NEWS/ANALYSIS: PHILIPPINES
arrival deal has recently been signed with China. “Visas are given to major group-
tours by government-endorsed Chinese tour operators.” Luxe Duty Free is the first of several
Manila Ninoy Aquino International Airport T3 has delivered new luxury outlets in the past year.
boutiques positioned around the entry-level perimeter. Separate category displays are
planned in the central, general store section to include jewellery, watches, eyewear and men’s accessories. According to Esteban, contracts for
boutique positions have been signed with Bally, Coach, Longchamp, Michael Kors, Salvatore Ferragamo, Tory Burch, Tumi and Victoria’s Secret. Montblanc, TAG Heuer, Paul & Shark and Porsche Design will also take corner displays or shop-in- shop positions. “There will be 14 luxury boutiques
ranging from 50sq m to 80 sq m,” continues Esteban. “A few major brands are under final negotiation.” Luxe Duty Free is located in a
standalone building opposite SM Mall of Asia, one of the world’s largest shopping malls. It is a popular destination for the growing number of free independent travellers (FITs) and group-tours visiting Manila. “We are the first duty free store
here to focus on Chinese group tours,” explains Esteban. “Chinese tourist numbers doubled in 2017 to close to one million visitors. There were 500,000 the year before. Now, it’s mostly FIT visitors, but the next wave will be conducted Chinese group tours. “The Philippines is a favoured
destination with the new Philippines- China friendship. Also, a visa on
According to Esteban, contracts for boutique positions have been signed so far with Bally, Coach, Longchamp, Michael Kors, Salvatore Ferragamo, Tory Burch, Tumi and Victoria’s Secret.
TRBusiness 20 TRBUSINESS
luxury downtown duty free store projects Regent Travel Retail Group is hoping to carry out with Duty Free Philippines. Since selling a 50% stake to the SSI
Group in August 2015, fashion and beauty retailer Regent Asia, together with Prime (Duty Free Distributors) Ltd now own the remaining 50% shareholding in Landmark Management Services Ltd. It operates duty free fashion
outlets for Duty Free Philippines in Manila Airport and in the Fiesta Mall downtown store located near Manila Airport. Separately, Regent Asia and Prime also own Landmark Management P&C Ltd., which operates perfume and cosmetics outlets for Duty Free Philippines in Manila Airport and in the Fiesta Mall.
Further projects Regent Asia has also partnered with the Limited Brands Group, which includes Victoria’s Secret and Bath & Bodyworks, to cover the entire Philippines domestic tax paid and duty free market. “This is just the first tour-group
store–we have two more high potential projects we hope to do in the next couple of years,” Esteban discloses to TRBusiness. “Probably one in Cebu – we are evaluating sites. There is a lot of traffic there so probably a site closer to the tourist area than the airport. Also, we are looking at potential sites in Boracay.” Furthermore, the Group is planning
to renovate and update its duty free perfume and cosmetics shops and fashion boutiques at Manila Airport terminals one and two. The renovation and upgrade
programme launch comes as sales at Manila Airport improved in 2017, lifted by growing foreign tourist numbers. “Business this past year has been
positive,” confirms Esteban. “We’ve had good growth, close to 10% for P&C and fashion. “There’s been a bit of a slowdown at the downtown Fiesta Mall because
of the Philippines peso devaluation as it’s brought prices closer to the local market. We are working with brands to fix it.” Regent will show the new T1 and
T2 airport shop design concepts to brands during Q1 2018. Renovation and upgrade work in T1 and T2 will be carried out in one terminal at a time. “There will no change in T1 and T2
retail space. Our project is updating the stores,” continues Esteban. “We will try to finish T1 by October 2018 and T2 within the next year. T2 is an easier project as no construction is involved. “In T1, we will do the flooring
and ceiling as well, but T2 work is just reconfiguring.” Manila Airport T3 has also
undergone new activity during the past year, bringing Michael Kors and Kate Spade in individual boutiques and opening a House of Samsonite store. “Chinese and South Koreans are
the biggest customers at Manila Airport,” Esteban comments. “For the first time, they account for about 30% of sales. South Koreans are about 30%. “Chinese customers are buying
beauty products, ladies fashion accessories, handbags and leather accessories,” he describes. “Coach and Longchamp are doing well – and Salvatore Ferragamo. “South Koreans buy skincare.
Their core brands are Dior, SKII and Estée Lauder.”
Fiesta Mall improvements Meanwhile, Regent has renovated its perfume and cosmetics boutiques at the Fiesta Mall itself. “We’ve done tweaking and
updating at Fiesta Mall,” says Esteban. “We have renewed all our beauty mono-boutiques for Estée Lauder, Lancôme, Dior, Clarins, SKII and Shiseido. “Fiesta Mall is 90% Filipino
customers. The focus is returning overseas workers. The key categories are food, liquor, tobacco and confectionery. “Perfume and cosmetics are
secondary, along with fashion. It will be the reverse in Luxe Duty Free, so we expect a different market profile there.” «
FEBRUARY 2018
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62
