ASIA PACIFIC: SHILLA HK
offers, we also work closely with the airport authority to design special and tailor-made shopping experiences and offerings. With ever-changing digital
markets and the experiential retail trend, it has become even more important to cement digitalisation as part of our strategy. Currently we are in the midst of planning, negotiating, programming and scheduling a strong, coherent visual communication [plan] with over 100 LED panels, digital pillars, and interactive commercial tools. Beginning our second year
at HKIA, we will leverage all we have learned in our first, including the strategic incorporation of retailtainment activities and new-to- HKIA brands. At the moment we also discussing
the launch of incoming brands at Beauty&You. We intend to refresh our New Generation concept zone to harmonise our assortment of products. These new brands and pop-up stores are scheduled to open by year two.
Looking at Shilla HK, which beauty areas would you like to strengthen? Will there be a heavier sway towards international brands moving forward or are you trying to angle the ratio towards Korean or domestic market brands? One of Beauty&You’s strengths lies in the unique mix-and-match of cosmetics & perfume and fashion accessories categories – a strategy that hasn’t been previously explored by any of the airports that The Shilla Duty Free operates in. Nevertheless, we have been
tirelessly experimenting to find the right balance where we can to maximise the synergy between two different categories and our approach at HKIA has proven to add value to customers’ shopping experience. In addition to bringing 60 new
brands when we first launched at HKIA, we have invited 14 new- to-HKIA brands to Beauty&You permanently or as exclusive pop- ups in the past year, ranging from Balenciaga Eyewear, House 99 and Filorga to Korean brands like Olens.
OCTOBER 2019
New-to-HKIA brands have efficiently utilised our curated zone to promote their brand identity via innovative displays, alongside strong promotional strategic programmes such as free sampling and travel exclusive items and savings. We currently have over 200
brands available at our stores. At the moment, we are in discussion to launch over 10 new-to-HKIA brands before the end of 2019, ranging from Japanese premium skincare to independent fragrances. For the fashion category, we are looking to invite affordable to entry-level luxury brands to expand our customer profile.
The Shilla Duty Free grew its revenue by 16% in the second quarter
to KRW1,226.5bn
[Source: Hotel Shilla]. Year-to- date (August), how is the Hong Kong business performing? Since our grand opening, the goal is to establish a sustainable business and satisfy customers. We initiated and rolled out a series of collaborations and crossovers with different retail, F&B and travel lounge operators within the airport community. We have also launched strong joint
promotion campaigns in partnership with payment providers such as Union Pay, Alipay and WeChat Pay, and also offering great shopping incentives to drive traffic conversion and sales during peak and low travel seasons. From our first year at Beauty&You,
we have achieved over KRW380bn in sales. And in the first quarter of 2019 alone, our sales result exceeded KRW110bn. The majority of customers at
Beauty&You are from China, however, we have been seeing the growth of other international customers and target to expand the local Hong Kong demographic at the same time. Like any other China–driven
market, skincare has been key to sales in Beauty&You’s perfume and cosmetics category. In Q1 2019, our top 10 products were all skincare sets, including iconic products from major international brands such as Estée Lauder, Lancôme, SK-II, Shiseido, and Clarins.
The ‘Super Price of the Month’ campaign offers savings on best-selling products and travel exclusives.
“From our first year at Beauty&You, we have achieved over KRW380bn in sales. And in the first quarter of 2019 alone, our sales result exceeded KRW110bn.”
Changha Shin, Shilla Travel Retail Hong Kong Limited
In addition to bringing new brands, we have also introduced over 60 customer engagement activities and new initiatives to HKIA via our curated zones and instore engagement zones. This includes makeup shows with
brands such as Y.S.L, L’Oréal Paris, MAC, Makeup Forever and NARS; fragrance layering workshops with Diptyque, the Grand Turismo racing virtual reality game by Tag Heuer, the ‘Art of Perfection’ skincare service by La Prairie, as well as collaborations with various brands’ mega campaigns such as Armani Cinema, Y.S.L ‘Make it Yours’ and ‘Men’s Grooming Lifestyle’ pop-up by L’Oréal group. «
The 'You' in Beauty&You symbolises the customer; providing a bespoke experience that transcends the expectations of a typical airport beauty and fashion store.
TRBUSINESS 75
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