JAPAN REPORT: ANA INFLIGHT ANA hails the return of Bakugai ‘crazy shopping trend’
All Nippon Airways (ANA) tells David Hayes that it is forecasting 5-10% inflight sales growth for FY2018 after the company saw sales start to accelerate in August 2017.
M
uch like many of the Japanese Airport retail operators featured in
this report (p137-169), ANA also registered double-digit growth in sales in the financial year ending 31 March, 2018 (FY2017), due to a sizable increase in Chinese passenger numbers from September 2017 onwards. The company told TRBusiness
that mainland visitors returned to Japan in large numbers on shopping sprees in what looked to be a repeat of the Bakugai ‘crazy shopping’ period of 2015. “FY2017 was very good,”
Toshimasa Wakimasu, Duty Free Business Manager in All Nippon Airways Trading Co Ltd’s Inflight Sales Merchandising Department, told TRBusiness in an exclusive interview. “Our duty free sales were up
about 10% compared with FY2016. We had more passengers, especially Chinese. A lot of Chinese passengers came to Japan and bought a lot of Japanese cosmetics. “Other international passenger
numbers were up by 5-10% monthly for the whole of last year. Japanese passenger numbers also increased in the same way for the whole year.” The strong increase in Chinese
passengers began last autumn, with the number of mainland travellers growing by over 20% each month. In fact, in September, November and February the growth exceeded 30%. It was no real surprise then that
ANA’s inflight duty free sales began to grow in a similar trajectory. “Our inflight sales were slow and
down a little at the start of FY2017, but as time passed sales grew bigger than last August and the whole year was up by about 10%,” revealed Wakimasu. “It’s the travel trend. A lot of
people come from China to Japan for shopping; it’s the Bakugai crazy shopping trend repeating. “In 2015 Chinese visitors came and wanted to buy, then in 2016
OCTOBER 2018 Duty free revenue on ANA international flights reached around US$4m a month in FY2017.
they stopped and we suffered, but in 2017 they came back and wanted to buy again. “All ANA routes from China
to Japan were busy; Beijing, Shanghai, Chengdu, Hong Kong and many others.” Duty free revenue on ANA
international flights reached around US$4m a month in FY2017, generating total inflight revenue of about $50m for the whole year.
P&C generates 40% of sales As already mentioned, ANA expects monthly inflight sales to grow about 5-10% this year, which is equivalent to total annual sales of $52-55m for FY2018. In Japanese airports perfume
and cosmetics is usually the best-performing category followed by tobacco. Unsurprisingly, ANA also sees the
most sales generated by the P&C category which accounts for 40% of total inflight revenue. However, interestingly it is not tobacco, but watches and accessories which come in second, accounting for a further 15% of sales. Liquor represents 5% and tobacco products 3%. Men’s items represent a further
15% share of sales and ladies’ items another 15%. Although the growth in Chinese
passenger numbers has lifted total cabin sales over the past year, Wakimasu noted that ANA’s highest cabin sales routes still remain Tokyo-Frankfurt and Tokyo-New York, due to the fact that most passengers on international flights are businessmen. “The majority of our duty free
customers are businessmen. They buy products as gifts for their wives and friends. Frankfurt-Tokyo Haneda International Airport is our No 1 cabin sales route. “We have two Frankfurt-Haneda
flights daily, but the morning flight is busiest for inflight sales, as on the later flight most of the passengers will sleep.” As mentioned in other interviews
with Japanese airport retailers in this comprehensive Japanese
“It’s the travel trend. A lot of people come from China to Japan for shopping; it’s the Bakugai crazy shopping trend repeating.”
Toshimasa Wakimasu, Duty Free Business Manager in All Nippon Airways Trading Co Ltd’s Inflight Sales Merchandising Department
TRBUSINESS 159
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
