JAPAN MARKET UPDATE


negative test results; they will need to keep GPS contact data on their smartphones and they will need to provide detailed travel plans. There is currently a travel ban in


place for travellers from 111 countries and regions to Japan. At the same time, 181 countries and regions have imposed travel restrictions of some kind on travellers arriving from Japan, according to Japan’s Foreign Ministry. However,


Japan’s main


international airports have remained open during the Covid-19 lockdown, handling a small number of flights each day, with just one or two duty free shops open in each location. Most airport landside and airside


shops remain closed for the time being as travel retail operators wait for further instruction from the government. “It has been widely reported


that the government has started considering easing restrictions in stages: first for business travellers and experts, then for international students and lastly for tourists,” says a spokesperson for NAA Retailing Corporation’s FaSoLa Shops at Narita International Airport. “However, no details or a timeline


have been provided as yet.” FaSoLa shops has already been


remodelled to comply with official Covid-19 safety regulations. “Our shops have installed plastic


sheets to provide a barrier between customers and our staff at the cash register and have marked 1.5 metre spacing at the cash register queue lines,” says the spokesperson. “There is no limit on customer numbers at this moment. “All our staff wear masks and face


shields and follow thorough hygiene and sanitising practices.” Meanwhile,


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downtown operators have re- opened the tax free section of their stores, selling mostly Japanese beauty and drug store products. Downtown operators, who rely on


Chinese visitors for the majority of their sales, are expected to re-start their full duty free service as foreign visitor numbers grow in future. Of course, Japan was anticipating


record traffic and sales figures this year in the build up to 2020 Tokyo Olympic Games. The number of foreign visitors,


in particular Chinese travellers, entering Japan in January were at their highest level since July 2019 in the previous peak summer season. FaSoLa’s duty free sales leapt


in January with arrival sales almost doubling. “Our overall sales performance


before Covid-19 was almost flat year-on-year, but in January 2020, a month before Covid-19 started to affect business, our sales hit a record high, thanks mainly to the increased number of China flights at Narita,” says the spokesperson. “The total sales of our five arrival


shops for January 2020 rose by 96% year-on-year. “Considering that the growth of


our total sales for the same month was +21%, the arrival shops result shows significant growth. “Japanese passengers account for


a high percentage of arrival sales; visitors from overseas also buy. Tobacco products account for about 80% of the arrival sales mix.”


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duty free stores in Tokyo have already launched a limited re-opening programme. Tokyo’s Ginza Mitsukoshi Japan


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Revenue down 10% in 2019 Despite plunging passenger numbers, FaSoLa decided to go ahead with its newest shop opening: a Dior Perfume and Beauty boutique at the end of March. “Our Dior Perfume and Beauty


Duty Free partially re-opened its downtown store on 15 June, following the partial re-opening of the Lotte Duty Free Ginza store on 1 June and Takashimaya Duty Free Shop Shilla & ANA’s partial re-opening on 11 May. While their instore duty free counters remain closed, all three


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Narita T1 South Boutique is the brand’s first standalone beauty boutique at Narita Airport; it opened on 31 March, 2020,” says the spokesperson. “The boutique, which prominently


displays best-selling makeup items, also offers fragrances and skincare products. As well as presenting Dior’s gorgeous products and sense of luxury, our skincare specialist and colour stylists offer a


FaSoLa has remodelled its Dior store to adhere to new saftey guidelines.


TRBUSINESS 23 Spokesperson, NAA


superior customer experience in a relaxed environment.” Due to the dramatic impact on


duty free operators’ sales for the 2019 financial year, FaSoLa’s total revenue in year ending 31 March, 2020 (FY2019) dropped by 10.2% to JPY 74.6 billion/US$694 million. Combined duty free perfume &


cosmetics and liquor & tobacco sales were 45% of total revenue; Akihabara Tax Free Shop sales represented a 40% share of total revenue, and boutiques 13%. Of the total duty free revenue


registered, perfume & cosmetics accounted for a 60% share, while liquor and tobacco accounted for the remaining 40%. «


“Our overall sales performance before Covid-19 was almost flat year-on-year, but in January 2020, a month before Covid-19 started to affect business, our sales hit a record high, thanks mainly to the increased number of China flights at Narita Airport.”


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