COMMENT HKIA benefits come full circle


Now and Then... T


his coming July, Hong Kong International


Airport (HKIA) marks its 20th year of operation


since moving to Chek Lap Kok island. Handling 73m pax in 2017, today’s HKIA boasts 320-plus shops – more than double the 140 outlets available in July 1998. At that time, it was estimated that retailers Sky Connection and [the then] Nuance-Watson (HK) were set to pay out much more than the minimum annual guarantee sums for the liquor and tobacco, general merchandise and perfumes and cosmetics contracts, as The Duty Free Business noted on its April 1998 front page. Nuance-Watson (HK) was committed to paying at least HK$450m ($58m) per year for 12 general merchandise stores and HK$250m ($32.2m) per year for nine fragrances and cosmetics outlets. Meanwhile, Sky Connection was down


to pay a minimum of HK$630m ($81m) a year for the liquor and tobacco concession. From Now to Then, the HKIA business remains a lucrative jewel-in-the-crown retail hub. Last year, Airport Authority Hong Kong (AAHK) announced a wave of ‘major enhancements’ to its existing Terminal 1, including a refreshed retail and F&B assortment in the expanded arrivals hall in a HK$7bn ($898m) package scheduled to complete in 2020. The improvement phases into wider plans to increase the space, following expansions to the check-in areas and bag-drop facilities. Accompanying features is the construction of a 200-metre long ‘Skybridge’ connecting Terminal 1 and the North Satellite Concourse, and a bigger East Hall with a roof garden, children’s play area, recreational zone and outdoor garden.


Renovations ‘almost complete’ This time last year, the Lagardère Travel Retail and China Duty Free Group joint venture (CDF-Lagardère Company Limited) won the revered duty free liquor and tobacco contract, while The Shilla Duty Free took the perfumes and cosmetics and fashion and accessories concessions. As reported in an exclusive interview with Lagardère Travel Retail Chief Business Officer Ambroise Fondeur this issue, early


54 TRBUSINESS


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DFS Group’s call for 90-day payment terms sits alongside tenders for the prestigous Virgin Atlantic Aiways contract [today held by DFASS] and HKIA’s looming new airport opening.


operating indicators for the CDF-Lagardère joint-venture, which began trading in November, have been ‘very positive’. “We are in the middle of our renovation


programme, which is due to finish at the end of June,” reveals Fondeur [turn to page 16 to read the full interview]. On Shilla’s side, its Beauty&You concept


has been hailed as a new marvel, aimed specifically at the Hong Kong passenger, with a grand reveal planned for the summer. Significantly, Shilla has pledged to increase its brand presence to more than 200 across six stores as it looks to consolidate its status as a beauty force across Asia’s main hubs: Incheon International Airport, Singapore Changi Airport and HKIA. In January, Hotel Shilla Executive Vice


President of Korea Division Taeho Kim told TRBusiness that 2018 is a year brimming with opportunity for the firm to cement its position as one of the region’s most powerful beauty retailers. As this issue went to press, Shilla released an exclusive La Prairie lotion across its South Korea shops, and HKIA no doubt will continue to act as a springboard in helping this beauty ‘superpower vision’. «


EDITORIAL CONTRIBUTOR: Jessica Mason


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APRIL 2018


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