NEWS ROUND-UP Lotte’s online sales +32% in last three years
Lotte Duty Free’s recently adopted aggressive approach to domestic marketing has proved a lucrative fillip in capturing downtown and online consumers. Sales from this medium exploded
by 50% in 2018 year-on-year to reach KRW2tn ($1.7bn) and now accounts for 25% of the overall business. “Lotte Duty Free’s online sales growth
for the last three years (2015-2018) was +32% on average, which is way higher than its offline sales growth of +15%,” Lotte CEO Kap Lee tells TRBusiness on p36. “If we assume that it continues
consistently to be on an upward trajectory, it will be able to exceed a 30% share of our total sales after five years.” Lotte’s online presence has also become
more sophisticated, offering more than simply discounts and promotions. Since September, its online shop
incorporates traditional Chinese language characters and now supports four languages – Korean, English, Japanese and
Chinese (both simplified and traditional) with more developments in the pipeline. Notwithstanding these gains, it is
Lotte Duty Free’s overseas business that continues to attract serious attention. Lee says the US$1bn overseas sales
target by 2020 remains in its sights, and he emphasises the current strength of the business this year to support this prediction
[achieving that would have to be considered a remarkable feat given the $252m overseas sales return last year – Ed]. Currently, Lotte operates 12 stores in
seven overseas locations and has made no secret of its burning desire to expand further, with openings planned at Hanoi’s Noi Bai International Airport and Da Nang downtown in the second half of this year.
Heinemann CEO: Do not risk image for turnover
Gebr. Heinemann CEO and Speaker of the Executive Board Max Heinemann says the family company should use this USP to its advantage as it continues to grow. Speaking to TRBusiness during its
annual press conference at the company’s Hamburg headquarters last month, Max Heinemann made clear that Heinemann’s ‘clear emotional connection’ with its consumers sets itself apart from
the competition. Asked whether today’s ultra-competitive
travel retailing landscape means company image is often diluted in the eyes of the end- consumer in the race for higher margins, he said: “It has become too much about pure volume and short-term wins. “In the future, hopefully it comes down
more to fun for the end-consumer to build up image rather than just turnover. One leads to the other. “There is so much untapped potential in
the customer who buys today, especially with captive audiences.” As reported, Gebr. Heinemann has
undergone a major restructure across its operational and management functions to ‘strengthen global agility and overall strategy’. Max Heinemann assumed the role of CEO and Speaker of the Executive Board,
responsible for Global HR, Corporate Development & Strategy and Corporate Affairs, earlier this year. Gunnar and Claus Heinemann continue
to form the Advisory Board of the family business, while the Executive Board is comprised of Raoul Spanger, Chief Operations Officer; Kay Spanger, Chief Commercial Officer; and Stephan Ernst, Chief Financial Officer. Gebr. Heinemann achieved solid Group
sales of €4.6bn/$5.4bn (+11.4%) in 2018, with retail revenue at €3.6bn/$4.2bn (+11.4%). This year marks its 140th year of trading. “To move into a fifth generation is
partially unheard of and we believe in building our company culture on this,” Max Heinemann stated. “We are moving in the right direction and you will see the results in the coming months.”
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