LEADING ASIA PACIFIC OPERATORS: LAGARDÈRE ASIA PACIFIC
Lagardère continues to focus on operations at the largest airports in China – and is present in eight of the top 10 – but Fabre says that there is also great sales potential for international brands in secondary airports, perhaps even more in some locations. “I mean, our strategy really is
Dag Rasmussen, Chairman and CEO, Lagardère Travel Retail.
“We know they have big
international ambitions and we see that our skills can definitely complement there’s. Our combined expertise can be leveraged in other markets in Asia of course as a start, but also globally. “They offer a great understanding
of the Chinese customer, excellent relationships with all the local suppliers (China and elsewhere in Asia). We brought the execution of exclusive concepts from western liquor brands and added to the collective buying/ merchandising power.”
Risk and reward Like all new stores, the JV business at HKIA continues to be a work in progress, but so far, Fabre is pleased and feels there is potential to work together on other projects in other territories. “CDF, they have ambitions,
regional and global. We are the same. We have regional ambitions and we have a global presence, and ambitions for new territories. “We also recognise that as the
market becomes more consolidated and mature, you have to go further field into more emerging markets. We don’t necessarily hold all the cards in this instance and are not always willing to take on all the risk together. “So, it does make sense when
there’s kind of like overlap in terms of strategic interests to talk about projects together and we talk to them about a lot of projects constantly.” However, the two retail
powerhouses will not always be playing on the same team. “And then we also compete, you know,
directly on
other opportunities, which is fine, you know.”
MAY 2019 Eudes Fabre joined a panel of speakers on stage at the China’s Century Conference in Hainan (March). TRBUSINESS 61
focused on the big airports, but also, secondary airports that have good growth potential and also, where we have the opportunity to make a difference in the execution and assortment of the retail.” Fabre says this usually means being
involved at the planning stage of the airport’s commercial zones and most likely as a master concessionaire. “We have to offer solutions that
really work for our landlords, who have these brand new and very large facilities, and bring them online in a very short period of time,” he says. “And you know just as well as I
do that the planning is essential, because once you have a bad design in place, you’ll suffer for years to come.” However, Fabre says that the
market is maturing and landlords are increasingly approaching Lagardère ahead of time regarding airport master plans. “It’s typically not something we do
in other markets, but now, we have that capability,” confirms Fabre. “These are big commitments and
you need a long-term view to work with the airport operator to deliver a vision, but also to accompany the development, throughout. The airport still needs to operate; you
“Obviously every project is, to some extent, a gamble and we choose our projects carefully to be clear… but there’s a lot of opportunity in China. More than 200 airports, including many that are still under construction or at the planning phase.”
Eudes Fabre, Lagardère Travel Retail
need to provide temporary facilities; you need to have a whole plan to get from where you are today to where you want to be, while maintaining some continuity of the retail environment and day-to-day operations of the airport. “Obviously every project is,
to some extent, a gamble and we choose our projects carefully to be clear… but there’s a lot of opportunity in China. More than 200 airports, including many that are still under construction or at the planning phase. “Of course, in order to be able to
deliver quality the company requires a minimum scale… under a certain size [pax volume] it’s difficult for us to really bring value.” As alluded to earlier, Fabre is keen
to point out to brands that their exposure and even sales at secondary airports often exceed those made at some of the largest airports in China. “Obviously, it depends on the
brand, the location and it depends on the circumstance,” he says. “In big markets like Shanghai and
Beijing, to some extent, we have a saturation of the offer downtown.
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