TOP 5 ASIA OPERATORS: DFS GROUP
past by the end of this year that will allow us to start next year on a new footing in terms of our growth, our development of new opportunities and our ongoing transformation.” Regarding DFS Group’s other
business in Hong Kong – at its downtown Gallerias – Schaus has some good news. “We clearly see a strong rebound downtown in Hong Kong and downtown in Macau. “In Macau it’s clearly driven by the
once again growing casino industry. The market is stabilising and the customer has evolved. We’re now serving a more fashion-conscious customer. 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.”
Airports vs downtown DFS has opened and renovated some impressive downtown stores in the last couple of years, including the T Fondaco dei Tedeschi in Venice, T Galleria in Siem Reap (Cambodia) along with the reopening of the City of Dreams in Macau. TRBusiness asked Schaus whether
the retailer was actively shifting its focus and capital investment away from airport stores on to more downtown projects in the future. “On one hand, when you go after a
in both channels there is a lot you can do to deliver a strong customer experience. Just look at what we did in Changi with our wines & spirits duplex, or how we progressively transformed the experienced at Hong Kong International Airport.” DFS doesn’t always have the
chance to pursue tenders that it might have otherwise considered, as he alluded to during his presentation at the recent excellent China’s Century Conference in Guangzhou, which TRBusiness attended in March. He made the point that he
Heinemann hits $4bn in group turnover in 2016
believed the Chinese market – which is currently closed to international retailers from bidding for travel retail contracts at airports – could certainly benefit from the diversity which global operators could bring. Similarly, South Korea can be just to penetrate, at
Fighting talk from TFWA President
China committed to domestic tourism drive
as difficult times
– TRBusiness understands that the terms of
Incheon I Snternational Airport tender, issued with an RFP in February, make it unfavourable for international bidders.
Also inside
and China could definitely open up more,” emphasised Schaus. “But having said that we have started a partnership with the Jeju Tourism Organisation (JTO) on the south of the Jeju Island. “We are developing that
downtown project you know you are going to win it and they are typically very big projects so it takes time to build them up,” he said. “When they open they are very
spectacular and they are very visible. On the other hand when you go after airport projects, it’s typically a bidding process. So in a bidding process you may prevail or you may not prevail.” Schaus insists that DFS is
‘constantly looking at airports and constantly looking at downtown opportunities’ and that it is very selective with both. “We believe that we can bring
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relationship and we are supporting JTO in establishing a progressively
GM of Haikou Meilan Airport Duty Free revealed recently that during the five years since the duty free organisation started, its operating area has expanded from 23,142sq ft to the present 328,794sq ft and the the number of brands has grown
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a strong customer experience in both those channels. It’s a bit different for the airport stores than it is for the downtown stores, but
MAY 2017
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
foreign/ “The markets of South Korea the highly-publicised T2
“You will remember that when DFS first won the three airport bids in Hong Kong International Airport, one of the incumbents came out in public to criticise DFS for overbidding at that time. Of course we didn’t like that at the time, but if you look back in hindsight he was absolutely right. So we have in part also been contributing to the inflation [of airport bidding].”
May 2017 20
YEARS 1997-2017
TRBusiness Annual South Korea Report
Philippe Schaus, DFS
Top Asia Pacific operators drive global growth
more and more attractive downtown duty free shopping opportunity. So that’s an example where even in Korea we believe we can bring something to the market and to the diversity.”
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Strong sales for Haikou DFS has also been able to strike up a successful partnership with Haikou Melian Airport, working with the Haikou Duty Free organisation, which is actually a joint venture with HNA (Hainan Airlines). Mr Sun Yong, Vice Chairman and
“The remodelled area creates greater circulation space across general merchandise, beauty and spirits, wines and tobacco categories,” says DFS of the HKIA shops it upgraded recently.
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