JAPAN REPORT: LOTTE GINZA DOWNTOWN
Tour groups and Daigou traders return for Lotte Duty Free Ginza
With diplomatic relations continuing to improve between China and South Korea, Lotte has recently begun to see Chinese tour groups return to its Ginza store, Lee Sung Chul, Sales Department Director, Lotte Duty Free Japan Sales and Marketing Division tells David Hayes.
popular Japanese duty free beauty brands, such as SKII, Shiseido, Shiseido Clé de Peau Beauté and Fancl are the best performers. Watches generate the second
largest revenue amount, with 10% of sales, driven by the inclusion of brands such as Omega, Blancpain, Longines and Jaeger-LeCoultre. Fashion boutiques are also
successful and Lee notes that Gucci and Coach recorded the largest share of sales among the store’s luxury brands last year. Lotte recently modified its ninth-
Above: Lotte has extended the shop’s tax free zone where lower priced Japanese cosmetics are displayed.
L
otte Duty Free Ginza is aiming to double sales this year at its Tokyo downtown duty free
shop following an increase in Chinese customers and the recent expansion of the store’s fashion accessories and Japanese cosmetics ranges. The company has targeted
Chinese free independent travellers (FITs) and Daigou traders at its store in an attempt to boost sales, as they appear to be less influenced by the polticial effects of THAAD. This triggered a boycott on Chinese group tours to Lotte’s shops in South Korea, as well as its businesses in other countries including Japan, last year. “Since opening in 2016, our duty
“We expect the 2020 Olympic Games in Tokyo will increase awareness of downtown duty free stores and help the expansion of the duty free market in Japan.”
Lee Sung Chul,
Sales Department Director, Sales and Marketing Division, Lotte Duty Free Japan
162 TRBUSINESS
free store has grown continuously,” says Lee Sung Chul, Sales Department Director in Lotte Duty Free Japan’s Sales and Marketing Division, in an exclusive interview with TRBusiness. “We are striving to increase sales
to JPY 10bn ($90m), which is our target this year. “We expect the 2020 Olympic
Games in Tokyo will increase awareness of downtown duty free stores and help the expansion of the duty free market in Japan.”
Gucci & Coach perform Lotte Duty Free’s Ginza downtown store is located in the new 11-storey Tokyu Plaza Ginza retail, entertainment and commercial complex developed by Tokyu Land Corporation on Sotobori Avenue; one of the main streets in Tokyo’s upmarket Ginza shopping and entertainment district. Designed to resemble a high-class
department store with polished granite and other luxurious fittings, it occupies the building’s entire eighth and ninth floors with a footprint of 4,200sq m. Cosmetics account for 70% of Lotte Duty Free Ginza’s total sales and
floor retail layout to offer Chinese customers a wider selection of Japanese cosmetics brands. In addition to popular Japanese
brands in the international duty free cosmetics zone, Lotte has extended the shop’s tax free zone, where lower-priced Japanese cosmetics are displayed. “Our layout has changed in the
fragrance and cosmetics zone on the ninth floor,” confirms Lee. “We reduced the perfume zone size as sales were not good. “We moved Biotherm to the
empty perfume area and used the old Biotherm display space to make our tax free zone bigger. Now our tax free area is about 100sq m, wheras before it was 70sq m. In addition to the movement of Biotherm, three new Japanese
A Montblanc boutique has been added this year.
OCTOBER 2018
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