SOUTH KOREA: INCHEON INTERNATIONAL AIRPORT


A tasting experience at Lotte Duty Free’s T2 L&T store.


[the] last year for Incheon Airport.” IIAC has deliberately created


a markedly different shopping environment in T2 to that in T1, assisted by the new terminal’s contrasting architectural design, retail layout and revised concession management strategy. One immediately obvious


difference is that T2’s centralised shopping layout makes it easier for passengers to visit a larger variety of shops during their departure visit than in T1. The central shopping area is in sharp contrast to T1’s dispersed layout that effectively limits the number of shops that many passengers visit, particularly those with flights departing from the T1 concourse that need to take a


shuttle train. “In T2 we have tried to provide


better service and give a wider selection of goods to passengers,” maintains the spokesperson. “Concessions DF1, DF2 and


DF3 cover one category each and are designed for large operators. Also, as T2 is a new terminal we wanted specific images for specific categories.” The Shilla Duty Free operates the


T2 perfume and cosmetics concession (DF1) comprising six shops totalling 2,105 sq m in area, while Lotte Duty Free operates the T2 liquor, tobacco and food concession (DF2) consisting of eight shops totalling 1,407 sq m. The fashion, boutique, toys, electronics and miscellaneous


Shopping trends stay on track


Despite fewer Chinese travellers visiting South Korea due to Beijing’s group tour ban linked to the THAAD crisis, duty free shopping trends at Incheon Airport have been fairly stable over the past 15 months, TRBusiness discovers. According to IIAC data, the ratio


of sales for major retail categories in January and February 2018 remained similar compared with the same period last year, although some small changes were evident. Perfume and cosmetics remains the


largest category at Incheon, accounting for 40% of all duty free purchases in T1 and T2 combined in January and February 2018.


MAY 2018


This compares with a 38% share of all purchases during the same period last year. Liquor revenue also grew slightly


in proportion to other categories, accounting for 9% of total duty free sales in January and February 2018 compared with 8% during the same period last year. Tobacco’s share of sales was


unchanged at 14% during the first two months, remaining the same as last year. However, fashion’s share of sales fell


to 14% compared with 16% during the same period year-on-year. Meanwhile, the share of leathergoods


eased downwards slightly to about 14.5% of total sales in January and February


Despite steady total category business, fashion's share of sales dropped from 16% to 14% between January and February year-on-year.


TRBUSINESS 89


of 2018 compared to 15% last year. The sales share of souvenirs, food, ginseng and other goods remained unchanged at 9%.


IIAC has deliberately created a markedly different shopping environment in T2 to that in T1, assisted by the new terminal’s contrasting architectural design, retail layout and revised concession management strategy.


TRBusiness


products concession (DF3) is operated by Shinsegae Duty Free and consists of 14 shop units covering 4,889 sq m. Some of the larger shop units have been sub- divided into smaller ones, which currently include 20 boutiques occupying 4,278 sq m of retail space. Among various innovations that IIAC has introduced in T2 is


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