Asia Duty Free & Travel Retailing (October 2013 Vol. 17, No. 4)

Cate Blanchett

ASIA DUTY FREE & TRAVEL RETAILING

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OCTOBER 2013 TFWA WE • VOL 17, NO 4

VOLUME 17, NUMBER 4

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S f

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iNtroduciNg

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Night holiday 2013

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Letter from the Editor

Asia Duty Free & Travel Retailing (ISSN 1360-9548) is published by Global Marketing Company Ltd. 26 Pearl Street, Mississauga Ontario L5M 1X2 Canada.

It is distributed in the following countries, states, regions and territories on the Asian continent and in the Pacific Rim: Australia, Bangladesh, Bhutan, Brunei, Cambodia, China, Fiji, French Polynesia, Guam, Hawaii, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, Maldives Islands, Myanmar, Nepal, New Caledonia, New Guinea, New Zealand, Philippines, Saipan, Samoa, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

Still in expansion mode

W

elcome to the TFWA World Exhibition 2013 issue of Asia Duty Free & Travel Retailing! The issue you’re holding in your hands covers a lot of ground; here are some of the highlights.

It’s broadly recognized that the incredible growth rates Asia turned in over the last few years have slowed down, but it’s important to remember that the region is still handily outpacing the rest of the world. In this issue we’ve focused on some of the trendsetters that are helping to make this part of the world the best place to do business.

Heinemann Asia Pacific is a relatively recent arrival to Asia’s bustling travel retail landscape, but it has already shown what kind of potential that landscape offers by becoming active and successful in several markets in just a few short years. High on its list of successes is its capture of a contract to operate its first multi-category location in Asia at the KLIA2 low-cost carrier terminal. The terminal will open next May, and Olivier Louis, Heinemann Asia Pacific’s Operations Director, promises that the new 1200 square meter concept shop, called “Be Duty Free,” will deliver a unique experience for shoppers.

We also explore what Lagardère Services (LS) travel retail Asia Pacific (ASPAC) has been doing to take advantage of the glittering names in its wide-ranging brand lineup. It’s no easy feat to maintain a coherent regional approach while adapting to local differences, but LS seems to have the formula figured out. It’s already seen an impressive list of victories in Malaysia with a string of store openings in 2013.

LS travel retail is well poised to take advantage of the transformational vision Malaysia Airports has for the low-cost terminal concept. LS has won both a multi-category lifestyle location, to be occupied by its “My Lifestyle Gallery,” and a space for its “Discover” souvenir imprint (the latter is also on debut at KLIA2). My Lifestyle Gallery covers just over 500 square meters in an open-concept format that merges seamlessly with the terminal’s public spaces. Discovery is noted for a strongly location-specific ethos that often gives it more of the presence of a local brand, irrespective of global location. At the same time it benefits from LS travel retail’s worldwide reach and resources.

In the region’s biggest economy, where growth is being driven by an emerging middle class, China Duty Free Group will be unveiling its Haitang Bay International Shopping Center in December on the island of Hainan. The new development will be a centerpiece for the retailer, especially when its initial phase rolls out in January.

There’s much more, of course. We also cover some of the top suppliers who offer innovative new products in what is still the world’s most dynamic region. Flip through and take the tour!

The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. October 2013, Vol 17, No.4. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. ©2013 Asia Duty Free & Travel Retailing.

