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JAPAN REPORT: TIAT


with perfume and cosmetics sales contributing an estimated 60% of the terminal’s total airside sales. Tobacco, in second, commands


a 20% share and liquor 10%. General merchandise and tax free shops represent another 10%, with most purchases in the latter being Japanese confectionery items. TIAT is hoping for similar sales


opened on 1 April, last year. “About 80% of our arrival shop


growth this year, although the Q1 FY 2019 slowdown suggests the target maybe a little over-optimistic. “We hope for a 7% to 8% increase


this year but it’s a big challenge,” Fujioka reiterates. “For example, in Q1 this financial


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customers are Japanese,” adds Fujioka. “Most sales are in tobacco; Iqos is the No 1 brand in arrivals.” The shop has a limited amount


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of space for the moment – it was actually used as a smoking room previously – but Fujioka is hoping that this will change in the future. “Arrival sales are US$1m per month


and we are happy as the shop is only 35sq m. We need more space; we will try [to expand].” Meanwhile, TIAT has been


year international passengers increased 6%, but travel retail sales increased only 4%, so it’s a little bit tough now. “One or two years ago Chinese


travellers were focused mainly on shopping; now they prefer to spend more time on other experiences.” Fujioka is also keen to highlight


that TIAT’s arrival duty free shops have been performing well since they


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carrying out a series of store renovations over the past 18 months, including the flagship 24-hour TIAT Duty Free Central duty free store, and will complete the renovation of seven luxury boutiques this year. Three of the renovations involve


launching new brands, replacing designer labels which are performing as well. “We completed renovating our


TIAT Duty Free Central store at the end of March; the fragrance and


cosmetics display has increased by 10% in area,” says Fujioka. “Since then the store’s perfume


and cosmetics sales have increased 30% compared with last year, while our entire central store’s revenue including liquor and tobacco has increased 19%. Sales of all merchandise have


increased in the store, especially Japanese beauty products by Shiseido and SK-II. “Now our total TIAT Duty Free


Central store sales are over US$1m each day,” adds Fujioka. «


“…In Q1 this financial year international passengers increased 6%, but travel retail sales increased only 4%, so it’s a little bit tough now.”


Daisuke Fujioka,


Director for Sales and Marketing, Tokyo International Air Terminal Corporation


Visit us at TFWA show in Cannes, Green Village, Stand M48


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