opened our own concept stores in airports such as Copenhagen, Singapore and Sydney; entered into partnerships with many of the major TR operators such as WDF/Aldeasa, Heinemann, Nuance, Aer Rianta International, MSC and Lagadere; gone from no airline listings to now being onboard over 25 carriers globally. Who are you reaching out to during the show? Naturally this is a mixture of building on existing relationships both with the land-based retailers and also airlines to see how to take the business to the next level, plus in particular we are actively seeking own store locations globally.
Where are you based? The company is based in Zurich, Switzerland. What are some new collections that you will be exhibiting during the show? We will be exhibiting our new 2012 collections, Best Under the Sun, Suncovers (glasses that fit over an optical frame), 3d glasses, Polaroid Junior, Hello Kitty Premium and Disney Premium sunglasses. What are your best sellers in travel retail? Best sellers in 2011 have been P4036a, P8150b, P4034a. We are forecasting that best sellers in 2012 will include P4250a, P4212b and P8224b, P8211a. How long have you been supplying travel retail and duty free?
Cosmic P8150B Sunglasses Rebecca Harwood Lincoln, Global Duty Free Manager, Polaroid Eyewear
Wolford AG
The company has been supplying travel retail for 15 years. Who are you reaching out to during the show? We hope to further strengthen our relationships, establish new contacts and grow our travel retail business.
Where are you based? The company is based in Zurich, Switzerland. What are some new collections that you will be exhibiting during the show? During the Cannes exhibition we will be presenting our Spring/Summer 2012 collection including the String Body collection. The String Body makes an impact with the deep, transparent neckline, decoratively tied with a satin band. The winged chiffon sleeves provide a summery look. What are your best sellers in travel retail?
String Body Sonja Bernhard, Customer Service Travel Retail & Duty Free, Wolford AG
40
Popular products are our Individual 10 Tights, Satin Touch 20 Tights, Fatal Dress and Lisbon String Body. How long have you been supplying travel retail and duty free? Approximately 10 years, but at a small level. Who are you reaching out to during the show? We hope to further strengthen our working relationships with worldwide operators, airport authorities and airlines.
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
The Gold Of Royalty
TFWA World Exhibition
18-23 September 2011
www.clogau.com
Yellow Village D35
Company News: L’Oréal Group
Lancôme releases Visionnaire based on LR 2412 molecule L'Oréal breaks new ground with a revolutionary skincare product
T
Visionnaire [LR 4212 4%] Corrector Serum
42
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,
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
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.
The World Travel Retail, Duty Free & Luxury Goods Exhibition
Where buyers and brands do business Taking place in Dubai – the commercial heart of the UAE and the wider Middle East – Middle East Exclusive is the definitive travel retail and duty free event, for the most dynamic air transport region in the world. Middle East Exclusive showcases duty free brands, luxury goods, and new products for travel retail buyers, duty free outlets, agents and decision makers, who are keen to source high quality goods for the region’s thriving travel retail sector.
The travel retail world comes to Dubai! Take part in this special event – which includes business networking opportunities and a unique VIP buyers’ programme – and build your sales in this booming marketplace. For Stand Booking and to know more about the Hosted Buyers programme, please contact the organiser, Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates. Telephone +971 (0)4 282 4737, or email info@middleeastexclusive.com
27-29 February 2012 Dubai World Trade Centre middleeastexclusive.com Venue
Supported by
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
43
Beauty Beat: Cosmetics & Skincare
Celebrating scents
Oh, Lola! By Marc Jacobs Company: Coty Prestige Description: A sparkling fruity floral opens with a refreshing top note of raspberry with a peony heart and a vanilla dry down. It comes with the same signature floral top bottle design and features a feminine pink facette Booth: Marine Village Foyer 3
Introducing the newest fragrances for the season
Kaloo Fluffy Dragée gift box
Viva Rock by John Richmond
Deep by Gap Company: InterParfums Inc. Description: This new scent for him captures the natural green masculine notes of sequoia leaves, mountain sage and nettle, filtered through water. These wet green notes are combined with warm masculine notes of canoe cedar and eucalyptus bark. A reflective green bottle is reminiscent of the color found in a deep forest canopy viewed through filtered light Booth: Ambassador Village V9
Company: Euroitalia Description: Viva Rock opens on the sparkling and energizing blend of star fruit and Sicilian mandarin with an unexpected touch of cactus flower. The heart reveals floral notes of damascena rose, watery jasmine and delicate cherry blossom. The dry down seals a sophisticated rock’n’roll femininity enveloped by delicate musks, sensual ambergris and elegant orris Booth: Riviera Village RE2
212 VIP Men Company: Puig Description: The new masculine fragrance completes the 212 VIP range and represents the style and attitude of VIP men in New York. The fragrance is a cocktail of vodka with frozen mint, lime caviar and vibrant spices inspired by the scent and attitude of the most exclusive parties Booth: Riviera Village RE19
Attimo L’Eau Florale Company: Ferragamo Parfums Description: Fashion designer Salvatore Ferragamo unveils its newest creation: Attimo L’Eau Florale, which is a celebration of femininity with a chic personal touch by the designer. The outer packaging expresses the femininity and romance of the fragrance with the soft color palette Booth: Riviera Village RC13
Vera Wang Lovestruck Company: Coty Prestige Description: The floral scent captures mouth-watering pink guava and mandarin, followed by a delicate mix of tuberose and lotus blossom. The dry down includes precious woods and sheer musk Booth: Marine Village Foyer 3
Vince Camuto Company: Parlux Fragrances Description: Vince Camuto is a floral chypre created by celebrated perfumer Steve Demercado. The delicate outline of the Camuto family crest surrounds the cap and appears on a ribboned medallion adorning the facade of the angled bottle Booth: Green Village M64
44
Company: The Millennium Essence Company Description: This gift box contains a soft toy twice the size of a regular Kaloo plush toy, along with clinically tested, 100ml alcohol-free scented water, featuring subtle notes of almond and vanilla. The box is beautifully decorated with a satin ribbon Booth: Ambassador Village U5, U7, U11
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Beauty Beat: Fragrances Jasmine Body Cream & Rose Body Cream Company:Jurlique International Pty Ltd Description: This unique biodynamic blend of ingredients provides an easily absorbed and powerful solution for creating softness and eliminating dryness. The nourishing body cream is enriched with jojoba oil, shea butter and cocoa butter that leaves dry skin hydrated and lustrous Booth: Yellow Village F49
The allure of beauty
