TOP 5 ASIA OPERATORS: SHILLA DUTY FREE
the transfer of Korean Air, KLM, Delta and Air France to the newly opened T2.
Buoyant downtown returns Meanwhile, business is buoyant at the Shilla Duty Free flagship downtown store in Seoul, where the company created a J-Zone brand in February at the rear of the first floor. This features fashionable Japanese perfume and cosmetics brands. “There is constant brand renewal
and our effort is the introduction of a trendier J-Zone brand,” says Kim. “It’s not only traditional perfume
Shilla’s flagship central Seoul downtown store is the company’s largest domestic operation.
“Online shopping is most popular among our South Korean customers as they are already accustomed to shopping online.”
Taeho Kim, Shilla Duty Free
and experience. “We have introduced, for example,
a new experience in T2 called Beauty Mirror where the customer can see how make-up looks. It’s the first time we have done this at Incheon Airport. “We believe Incheon International
displaying a wide range of international and South Korean brands, Shilla operates six ‘flagship’ shops in T2 for top brands: Chanel, Dior, Estée Lauder, Lancôme, SKII and Sulwhasoo. “T2 is a milestone for Shilla Duty
Free’s airport business as we also operate shops in Singapore Changi and Hong Kong International Airport,” Kim points out. “In T2, the customer’s first
impression is a beauty paradise. That’s what we want to show. Customers do not only want to purchase. They want fun
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.” Over in Incheon Airport T1, Shilla
runs concessions covering: perfume and cosmetics, liquor and tobacco and general merchandise. It has made only small changes to its T1 shops over the past year, where sales grew around 10% despite China’s ban on group tours. “We constantly renew our brand
assortment in T1 to keep up with customer preferences,” says Kim. “There have only been a few minor
changes like the introduction of some smaller brands, but no major re-arrangement.” Shortly before TRBusiness went
Shilla runs a liquor and tobacco concession in Seoul Incheon International Airport T1.
58 TRBUSINESS
to press, Shilla also accepted IIAC’s 27.9% T1 concession fee reduction offer. Following a series of meetings and negotiations, IIAC made the same global 27.9% concession fee reduction offer to all T1 operators to compensate for the loss of passengers and potential duty free sales in T1. This follows
and cosmetics we are bringing in. There also is a recent trend for beauty devices we are introducing in our downtown shop.” Shilla’s second floor luxury
watches area next to international perfume and cosmetics is another important attraction as part of the shop’s luxury brands collection. “Luxury watches are still booming,
but we see a lack of supply as there is strong demand,” Kim explains to TRBusiness. “Customers still have high demand
for luxury watches and jewellery. The watches price range varies – foreign customers can purchase, but South Korean customers are price restricted by their duty free allowance. Super high price watches rarely sell.” Meanwhile, nearby on the second
floor, Coach has moved into a new corner boutique next to the watches area. This allows the former Coach location to be divided into five perfume and cosmetics positions for Laura Mercier, Jurlique, Ohui, Belif and Benefit. SKII has moved to a new central
display position. The Japanese brand’s former location is now occupied by Sisley and YSL. Swedish beauty appliance brand
Foreo has also taken a second-floor position after launching in-store with a front entrance pop-up shop display. Elsewhere, Gentle Monster
sunglasses, MLB sports caps and Japanese jeans brand Ebisu all launched basement floor positions in the second half of 2017 These were followed in January by
South Korean mixed-fashion brand Boy London. «
MAY 2018
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