JAPAN REPORT: TAKASHIMAYA DUTY FREE SHILLA & ANA
understand downtown duty free shopping,” reveals Takegahara. “We need more advertising and
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promotions for Japanese customers. Young Japanese people do not have much money and they do not want holidays overseas; they holiday in Japan… Chinese and South Korean customers are younger than Japanese customers.” The average age of most of the
retailer’s Chinese customers is 20-30, while the average age of its Japanese customers is about 50-60. “Young people here [Japan] do not
want to spend much money or to buy much,” adds Takegahara. In a bid to attract younger
customers – and after studying recent customer shopping trends – Takashimaya Duty Free Shilla & ANA is planning to introduce several changes to the downtown store in the second half of FY2018 to improve its customer offer.
New beauty lineup Plans call for a range of new Japanese cosmetics brands to be introduced over the next six months, particularly to cater to Chinese customers who like to buy Japanese beauty products. “Now we are looking for other
Japanese perfume and cosmetics brands,” says Takegahara. “We want to invite four new brands before next February.” “Four existing medium Japanese
beauty brands will be going out and four new Japanese brands are coming in. Two will be high priced and two will be medium-priced brands. “Two of the brands coming in will
which will be extended to enable the Matsumoto Kiyoshi drugstore to offer not only a wider range of affordable Japanese cosmetics, but also lower-priced products from well-known brands. “We want to expand the
Matsumoto Kiyoshi drugstore this year,” confirms Takegahara. “It’s 80sq m now and we plan to
increase it to 150sq m, almost double the area. “Japanese souvenir sales are very
slow so we want to change that area to offer other products. In tax free cosmetics we have Shiseido, Kosé and Kanebo now; we will add Dr Ci:Labo skincare; also, some more Shiseido and Kosé lines. “We will expand the drug store
at the beginning of December. Also, we will have new Japanese cultural goods and anime characters in our store’s tax free corner.” But it’s not just the selection of
perfumes & cosmetics that is being refined. Elsewhere, the watches area will also see some changes. “Some Chinese customers want
higher priced watches than [what is currently on offer], so we are thinking [of changing that],” says Takegahara. “We will introduce one or two new
watch brands before February 2019 with a price point of JPY 500,000 to JPY 1 million each. “We will also change the shop
be skincare and two will be make up brands.” New beauty brands are also on the way for the tax free zone,
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layout for the new watches. Some of the existing watch brands will have a smaller display area. The new watches brands combined will have 20sq m to 25sq m of retail space.” In addition to plans for new
Japanese cosmetics and high-priced watches brands, Takashimaya Duty Free Shilla & ANA has three promotional corners in the store
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Takashimaya Duty Free Shilla & ANA is targeting a three-fold increase in revenue this year at the company’s downtown duty free store.
OCTOBER 2018
main shareholder and is responsible for shop management. ANA and Shilla Duty Free each have a 20%
shareholding. ANA is responsible for Japanese merchandise procurement and logistics while Shilla Duty Free is responsible for international merchandise procurement and marketing to Chinese customers.
TRBUSINESS 167
A&S Takashimaya Duty Free Co. Ltd was established in June 2016 as a joint venture by its three partners – Takashimaya Co. Ltd, the Japanese department store operator, All Nippon Airways (ANA) and Shilla Duty Free of South Korea. With a 60% stake, Takashimaya Co. Ltd is the
Left to right: Yoshiyuki Takegahara and Kumiko Suga, Logistics Division Manager, Logistics Business Division, A&S Takashimaya Duty Free Co. Ltd.
“We want more Japanese FIT customers but it’s not easy because Japanese customers want to buy in airport duty free shops – they don’t understand downtown duty free shopping.”
Yoshiyuki Takegahara, Takashimaya Duty Free Shilla & ANA
which offer a rotation of brands and items. Iqos e-cigarettes and MDNA
Japanese skincare products have recently occupied two of the pop-up spots for three months at at time In the other pop-up corner, a
Michael Kors seasonal discount offer recently replaced the previous one- month Coach promotion. «
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