TOP 5 ASIA OPERATORS: ONE TO WATCH
expect a V-shape sales recovery at Incheon Seaport this year.” South Korean seaport duty free sales rely on Chinese group tours rather than free independent travellers (FITs). With relations between South
Korea and North Korea warming around the time of the Pyeongchang Winter Olympic Games, Entas is optimistic that diplomatic relations between the two countries will improve, enabling the resumption of Chinese group tour visits. “Group tours have not recovered,
but we hope they will start again in the second half of the year,” Yu tells TRBusiness optimistically. “We are looking on a full-year
basis and believe seaports will make a sharp recovery. Seaport passengers are about 95% Chinese.” Tobacco is the top selling category
in Entas’ T1 seaport shop where Chinese brands excel. Liquor (whisky and cognac) is second followed by cosmetics. Most customers choose South Korean skincare brands. Incheon Port Authority is
constructing a new ferry and cruise terminal to replace existing ferry Terminals 1 and 2 and the temporary cruise ship dock. City Plus currently operates the T2 DF shop. “Incheon Port Authority is opening
a new ferry and cruise terminal to take over from the present T1 and T2 in the second half of 2019,” Yu says. “Bidding for the new terminal duty
free shop(s) will probably start in March 2019 with the shop(s) to open in December 2019, but the schedule is not confirmed yet.”
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and second floors. Each floor will cover 1,500sq m to start with, but we intend to expand further depending on the Chinese visitor return to South Korea,” emphasises Yu.
VIP treatment The Entas Duty Free Paradise City store will display watches and jewellery on the first floor and perfume, cosmetics, fashion and accessories on the second. “Paradise City spent about $1bn
to construct a top-line resort. Our duty free store will reflect its top-line quality image. “We will have private VIP rooms
in our shop to provide a personal shopping experience to customers, offer exclusive items and limited editions and take pre-orders to provide this service.” Visitor numbers to Paradise City
are growing and will increase further after the resort’s shopping mall is fully completed and as Chinese visitors return to South Korea once the THAAD missile crisis is resolved. “Entas has four duty free
operations; all our airport and seaport duty free operations are profitable, but our downtown store is not due to high travel agent customer commissions,” Yu comments. “We have changed our business
strategy since last year. We are changing to where there are higher Free Independent Traveller visitor numbers. “This needs a better location, so
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Paradise City move Meanwhile, Entas Duty Free is preparing to move its Incheon downtown DF store to a new two-floor location in the recently opened Paradise City integrated resort complex, situated opposite Incheon International Airport T1. The move is expected to generate a large increase in revenue for Entas, which will focus on serving foreign VIP guests visiting Paradise City’s casino and other facilities. The two- floor downtown duty free shop in the Paradise City shopping mall will occupy 3,000 sq m. “Our shop will occupy the first
MAY 2018
we chose the Paradise Hill model used by Walkerhill for its cabaret dinner show that performed well for 20 years. “We are making a big investment
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in our Paradise City shop. We project $20m in monthly sales, our Incheon T2 shop will provide $3m monthly. “We are looking at big numbers
here and at our Incheon T2 shop next year.”
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September opening The Paradise City duty free shop is expected to open in September after Entas received approval from the Korea Customs Service for its Incheon store location change. Its current four-floor 3,600 sq m Incheon downtown duty free store opened in May 2015. It is situated
Entas operates a 740 sq m mixed category duty free shop in Incheon Seaport T1.
TRBUSINESS 71
more per transaction than average duty free customers. “They have a higher spend on
watches and jewellery, so we will focus heavily on these products.” «
especially Chinese, Japanese and Southeast Asians,” Yu remarks. “Just offering a casino is unattractive, but a casino and DF store becomes an attractive package for travellers and travel agents. “Also, casino guests tend to spend
One third of the Incheon T2 store is devoted to perfumes and cosmetics.
“We are making a big investment in our Paradise City shop. We project $20m in monthly sales.”
David Yu, Entas Duty Free
in the company’s 15-storey head office building. Customers shopping there are almost all foreign group tour visitors. Cosmetics account for the largest share of sales followed by leather goods, watches and jewellery. In addition to targeting foreign guests playing at Paradise City’s casino tables, Entas’ new DF store will serve other visitors to the complex. “We will target foreign customers,
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