ASIA DUTY FREE & TRAVEL RETAILING 26 Pearl Street Mississauga, Ontario L5M 1X2 Canada Tel: 1 905 821 3344; Fax: 1 905 821 2777 www.dutyfreemagazine.ca

PUBLISHER Aijaz Khan aijaz@globalmarketingcom.ca

EDITORIAL DEPARTMENT EDITOR Hibah Noor hibah@dutyfreemagazine.ca ASSOCIATE EDITOR - ASIA P. Convery padraic.asiadutyfree@gmail.com CONCESSIONS, LIQUOR & TOBACCO EDITOR Ryan White ryan@dutyfreemagazine.ca ASSOCIATE EDITOR Melissa Silva melissa@dutyfreemagazine.ca ART DIRECTOR Sarit Scheer sarit.scheer@gmail.com ADVERTISING SALES ADVERTISING & MARKETING MANAGER Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Deepa J deepa@globalmarketingcom.ca

Thanks, Hibah Noor, Editor hibah@dutyfreemagazine.ca 6

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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OCTOBER 2013 • VOL 17, NO 4

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Contents 12 18 22 24

28 A new journey DFS GROUP

TOP STORY – KLIA2

Low cost, high stakes

Malaysia Airports has made a bold move by investing in a low-cost carrier terminal that will treat budget airline passengers as the valuable asset they are and set a new standard for the segment. As the airport operator puts the finishing touches to KLIA2, Asia Duty Free asked its commercial services chief about the vision behind the project

Global luxury leaders converge upon Hawaii to celebrate launch of T Galleria, the new downtown concept by DFS Group

30 The chameleon of travel retail LS TRAVEL RETAIL ASPAC

LS Travel Retail Aspac may be the biggest airport brand travelers have never heard of, yet it’s all over Asia-Pacific and expanding apace

HEINEMANN ASIA PACIFIC

The ideas factory

For Heinemann Asia Pacific, building a sustainable success story is all about concepts, and as the retailer fine-tunes its latest exclusive brand, its regional business is steadily gaining critical mass

36 High achiever HKIA

Passenger numbers and service enhancements are on the rise as Hong Kong International Airport celebrates its 15th anniversary

DUFRY TAIWAN

A profitable partnership

As Dufry joins forces with Taiwan Land Development Corporation to operate a 3,000 square-meter duty free space on Kinmen Island, the number of Chinese and Taiwanese visitors is sure to grow

CHINA DUTY FREE GROUP

Expansion and triumph

40 Pushing the boundaries CHANGI AIRPORT GROUP

Already a top-performing airport, Singapore Changi continues to push boundaries with new renovations, promotions and attractions

42 Sino the times CHINESE TRAVELER

China Duty Free Group already has by far the most impressive presence of any travel retailer on the Chinese mainland, and it just keeps getting bigger

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China’s onshore duty free market may be off limits to foreign players, but as ever greater numbers of Chinese travel abroad, and as their tastes develop and diversify, savvy travel retailers in Asia-Pacific have an opportunity that looks set even to dwarf the Japanese wave of the 1980s

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UNILEVER INTERNATIONAL

66 EXHIBITOR SPOTLIGHT

Looking within

Gerzon set to launch several novelties in Cannes n Coccinelle builds its travel retail business n Sisley shines with new collection

SPECIAL REPORT: WATCHES ICE-WATCH

Coming on strong

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Making Scents

Fashion house Repetto ventures into the art of perfumery

High profile

Unilever International looks to Toni & Guy for success in the spotlight

SKINCARE NEWS

A statement of style

Yves Rocher gains new partners n Polaar looks to Antarctica for inspiration n Nougat London focuses on ingredients

FACE MATTERS

Does your face matter?

WOPI launches Face Matters at the TFWA World Exhibition

JEWELRY NEWS Flo Accessories launches a new fragrance jewelry line n Colors and combinations shine in Scorpio’s new watch and jewelry offer n Pandora launches its first airline exclusive travel charm

Already strong in travel retail, Ice-Watch is making strides to increase its presence further

FREDERIQUE CONSTANT

Above and beyond

When it comes to collections, watch brand Frédérique Constant seems to always be one step ahead. Following trends closely, each collection speaks to a different style while staying focused on both consumer and retailer demands.

