JAPAN REPORT: ANA DUTY FREE
ANA reports close to 50% revenue increase for FY2017
Hirokazu Masaki, General Manager of ANA Trading Duty Free Co. Ltd’s Merchandising Department tells David Hayes that he anticipates another strong performance across the company’s airport portfolio, as Chinese visitors continue to rise in 2018.
A
NA Trading Duty Free Co. Ltd (ADF) says it is looking for another year of strong
revenue growth. This is after sales grew by about half in most of the company’s duty free shops at three different airport locations in Tokyo and Osaka in financial year ending 31 March, 2018 (FY2017). Rising Chinese visitor numbers
helped boost duty free sales last year and the same trend is evident in 2018 as these customers’ share of total revenue continues to grow. “Our total sales increased almost
50% last year,” Hirokazu Masaki, General Manager of ANA Trading Duty Free Co. Ltd’s Merchandising Department tells TRBusiness. “Each location increased almost
50%. Our sales grew a lot at Narita Airport; 50% compared to the previous year. Cosmetics and tobacco sales especially are growing. “Sales are increasing because of
Chinese passengers as they spend the most. About half of our sales at Narita Airport are to Chinese customers and their share is growing. “Every travel retail operator in
Japan is enjoying the same situation.” ADF operates two mixed category shops at Narita Airport in T1 South
OCTOBER 2018
Wing and T1 Satellite, near to gates where flights are operated by parent company All Nippon Airways (ANA) and other Star Alliance airlines. Perfume and cosmetics is ADF’s
leading category in its two Narita mixed category stores, accounting for 50% of sales followed by tobacco, which represents a further 31% share of revenue. Liquor sits in third position with a
7% share followed by confectionery at 5%. Finally, beauty appliances represent 1% of sales. Asked if ADF has plans to renovate
the two shops in preparation for the Tokyo 2020 Olympic Games, as other operators have, Masaki replies: “We don’t have any big Narita
shop renovation plans so far, but we are looking for a few new cosmetics brands for Chinese passengers. “We will have new cosmetics
brands in our Haneda Airport TIAT terminal shops in December. They will be Japanese brands. “Sales of Japanese products are
growing a lot as Chinese people like Japanese perfumes and cosmetics. In Haneda Airport we will do some small shop modifications including for Iqos e-cigarettes.” ADF also operates a mixed brand
men’s boutique in Narita Airport’s T1 South Wing and two Bulgari boutiques; one in T1, the other in T2. “Our T1 South Bulgari boutique
sales increased 50% last year,” says Masaki. “Accessories are 70% of all items we sell there; bags have a 30% share.”
Narita T1 trials ADF has modified its T1 South ANA Men’s Shop boutique over the past 18 months to offer Chinese customers ‘Made in Japan’ fashion goods, complemented by items from well- known international brands Tumi and Montblanc.
“Sales are increasing because of Chinese passengers as they spend the most. About half of our sales at Narita Airport are to Chinese customers and their share is growing.. Every travel retail operator in Japan is enjoying the same situation.”
Hirokazu Masaki, General Manager, Merchandising Department, ANA Trading Duty Free Co. Ltd
TRBUSINESS 151
Above: ANA Trading Duty Free Co. Ltd (ADF) says it is looking for another year of strong revenue growth in 2018.
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