NEWS ROUND-UP Shilla registers +38% rise in Q4 revenue


tourists visiting Korea rose +37.6%, 35.1% and 25.2% respectively (Source: Korea Tourism Organisation). But the retailer was refusing to get carried


away, as conventional Chinese group tourism had yet to return. In the first quarter of 2019, Shilla is


The Shilla Duty Free (Shilla) has recorded a +38% rise in consolidated Q4 2018 revenue to KRW1,071.5bn ($958m) from KRW776m during the previous corresponding period in 2017. Operating profit increased by 154% year-


on-year to KRW25.1bn, while consolidated Q3 revenue dropped -2% to KRW1,093.5bn. Revenue in downtown and airport


stores rose +31% and +50% year-on-year respectively. This was off the back of a recovery in Chinese tourist numbers visiting Korea following improved relations between China and South Korea in the wake of THAAD. In October, November and December 2018, for example, the number of Chinese


expecting an ‘improved sales environment’ driven by seasonal demands during periods such as Chinese New Year when it will run various promotions. Continued stabilisation of its overseas


business in locations such as Singapore Changi, where it has operated the beauty concession for the past four years and Hong Kong International Airport, where it unveiled its Beauty & You stores last year, is also expected to contribute to a positive Q1 2019 performance. Domestically, Shilla begun operating two


new stores at Gimpo International Airport on 9 January having secured the five-year liquor and tobacco contract in 2018. This also should certainly ramp up its airport revenue in Q1. Last year, Shilla ranked fourth in


TRBusiness’ Top 1o operators list with total sales of KRW4,370bn in 2017. This


Millennials ‘more demanding’, says m1nd-set


In its latest global shopper behaviour report, Swiss research agency m1nd- set reveals significant differences in the shopper behaviour of millennial travellers from around the globe. M1nd-set also reveals that, globally, purchase rates among millennials are lower than travellers from all other age groups. The study explores the shopping


behaviour of millennials from eight different nationalities: British, French, German, Chinese, Japanese, American, Brazilian and Russian, based on interviews with over 8,000 international travellers from m1nd’set Business 1ntelligence Service (B1S) insights tool. As mentioned, the report reveals


purchase rates are lower among millennial shoppers compared to other age groups for all nationalities except the Chinese, where there is only a ‘one point difference’. The largest difference in behaviour


between the habits of millennials and travellers in other age groups, occurs for German shoppers, followed by the Japanese and then French.


Alipay: Uptick in middle-aged Chinese spending during CNY


Older Chinese tourists were the ‘main driving force’ in exploding mobile payment volumes made overseas during the Lunar New Year holiday (4-10 February). Preliminary findings from Alipay based


on Chinese travellers’ mobile payment behaviours in 40-plus markets where the platform is accepted reveals a surge in tourism volumes and consumption levels across two groups – those born between 1960-1969 and 1970-1979. Alipay users in the first group (1960-1969)


grew by 230% year-on-year, with total consumption up 250% year-on-year. Meanwhile, the number of Alipay users


in group two (1970-1979) hiked by 190% year-on-year, with total consumption up 232% year-on-year. The research also shows outbound


travellers from third- and fourth-tier Chinese cities made more purchases using Alipay than those from tier one cities such as Beijing, Shanghai and Guangzhou.


represented an increase of +16.5% on the KRW3,753bn registered in 2016. Despite several external challenges, Shilla managed to make a profit in each quarter of the year. The retailer’s full-year 2018 results are


yet to be published, but with key openings at Incheon and Jeju airports, alongside the recovery in Chinese tourist numbers visiting Korea, the signs are extremely positive.


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