SPECIAL FEATURES: KING POWER HK
The powerful partnership has fanned the flames for CDFG’s impressive appearance on the global duty free stage over the past 18 months, where it has secured a slew of Chinese airport arrivals and departure tenders. Notably, it scooped the Hong
Kong International Airport liquor and tobacco duty free contract in a joint venture with Lagardère Travel Retail last year. It also won the eight-year duty free
contracts at Beijing Capital Airport T2 and T3 through subsidiary Sunrise Duty Free. In the case of Hong Kong, it is this
ability to draw on CITS’ information reserves on tourists that fills CDFG with confidence. This also bodes well for King Power HK. “King Power has a long standing
relationship with CDFG, having had other partnerships with them in the past, so the JV brings in a lot of advantages,” outlines Tuli. “The synergies of both parties
obviously are a major advantage, given the experience of each with the main customer base.” The contract officially started on 1
June, with Tuli “happy at the way the business is progressing now”.
Different approach at MIA? Currently, KPM operates the Southside duty free concession at MIA. It had been the sole duty free operator since the inauguration of the business in 1995, until 2014, when a dual retailer model comprising a joint venture between Sky Connection/Shilla Duty Free and KPM was established. KPM resigned the concession at
the start of this year before the expiry of the previous concession. This prompted MIA to issue a new
duty free tender covering 1,130sq m located at the South Departure level. Four stores over a total of 891sq m
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Tuli responds: “There is no different approach.
It is the same business, the same customer that we know very well and keep adapting to their needs and demands as they keep changing.” More generally, King Power HK’s
performance has been steady in the past year, according to Tuli, for a company with historic business in Mainland China, Hong Kong, Macau and Singapore.
‘Strong’ fashion business “The business has been quite good. There has been a slight growth in the business with the existing stores, but we have had some closures as well, so overall the sales have been more or less the same as last year.” On a category basis, perfumes and
cosmetics have yielded the strongest results, alongside liquor and tobacco. “Of course, our fashion business
is also very strong,” comments Tuli. “Our main customer continues to be the Chinese traveller.” The key Chinese New Year holiday
period, which this year fell on 16 February and typically lasts one week, offered an opportunity for all travel retailers to capitalise on quick-fire sales. “Chinese New Year is always a
King Power’s Emporio Armani outlet at Pudong Airport.
Located at the south end of Pudong Airport’s Terminal 1 and Terminal 2, the planned commercial area at the Satellite Hall will be approximately 28,000sq m, with tax paid retail and F&B areas developed around a ‘Shanghai shopping’ theme.
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good period for us as it is for all operators in the region dealing with Chinese customers and this year was no exception,” says Tuli. With IATA predicting global air
passenger traffic to rise to 8bn by 2036 and Asia Pacific touted to drive the majority of that growth,
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there is clear potential to attract new customers. Aside China, India and Southeast
Asian nations such as Indonesia are tipped to eclipse pax growth from the US and UK. Tuli is reluctant to share opinion
when it comes to assessing where the next spending drivers will emanate from, but admits he wouldn’t be surprised if India and Southeast Asian emerge as the next big forces.
cover liquor & tobacco, candies and souvenirs, general merchandising and international fashion brands. Meanwhile, four perfumes &
cosmetics kiosks over 239sq m complete the package. Asked directly if the new JV setup
would entail a different approach to retailing this time round given the concession model changes at MIA,
OCTOBER 2018
Subscribe to TRBusiness magazine to receive a digital copy of the TRBusiness Top 10 International Operators 2018.
Contact:
janice@trbusiness.com King Power HK-operated Furla store at Singapore Changi Airport. TOP 10 OPERATORS 93
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