JAPAN REPORT: ANA DUTY FREE
to promote our shops and invite customers with SMS alerts and credit card campaigns. “Arrival duty free is very new in
Japan and so Japanese customers wonder if they can buy at the arrivals stores or not. “We have to [tell them] about the
availability of arrival shopping via the internet and our parent company’s website (ANA).” Now reliant on tobacco for the
majority of arrival sales, ADF is looking to develop other categories in its arrivals shops in the future. Masaki notes that ADF is looking
to increase liquor to 20% of total arrival sales and lift confectionery to 10%, leaving tobacco with a 70% arrival shop revenue share. “Now our Kansai arrival sales are
about 90% tobacco, so maybe we have to increase more liquor and confectionery brands,” says Masaki. Meanwhile, tobacco sales are
driving ADF’s duty free revenue growth elsewhere in Kansai Airport, where the company operates a North Wing satellite mixed category shop and two luxury boutiques in T1.
Tobacco’s rising share Speaking of the north wing, Masaki reveals to TRBusiness that duty free revenue doubled in its satellite shop during Q1 of current FY2018. “Our Kansai T1 North Wing sales
for April to June are double last year’s because tobacco sales have increased three times this year. The tobacco share of sales is going up because of Iqos.” The tobacco share of sales in the
T1 North satellite store have risen to 70% of total shop sales this year compared to 53% in FY2017. However, the perfume and cosmetics share of total sales has fallen to 17% this year, down from 28% last year. ADF’s luxury brand sales have also
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bags and small leather goods. Elsewhere in Kansai Airport, ADF
is looking to boost sales in T2 where the company operates its ‘Fuschia’ duty free shop. Located in the departure hall
of T2’s annex – that now handles international flights for LCC carriers Peach and Spring Airways – the duty free shop occupies about 100sq m. However, this is going to be a
challenge as ADF is limited in the goods that can be sold in Fuschia by the nearby presence of Kansai Airports’ duty free retailing subsidiary, Kansai Airport Agency’s (KAA) own duty free store. Fuschia currently displays a
collection of hair care and skincare items, liquor and tobacco and a small amount of confectionery. Interestingly, it is Taiwanese
passengers which make up the majority of sales in Fuschia, followed by the Chinese. As mentioned, Kansai Airport’s T2
terminal extension (annex) is used by Peach and Spring Airlines, which serves many cities in China. Passengers flying with Peach are
generally looking for low-priced products, while passengers flying with Spring Airlines, mostly Chinese travellers, are interested in both high and low priced products, according to Masaki. “Our Fuschia shop is almost
a tobacco shop. Sales are good because of tobacco, but we want to increase sales of other items.
Left to right: Seiko Nagai and Hirokazu Masaki, ANA Trading Duty Free Co. Ltd.
“We have just opened our arrival shops, but we need more sales…We have to promote our shops and invite customers with SMS alerts and credit card campaigns.”
Hirokazu Masaki, ANA Trading Duty Free Co. Ltd
“We also sell Japanese sake, shochu
liquor and imported whisky. We have DACS fashion accessories and Japanese confectionery, especially peach flavour confectionery and peach liqueur.” Meanwhile, sales are also
growing for the company at Naha International Airport in Okinawa, where ADF has operated a tax free Shiseido cosmetics boutique since September 2016. “Sales are good. It’s a new shop;
it’s about 60sq m in area,” Masaki concludes. “It’s mainly Chinese customers taking direct flights home who are buying.” «
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improved in Kansai Airport T1 this year, where the company operates a Burberry boutique and the ANA Duty Free Shop mixed brand boutique, which displays Tumi and Longchamp collections. Boutique sales overall have risen by 4%. The Tumi offer focuses on smaller
plus 12 monthly print editions and the critically acclaimed TRBusiness Top 10 International Operators Report, please visit
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items including leather wallets, bags and carry-on cases and the Longchamp selection comprises tote
OCTOBER 2018 Narita Airport T1 shop. TRBUSINESS 153
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