LEADING ASIA PACIFIC OPERATORS: SHILLA DUTY FREE


Shilla Duty Free buoyed by record sales revenue and profit in 2018


Korean travel retailer Shilla Duty Free generated its highest ever sales figure of $5.3bn in 2018, with its overseas operations breaking the $1bn barrier for the first time. Andrew Pentol reflects on an exciting year for the company and looks ahead to 2019.


L


ast year was a memorable one for Korean heavyweight Shilla Duty Free, which generated


record sales revenue and profit. Total domestic sales amounted


to $4.3bn, an increase of +38% compared to 2017. But the icing on the cake was its ability to generate $1bn in sales from its overseas operations (Singapore Changi, Hong Kong International Airport, Macau International Airport, Tokyo Takashimaya and Phuket downtown) for the first time. This took the total sales figure last year to $5.3bn. Shilla certainly enjoyed an eventful


2018 in locations such as Hong Kong International Airport (HKIA) and Singapore Changi. In June, it officially unveiled its new Beauty & You stores at HKIA following the soft- opening of six beauty outlets in December 2017. Towards


the end


of the year, the retailer also extended its beauty concessions at Singapore Changi, where it operates in all four terminals. A Shilla spokesperson tells


TRBusiness: “Changi and Macau have enjoyed a rapid flow of Chinese passengers. Shilla’s International


MAY 2019


business will continue to enjoy organic growth due to increasing numbers of Chinese consumers and internal improvement efforts.” On the performance of its Beauty


& You stores at HKIA, the spokesman remarks: “Business has stabilised after the grand opening last June, but there is big potential for growth.” The opening of its new perfumes


and cosmetics stores at Incheon International Terminal 2 and the start of trading at Jeju International Airport, where it captured the five-year contract in 2017, also contributed to last year’s success.


Competitive in beauty The spokesperson says: “Since opening in 2018, The Shilla Duty Free has performed consistently well at Incheon International Airport Terminal 2. This has contributed to our stable sales growth. “We are an international travel


retailer and beauty powerhouse. As the first duty free retailer to secure duty free perfumes and cosmetics concessions at the top-three Asian international airports (Seoul Incheon, Hong Kong International and Singapore Changi), we have a competitive


advantage when it comes to beauty products.” Shilla says it demonstrates its


buying power through the launch of exclusive Shilla products with renowned beauty brands. “Additionally, The Shilla Duty Free


is providing a window of opportunity for Korean brands and helping


Above: Shilla’s Incheon T2 store provides a fine example of its buying power in perfumes & cosmetics.


“Since opening in 2018, The Shilla Duty Free has performed consistently well at Incheon International Airport Terminal 2. This has contributed to our stable sales growth.”


Spokesperson, Shilla Duty Free


Marketing initiatives such as partnerships with webtoon artists are a key part of the retailer's strategy.


TRBUSINESS 41


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