TOP 10 OPERATORS 6: GEBR. HEINEMANN Fragrances potential may be ‘slow burner’ in APAC
During the TFWA Asia Pacific show, TRBusiness asked how Heinemann was responding to pressure from online and domestic market price aggression in a climate of elevated consumer demands in Asia Pacific. Kay Spanger, Chief Commercial
Officer, said pressure from ecommerce is not yet ‘as strong’ as in the European markets, however the developed nature of the beauty category makes it challenging, particularly as much of its growth is pegged to Chinese shoppers. In Sydney and Kuala Lumpur for
example, luxury skincare is developing strongly. Fragrances on the other hand is
bolstered its presence in border shop duty free with the acquisition this year of Kapo Duty Free. The company currently operates
12 border shops and three smaller regional airport shops in Russia. It has been a Gebr. Heinemann wholesale customer for more than 20 years and Heinemann says there has been ‘a good long-standing partnership’ between both companies. Kapo’s main border shops
are located in Torfjanovka and Svetogorsk (on the Russian/ Finnish border) and in Zabaikalsk (on the Russian/Chinese border). As a result of the acquisition,
Heinemann will now be represented in Russia with around 12 border shops at eight borders to five countries. Stores will be modernised to align
with European travel retail standards and the focus of the assortment will be liquor, tobacco, confectionery, perfume and cosmetics and local products, dependent on requirements. At sea, Heinemann this year
penned a fleet-wide deal covering Tui Cruises’ Mein Schiff fleet until 2026 having also won the concession to run retail on Mein Schiff 4. It also reached a 10-year agreement
with Hapag-Lloyd Hanseatic Nature and its sister vessel, adding to existing retail concessionaire partnerships with Europa and Europa 2, and struck a three-and-a-half-year deal with Aida Cruises. All this comes after renovations
OCTOBER 2019
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another story. “Fragrances has a future but it will
take a bit longer – the consumer has to get used to it – whereas in Europe you already see the early trend towards so-called niche fragrances, gifting and limited editions,” said Spanger. He then addressed the shifting premise
of ‘trends’. “Eighteen months ago, everyone was
talking about K-Beauty…Is it a trend or a move towards subcategories such as masks? It is difficult to judge whether ‘this trend’ is the right one for our consumers. Asked by TRBusiness if travel retailers
onboard Carnival Liberty and more recently Carnival Fantasy, continuing the momentum since Heinemann scooped contracts
through
subsidiaries’ Heinemann Americas and Heinemann Asia Pacific for four vessels in 2018. A tender victory for three Royal
Caribbean ships adds to the achievements this year, with the new venture due to set sail in 2020. Elsewhere in inflight, Heinemann
are too quick to jump on the bandwagon of new trends, he added: “To say yes is too easy. I think the industry should talk more and analyse if we have the consumers for these trends.”
Kay Spanger addresses whether trends are being jumped on too quickly by retailers
Holdings Ltd. Shortly before this report went to
press, Heinemann also confirmed it will vie for the new duty free liquor & tobacco contract at Singapore Changi Airport. Stay close to
trbusiness.com for further developments. «
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reached an agreement with Scorpio Worldwide CEO Stuart McGuire to complete the purchase of Heinemann Scorpio International
Official Partner
As a result of the Kapo Duty Free acquisition, Gebr. Heinemann will now be represented in Russia with around 12 border shops at eight borders to five countries.
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For more information contact:
Janice@trbusiness.com Retail sales accounted for €3.6bn of the Group’s €4.6bn turnover in 2018. Source: Gebr. Heinemann TOP 10 OPERATORS 51
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