TOP 5 ASIA OPERATORS: ONE TO WATCH
“We will bid for T2 concessions. It’s a great opportunity as Korean Air will have about 90% of passengers in T2 and they operate 151 routes from Incheon Airport.” Incheon Airport remains the
company’s biggest operation, but its shop in Incheon’s Seaport Terminal 1 is the second largest. “We started there in 2014,” confirmed Yu. “Business is doing well – it’s 95% Chinese ferry passengers.” The state-owned Incheon
International Seaport has two passenger terminals that are used by ferry boats sailing 10 routes to different ports in China.
Seaport sales +30% yoy Entas operates a 740sq m mixed category duty free shop in T1, which handles about 60% of all
using the seaport. “Our sales in Incheon Seaport have
grown 30% year-on-year,” added Yu. Passengers buy cosmetics, bags, lots of electronic items like electronic rice cookers; also, Korean food,” Yu said. Yu pointed out that Entas bid
successfully last year to retain its three-year Incheon port T1 license that will now expire in 2020, however, the Incheon Port Authority could terminate the license a year early, if work constructing a new ferry and cruise ship terminal is completed on schedule in 2019. Incheon’s new ferry and cruise
liner terminal will replace existing ferry Terminals 1 and 2 [where City Plus operates the T2 duty free shop] along with the present temporary cruise ship dock. “The new Incheon Seaport
terminal will be a great opportunity,” said Yu. “Duty free shopping is still at the planning stage, but there are big plans to expand the shopping facilities there. “The Port Authority wants to
upgrade shopping to the same level as the airport. They want to upgrade the standard and provide a more friendly shopping environment. They are looking at having multiple operators.” Meanwhile, sales have been
May 2017 20
YEARS 1997-2017
Heinemann hits $4bn in group turnover in 2016
downtown duty free stores opening in Seoul over the past 18 months. Entas
Fighting talk from TFWA President
international passengers
downtown duty free store on 11 May, 2015, in the company’s new 15-storey head office building. Yu noted that this downtown store is the only one which has been approved in Incheon. The store totals about 3,400sq m
China committed to domestic tourism drive
in area, with a footprint of around 860sq m of retail space per floor. Customers shopping in Entas’
Also inside
Incheon downtown store are all foreign group tour visitors. Cosmetics account for the largest share of sales followed by leather goods, watches and jewellery. “Last year it was difficult to
opened its Incheon
TRBusiness Annual South Korea Report
Entas operates a downtown duty free store in Incheon city.
Top Asia Pacific operators drive global growth
“The new [IIAC online] 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.”
Exclusive: Coty details $12.5bn P&G acquisition
David Yu, Entas Duty Free Hong Seok Ho Shinsegae shoots for $1bn sales target in 2017... p115
predominantly Chinese visitors. Phase 1 of Paradise City will
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
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secure new brands as they want to be present in large stores in Seoul,” Yu commented. “Our Incheon downtown store has been affected by the entry of new duty free operators. It’s expensive to operate a downtown store with new operators in Seoul providing high commission to tour companies.
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Protecting the bottom line “We decided to protect our bottom line so our downtown sales are flat, but it was a profitable year as we have not conducted aggressive marketing. “New operators in Seoul have lost
large sums – their top line has grown, but their profit has suffered. Entas does anticipate an upturn in
sales in its Incheon downtown store following the nearby opening of Paradise City in April. Connected to Incheon Airport
slower to develop in Entas’ Incheon city downtown duty free store due to competition from other new
MAY 2017
by monorail, Paradise City will be the first integrated resort to open in South Korea and will target
The downtown shop relies mainly on Chinese for sales. TRAVEL RETAIL BUSINESS 73
free shop, as Entas has exclusivity for Incheon downtown. “We are thinking of setting up a
shop display in the resort with the Incheon Tourist Authority. We can display goods, but not sell there. We can also link to our online sales platform.” «
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Paradise City as duty free customers and casino visitors in South Korea typically share great commonality. “We are optimistic about
downtown sales as Paradise City is opening,” said Yu. “We expect 2.8m visitors there a year. “Paradise City does not have a duty
consist of a luxury hotel, a casino and a convention centre, while Phase 2 – which is due to be complete in a year’s time in April 2018 –will include a shopping mall, a K-wave theme park, a health spa, an art gallery and other facilities. Entas has agreed to co-market with
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