Cutting edge creams and colorful cosmetics promise to deliver optimum results for traveling consumers Anti-Aging Neck Cream Company: La Prairie Description: This cream effectively helps to recondition and recontour skin that becomes dehydrated and slackens with age. The result is tighter, smoother, firmer skin with a noticeable lessening of age-related symptoms Booth: Riviera Village RE6
Luminys Silk Company: Micys Company, Pupa Milano Description: This baked eyeshadow is available in a new, satin version for a sophisticated and elegant make-up result. The vibrant colors are silky and soft to the touch. The eyeshadow can be used with a dry look for elegant and sophisticated eyes or a wet look for intense and bright colors
Black Rose Cream Mask Company: Sisley Description: A new soothing skincare mask that instantly refreshes, smoothes and energizes the face thanks to a rich formula that includes vitamins and antiaging active ingredient. It is available in 60ml Booth: Harbour Village, Costa Magna
Nourishing Body Cream Company: Institut Karite Paris Description: This body cream, rich in Shea Butter, nourishes and softens the skin. Its complex mix fights against slackening skin to firm and strengthen it. It gives the skin a smooth and radiant glow
Skinleÿa – antiaging lift foundation Company: Sisley Description: All of Sisley skincare technology can be found in this new foundation, sheer and silky as a second skin and able to correct the visible signs of aging. Available in 30ml in nine natural shades Booth: Harbour Village, Costa Magna
Huile Absolue Face & Body Serum Company: PATYKA Cosmetics Description: A treatment that can be applied to the face, body and hair daily. It is composed of 12 essential plant oils with antioxidizing, regenerating, toning and nourishing properties that add radiance and softness to the skin Booth: Blue Village H21
Cellular Power Infusion Company: La Prairie Description: The formula utilizes a threedimensional age-defiance system to restore skin to a more youthful state at any stage of the aging process. The company says that the product employs a threefold action to secure cellular energy supply and protect skin from the effects of external stresses, backing up the skin’s own natural renewal processes Booth: Riviera Village RE6
Company News: Ferrero Travel Market The “Dog Stories” themed Kinder Chocobox
Global appeal
By Andrew Brooks
For Ferrero Travel Market, standardization and localization make a great mix
F
errero Travel Market had an ex-
While Asia is growing rapidly, along with the
orange, white and blue in the shape of a Kinder
cellent year in 2010,” says Gian-
Americas, Ferrero Travel Market is eying the
Surprise egg. “The Ferrero Rocher golden pyra-
nicola Losacco, General Manager
potential of other markets too, such as India,
mid display is a real eye-catcher and all our
of the Ferrero Travel Market Di-
the Middle East and Europe. “The whole con-
merchandising and display material is coordi-
vision. “We closed up 30% in
fectionery category is growing rapidly and Fer-
nated and premium in appearance and quality,
sales by value versus 2009, which puts us at
rero is investing resources in making the most
so that it creates a top end display overall,”
number five in the confectionery rankings. This
of the opportunities,” Losacco says.
Losacco says.
remarkable performance, which far exceeds the
Being a global product sold into both do-
The Happy Hippo themed Kinder lines,
rest of the category, can be put down to inno-
mestic and travel retail markets, Ferrero is
which have enjoyed particularly strong success
vative products and the huge contribution of
highly standardized throughout its markets,
as children’s gifting items, are scheduled for a
our partners – the retailers and operators who
with only presentation and packaging differing
relaunch based on a new “Dog Stories” theme.
share our vision.” 2011 has also started very
to some degree from one market to another, de-
Each cartoon dog has a unique character and
well, he reports.
pending on localized preferences. There are also
temperament, reinforcing the appeal for
Ferrero is a global company with a solid
some items that are exclusive to travel retail. In
youngsters. New presentations in the Nutella
presence and performance in Asia. “We are
Asia, Ferrero Rocher and Kinder Bueno are very
series include the special weekly 7 x 30g pack
present in all the major airports in the region,
popular choices, Losacco says, and accordingly
which is being widely distributed in travel re-
and sales are progressing very satisfactorily in-
the company offers a wide selection of SKUs in
tail. In addition, Losacco says, “the new-style
deed,” Losacco says. Confectionery demand in
these brands, including several designed specif-
Kinder Mix 420g in its smart and original shape
the region is increasing rapidly, he says, as the
ically to cater to the sharing impulse – these in-
will make a great purchase for sharing with fel-
expanding Asian middle classes travel more fre-
clude Kinder SchokoBons and Kinder Friends,
low travelers or for friends back home.”
quently – a growth scenario that is reinforced
which are important sellers in Asia.
by the strong sharing impulse that drives purchasing behaviors across the region. Ferrero Rocher is a heavy hitter in Asia
Ferrero Travel Market’s near-term plans to
case the newest lines from each of its brands,
build on its success in Asia include new POS
such as a Nutella destination sleeve with images
materials and high-profile promotions. “We
of international cities, the Kinder Mix 420g and
will be reinforcing the Kinder brand with new
the Kinder “Dog Story” themed collection of
packaging and some Dog Story themed chil-
the Kinder Chocobox 144g, the Kinder Surprise
dren’s items,” Losacco says. “Kinder
T4 with doggy characters and the Kinder
has great potential as it offers a
Chocolate multipack, which features collectable
range of attractive gift and sharing purchases for all ages.”
46
At Cannes, Ferrero Travel Market will show-
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
stickers. The new Ferrero Rondnoir will also be un-
Losacco’s team has
veiled in Cannes and rolled out worldwide in
developed new dis-
redesigned luxury packaging, Losacco says.
plays for each of its
“The recipe has been improved with a
brands, for example the
crunchier, more delicious wafer and chocolate
Nutella stand in the shape
sprinkles on the outside and a dark chocolate
of a Nutella jar, and
coated half-almond at its center, for an even
Kinder displays in bright
more enjoyable experience.”
All of the styles, none of the damage. Satin•Hair Boutique
Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: mellin.k@pg.com, www.braun.com/global
Confectionary News
Chocolate Frey promotion stand
Asian
flavorings
The Orient brings sweet success to these confectionery stars
By Andrew Brooks
The Chocolate Frey Chocobloc Family Pack
Chocolate Frey: growing fast
C
hocolate Frey is well covered in Asia, with the key mar-
new item launched this year is Chocobloc Air, with the launch heav-
kets being Singapore, Korea, the Philippines and
ily supported by a lucky draw promotional activity – titled “Airis-
Malaysia. Expansion is in the works in the near future,
simo” – that gives customers the chance to win a sport bag.
says Jacques Isler, Export Manager Travel Retail. “Asia
At TFWA WE in Cannes, Chocolate Frey will introduce a new
is a very important market for us,” Isler says. “We’re a young brand
item to the Chocobloc range. The company team has expanded,
which started its activities in 2008 and we see fine growth potential
Isler says, and the new staff member will also be on hand. The in-
in Asia as well as in many other markets around the world.”
creased staffing will help Chocolate Frey open new markets.
