TOP 5 ASIA OPERATORS: SHILLA DUTY FREE
dominant category in our online sales channel,” Kim continues. “Luxury brands are unavailable in
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our online store. Our ratio of online sales constantly increases by double- digit figures. We expect online shopping to eventually reach 50%. Online sales growth is faster than offline growth.” Downtown and airport shopping
have time constraints and physical restrictions, Kim notes; the customer must be present, but faces time restrictions in visiting a given shop location. “Online shopping will be the future
business for South Korea’s duty free industry,” Kim forecasts. “Downtown and airport shopping
have time limits but online shopping has no time or physical limit. Customers can start shopping two or three months before travelling. “This leads to more spending, so
we make great effort with our online shopping service. Online shopping is the future of South Korean duty free shopping.” Shilla is continuously investing to
improve customers’ online shopping experience by focusing on the use of personal computers and mobile phones to purchase goods in its online store. “South Korean, Chinese and
Japanese customers are moving to the smartphone channel so we keep introducing more Shilla Duty Free mobile phone apps,” says Kim. “Online shopping is most popular
among our South Korean customers as they are already accustomed to shopping online. In China, the trend is to move quickly to online commerce and general retailing, so South Korean operators expect much more online growth in future. “We offer benefits in cooperation
Shilla recently accepted a 27.9% rent reduction offer from IIAC to continue operating its concessions at Incheon International Airport T1.
Better-than-expected sales are already being reported at Incheon International Airport T2, where the company began operating the perfume and cosmetics concession (DF1) when the terminal opened on 18 January. Shilla has six outlets in T2 totalling
2,105 sq m, some of which have been sub-divided for use as ‘flagship’ shops or boutiques for leading perfume and cosmetics brands. “Our T2 shops are very different
with improved design. The entire area is under the Shilla Duty Free design concept for ecstatic beauty with the brand assortment,” says Kim. “In T2, our 150 brands cover all the major perfume and cosmetics
“We believe Incheon International Airport Corporation’s (IIAC) goal is to enhance passengers experience and not just retail. Shilla is putting together all the fun and experience passengers expect and IIAC is happy.”
Taeho Kim, Shilla Duty Free
labels,” he goes on to say. “We have the biggest sales in the
new terminal,” he claims. “Out of all T2 operators, perfume and cosmetics has the major share of total sales. Our T2 performance exceeds our expectations. It is beyond our original estimate.” In addition to beauty shops
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with banks and other organisations. This enables us to provide more benefits and leads to more online use.”
New shop openings Meanwhile, Shilla is also expanding its offline retail presence. The company opened new shops earlier this year at two domestic locations – Incheon Airport Terminal 2 and as noted above, at Jeju International Airport, gateway to Jeju Island.
MAY 2018
To receive a full digital copy of the April issue, plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
www.trbusiness.com/subscriptions Beauty shops in T2 display a wide range of international and South Korean brands. TRBUSINESS 57
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