TFWA ASIA PACIFIC
included Lagardère Travel Retail Asia Pacific Chief Operating Officer Emmanuel de Place; King Power (HK) Managing Director Sunil Tuli; (now former) Aer Rianta International CEO Jack MacGowan; Hunter Palmer Global Retail Solutions Co- Founder Keith Hunter; and Neuhaus CEO Ignace van Doorselaere. Tuli said: “Airports release tenders
King Power (HK) Managing Director Sunil Tuli had plenty to say in terms of how the current concession model needs to change. Source: TFWA
DF&TR sales, referencing Kansai International Airport in Japan, where spend per pax is upwards of $55. “There is also a change in the
nature of travel retail; customers don’t just want to see luxury boutiques and products stacked on shelves, they want to engage with products and we really need to engage the customer much more so than in the past,” he said. He then went on to outline
APTRA’s four pillars: Research, training, connectivity and advocacy, stating that significant progress had been made in each of the areas. On the research side, this includes
the creation of a new series of airport- specific studies merging consumer insight with air traffic forecasting with retail sales benchmarks for each major product category. Concluding, he addressed directly
the current threat posed by the potential ban of duty free tobacco sales under the World Health Organization’s (WHO) Protocol to Eliminate Illicit Trade in Tobacco (ITP), he stated unequivocally: “I cannot stress too firmly that our
industry is legitimate, very tightly controlled by customs and other authorities and banning tobacco sales would do untold harm to the entire industry, but in particular to overall airport economics.”
Concession model debate Following insightful key notes from Adam Cheyer, Co-Founder and VP Engineering Siri and Viv Labs; and Shivvy Jervis, Futurist and Expert on the digital economy, a lively panel session ensued. Travel retail executives on the panel
JUNE 2018
and provide interested parties with all the relevant information. Participants then make the necessary calculations and offer a proposed minimum annual guarantee…. What happens if sales are not what they projected?” MacGowan defended the role of
landlords in the process, stating: “It is in the nature of a landlord to extract as much rent as they can and take as little risk as possible. Retailers have to present a picture where landlords will gain more. There is nothing that would help an airport more than taking more rent and less risk.” The session also included an
informative presentation from Boston Consulting Group Fillippo Bianchi, who presented key findings and recommendations from a study commissioned by TFWA on the evolution of the business model in DF&TR. He commented: “To deliver joint-
value creation, the industry needs to re-focus on the customer. Fresh ideas can be driven by collaboration, but can we leverage data to re- define our insights and approach to customers?” Offering a brand perspective,
Doorselaere said: “At Brussels Airport, we are fortunate to have good partners and an ecosystem of partners that get along and have knowledge of the field.”
Safeguarding our industry Workshop C after lunch focused on the potential challenges to industry growth, including a focus on the aforementioned WHO ITP. European Travel Retail
Confederation (ETRC) President Sarah Branquinho clarified: “The Illicit Trade Protocol calls for a study into the extent to which duty free contributes to illicit trade. “The research study must commence within five years of the
Record-breaking Singapore
Total visitors: 3,194 (+3) DF&TR buyers: 1,105 (+5%) Exhibitors: 309 (53 of which were either new or returning) Floorspace: 10,505sq m (+2.4%) TFWA One2One meetings: 405 (+5% with registrations from 42 airports, 44 airlines and inflight services and 10 cruise and ferry operators) Plenary conference attendees: 1,390 (+4%) Afternoon workshop attendees: 817 (+1.6%)
TRBUSINESS 27
“Duty Free World Council, the regional trade associations and their members fully support the objective of the Illicit Trade Protocol, but fully reject unfounded allegations of involvement in this.”
Sarah Branquinho, President, ETRC
protocol coming in force and when 40 countries have ratified it.” According to APTRA Executive
Officer Michael Barrett, who spoke alongside Branquinho, six Asia Pacific countries have signed the agreement – China, Fiji, Korea, Mongolia, Myanmar and Sri Lanka. Branquinho added: “Our objective
is to delay the study. Duty Free World Council, the regional trade associations and their members fully support the objective of the Illicit Trade Protocol, but fully reject unfounded allegations of involvement in this.” «
Source: TFWA
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