NEWS ROUND-UP Incheon Airport courts Chanel and Louis Vuitton
In an effort to ensure that two of the most exclusive brands in the South Korean duty free market both have suitable retail facilities in T2, Kim Bum Ho, Incheon International Airport Corporation (IIAC) told TRBusiness that prior to inviting bids, IIAC started preliminary negotiations with Louis Vuitton and Chanel over their preferable boutique locations. Boutiques operated under DF3 will be
located in two facing parades of shops in the central concourse, with each shopping parade occupying 1,500sq m, giving a total combined area of 3,000sq m to house boutiques of various sizes. Following preliminary discussions, IIAC
provisionally allocated Louis Vuitton a 550sq m boutique position in the middle of the central shopping concourse, while doing the same for Chanel in a 400sq m boutique facing it on the opposite side of the concourse. The retail space provisionally allocated to
Louis Vuitton in T2 is the same area as the current T1 boutique, Kim noted, enabling the brand to achieve an equal presence in
AOT rise in non-aeronautical revenue to $633.5m in 2016
Airports of Thailand (AOT) has reported that its total concession revenues generated by its six airports accounted for 63% of non-aeronautical revenues in fiscal 2016, corresponding to Bht13,620.03 ($396.2m) compared with 63% in 2015, which was equivalent to Bht.11,731.15 ($341.4m). AOT’s airports at Suvarnabhumi, Don
Mueang, Chiang Mai, Hat Yai, Phuket and Mae Fah Luang-Chiang Rai generated non-aeronautical revenues in total of Bht21,774.28 ($633.5m), including retail concession revenues, service revenues and office and state property rents. For the year ended 30 September, 2016
the aforementioned non-aeronautical revenues rose by Bht3,830.02m ($111.4m) or 21.34% compared to the previous year, with this apparently due to an increase of Bht1,888.88m ($54.9m) or 16.1%. AOT adds that this was mainly
attributable to an increase in passengers and the ‘revenues sharing rate’, especially revenue sharing from the DF shop operation run by King Power International Group (KPIG), with this component contribution rising by Bht934.63m ($27.2m).
both terminals. “We have had preliminary talks with
Louis Vuitton and Chanel about T2. It’s listed in the RFP with provisional locations and shop sizes,” Kim said. “It’s difficult for operators to negotiate
with Louis Vuitton and Chanel over a shop location and size, that’s why we put provisional locations and shop sizes in the RFP. “But it’s the operator’s final decision
as we cannot choose the brand selection. Also, the two brands are autonomous; they and the operator could say ‘no’. “After we select the concession winners
we will have final negotiations to finalise the brands selection.”
For more from Incheon International Airport Corporation’s Kim Bum Ho,
read the
interview on p91 within the TRBusiness Annual South Korea Report.
full
Double-digit growth for Entas at Incheon
Sales have grown at a double-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 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 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 tour agencies in March from sending 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 duty
free operators making a profit. Business is good for us. The full interview with David Yu appears on p71.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186