WATCH NEWS

Taking care of business

Tateossian launches the Tateossian Carbon Watch White and Rotondo Guilloche n Rotary unveils Ladies Jura and Aquacore ranges, sees success onboard, inflight n Scorpio Worldwide launches timely souvenirs for FIFA World Cup 2014

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L’ORÉAL LUXE TRAVEL RETAIL ASIA & PACIFIC

A statement of style

Giorgio Armani relies on its fashion-forward cachet to open Asian markets

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INTERPARFUMS

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80 HARIBO

Something for everyone

German confectioner Haribo targets all ages in its ambitious travel retail strategy

PATON’S

Up to speed

Focusing on flavor profiles specifically in Asia, Paton’s is increasing its product offering and growing its business

LIQUOR REPORT

Eyes on the prize

Spirits brands in Asia use engaging promotions as a way to cut through the brand-heavy Asia travel retail environment and connect with traveling consumers

LIQUOR NEWS Russian Standard Vodka extends reach with Philippine Airlines contract n Mouton Cadet launches Reserve Mouton Cadet Bordeaux n Global Drinks Finland releases updated Laplandia vodka packaging, production processes

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DIAGEO GTME

Sky high

A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range

BERRY BROS. & RUDD SPIRITS

Crafting the extraordinary

Berry Bros. & Rudd Spirits announces the launch of two very special ranges of The Glenrothes that highlight provenance, rarity and quality

BARRY GLOBAL INNOVATION

In the know

Barry Global Innovation announces a number of new partnerships with companies eager to increase awareness in the global travel retail channel

BRITISH AMERICAN TOBACCO GLOBAL TRAVEL RETAIL ASIA PACIFIC

Capitalizing on opportunities

British American Tobacco Global Travel Retail Asia Pacific launches a wide range of innovations to take advantage of the boom in travel—and duty free purchases—in Asia

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A4_ADV

Global travel retail excellence www.worlddutyfreegroup.com

Low cost

www.luxottica.com

A line-up of strong perfumes & cosmetics brands is a key part of KLIA2’s retail plan

KLIA2

HIGH STAKES

Malaysia Airports has made a bold move by investing in a low-cost carrier terminal that will treat budget airline passengers as the valuable asset they are and set a new standard for the segment. As the airport operator puts the finishing touches to KLIA2, Asia Duty Free asked its commercial services chief about the vision behind the project

Th

by P. CONVERY

M

alaysia is not the kind of place normally associated with revolutions, but the airport that serves its capital, Kuala Lumpur, is the setting for quite an upheaval in the world of travel retail, turning conventional wisdom about low-cost carrier passengers on its head.

The mere mention of budget airlines conjures images of lower-income if not plain downmarket travelers in the minds of many, but such carriers and their customers have turned into an opportunity so lucrative that state-owned airport operator Malaysia Airports is betting more than US$1.2 billion in

Malaysia Airports has placed KLIA2’s retail offer truly at the heart of the light and airy terminal

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opening a brand new terminal dedicated to them at Kuala Lumpur International Airport– the much heralded KLIA2.

Faizah Khairuddin, Malaysia Airports’ Senior General Manager of Commercial Services, says: “One striking trend was figures that revealed that in terms of duty free and indulgent purchases, KLIA’s [existing] low-cost carrier terminal eclipsed KLIA. We found that travelers are using the savings they make on competitive airfares to partake of retail therapy.”

So with budget airline passengers saving money on tickets but splurging in airport

stores, Malaysia Airports set about looking at ways to capitalise on what was clearly a huge opportunity. In a development that seems apposite in a country that’s home to one of the biggest and most successful low-cost carriers in the world–AirAsia–it settled on a plan that would challenge conventional thinking about the low-cost segment and lead to the emergence of KLIA2.

“KLIA2 represented a golden opportunity for Malaysia Airports to be a commercial pioneer, using the retail, food & beverage and service space in the new airport as a change platform,” says Khairuddin. “It was a fantastic opportunity to mould a greenfield airport into any shape that we wanted.

“The critical path was the introduction of a strong sales and marketing platform for KLIA2. We didn’t do it the traditional way.