Chocolate Frey’s best sellers are in the Chocobloc range, which
Overall, 2011 has been a good year for Chocolate Frey, Isler says,
comes in five variations in almond, honey and nougat: Chocobloc
thanks to the opening up of new markets and the building of brand
Milk, Chocobloc White, Chocobloc Dark, exclusive Chocobloc Dark
recognition. However, the strength of the Swiss Franc is undermin-
72% and Chocobloc Orange. The complete line was redesigned this
ing competitiveness, and Isler hopes to see the currency exchange
year and Isler says customer response is backing the change. One
situation improve in the not-too-distant future.
Duc d’O: new and improved Gijsbrecht Ostyn, Brand Manager for
crèpe dentelle or feuilletine. The second contains small strawberry pieces
Belgium-based Duc d’O Chocolaterie,
in the strawberry mousse. Duc d’O says that consumer research has
has revealed that the Swiss chocolate
The Duc d’O Intense Collection
shown that strawberry is one of the most popular chocolate flavors.
maker will reveal two new additions
Both will be launched in a 100g box, with visuals provided by well
as well as some major improve-
known food photographer Stephane Verheye. The box will be a first for
ments to existing products. A
Duc d’O in stating that all truffles are 100% natural.
major innovation in the truffle segment will be clearly distinguished from
Duc d’O has also launched five limited edition truffle, praline and mini
the company’s existing offerings by being introduced as a new line – the
praline package designs called “Winter Tales” for the 2011 holiday season.
“Intense Collection.” This collection now appears alongside Duc d’O’s
The designs are by leading international design firm Brandimage. A new
well known Original Collection.
product will be launched in the La Boule sharing range, marked by new
Defined as a sub-brand, the Intense Collection will contain all the ex-
packaging with a window, adjusted weight, new foils and value pricing.
clusive truffle varieties that are marked by unique flavors and features. At
The 5.5g mini pralines, first launched in 2001, will get a new look that
the same time, Duc d’O will launch two new truffle variants: a milk choco-
brings them into line with the rest of the range, and Pâtes de Fruits will
late truffle with a crunchy biscuit filling and a white truffle with strawberry
receive new packaging, with the original ballotin replaced by a modern
mousse. The first features one of France’s most renowned biscuits – the
bottom-lid box with a brighter design.
Jacobsen’s Bakery: building the TR side At this year’s TFWA WE in Cannes, Denmark-based Jacobsen’s Bakery will be featuring three new products: Teddy Bear 300g vanilla cookies, Tivoli 150g cookies with pieces of orange, cranberry, pear and chocolate, and Market Place 150g and 340g traditional butter cookies.
48
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Tivoli cookie collection with fruit pieces
The Market Place traditional butter cookies
Paton’s Dubai-themed chocolate-coated coffee beans
Oreo’s travel retail debut range
Toblerone is one of Kraft’s travel retail frontrunners
The new products will join an expensive range that is enjoying double-digit growth
Kraft covers all key segments
figures in the Asian market, an important
Paton’s Macadamia Royals, as seen on Qantas
brands are well represented in Asia and enjoying strong brand awareness. With Cadbury as part of our portfolio, our position is further
theater of operations, says Bo Keller, Senior
For Cannes this year, Kraft Foods World
Sales Manager. Jacobsen’s is present in all
Travel Retail (KFWTR) is launching a mix of
major markets in the Asia-Pacific region in
new offers from recognized travel retail brands
terms of traditional food retail, while in
like Toblerone, Cadbury and Milka, as well as
travel retail it is still a relative newcomer,
launching the Oreo biscuit brand into the
though one with a presence in key markets,
travel retail channel. “The TFWA World Exhi-
Paton’s is consolidating existing markets
including China. “We like to grow our busi-
bition has always been the ideal launch plat-
and won’t be launching anything new until
ness and open new markets,” Keller says,
form for our new concepts, and following our
2012, so the company won’t have new re-
“but we’re in no hurry. Finding the right
integration with Cadbury, this year we come
leases to reveal at Cannes this year, says
partners to work with is critically important
to Cannes with a stronger-than-ever portfolio
James Kfouri, Chief Operating Officer. Due
to us.
in all the key confectionery segments – choco-
to the current depressed situation in Europe,
late, gum and candy,” says KFWTR Managing
and the fact that Asia has bounced back more
Director, Andreas Fehr.
strongly from the economic downturn, Asia-
“To stay competitive and relevant, we need to be very focused and good at what we
strengthened given the strength of the Cadbury brand within Asia.”
Paton’s looks eastward
Pacific is Paton’s primary focus at the mo-
do, and execute with precision,” Keller says.
Fehr and his team will unveil the Toblerone
“The Asian consumer is demanding and has
Variety Gift Box with four flavors, including
lots of choice, and new products enter the
milk, white, dark and the ‘Snowtop’ milk-
“Sales have been adversely affected by the
market all the time. We work hard to try to
white combination, available in travel retail for
natural disasters in Asia and Australia, but
stay ahead – by innovating to meet con-
the first time. And the Toblerone White Minis
are showing positive signs,” Kfouri says.
sumer expectations, today and tomorrow, in
Pouch brings one of the most popular To-
“Elsewhere sales have been steady and are
order to be able to offer unique and sellable
blerone flavors to the market in a snack size
showing some positive changes in the last
products to travel retail.”
format.
couple of months.”
ment – and the company’s largest market.
