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TOP 5 ASIA OPERATORS: ONE TO WATCH


May 2017 20


YEARS 1997-2017


Heinemann hits $4bn in group turnover in 2016


Fighting talk from TFWA President


China committed to domestic tourism drive


TRBusiness Annual South Korea Report


Top Asia Pacific operators drive global growth


I


Promising SME more than doubles sales in 2016 Hong Seok Ho


Exclusive: Coty details $12.5bn P&G acquisition


South Korea’s Entas Duty Free aims to increase its Incheon Airport business while working on SME downtown and seaport duty free growth opportunities as David Hayes reports.


n recent years, South Korean authorities have certainly made an effort to increase the number


of duty free and travel reatil opportunities for SME operators as they attempt to reduce the influence of the country’s chaebols – including leading companies Lotte and Shilla. While their efforts are admirable,


they have sometimes back fired as tenders have failed to attract enough viable SME operators. This has resulted in the retendering of various contracts in the past, which have eventually been awarded to the larger, more capable organisations. However, relative newcomer,


outbound South Korean travellers, Entas operates a downtown duty free store in nearby Incheon city and a duty free shop in Incheon Seaport Terminal 1. The downtown and seaport


Also inside


Entas Duty Free has certainly proved its viability and worth in this industry after reporting strong revenue growth during the past 12 months at Incheon International Airport where the company is one of four SME operators. Sales have grown at a double-


This content is for subscribers only. To receive a full digital copy of the May issue,


outlets rely mainly on Chinese visitors for sales and unfortunately will by affected by any slowdown in mainland tour group numbers this year since the Chinese government banned agencies in March from sending tour groups to South Korea. “Business has been very good,”


David Yu, CEO of Entas Duty Free, told TRBusiness in


an exclusive


interview. “We had total sales of over US$70m in 2016; the previous year it was $30m. “We are one of the few new SME


digit rate most months since Entas launched its newest venture in September 2015 with the opening of the company’s SME concession DF12 liquor, tobacco and general goods shop in the central luxury boutique hub area of Incheon International Airport’s T1 main terminal building. This faces the airport’s landmark Louis Vuitton boutique. In addition to its Incheon Airport shop, which is used mainly by


MAY 2017


plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit


duty free operators making a profit. Business is good for us.


www.trbusiness.com/subscriptions


Renovation initiates growth Entas continues to fine tune its operations at Incheon Airport. “We have renovated our shop façade at Incheon Airport and made the interior brighter with a more contemporary and fashionable look,” Yu explained. “This has helped increase our sales


there by 20%. Our sales per square metre [rose to] $260,000, which includes sales of liquor, tobacco, food and electronic items.” In addition to buoyant sales at


start online sales,” added Yu. “Big operators do not want to do it as they would have to pay extra fees, but it’s a good idea for new operators. The new platform will help new operators in this very competitive market. IIAC has asked all bidders for


Terminal 2 duty free shops to submit plans for online businesses.


“Business has been very good. We had total sales of over US$70m in 2016; the previous year it was $30m.”


David Yu, CEO, Entas Duty Free


could benefit SME newcomer operators, Yu feels. At the moment, under Korea Customs Service (KCS) regulations, only downtown duty free shops are permitted to operate online duty free shopping services. “IIAC wants it own platform to


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


Incheon Airport, Entas is reporting an upswing in purchases through the company’s online shopping service which is available in Korean and Chinese. Online shopping could offer other


opportunities in future too. Incheon International Airport Corporation (IIAC), for example, plans to offer online shopping through the airport’s official website. If approved, IIAC’s online platform


Above: Entas Incheon Port Shop.


TRAVEL RETAIL BUSINESS 71


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