JAPAN REPORT: FASOLA
“Arrival sales have been growing since they opened,” insists Go Uemura, Merchandising and Logistics Department Director in FaSoLa Shops’ Perfumes & Cosmetics and Product Division II. “The amount has doubled and
still is growing. It’s mainly Japanese customers buying, with tobacco being the most popular category. We believe that Japanese men are the arrival shops’ biggest customers.” As previously reported, airport
duty free arrival shops in Japan are permitted to sell imported products, only. After stocking liquor and tobacco products initially, FaSoLa introduced a selection of perfumes in all its arrival shops at the end of 2018, in time for Christmas. Skincare products are still not
on sale in the arrival shops, but are under consideration. “We created duty free arrival
shops to provide a new service to customers; our arrival shops all have similar products,” explains Uemura. However, the arrivals product mix does differ from its departure shops. “Tobacco constitutes 90% of
arrival sales and Iqos is the No 1 brand,” says Uemura. “The rest of our arrival sales are mostly liquor. We only offer imported brands. Our arrival shops are a small, but growing business. We are trying to maximise our arrivals business.” As mentioned, e-cigarettes are
a key component of the offer and are currently driving tobacco sales growth in all of FaSoLa’s stores. “There is strong demand for
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Iqos cigarettes from Japanese and Chinese passengers,” continues Uemura. “E-cigarettes are over 50% of our tobacco business; Iqos has a big share.”
Liquor sales up 12% Interestingly, liquor sales are also growing again, helped by FaSoLa’s decision to introduce new Japanese spirits. “Our liquor business has been
revived compared to FY2017; sales rose 12% in FY2018,” says Uemura. “Japanese Yamazaki and Hibiki
malt whisky supplies are still limited but other Suntory whiskies and gin are selling. “Suntory Ao, a limited edition
blended whisky introduced recently is doing well; it’s reasonably priced, not a premium whisky. Chivas and Johnnie Walker are doing well; we recently sold out of Johnnie Walker White Label.” Moving on to the topic of
beauty, FaSoLa tells TRBusiness that its perfume & cosmetics sales remain buoyant, driven by purchases of Japanese and leading international cosmetics brands, by foreign passengers. “Japanese brands are still doing
well, but international brands are also improving, especially skincare brands,” reveals Uemura. “Skincare is still the best-selling
Le TAO cheesecake joins popular confectionery portfolio
Japanese confectionery, including popular brands such as Tokyo Banana, Royce and Shiroi Koibito, accounts for almost 70% of FaSoLa’s Akihabara Tax Free sales at Narita Airport. “The main price point is
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category within the perfume and cosmetics division; make up is not growing so much.” FaSoLa tells TRBusiness that its decision to improve its T1 beauty
P&C store at FaSoLa Narita T2 Fifth Avenue area.
confectionery from JPY1,000 to JPY2,000 per pack,” says Shinichi Saiki, Purchasing Department Director in FaSoLa Shops’ Domestic Product Division I. “We have some more brands in mind to stock at affordable prices.” Akihabara Tax Free sales grew
8% in FY2018, aided by popular confectionery products, which now
OCTOBER 2019
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include Le TAO cheesecake from Hokkaido, northern Japan, which has recently become very well-known among Asian visitors. Le TAO cheesecake is displayed
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in a refrigerator and is cooled by an ice pack already placed inside the product’s packaging, which keeps the delicacy in prime condition for 11 hours after being purchased. Priced at JPY1,800, the 12cm
diameter cheesecake is available in two flavours; regular cheese and chocolate combination, and a changing seasonal flavour, currently melon.
“Tobacco sales rose 54%, partly because of our new duty free arrival shops, but also because of the popularity of Iqos e-cigarettes.”
Takumi Shimizu, Senior Director, NAA Retailing Corporation’s FaSoLa Shops Merchandising and Logistics Department
offer last year has paid off over the past 12 months. This includes new retail space
opened up within its centrally- located FaSoLa Stars Duty Free store [this opened in August 2018], half of which has now been allocated to beauty products, including Dior Backstage Studio, the first in Asia. “Dior Backstage is doing well in
FaSoLa Stars; Penhaligon’s is also performing well with its unisex offer,” explains Uemura.
“The Le TAO cheesecake ice cooling pack is supplied only to airport tax free shops,” he explains. “Our seasonal flavour right now is
melon, in spring it was strawberry; we’ve also had matcha, and pumpkin for autumn.” New confectionery items introduced
in all FaSoLa’s Akihabara Tax Free shops include Pocky Premium Classe; an extra-thin chocolate dipped biscuit stick. “This is an exclusive Pocky item, it’s
only available at Narita Airport and it’s very popular here,” says Saiki.
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