Jacobsens Bakery has a number of very
New from Cadbury are two new offers in
Paton’s is represented in virtually all of the
popular cookie products and designs, some
the gifting sector. The Cadbury Chunk Box of-
major Asia-Pacific hubs, Kfouri says, as well
of them exclusive to travel retail. The con-
fers 26 individually wrapped pieces of Cadbury
as secondary airports and downtown stores.
cept and image of Danish butter cookies is
Dairy Milk chocolate in a gift box modelled on
Add Australia, where travel retail sales have
generally well understood and appreciated
a chunk of Cadbury Milk Chocolate. And the
been very lively over the last four months, and
in Asia, Keller says.
new Cadbury Travel Mix contains Dairy Milk,
it’s easy to see why this part of the world is
“Cookies in tins remain a popular gift
Caramel, Twirl, Fudge, Eclairs and Twist. The
taking up so much of Paton’s attention.
item, and we constantly work to improve our
Milka brand will be augmented with two new
“We’ve already established a footprint in
product offerings,” he says. One way Jacob-
offerings – Milka Popcorn and the Milka
China where retailing facilities are develop-
sen’s has done this is by working with
Crispello Pouch. Popcorn combines Alpine
ing at a fantastic rate, and we’re working
smaller-sized tins with top-end design in-
milk chocolate with slightly salted popcorn,
with several retailers in India too, another
cluding embossing and gold print. The
while the Crispello Pouch offers individually
burgeoning market,” Kfouri says. “Markets
smaller size makes Jacobsen’s offerings a
wrapped pieces of chocolate-covered wafer
such as Hong Kong and Singapore are also
more convenient option for buyers who are
filled with a smooth milk chocolate cream.
instrumental to our presence in the region.
traveling, improving travel retail uptake and
“KFWTR is very present in Asia,” says Fehr.
We also see great potential in Europe, Middle
also ‘shaking up’ presentation modes as a
“With the number one position in the confec-
East and Americas, but at the moment Asia
way of creating more interest in the category.
tionery category according to Generation, our
is the number one focus.”
50
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
51
The strongly promoted Dewar’s range
Liquor Report : Asian Favorites
Supply and demand By Andrew Brooks Baron Otard’s rarest-ever: Fortis et Fidelis
When the Asia market declares a preference, travel retail’s market makers take note
V
inay Golikeri, Marketing Director for the Bacardi
de-vie from the Chateau de Cognac cellars. The cognac is presented in a
Global Travel Retail Division, has a lot to talk about
crystal carafe handcrafted in France by renowned glass maker Saint-Louis.
when asked about Bacardi’s bestsellers in the Asia mar-
Golikeri says that in Bacardi’s experience, the decanter, which retails for
ket. “Dewar’s is enjoying massive growth in Asia,” Go-
US$4500, has proven to be exactly what the Asian market is demanding,
likeri says. The Dewar’s Gold Rush promotion last year
and Fortis et Fidelis is making steady headway in getting Asian listings.
was a great success and continues to bolster Asian sales, he notes. This July Dewar’s Gold Rush was joined by a new promotion called
“Dewar’s World of Discovery,” in which the brand has partnered with
Pernod Ricard takes off
National Geographic magazine. “This is a particularly exciting promotion
A taste for brown spirits and a taste for luxury
in Asia, where the National Geographic magazine and TV channel attract
items—put them together and these hallmarks of the
huge audiences,” Golikeri says. The promotion is currently running in
Asia market are keeping Pernod Ricard in a leadership
China, Malaysia and Hong Kong.
spot in the region. John O’Sullivan, Marketing Director
Grey Goose vodka is what Golikeri calls a “star performer” throughout
for Pernod Ricard Asia Duty Free, notes that the Martell
travel retail, and in Asia the brand has posted growth significantly ahead
Experience Boutique concept at the international air-
of the overall vodka category. As elsewhere, Grey Goose has been a stand-
ports in Hong Kong and Kuala Lumpur have ex-
out in building the super-premium vodka segment. Asia travel retail is
ceeded sales expectations but have also gone
proving to be a key channel in establishing the brand as a luxury icon in
above and beyond in strengthening the
the region.
brand’s connection with its customer base.
Staying on the topic of vodka, 42 Below is embarking on what some
O’Sullivan says that while the intangibles
would consider a highly unconventional promotion—and in the world
were as important as the raw sales figures
of promotions and marketing, “unconventional” tends to mean “good.”
from Pernod Ricard’s point of view, sales to
For this year’s Rugby World Cup, which takes place in New Zealand Sep-
Malaysian and Chinese customers have been
tember 9 to October 23, 42 Below is “renaming” the country “42BELOW-
especially strong, driven in particular by the
LAND – New Zealand in a bottle.” Golikeri says the promotion will
Prestige range, which consists of L’Or de Jean
include the first ever limited edition 42 Below bottle, which boasts a cus-
Martell, Martell XO, Martell Creation and
tomizable label: the label’s wraparound photograph of 42BELOWLAND
Martell Cordon Bleu.
can be customized with stickers included on the bottle’s neck-hanger.
Earlier this year, Absolut Watkins coffee
Golikeri points out that rugby fans will be especially attracted by the ac-
and almond flavored vodka was premiered
companying GWP: for the purchase of two one-liter bottles of 42 Below,
in travel retail, first in Singapore Changi Air-
buyers will receive a 42 Below rugby ball cocktail shaker.
port and then in Hong Kong, Thailand,
“42 Below promotions always deliver in both originality and effective-
Malaysia and Korea. The bottle features a
ness and perfectly represent the level of innovation that we as a team
graphic devised by famous designer and
pride ourselves on,” Golikeri says. “42BELOWLAND is a brilliant way of
graphic artist Liselotte Watkins. Overall, the
capturing the attention of the 85,000 rugby fans that are expected to visit
vodka category is showing good growth, al-
the country during the Rugby World Cup, and increasing footfall
though on a smaller scale so far.
throughout the retail spaces of the region’s airports.” Earlier this year, the rarest-ever cognac from Baron Otard was launched. Fortis et Fidelis is an exclusive blend of some of the oldest and rarest eaux-
52
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Absolut Watkins coffee and almond flavored vodka was premiered this year in Singapore Changi, Hong Kong, Thailand, Malaysia and Korea
Pernod Ricard notes that the Martell Experience Boutique concept at Hong Kong and Kuala Lumpur Airports has exceeded expectations this year
At around the same time, Pernod Ricard Travel Retail launched a new
Marketing Director for Pernod Ricard Asia Duty Free, the launch trappings
Chivas Regal 18 Year Old limited edition in major Asian airports, starting
surrounding Royal Salute 62 Gun Salute were probably the most lavish that
with Hong Kong and then moving to Incheon and Kuala Lumpur. The run
his team has mounted so far in 2011. This is the top-end whisky in the Royal
is limited to 3,000 bottles, a selection of which was earmarked for the Asian
Salute range, and it was launched early in 2011 at Hong Kong International
duty free channel.
Airport, Singapore Changi Airport, Taiwan Taoyuan Airport and Korea In-
The Chivas 18 Year Old launch was a major event, with detailed and or-
cheon Airport. Premium display units carried the new brand in Korean
nate displays in high-traffic locations, but according to John O’Sullivan,
Air’s first class and business lounges.
