JAPAN REPORT: TIAT
number two and Royce’ chocolate is number three. New confectionery products now on sale in TIAT include Tokyo Banana Kit Kat. “Many Chinese passengers are
now buying from this brand and sales are strong,” says Fujioka. “Last year Kit Kat matcha (Japanese
green tea) was the top product; this year it’s Tokyo Banana Kit Kat in an eight-piece box.”
Renovation at TIAT Central Meanwhile, TIAT has been trialling arrival duty free since the end of April 2018 in a small 38sq m shop located on the right side of the arrival hall. “If the arrival shop is successful
we will move to a bigger shop,” according to Fujioka. “Now our sales there are JPY
1.4m a day; tobacco is over 60% of arrival sales. Iqos e-tobacco is the main item.” Fujioka also reveals that Japanese
passenges’ share of arrival shop purchases is higher than foreign arriving passengers. Both Japanese men and women make arrival shop purchases, but the men’s share of purchases is thought to be higher. “People cannot buy perfume and
cosmetics in the arrival shop now,” Fujioka notes. “Regarding liquor products, it’s
mostly whisky sales in our arrival shop, but in departure shops Japanese sake is very popular.” In addition to increasing passenger
capacity ahead of the Tokyo 2020 Olympic Games, TIAT is renovating and expanding the perfume and cosmetics zone in its existing TIAT Duty Free Shop Central. The 1,000sq m shop is located
in the centre of the departure area shopping concourse and is the terminal’s best-performing duty free outlet. Beauty products make up the majority of stock, followed by tobacco and liquor. Work to expand and remodel
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TIAT’s top six luxury brands are Chanel, Hermès, Bulgari, Cartier, Tiffany & Co and Gucci.
in February 2019, but to avoid disrupting shoppers, TIAT has moved the shop’s beauty section into a temporary unit in front of the store. In addition, several confectionery
counters have been relocated to a temporary location nearby to allow work to proceed. “We have started in the perfume
and cosmetics area and we will break down the side wall and build an 100sq m extension for beauty products,” says Fujioka. “We will have more fragrance and
cosmetics brands. Japanese perfume and cosmetics brands are at the rear of our shop at present. Shiseido and SK II will move nearer the front, to the new Japanese cosmetics zone. We hope their sales will increase there.” Perfume and cosmetics is the best-
performing category in the TIAT terminal and accounts for 40% of total TIAT travel retail sales. “The new international cosmetics
the perfume and cosmetics zone follows a previous scheme, which was completed in 2015 and involved renovating the liquor, tobacco and confectionery areas in the north side of the TIAT Duty Free Central Shop. Renovation work on this shop’s
500sq m beauty zone started in July and is scheduled for completion
OCTOBER 2018
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zone, including Chanel, Dior, Lancôme and Estée Lauder will be at the south side of the shop and will include the new 100sq m extension,” Fujioka notes. Elsewhere, along the TIAT
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departure shopping concourse, TIAT’s specialist perfume and cosmetics shop has been converted into a temporary boutique for luxury brands while their own boutiques are renovated. In addition, TIAT’s North Wing
chocolate shop has been converted into a temporary boutique to display watches and jewellery.
About TIAT at Haneda
“In the first half of 2018 we have had a 21% travel retail sales growth to JPY
24.bn.”
Hideki Sugimoto, Vice President for Sales and Marketing, TIAT
Japanese watches’ Seiko, Citizen
and Casio have moved there from TIAT’s Duty Free Shop Central during the current renovation, along with the Mikimoto Pearl boutique. «
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Duty free operations in the TIAT terminal are run by the company’s own TIAT Duty Free brand. Leading TIAT shareholders Jatco, JAL, ANA and Narita International Airport Corporation (NAA) have concessions at TIAT, but are not allowed to use their own branding for their duty free operations. TIAT has instituted a trust contract with its biggest
shareholder, Jatco, for the operation of duty free shops. Jatco, in turn, has arranged sub-lease contracts with JAL, ANA and NAA for various outlets.
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