JAPAN REPORT: TIAT Unlock the full potential...


“The popularity of luxury brand items depends on the month – the Japanese salary bonus season is in July and December, so watches and jewellery sales boom then.”


Daisuke Fujioka,


Director for Sales and Marketing, TIAT


slightly to 7% in H1 2018 due to the number of international flights from Haneda Airport remaining flat this year. “There is a slower increase in


existing duty free shops and boutiques registered double-digit sales gains in the last year, buoyed by rising Chinese passenger numbers. TIAT’s airside duty free and tax


free sales grew 20% year-on-year in 2017, reaching JPY 68.5bn ($610m.) Travel retail sales rose at twice the terminal’s 10% passenger growth rate last year when 8.5m travellers departed on international flights. TIAT is also reporting a double-


digit increase in travel retail sales during the first half of 2018, as the revenue growth from duty free and tax free shop operations continues to outpace traffic growth. “We are expecting 21% growth for


the whole year to JPY82.8bn, which is our forecast for 2018,” according to Sugimoto. “Tax free sales are growing faster


than duty free as Japanese brands are very popular, including perfume and cosmetics and sake. “Shiseido cosmetics has the top


This content is for subscribers only. To receive a full digital copy of the October issue,


share, SKII is growing; also Kose, both skincare and makeup sales are growing.” The growth rate for departing international passengers slowed


ANA’s biggest spenders, overall Chinese customers purchase the most duty free goods in TIAT’s outlets. According to TIAT’s figures, Chinese passengers account for


plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit


www.trbusiness.com/subscriptions Perfume and cosmetics account for 40% of sales in TIAT’s mixed-category and specialist shops. 148 TRBUSINESS


international passenger departures as international flights did not increase this year, while in 2017 the number of international flights grew after some Narita Airport to United States flights transferred here in October 2016,” explains Sugimoto “So passenger and duty free sales growth were good.”


PAX target +7% in 2018 Currently TIAT is forecasting a 7% increase in departing passenger numbers, which are projected to reach 9.1m in total for the whole of 2018. Meanwhile, departing and arriving international passengers are expected to reach 18m. Foreign passengers currently


account for 50% of TIAT’s total international passenger traffic. “We have a lot of Japanese passengers,”


businessmen


emphasises Sugimoto. “The foreign passenger share is growing at Haneda, many of them are businessmen as Haneda is near downtown Tokyo. “It’s mostly Chinese passengers


that are growing at Haneda; Chinese, South Korean and Taiwanese passengers.” While Japanese businessmen are


48% of sales in the terminal’s duty free shops, followed by Japanese passengers with a 28% share, while South Korean passengers represent a 7% share of sales. A similar picture is evident in TIAT’s


luxury boutiques, where Chinese customers account for 41% of sales, followed by Japanese passengers with a 35% share of purchases. South Korean travellers represent an 8% share of sales. “Passengers are buying more items


[overall],” says Daisuke Fujioka, Director for Sales and Marketing at TIAT. “The big topic is e-tobacco for


Chinese passengers, especially Iqos, which is the popular item. “The Iqos e-cigarette market


in TIAT expanded six times last year. Also, JT launched Ploom Tech here on 1 June and their sales are [also] good. “The Ploom Tech is bought almost


only by Japanese passengers, while Iqos products are bought mainly by Chinese customers and some Japanese passengers.” Moving on to TIAT’s boutiques, its


top six luxury brands at present are: Chanel, Hermès, Bulgari, Cartier, Tiffany & Co. and Gucci. “The popularity of luxury brand


items depends on the month – the Japanese salary bonus season is in July and December, so watches and jewellery sales boom then,” according to Fujioka. “Chinese customers visit more


in October, February and the end of March for the cherry blossom season, so watches and jewellery sales also boom then.” Perfume and cosmetics account


for 40% of sales in TIAT’s mixed- category and specialist shops, followed by tobacco with a 20% share of revenue and liquor 15%. Confectionery


products


represent a 22% share of revenue in these outlets while watches and jewellery are 3%. “The Chinese share of tax free


purchases is over 50% in our shops and confectionery is the main item there,” says Fujioka. “Currently three brands account for over 30% of our confectionery sales. “Shiroi Koibito of Hokkaido is number one, Tokyo Banana is


OCTOBER 2018


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186