Edrington Group maximizes value “The Asian spirits market remains significantly driven by brown spir-
Maker’s Edition and the Limited Release decanter are all popular, as
its, and this trend looks set to continue in the short to medium term,”
they encapsulate the premium position of the brand.” Oscuro was re-
says Ryan Hill, Area Director, Asia Duty Free for The Edrington Group.
leased in October of last year, and is priced between Estate Re-
“We are also witnessing strong growth in Chinese white spirits.”
serve and Limited Release in the 1824 range.
For Edrington Group, the single malt category is especially favorable,
Thanks to Edrington Group’s ongoing educational and pro-
showing 17% percent growth. “Travel retail continues to be an excellent
motional campaigns, Hill says that consumers understand that
platform, or shop window, for building strong brand visibility and driving
all versions of The Macallan are created with the same stress on
the position of our premium SKUs,” Hill says. “A key to
high-end quality. This creates strong market awareness and also
our position in Asia comes from the fact that we man-
a sense of “reliability” in that buyers know what they’re getting.
age distribution of The Macallan, in tandem
“This is coupled with the fact that we have inherent
with our strongest domestic markets whilst
strength in the domestic Asian markets, which gives us
also driving targeted distribution for future
greater traction in travel retail,” Hill says. “We also know
growth.” In March, the Macallan range was
there’s a strong desire for collectability and gifting within
augmented with the addition of Limited Re-
the Asian markets, which also helps drive demand of the
lease MMXI, part of the 1824 single malt collection, which is exclusive to global travel retail.
exclusive travel retail range. At present, Edrington Group is experiencing growth through current distribution channels across Asia in
Ultra-premium spirits in particular
combination with a longstanding high sales success rate.
are a favorite with Asian buyers, Hill says.
Plans for the near- and long-term future are to focus on
“As our 1824 Collection is exclusive to
building presence in China and Korea. “The approach for
travel retail, and not available through
us isn’t necessarily about growing distribution to grow the
domestic channels, we know that the
business, but about managing and controlling distribution
brand appeal is strong and drives con-
to maximize value for The Macallan given the very strict
sumers towards the Macallan on shelf.
supply constraints.”
“Within the range, Oscuro, Whisky
The Macallan Whisky Maker’s Edition
The Macallan Oscuro www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
53
Liquor News
White Gold looks for continued success in travel retail While Gold broke into duty free and travel retail just two years ago and has already seen some impressive successes. The company’s products are now listed in Gebr Heinemann and Aer Rianta International stores worldwide, as well as with Dufry shops in Russia. “We are currently in negotiations with other operators such as DFS Group, Aldeasa - WDF, The Nuance Group, B&S Paul Global, Weitnauer, ATU Duty Free and many others, who seem to be very positive about the idea of launching of our main brands, White Gold Black Edition vodka, White Gold vodka and Russian Gold vodka,” says Marketing and Travel Retail Manager Kirill Pechenkin. White Gold says that given the growth of the vodka subcategory, especially in duty free, it sees a great opportunity for its brands as they continue to penetrate the channel. Currently working on its own to supply clients and organize activities, the company is interested in meeting with experienced
distributors to discuss increasing the reach of its brands. “Our brands have a perfect presentation and are known for their quality,” Pechenkin says. “We’re looking for a company with sufficient sales and marketing strength to drive our brands into this competitive market and share in White Gold’s success.” Indeed, the company’s products are getting noticed on the world stage. According to a recent IWSR report, vodka brand Gzhelka, produced and distributed by White Gold, is a new entrant on the list of the top 20 vodka brands worldwide. The company’s latest offering is a new variant called White Gold Black Edition. The limited edition spirit comes in a sleek black bottle and is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate. The variant is designed to appeal to trendy clubgoers, with a design that pays tribute to the traditional cues of the original spirit while communicating a sense of modernity and mystery.
White Gold Black Edition is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate
Jose Cuervo returns to its roots… and to the Indian Subcontinent Jose Cuervo recently announced that it is launching a new brand volcano provides the mineral-rich soil in which the indigenous Blue positioning for its international markets. The new positioning— Agave plant grows for a minimum of 7 years, soaked from below by
Cuervo. The tequila from Tequila—will cover the entire product the volcanic minerals and from above by the Mexican sun. Indeed, portfolio, from Especial to Reserva de la Familia. In conjunction with an unbroken 270-year story of one family’s passion, one commuthe launch, Gulf Beverages FZE announced that Jose Cuervo is once nity’s endeavor and a unique natural environment have combined again available in the Indian Subcontinent. Gulf Beverages will be to produce Jose Cuervo Tequila. selling and marketing the product throughout the Subcontinent in “To me it’s a tragedy that the story of Cuervo, and the magic of both the travel retail and domestic channels. The tequila’s new positioning celebrates Jose Cuervo’s authenticity, provenance and independence. The Cuervo family started the tequila industry from its base in the town of Tequila, Jalisco 270 years ago and
tequila, remains a mystery,” says Jose Cuervo’s International Managing Director Peter Gutierrez. “It’s our mission to put this right. It’s time to shine a light on what Cuervo really is. You don’t get to be the world’s favorite tequila by accident. Things happen for a reason. It’s
they are still there today, ten generations later, crafting the world’s about who’s making it, where it’s been made, how it’s been made number one tequila and the eighth biggest spirits brand in the world. and how it’s meant to be enjoyed. That work starts now.” The secret to this extraordinary tale lies is the 270-year pact between the family, the people of the town of Tequila and Mother Nature. Generation upon generation of townspeople has been passionately invested in the art of working with the family to make Cuervo in the same way it always has been produced. As is reflected in the new positioning, in the town of Tequila, it’s about who you are not what you are. Social hierarchies are forgotten as the town comes together to create Cuervo Tequila. Together is how it’s made and together is how this unique spirit is best enjoyed. Both the town and the drink are named after the Tequila volcano that lies there. The 54
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Liquor News
XO 24 Carats completes the A. de Fussigny range, which consists of Selection, Supérieur Fine Champagne and XO Fine Champagne
A. De Fussigny launches XO 24 Carats at TFWA WE A. de Fussigny has announced the release of XO 24 Carats in the travel retail market. Developed for the duty free channel, XO 24 Carats completes the range of A. de Fussigny Cognac, consisting of Selection, Supérieur Fine Champagne and the brand’s flagship, XO Fine Champagne. A 100% Grande Champagne (Premier Grand Cru) cognac bottled at 43% vol. for maximum aromatic revelation, XO 24 Carats develops outstanding aromatic richness, balance, elegance and softness. A. de Fussigny notes that 24 Carats will be available in an upscale, modern and slick design with a golden topped decanter in a luxurious embossed gold and red gift box. To see more of this new release, as well as the rest of the A. de Fussigny portfolio, visit Red Village K21 at this year’s TFWA WE.
