JAPAN REPORT: ANA INFLIGHT


ANA to look at Japanese demands as Chinese travellers’ spends fall


ANA is adapting its inflight retail portfolio to adjust to a fall in spending from its Chinese passengers, focusing once again on its Japanese clientele; especially those travellers making purchases for themselves, reveals David Hayes.


A


ll Nippon Airways (ANA) is focusing on an inflight retail portfolio targeting Japanese


passengers making purchases for themselves, following a decline in sales to Chinese passengers since the start of this year. Stricter customs inspections,


introduced towards the end of 2018, at China’s largest airports are thought to be largely responsible for the reduction in spending by Chinese passengers on their return flights home. ANA’s inflight sales totalled about


US$50m in the financial year ending 31 March, 2019 (FY2018), remaining almost flat compared with the previous year. “Sales were stable last year


as Japanese passenger numbers were up, but spend from Chinese passengers was down,” says Toshimasa Wakimasu, Duty Free Business Manager in All Nippon Airways Trading Co Ltd’s Inflight Sales Merchandising Department. “This year we expect a 1% to 3%


sales increase. OCTOBER 2019


“In 2015 many Chinese visitors came to Japan for shopping and they made up 25% of our inflight sales.” However, sales to the Chinese


decreased by 10% between January and June this year, impacted by a fall in Chinese passengers flying between China and Japan (-5%). However, Japanese passengers are


on the rise (just +1% between January and June this year) while Japanese inflight spending increased by around 2%. “We used to target Japanese


passengers and their demand for items suitable for gifting, but that’s stable now, so we are now targeting people who buy for themselves,” explains Wakimasu.


Reverting to type Japanese travellers traditionally account for at least 80% of ANA’s total inflight sales, a percentage which has remained the same for the past few years coinciding with a fall in Japanese passengers travelling abroad. In response to flattening sales to Japanese passengers, ANA


decided to turn its attention to its Chinese customer base, listing new items designed to appeal to mainland travellers. However, the company has


now reverted in its approach, offering more products to suit the preferences of its core Japanese clientele in response to the fall in Chinese travellers and their spend inflight. “Perfume and cosmetics make


up 40% of our sales,” reveals Wakimasu. “The share is going up as Japanese ladies spend an increasing amount of money on beauty items. They like Japanese cosmetics and we offer many famous Japanese beauty brands.


Stricter customs inspections, introduced towards the end of 2018, at China’s largest airports are thought to be largely responsible for the reduction in spending by Chinese passengers on their return flights home.


TRBusiness TRBUSINESS 141


Above: ANA’s inflight sales totalled about US$50m in the financial year ending 31 March, 2019.


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