JAPAN REPORT: ANA TRADING DUTY FREE CO LTD (ADF)
flight gates. “Flights from small Chinese cities
have the most passengers buying; many of the passengers are first time visitors to Japan,” says Kanai. “First time travellers account
for a big share of our arrivals shop business. Not so many people know about our arrivals shops at the moment, but we are confident that the number of repeat customers will grow.” In addition to its three arrival
shops, ADF operates a mixed category duty free shop in T1 north wing satellite at Kansai Airport, along with two luxury boutiques in T1 and a small duty free shop in T2 that is operated for LCC airline Peach. Once again, ADF says tobacco
products are most popular with its customers in the T1 north satellite store, which serves as a last minute shop for passengers. “Most customers are Chinese
passengers and they want tobacco,” says Kanai. However, sales of tobacco and beauty items have fallen this year as Chinese customers have reduced their spending following the tightening of customs inspections in China’s busiest airports earlier this year.
Takashimaya store grows More positively, ADF reports that sales are growing at its A&S Takashimaya Duty Free downtown store in Tokyo’s lively Shinjuku shopping and entertainment district. ANA Trading operates the
store jointly with two partners; Takashimaya Co Ltd, one of Japan’s leading department store groups, and The Shilla Duty Free of
South Korea. “Our downtown turnover is not so
big, but it’s growing,” says Kanai. “In FY2018 there was a 40%
increase; it’s mostly Chinese customers buying cosmetics and tobacco.” Since the store opened three years
ago, ADF says it has expanded the space devoted to tax free goods, which now comprise about half of the store’s total footprint. ADF tells TRBusiness it has also shifted its strategy at Narita International Airport to focus more on Japanese cosmetics brands. It has recently brought in several
new cosmetics brands to its T1 south mixed category shop. This follows the departure of Chanel cosmetics at the end of July for ‘brand strategy’ reasons. The 25sq m vacated space has
allowed ADF to bring in several Japanese beauty brands for three- month trial periods. Products from three brands: Fancl, Takami and Amplitude are on display in a pop-up style display area. In addition to the T1 south mixed
category store, ADF also operates a T1 south satellite mixed category shop at Narita Airport along with its T1 south wing men’s shop and two Bulgari boutiques – one in T1 and the other in T2. Finally, ADF operates two duty
free shops in Haneda Airport Tokyo International Air Terminal (TIAT): A mixed category shop in the south wing selling liquor, tobacco, perfumes & cosmetics, along with a specialist beauty boutique in the north wing, selling Japanese cosmetic products.
ADF in successful DFS Okinawa takeover
ADF is reporting increased sales of perfume and cosmetics in Okinawa, where the company recently took over the operation of two duty free beauty corners for Shiseido in the DFS Okinawa Duty Free downtown store. “We started operating one corner with
Shiseido Clé de Peau Beauté products on 30 April this year and the other corner on 31 May, which displays Shiseido The Ginza, their high-end prestige brand,” says Junichi Kanai, Senior Manager
OCTOBER 2019
in ANA Trading Duty Free Co Ltd’s Merchandising Department [right]. Shiseido asked ADF to take over the
running of the two beauty corners following the company’s successful operation of Shiseido’s duty free cosmetics departure shop in Okinawa’s Naha International Airport. The shop displays Shiseido Clé
de Peau Beauté and other Shiseido products, with most sales coming from foreign tourists.
TRBUSINESS 145
ADF tells TRBusiness that it has shifted its strategy at Narita International Airport.
“Our Japanese cosmetics store is a success story… Sales were not so big at the start, but now this is a top three shop for our company.”
Junichi Kanai, ANA Trading Duty Free Co Ltd
“Our Japanese cosmetics store is a success story,” says Kanai. “Sales were not so big at the start, but now this is a top three shop for our company.” «
ANA Trading Duty Free Co Ltd (ADF) reports that total duty free sales in financial year ending 31 March, 2019 (FY2018), exceeded JPY18bn..
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