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
55
Company News: Diageo
A powerhouse in the making
W
Sales of Shui Jing Fang in Asia travel retail have tripled in the past two years, and if Diageo has any say in the matter, this is will be the beginning of a much longer success story
hile many rightfully asso- Fang was declared as the oldest distillery in the
ciate Diageo with top-selling world by the Guinness Book of World Records,” spirits such as Johnnie Walker, says Mirana Baileys, Smirnoff and a host of
other
Only carefully selected ingredients, crafted by
internationally a highly accomplished master blender and per-
renowned brands, Asia Duty Free recently learned fected by generations of experts, go into every botfrom Edward Mirana, Diageo’s Regional Market- tle of Shui Jing Fang, thus producing its powerful ing Manager – Asia Pacific, that the spirits pow- yet graceful flavor and aroma. Furthermore, classic erhouse, working in partnership with the Shui and elegant packaging makes Shui Jing Fang disJing Fang manufacturers in China, continues to tinctive from other super deluxe Baijiu brands. pleasantly surprise with new regional offerings Given the above, it’s clear that the brand has pothat have worldwide potential. Part of Diageo’s portfolio and a top seller in
tential throughout the world.
Asian duty free is the Shui Jing Fang family of Chi-
An all-star lineup
nese White Spirits, or Baijiu, as it is locally referred
The core Shui Jing Fang expressions are called ports outside of Asia. Diageo has plans for further
airports in Asia Pacific plus an additional 4 air-
to. Sales of the brand have tripled in the last two Wellbay and are available in 38% and 52% ABV expansion of distribution to 20 international airyears alone in travel retail in the region. “To give variations with a Classic 61% ABV offering also ports across Europe and the Americas by the end you an idea of how popular Shui Jing Fang is with in the portfolio. Mirana notes that innovation is a of this year. This has led to an accelerated sales traAsian consumers, it is now Diageo’s second key driver of future growth and a series of new of- jectory, with the sales value for Shui Jing Fang havbiggest selling brand in Asia Travel Retail, behind fers and limited editions have been launched ing grown in travel retail by over 120% in the fiscal only Johnnie Walker,” Mirana explains.
under the Shui Jing Fang umbrella. These include year ended June 2011. “We are very excited about
Chinese White Spirits is actually the largest Forest Green and the Scholar’s Edition Pack plus the future potential for Shui Jing Fang in travel respirits category in the world. In the global spirits exciting new limited edition Chinese New Year tail,” concludes Mirana. market, Baijiu accounts for 31% of volume ac- and Mid Autumn Festival packs. Demand for cording to IWSR. The next biggest category is more offers and limited edition packs is overVodka with 19%. In China alone, Baijiu is by far whelming given the success of the brand in the the largest category, contributing 55% of total past few years, Mirana says. beverage alcohol sales value.
A long tradition
“There are a lot of opportunities for the Shui Jing Fang brand outside the Asia Pacific region,” he explains. “First and foremost, it’s a
Baijiu refers to an alcohol beverage made from brand that has a proven track record of qualgrain ingredients. These fresh ingredients are ity and tradition. Additionally, the increase steamed and mixed together using traditional in Chinese travelers worldwide and the limChinese fermenting yeast (Qu) and brewing itless opportunities to buy a unique gift through different processes such as distilling, stor- when traveling have already made the brand age, blending and aging in specially designed cel- hugely popular with Koreans as lars. Baijiu is later extracted with a special process well as Chinese, with a growing by the master distiller.
number of both Asians and West-
“Shui Jing Fang is a pioneer of Baijiu and an erners increasingly exploring the acknowledged trendsetter in the super deluxe cat- segment for a gift or appreciating egory. Our workshop is China’s first and oldest the liquid with a Chinese meal.” Baijiu distillery in continuous operation, honored
Distribution for Shui Jing Fang
as one of the country’s Major Historical and Cul- in travel retail has expanded altural Sites under State Protection, with an extraor- ready in the past 6 months dinary 600 years of heritage. In 2001, Shui Jing to 20 major international 56
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
Forest Green (above) and Wellbay are from Diageo’s Shui Jing Fang family of Chinese white spirits
Changing times BAT’s Burgundy Shop at Hong Kong International Airport
The tobacco industry balances growth, regulatory restrictions and social responsibility Despite challenges, many tobacco companies have lately maintained
“Sales are mainly driven by increased travelers, especially during fes-
and in some cases improved their market share. They have also begun to
tive seasons,” says Nurman. “Our adult tobacco consumers are looking
take social responsibility, sustainability and ethical marketing very seri-
for additional value when they purchase in the travel retail environment.
ously. In some cases, they have initiated research to lessen the potential
Another trend we have observed is the proliferation of premium product
risks posed by their products.
offerings.”
BAT sells more than 200 brands sold in over 180 markets. The com-
Asia, says Nurman, is well positioned to lead the growth in travel retail,
pany has 45 cigarette factories in 39 countries, employing more than
including in tobacco products. And this is what is driving companies such
60,000 people worldwide. BAT’s strategy is based on growth, delivered
as BAT to innovate. Good examples are the Kent Convertible and Lucky
by an organization that acts responsibly at all times. The company is es-
Strike Click & Roll brands, wherein crushing the filter results in a men-
tablishing a benchmark for the industry by applying strict marketing
thol-flavored cigarette. Meanwhile, BAT’s classic brands such as State Ex-
standards to its activities to ensure that no marketing activity is directed
press 555 and Dunhill continue to hold top spot among smokers in Asia.
at, or particularly appeals to, youth.