Before the tender process, we previewed our vision. We embarked upon a brand workshop so that the [retail] operators could see our clear brand positioning and be on the same page. Commercial Services introduced the five brand identity attributes that will be prevalent throughout the KLIA2 experience: ‘ELITE’, which stands for experiential, liberating, innovation, thrilling and ever-changing.

“Operators submitting for tender were provided with full insight into the business expectations of KLIA2. We had to make people believe in our vision, and what we have in store in terms of results, performance and

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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www.luxottica.com

etics lan

Sunglasses

Focused on growth

The fastest growing category over the past 4 years, worth over US$1.4 billion in 2012

tion Segmenta ility ib is v / e c a p Category s t

Assortmen Training

lone

anda t s / p o h s in Shopvents e d n a s o Prom ain Supply ch

For further information on sunglasses category management, please contact: Francis.Gros@uk.luxottica.com Bettina.Danet@uk.luxottica.com

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Source: Generation

*

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KLIA2 challenges it, like any other project conceived with such ambition, has come up against–not least the slippage of the terminal’s opening date and cost overruns that have seen its budget double, from M$2 billion (US$600 million) to M$4 billion.

“There have been a host of concerns and issues we have had to address and agree on for KLIA2,” says Khairuddin. “But it is heartening that we and our business partners have remained committed to resolving them amicably and in the spirit of positive partnership. This speaks volumes about our strong relationship.”

She waves away concerns over the ballooning budget for the new terminal, explaining that the increase in cost is mainly due to the expansion of the terminal’s specifications to better cater for and facilitate robust growth in passenger traffic, and that as a planned investment, it has not hit the airport operator’s finances.

KLIA2 is now on course for an official opening on May 2 next year. Khairuddin says it will be a spectacular addition to the Malaysian capital’s airport and that it will provide significant additional capacity.

“For next year, we expect passenger traffic to reach 24 million at KLIA2,” she says, adding that the airport operator is forecasting yearon-year passenger traffic growth of 8% at the new terminal.

KLIA2 may be the biggest project that Malaysia Airports has on the go, but plenty of other developments are keeping the airport operator busy, especially at its flagship hub KLIA. “KLIA has been bustling with excitement, Khairuddin says. “Living up to the

Despite its designation as an LCC terminal, KLIA2 boasts exclusive areas such as a VIP lounge

true nature of a lifestyle destination customers have been pleasantly surprised by the debut of myriad new and famous brands, including Braun Buffel, Longchamp, Pandora, Desigual, Giordano, Bijoux Terner, Lonely Planet, Billabong, WHSmith, Charles & Keith, Maxis Service Centre, D’Bazaar, Khazanah, Valentino Rudy, Swarovski, Plaza Premium Lounge and The Zon’s amazing expansion, which led to exclusive walkthrough concepts in duty free retailing. All in all, KLIA boasts 17 new brands, including Gadgetronic and a sports store promoting brands such as Nike, Adidas and Puma.”

She says the ongoing retail optimization project for the airport will be focused on a rebranding effort, the refurbishment of stores and the introduction of more new brands and concepts. This year, she explains, marks the

Khairuddin says the airport operator set out to give the F&B areas of KLIA2 a lounge ambience

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research and planning stage, in which the airport operator will review its product and brand positioning. The master plan for KLIA’s retail optimization will be ready by the first quarter of next year and an open tender exercise will be conducted by the third quarter.

“Our customers will be able to experience a complete and brand new airport shopping experience by 2015,” Khairuddin says.

Amid all this change, and as Malaysia Airports reviews its offerings at other airports in its 39-strong portfolio – including Kota Bharu, Tawau and Bintulu, where retail tenders are due before the end of November–one thing that will not be changing is its hugely successful Indulge Till You Fly campaign.

