CONCESSIONS
The 550sqm Louis Vuitton store will be located at the airside ‘crossroads’ of the main terminal building, within the Shilla Duty Free zone.
The French fashion house says that the shopping opportunities created by Incheon’s fast passenger processing times and the ‘comfortable environment’ of its main concessions area, AIRSTAR Avenue, helped it decide on the Korean gateway.
Sang-Ho Lee is in no doubt that the Louis Vuitton shop will become a “popular photo zone and prominent landmark” in AIRSTAR Avenue.
He says: “In order to achieve our goal of being the No.1 airport in the world, we have to provide the best retail offering, and the best way to achieve this was by working with our stakeholders – the concessionaires, service providers and brand operators.”
This strategy ensures that the airport only appoints concessionaires and subsequently outlets with a proven track record of success, both in terms of revenue generation and their customer service management, reputation and standards.
In terms of operators, this translates to four master concessionaires for F&B (SPC, ECMD, SRS and Walkerhill Hotel) and a host of famous international brands such McDonald’s, Dunkin Donuts, Starbucks, Baskin Robbins, Bennigan’s, Subway, KFC and Quiznos. Local Seoul and Korean brands include JaYeon, Haneul,
Bon Pi Yang, Kayageum, Bon Bibimbap, Bizeun, Matina and Bon Juk.
The foodcourt on the fourth floor of the main terminal building also includes a couple of outlets operated by the Walkerhill Hotel.
The airport relies on Lotte, Shilla Group and the Korean National Tourism Organisation (KNTO) to provide its duty free offering, which in 2010 generated a record $1.26 billion in sales.
have on offer in the terminal, they will not come back. We therefore have to get things right.”
The high passenger spend currently enjoyed by the airport would indicate that it is definitely getting things right, and things are set to get even better this year with the late 2011 opening of the first ever Louis Vuitton shop at an airport. The 160 year-old French luxury brand had previously resisted all offers to open an airport boutique, but found the opportunity to showcase its wares at ‘the world’s best airport too good an opportunity to turn down, according to airport CEO, CW Lee.
“The CEOs of Amsterdam Schiphol and Paris CDG envy me,” laughs CW Lee. “They ask me how I got them to agree to open a store because they have been chasing them for years.
“I tell them that we are the world’s best airport and Louis Vuitton is the world’s top fashion brand. We are a perfect fit.”
Almost all the world’s top brands are represented at Incheon with Bulgari, Estée Lauder, Gucci, Burberry, Chanel, Versace, Christian Dior, Hugo Boss, Dolce&Gabbana, Hermes, Lancôme, Ralph Lauren, DKNY and Prada proving particularly popular.
Cigarette sales currently account for 9% of duty free sales at Incheon each year.
Other big selling categories are Perfumes & Cosmetics (36%), Leather Goods (17%), Alcohol (8%), Watches & Electronic Goods (8%) and Packaged Food (7%). Perfume and cosmetic sales are dominated by popular global brands such as SK-II, Estée Lauder, Lancôme, Chanel, and Christian Dior. Korean and Asian brands such as Sulwhasoo, HERA, O Hui, Missha and HANSKIN are also popular, especially with the Chinese and Japanese. Ballantine’s Scottish whisky is one of the fastest selling brands in China and Korea.
Duty free revenues currently earn Incheon Airport around $500 million yearly from total sales of $1.26 billion.
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