FASHION & ACCESSORIES: TOP 5 RETAILERS
South Korea on top for fashion & accessories sales
Although Lotte has suffered couple of punishing years in South Korea, the company still topped the retailer ranking for fashion & accessories’ sales in 2015, whilst Shilla Duty Free and Taiwan’s Ever Rich followed in second and third place. Charlotte Turner reports.
A
t the TFWA Asia Pacific Exhibition & Conference the association’s President, Erik
Juul-Mortensen revealed that Asia Pacific was the driving force behind sales growth for the global duty free & travel retail industry. Drawing on preliminary data
from Generation Research, TFWA President Erik Juul-Mortensen revealed that Asia Pacific revenues grew by 9.1% to total $27.59bn in 2016. It is then not a total surprise
that three of the top five retailers for fashion & accessories – a category rapidly growing in importance in travel retail – are based in Asia Pacific. [Using Generation Research’s metrics,
fashion & accessories includes fashion & clothing, accessories, sunglasses and leather goods. It does not include watches & jewellery]. Interestingly Incheon Airport in
Seoul, Korea and Singapore Changi Airport are the top two travel retail locations for fashion & accessories sales according to 2015 data provided by Generation Research. Topping the list of best-performing
fashion & accessories retailers, Lotte told TRBusiness that fashion boutiques accounted for 15% of the company’s total duty free & travel retail sales in 2016. This was equivalent to about $850m. Second-placed Shilla has made
some important progress in the last couple of years with regards to its fashion & accessories retailing. One of its latest triumphs to
be reported was at Hong Kong International Airport where it was awarded a new fashion license in April this year. Although cosmetics is the most
popular category online for Shilla (accounting for more than 50% of Shilla Duty Free’s online sales), fashion and
JULY 2017
accessories items are next best- selling, among which sunglasses are the most popular products. Third-placed Ever Rich, based
in Taiwan, considers fashion & accessories to be one of its core categories, especially as this category appeals so strongly to Chinese customers. Interestingly,
the company
has observed in recent years that although mainland Chinese customers are still keen to buy from big name brands, they are now choosing bags with smaller logos on display.
Dufry in fourth place In fourth place by fashion and accessories sales, Dufry has been able to up its game since acquiring WDF and Nuance in recent years and continues to extend its existing contracts as well as pick up new ones in previously unexplored territories. The latest contracts, which
incorporate fashion & accessories retail elements include the following: Dufry extends 10-year duty free and duty paid contracts at Brazília and Natal airports (June 2017); Hudson Group wins concession contract at Raleigh-Durham International Airport for seven new specialty retail, travel essential, and duty free stores (May 2017); Hudson Group extends duty free & duty paid contract at Las Vegas McCarran International Airport (May 2017); Dufry and DFASS is awarded the operation of the duty free shops at El Dorado International Airport, Bogota (January 2017). Finally, in fifth place sits Hamburg-
based Gebr. Heinemann; also a top 5 retailer for global DF&TR sales. Interestingly fashion & accessories
represented 8% of the company’s total business in 2016. Gebr. Heinemann made it clear in
Fashion & accessories generated $850m for Lotte in 2016.
Topping the list of best-performing fashion & accessories retailers, Lotte told TRBusiness that fashion boutiques accounted for 15% of the company’s total duty free & travel retail sales in 2016.
TRBusiness
its outlook for 2017 and beyond (issued in April this year) that it is planning on ‘advancing the fashion & accessories category with even more luxury brands’. «
Ranking in F&A1
1
2 3 4 5
TOP 5 RETAILERS IN FASHION & ACCESSORIES* (2015) Retailer
Global ranking2
2 6
N/A 1
5 Lotte Group
Shilla Duty Free Ever Rich Dufry
Gebr. Heinemann
F&A category share of total market
Global F&A sales Total market
Source: Generation Research and TRBusiness figures. 1
Data provided by Generation Research. 2
DF&TR sales total from all regions2
($bn) 4.20 2.20 N/A 6.20 3.10
14.5% 9.0 62.0
Data taken from
TRBusiness Global Operators Report published in 2016 using 2015 figures. *Fashion & accessories includes fashion & clothing, accessories, sunglasses and leather goods.
TRBUSINESS 29
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