The current Indulge Till You Fly promotion began on July 10, runs until the end of February 2014 and offers shoppers at all of Malaysia Airports’ international airports the chance to win a M$1 million shopping trip, flying business class to Hong Kong, Tokyo, New York, London, Paris, Dubai and Kuala Lumpur, accommodated at top hotels and taken to all seven cities’ premier malls.

Khairuddin explains that the campaign has been a key driver of the airport operator’s retail revenue growth.

“Overall, last year’s campaign garnered a 134% hike in sales,” she says. “The average spend among travelers also went up by 50%.”

It’s a big prize, and a bold bet by Malaysia Airports that juicy enticements make travelers reach for their wallets. But big bets seem increasingly to be what the airport operator is counting on to boost its bottom line as its growth continues apace. And if its outside-thebox approach to the low-cost carrier market with its new terminal pays off, Malaysia Airports should be well positioned to reap lavish rewards for many years to come. c

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Gebr Heinemann

Haven Duty Free is a joint-venture under which Heinemann Asia Pacific operates several stores in Laos with a local partner

THE IDEAS FACTORY

H

einemann Asia Pacific may be a relative newcomer to the region’s travel retail scene, but it has made inroads into just shy of a dozen markets. That’s impressive progress, given that it set up its headquarters in Singapore as a subsidiary of German travel retailer Gebr Heinemann little more than three-and-a-half years ago.

Olivier Louis, Heinemann Asia Pacific’s Operations Director, says the retailer’s win at KLIA2 is a milestone in its business development

For Heinemann Asia Pacific, building a sustainable success story is all about concepts, and as the retailer fine-tunes its latest exclusive brand, its regional business is steadily gaining critical mass by P. CONVERY

And the retailer has its sights set on further gains following a win in Malaysia that it hails as a milestone: the award of a contract to operate its first truly multi-category airport store in the region at KLIA2, the low-cost carrier terminal due to open in Kuala Lumpur next May. Olivier Louis, Heinemann Asia Pacific’s Operations Director, says: “It really was a great achievement. It’s a 1,200-square-meter concept shop and we’re creating a brand that’s in line with what Malaysia Airports asked for, something that’s tailor made for KLIA2 in terms of design, look and assortment. It will be a unique shopping experience.”

The store will open at the same time the airport does, and Steffen Brandt, Heinemann Asia Pacific’s Chief Executive, says: “With this shop we’re really trying to translate the airport’s brand promise. It’s easy to say the passenger is our focus, but at the end of the day you have to try to create a certain kind of shopping atmosphere, and what the airport had in mind was actually not far away from ideas we had as well.

“In each and every area we’ll have experiential zones where passengers can expe-



AMSTERDAM

VENICE

Heinemann Asia Pacific has developed its brand Be Duty Free for its operations at KLIA2, due to open in May

rience features related to the category, which might not [exist] at any other airport.”

Heinemann Asia Pacific’s triumph in Kuala Lumpur adds to its portfolio of operations in 11 countries and territories in Asia Pacific. The retailer’s spread comprises a mix of what Louis calls internal retail–in which it owns shops or runs joint-venture stores–and external retail–which, he says “we used to call distribution, through which we supply other duty free retailers with a complete service package– buying, merchandising, promotions calendars, training, IT, design and construction”.

On the Chinese mainland, Heinemann

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SPECIAL DEVELOPMENT FOR TRAVEL RETAIL: HOLLAND - ITALY - ENGLAND - FRANCE and also for your country.

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Visit us at

Stand K17

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Heinemann Asia Pacific’s Esscents Duty Free store is the retailer’s first opening in the former Portuguese enclave of Macau

Asia Pacific has a Bulgari boutique at Beijing Capital International Airport and a partnership with state duty free retailer CNSC (China National Service Corp for Chinese Personnel Working Abroad) to supply perfumes & cosmetics, fashion accessories and confectionery to its stores in Shanghai, Kunming Harbin, Hefei and Dalian.

