JAPAN REPORT: ANA TRADING DUTY FREE CO LTD (ADF)
Successful year for ADF in arrivals and downtown Tokyo
Sales of tobacco lifted ANA Trading Duty Free Co Ltd’s total revenue for FY2018, as spend from Chinese customers slowed. However, the company’s arrivals business and Tokyo downtown operation registered encouraging growth, says David Hayes.
claim hall, while the other is in the Terminal 2 internal baggage hall used by LCC passengers. ADF’s largest Kansai Airport
arrivals shop occupies a 30sq m space in Terminal 1 north wing, while a smaller 20sq m arrivals store is located in Terminal 1 south wing. In Terminal 2, ADF’s 20sq m arrivals
duty free shop is more like a pop-up store, which ADF insists appeals to LCC passengers, many of whom are in their 20s and 30s. ADF’s Kansai T1 north duty free arrivals shop offers liquor, tobacco, wines & spirits and confectionery. “Our T1 south arrivals shop sells
Above: ADF store at Narita Airport.
A
NA Trading Duty Free Co Ltd (ADF) reports that total duty free sales in financial
year ending 31 March, 2019 (FY2018), exceeded JPY18bn ($162m), but a slowdown in spend by Chinese passengers at both Kansai and Narita airports could make growth harder to achieve in the coming year. “It was not easy to hit the FY2018
revenue figure this year,” says Junichi Kanai, Senior Manager in ANA Trading Duty Free Co Ltd’s
Merchandising Department. “Our Q1 FY2019 revenue was 5%
down compared to last year, but we can still catch up.” While the operator has witnessed
a slowdown in airport departure sales, it still managed to register growth at its Kansai Airport duty free arrivals shop, in addition to its Tokyo downtown operations. At Kansai, ADF says tobacco is now the leading category since its three Terminal 1 and 2 shops opened in May 2018. “Our arrival duty free shop sales
[On the 10-day Golden week holiday] “It was good news for our arrivals shops as many Japanese people travelled abroad and bought on their return. But our departure shop sales fell as there were not as many foreign and Chinese passengers here then.”
Junichi Kanai, Senior Manager, ANA Trading Duty Free Co Ltd’s Merchandising Department
144 TRBUSINESS
are good,” confirms Kanai. “We sell imported liquor, tobacco and confectionery, but about 80% or more of arrivals sales are tobacco. “We have e-cigarettes, with Iqos
being the leading brands in our arrival shops. It has a 60-70% share of tobacco sales. “It’s mostly returning Japanese
passengers who buy. The cigarette allowance is two cartons and most of our customers use the full allowance.” ADF operates three arrivals duty
free shops at Kansai Airport. Two are located on opposite sides of the Terminal 1 international baggage
liquor, tobacco and confectionery, but has less variety in each category. Tobacco represents almost 90% of sales in this store.”
Banking on repeat visits Japanese men make up the majority of ADF’s arrivals customers, while Japanese women prefer to shop at their destination, outlines Kanai. “Japanese passengers now make
between 60% and 70% of arrivals purchases, the rest are made mostly by Chinese visitors,” says Kanai. “The peak time for our arrival
shops has been Golden Week so far. It was 10 days this year as Japan’s imperial era changed with the accession of our new emperor. “It was good news for our arrivals
shops as many Japanese people travelled abroad and bought on their return. But our departure shop sales fell as there were not as many foreign and Chinese passengers here then.” Mornings and evenings are the
busiest times for ADF’s arrivals shops at Kansai Airport, with most flights arriving from China at these times. Overall, ADF’s T1 south arrivals shop is the busiest arrivals store as most Chinese airlines use the T1 south
OCTOBER 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
