TOP 5 ASIA OPERATORS REPORT: OVERVIEW
“It’s much more of a family customer and the business is back on solid growth…at least that is what we have seen in the last few months. “Hong Kong downtown also,
for very different reasons, but we have seen our business come back strongly particularly in the last couple of months there too.” [Read the full interview with Schaus on p51]. Shilla’s also saw its sales rebound
in 2016, as it registered $2.6bn, up from $2.2bn in 2015. In the last couple of years Shilla has
also picked up a couple of strategic airport concession contracts including Singapore Changi and most recently the hotly contested Hong Kong International Airport (HKIA) P&C and fashion contracts. Shilla bid competitively for the
business, promising to deliver almost 100 brands that will be new to HKIA, along with a dedicated zone for ‘male-specific products’, as well as a new generation zone providing a platform for emerging Korean and Japanese brands. Towards the end of 2016 Shilla
also opened its 25,000sq m Phuket, Thailand store, which symbolised an important next step in the company’s diverse global expansion strategy.
Sunrise in fourth place Whilst South Korea dominates total DF&TR sales for the Asia Pacific region, it is China’s Sunrise Duty Free which sits in fourth place behind Shilla. However, by teaming together
May 2017 20
YEARS 1997-2017
Heinemann hits $4bn in group turnover in 2016
An artist’s rendering of the new liquor offer to be built at HKIA by CDFG and Lagardère Travel Retail.
Fighting talk from TFWA President
have recorded duty free sales worth around RMB10bn ($1.6bn) in 2015. However, it faces a number of big challenges, including retail tenders at both Beijing and Shanghai Hongqiao and the prospect of a brand new airport being built in Beijing in 2019. The list of the Top 5 Asia Pacific
China committed to domestic tourism drive
Operators is rounded off by Taiwanese retailer, Ever Rich, which enjoyed duty free sales growth in 2015, but admitted this was less than initially expected. The company told TRBusiness last
Also inside
Top Asia Pacific operators drive global growth
“We clearly see a strong rebound downtown in Hong Kong and downtown in Macau.”
Exclusive: Coty details $12.5bn P&G acquisition
Phillipe Schaus, CEO, DFS Group Hong Seok Ho Shinsegae shoots for $1bn sales target in 2017... p115
LAGARDÈRE IN ROME | ACI CONFERENCES’ REVIEW | LOTTE DUTY FREE | DFS GROUP SHILLA | SUNRISE | EVER RICH | CHANGI AIRPORT | SINGAPORE CRUISE CENTRE | CHINA DUTY FREE | INCHEON AIRPORT | HDC SHILLA | HANWHA GALLERIA | SM DUTY FREE WILLIAM GRANT & SONS | PERNOD RICARD | BROWN-FORMAN | BEAM SUNTORY | BACARDI BEAUTY IN ASIA REPORT | COTY’S PHILIPPE MARGUERITTE | PEOPLE NEWS | NOW & THEN
year that this was due to a slowdown in per capita spending by mainland Chinese visitors, who still make up the majority of sales at many of Ever Rich’s outlets. Ever Rich operates departure
with China Duty Free Group (CDFG) the new partnership could see a rapid climb up the ranking by next year. As previously reported, TRBusiness
understands that China airports duty free concessionaire Sunrise Duty Free has sold a 51% share in the company to the China Duty Free Group (CDFG) ahead of a very important tender in Beijing. This merger will clearly create a
huge duty free force with coverage across all three Beijing and Shanghai airports – plus CDFG’s comprehensive 230-strong network of border stores, airport outlets, its huge Sanya downtown store and its small overseas duty free business in Cambodia. Sunrise Duty Free is understood to
MAY 2017
plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
and arrival duty free shops in Taiwan’s main airports – Taoyuan International Airport, Taipei Songshan International Airport, Kaohsiung International Airport and Taichung International Airport – plus two downtown pre-order duty free shops in Taipei.
Asia
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High pax drives sales About 60% of total duty free sales at Taoyuan Airport are recorded in T2 shops where Ever Rich and Tasa Meng operate about half the shops each, while about 40% of purchases are made in T1 where passenger numbers are a little less than in T2. TRBusiness estimates that higher
international passenger numbers helped lift total duty free sales at Taoyuan Airport to about NT$6bn in 2015, up by a mid to high single digit percentage compared to the previous year.
2 3 4 5
NA NA
Pacific ranking1
1
Global ranking2
2 4 6
TOP 5 ASIA OPERATORS Retailer
Lotte Group DFS Group Shilla
Sunrise Ever Rich Total market3
Departure sales account for the majority of duty free revenue at Taoyuan Airport; arrival sales are mostly liquor and tobacco products. In addition, Ever rich operates
the ‘Golden Lake Plaza’ duty free shopping mall and hotel complex, located in Kinhu town on Big Kinmen, which it opened in 2014. As well as duty free shopping and
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other retail facilities, Ever Rich plans to add a multiplex cinema to the hotel shopping and entertainment resort and reveals there is space for a casino in the future. «
DF&TR sales total from all regions2 ($bn)
4.20 3.50 2.20 1.60 NA
Asia Pacific share of global market3
: 40.8%
Asia Pacific market sales3
: 25.30bn : 62.0
Source: Generation Research and TRBusiness figures from 2015. 1
Data provided by Generation Research. 2 Data provided by Generation Research.
TRBusiness Annual South Korea Report
Data taken from
TRBusiness Global Operators Report published in 2016 using 2015 figures. 3
TRBUSINESS 47
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