“We believe that Asia is definitely well positioned to lead growth in
Social responsibility and sustainability are key for BAT. The Group is
travel retailing, including in the tobacco category,” says Nurman. “We
very active in promoting sustainable agriculture,
see both business and leisure traveling continue its
for example, by educating farmers on good prac-
recovery since the recent financial crisis. Nation-
tices, by preserving water and protecting the soil,
ality-wise, Chinese are the leading traveler growth
in leaf processing and through eliminating child
numbers in Asia. Winning Chinese, with their in-
labor.
creasing spending power, is at the top of the strate-
Justinus Nurman, Head of Operational Mar-
gic growth agenda within travel retail.”
keting for BAT’s Asia Pacific duty free business,
Kelly Song, spokesperson for KT&G, agrees,
doesn’t hold back in saying that “tobacco con-
saying that geographically and demographically
sumption poses real risks to health, so we agree
the growth area "will have to be China. In addition
that tobacco products should be regulated in ap-
to their growing economy, Chinese travelers are
propriate ways. We believe, however, that duty
becoming a big influence in the travel retail sector.
free sales are a legitimate part of our industry and
Asian airports have played a significant role in
that balanced regulation should be applied.”
travel retail. I think that the importance of Asian
Of course, along with addressing these issues,
countries will only grow."
BAT has been adapting in different ways to the
This fall will be the sixth year in which KT&G
major surge in travel by previously more static
will be participating at TFWA WE. As South
communities, among them Chinese, Koreans and
Korea's leading manufacturer of tobacco products,
Japanese. The company has lately registered double-digit growth on the travel scene. 58
it enjoys a market dominance of more than 65% KT&G’s ESSE superslims, stocked up and ready to go
ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011
in that country.
It mainly exports its products to the Middle East and the CIS coun-
KT&G is getting ready to introduce its flagship ESSE, BOHEM and
tries, including Russia, and is currently widening its markets in South-
RAISON brands at this year’s tradeshow. "Having been successfully ac-
east Asia, America and Eastern Europe. Direct investment for building
cepted and loved by young, stylish smokers across the world, ESSE has
manufacturing facilities has also been made in countries such as Turkey,
grown rapidly in sales volume and brand awareness," says the company's
Russia and Iran. KT&G’s 2010 revenue totaled US$3.3 billion, up from
marketing literature. "ESSE has been introduced in more than 40 coun-
US$2.9 billion in 2007.
tries and has become a prestigious name for super-slim cigarettes."
E-cigarettes: the new alternative Since 2008, electronic cigarettes have become increasingly popular as an
alternative to smoking traditional tobacco cigarettes given the fact that e-
on its website and has carved out a very respectable niche selling in mall kiosks throughout the US.
cigarettes can be used virtually anywhere. At the forefront of this burgeoning
The worldwide duty free channel is attractive to a company like Vapor
movement is pioneering e-cigarette company Vapor Corp. [OTCBB:
Corp. for two main reasons, says Frija: “First of all, airports are very high-
VPCO], which offers a range of e-cigarette brands—from the rechargeable
traffic areas for retail, which is what any company looks for. Furthermore,
Fifty-One brand to the disposable Krave brand—to satisfy the varied needs
e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler
of virtually any smoker.
on the go. Vapor Corp. has increased its business exponentially year over
“Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes available today, both in terms of the quality and the cutting-edge tech-
year since its inception and I have no doubt that both the traveling public and the duty free industry will see immense value in our brands.”
nology employed,” says Adam Frija, Director of Business Development at Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke. Instead, our products emit an odorless vapor. Our electronic cigarettes look like, taste like and feel like a cigarette, but they aren't cigarettes." The filter of the Fifty-One contains flavoring, nicotine and an atomizer that essentially vaporizes the nicotine. When you inhale, a microcomputer activates the atomizer and the battery (contained in the white part of the ecigarette). The end of the Fifty-One even glows when you puff it. Over the last 3 years, Vapor Corp. has crossed into virtually every distribution channel available in the US, such as convenience stores, tobacco
The Fifty-One starter kit will retail in duty free for about US$100; a refill cartridge costs US$3 and each can last as long as two pack of traditional cigarettes
shops and supermarket chains. The company also sells direct-to-consumer "Banning tobacco is the ultimate aim for
key to New York and individuality is the key to
many governments," says Ian Smart, Director of
After Hours. We’ll be showcasing the new look
Business Development at Protégé International
Five & Dime brand at the forthcoming TFWA
Ltd. "We only have to look at Australia, Ireland
WE. It’s already proving to be a great hit in Asian
and the UK to see where the tobacco industry is
duty free markets." Smart describes Five & Dime
heading. But as these governments are still ad-
as individual and modern, reflecting today’s fast
dicted to the income derived from excise duty,
paced lifestyle.
the momentum has to be maintained over a
Although king-sized cigarettes still have a large
longer period of time to allow them to wean
market share, Protégé has noticed that new pack-
themselves off their tobacco dependency."
aging formats such as slims, superslims and short
Protégé was formed in 2000 and provides a
cigarettes are becoming increasingly popular.
global and exclusive marketing service to its
"There seems to be a distinct sea change in con-
momentum must not be lost," he says. "At which
clients. Initially it worked in tandem with a sister
sumer buying patterns in Europe as well and we
point, they will create a whole new criminal class
company, Zeitgeist Productions, which designed
see a dynamic growth in categories such as roll
of their own citizens, which would be approxi-
iconic and evocative products for the interna-
your own and make your own. In Asia and North
mately a quarter to a third of their population in
tional market, but the two companies were
America, the increasing popularity of cigarillos
many countries. History has taught us that when
merged in 2006.
and cigars among over 30-year-olds again shows
governments try to ban products, all it does is set
that the choices that the consumer makes deter-
up a criminal class that will supply it. Let's not
mine the direction the tobacco industry takes."
forget prohibition."
As with the other companies, Asia is where it’s happening for Protégé’s cigarette brands, and the global twist is that each brand is associated with
And what is Smart’s projection for the indus-
Smart says that while his company has always
a dynamic North American city. "The High
try, given all the pressures from governments,
believed in responsible marketing, it also believes
Roller brand captures the spirit of fabulous Las
global agencies and the media?
that tobacco “is a legal substance, and producers
Vegas,” says Smart. “After Hours is a sophisti-
"Governments will continue to push towards
cated reflection of New York. Individuality is the
a total tobacco ban in the mistaken belief that the
should have the right to market it”—ethically and responsibly, of course.
www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
59
New & Notable LIQUOR & TOBACCO Davidoff Chinese New Year pack Company: Imperial Tobacco Description: To celebrate the Year of the Rabbit, Imperial Tobacco has introduced a travel retail exclusive carton cover printed with an elegant Year of the Dragon symbol Booth: Gold Village GO6
Il de Ré Cliffside Cellar Company: Camus Wines & Spirits Description: Cliffside Cellar is drawn from eaux-devie grown, distilled and aged on the Island of Ré, the most westerly part of Cognac AOC. Distinctively marine and mellow, Cliffside Cellar undergoes final maturation in a cellar deep in the Fort de la Prée Booth: Blue Village F11
Kilbeggan 18 Year Old Company: Cooley Distillery Description: The new brand packaging pays homage to the rich heritage and quality of the Kilbeggan brand while maintaining a contemporary look and feel. Smooth and very easy to drink, with spices, aniseed balanced with sweet malt, fresh fruits and oak dryness Booth: Mediterranean Village N17
CONFECTIONERY 2012 Tablet Collection Company: Godiva Chocolatier Description: The new tablet features a White Vanilla Bean flavor that consists of white chocolate infused with vanilla from the highest quality whole vanilla beans. The new assortment replaces Dark Raspberry, Dark Mint & Dark Orange, keeping the selection fresh and modern Booth: Yellow Village F33
60
ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011
Orbis Aged World Whiskey Company: St James Distillery Description: Orbis Aged World Whiskey is a global blend of finest aged whiskeys selected by a Master Blender from the five great whiskey nations of Scotland, Ireland, America, Canada and Japan. Many of the whiskeys included in Orbis are of great age, produced in small batches and each bottle is individually numbered and presented in a gift tube Booth: Green Village M 71
ESSENTIAL COMMUNICATIONS COMMUNICATIONS
kn kknowledge nowledge ge CLIENT CL IENT understanding u ndersta tan nd diin ng MEDIA MEDIA
Essential Communications is an independent Public Relations agency specialising in the travel retail and duty free industry. Established for over ten years, our goal is to raise the profile of the companies we represent in the international and regional media.
At Essential Communications, the client always come first and we will bend over backwards to put together a proposal that meets your needs...and your budget. Flexibility is the name of our game, so if you’re looking fo for a simple, straightforward press release program or an all singing, all dancing media campaign, we’l’l give you a no-nonsense solution to your needs. And..we do it with a smile.
“The support that we have received from Essential Communic Co icca atio ions has ex exxccce eede ded our expectations. Having sold successfully into travel reta re tail channel for many years, we enlisted Essential Communicatio ion o s in early 2010 to develop a focused travel retail PR campaign. Our existing customers are delighted and within weeks we gained new customers as a direct result of our PR. We continue to be impressed with the depth th of knowledge and contacts that Essentia ial Communications has been able to sha hare re wi with us.” Rebecca Harwood Lincoln, Global Travel Retail Director Director,, Polaroid Eyewear
“Scorpio Distributors appointed Essential Communications in 2006 as part rt of an up upg pgra rade ded marketing strategy. They provide us with a friendly, efficient, pro ro-a o-activ ive ve serv rvic ice and, certa tain inly ly for Scorpio, represent excellent value for money.” Stuart McGuire, Group Managing Director,, Scorpio Distributors Ltd Director ‘Essentia ial Communications has proved to be a vital part of the success and gro rowth of Counter intelligence Retail in in the channel. Always quic ick to to re res e pond to our needs, the reach the company has provided us has ensured we’ve always had the right we amount of o exposure and the most approp opriate coverage at the right time’.
“Essential Co Communications has been instrumental in us achieving the hig th igher profi fille that we seek as we continue to build the business globalllly. The profile is essential to us in in securin ing ng th the co con onfi fid dence de ce of both new and existing cruiseline customers as well as the various constituent elements of the supply chain in all of the various territories in which we operate. From trade press to corporate profiles, from interviews with the main department heads to national assistance with our recruitment drive, Essential Communicatitio ions has been totally professional and innovative in its approach.” Harold Gittelmon, Managing Director,r, Harding Brothers Retail Ltd
Garry Stasiulevicuis, Managing Director, Counter Intelligence Retail Director,
Rowena Holland Essential Communications 110 Falconwood Road Croydon Surrey,, CR0 9BD, UK Surrey
Tel: 44 (0) 208 405 8109 Fax: 44 (0) 208 405 0330 Mob: 44 (0) 771 021 9784 Email: row@essentialcommunications.org www.essentialcommunications.or www .essentialcommunications.or www.dutyfreemagazine.cag ASIA DUTY FREE & TRAVEL RETAILING
61
New & notable
WATCHES Jacques Lemans Porto for Men
CONFECTIONERY Cocoa Truffles ballotin Company: Guylian Description: Guylian presents the new 200g Cocoa Truffles ballotin. The collection contains 23 pieces of high quality Belgian chocolates, perfect for sharing Booth: Mediterranean Village P10
Chupa Chups Travel Tin Company: Perfetti van Melle Global Travel Retail Description: An exclusive gift tin containing 16 lollipops. The tin is decorated with typical travel symbols such as passport stamps and signposts. This can also be customized for specific destinations Booth: Blue Village G27
TRAVEL ACCESSORIES
Company: Furla Description: The collection mixes bags with shoulder straps, unusual forms and constructions, to create unique pieces for the woman’s wardrobe Booth: Bay Village 5B
Company: MCM Description: MCM’s Spring Summer 2012 Collection repositions the brand at a new premium level with enhanced quality materials and improved detailing throughout. This color inspired collection offers a wider choice of styles and designs, creating an offer that caters to all profiles and age ranges Booth: Rivera Village C4
The Hape Range Company: Scorpio Distributors Description: The Hape Range uses unique materials including bamboo. Educational, fun and ecologically sound, Hape toys has won several awards Booth: Mediterranean Village P8
62
ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011
Jacques Farel Kids Gift Packs Company: Harston Group Description: The Champion set is a perfect combination of fun and style for boys. The set includes five interchangeable straps and is available with a trendy silver dial and is water resistant up to 30 meters Booth: Yellow Village B23
Jacques du Manoir
Spring/Summer 2012 Collection
Spring/Summer 2012 Collection
Company: Harston Group Description: These sporty dynamic chronographs have a striking dial design and exudes quality with its solid stainless steel case, special hardened mineral crystex and a high grade caoutchouc-grain leather or rubber strap with Jacques Lemans lettering Booth: Yellow Village B23
Company: Scorpio Distributors Description: The Jacques du Manoir collection features a classic Swiss style watch that is made with high quality materials and is perfect to adorn any wardrobe Booth: Mediterranean Village P 8
eConnect Company: Scorpio Distributors Description: eConnect allows users to create a Wi-Fi hotspot with either a USB dongle or via a cat5 cable (USB 3G Dongle is not included). The eConnect is ideal for hotels or cafes as many only supply a cat 5 connecting cable Booth: Mediterranean Village P8
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www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING
63
never look your age again
64
ASIA DUTY FREE & TRAVEL RETAILING TFWA WE AUGUST 2011