In Hong Kong it has a Versace boutique at Hong Kong International Airport and in Macau it runs a duty free P&C store named Esscents Duty Free with local partner Canudilo at the Cotai Central Mall.

In Taiwan, the retailer is working on several projects on Kinmen Island, the closest Taiwanese territory to the Chinese mainland, to supply liquor, fashion accessories, confectionery and P&C to multi-category duty free stores.

In Malaysia, Heinemann Asia Pacific already has an exclusive supply agreement with a key duty free retailer named DFZ, which runs airports and border stores across the country.

It has a joint-venture in Laos, where it takes care of three shops–two at Vientiane airport and one on the Laos-Thailand border–and has planned to extend this partnership to other stores.

“We also have our partner Plaza Bali in Indonesia,” says Louis. “We’ve entered Myanmar, at Mandalay Airport with a local partner–indeed a market that’s opening now, and the big spots will be Mandalay and Yangon

Heinemann Asia Pacific supplies five stores on the Chinese mainland run by the China National Service Corp for Chinese Personnel Working Abroad

Airport in the near future. We’re also entering Bangladesh and Bhutan with local partners.”

And then, of course, there is the retailer’s Vine & Leaf concept store, closer to its home base in Singapore, at the city’s Changi Airport.

Heinemann Asia Pacific opened Vine & Leaf which, as its name suggests, sells wine and cigars, in early 2012. The store has been a runaway success, with its net performance so far this year 25% up on 2012, and Brandt says the retailer will build on the concept’s success.

“It was a big learning curve for us, and we would like to say that Vine & Leaf was ‘Release No.1,’ ” he says: “We are working already on ‘Release No.2’, because with any concept you can always become better, and the target for us was not only to wake up the competition, but to develop something that, for the customer,

Chief Procurement Officer Max Heinemann, greatgrandson of the founder of the retailer’s parent company, says the family name is a great asset that will gradually be used more prominently

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www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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Gebr Heinemann really has this ‘wow’ factor.”

Heinemann Asia Pacific is betting on concepts such as Vine & Leaf, as well as further growth in its third-party branded propositions, increasingly to drive growth in the years ahead.

“It’s something that we believe will be the way forward here in Asia,” Brandt says. “The concept itself will play a much bigger role in the future, because I believe that the passenger will expect more than straightforward selling, as they want different experiences.

“You need brands–there’s no question that the brands are very important–but our job as a retailer is to see things less through the brand’s eyes and more through the customers’ eyes. A long, long time ago Heinemann started initiatives to put categories before brands, [but] at the end of the day you have to do both–you have to give the orientation, but you also have to show the brands, and we believe that here in Asia, where you get that creativity and a shopping experience, the passenger will appreciate this.”

Max Heinemann, the retailer’s Chief Procurement Officer and great-grandson of Gebr Heinemann’s founder, says: “You don’t see us operating numerous branded boutiques in this part of the world, and we’ve always chosen our partners quite carefully, because we’ve always needed to see potential to grow. We’re not willing to manage the status quo, so we have to challenge the status quo on a continuous basis, and for that you need brands and brand partners that are not only willing to co-invest but also to rely on our expertise.

“But there’s only so much you can do, and that’s why we are extremely concept-driven– because it gives you a lot of flexibility and you can answer much quicker the changing perceptions and needs of the passengers.”

Brandt says: “[From the customer’s point

Steffen Brandt, Heinemann Asia Pacific’s Chief Executive, has always maintained a keen focus on creating atmosphere in the retailer’s stores and on differentiating its offer

20

Wine and cigar store Vine & Leaf has been a great success at Changi Airport, and the retailer says it is looking to develop the concept

of view], what’s the difference? What will a passenger think if they go into a boutique run by us or by the competition? Would there be a difference in first impression? The difference can be made with people, but in the long run is that enough to differentiate? Therefore we have to find our own way and our own reason to be.”

Heinemann Asia Pacific says its plans for KLIA2 will demonstrate how committed it is to concepts, and that the development also illustrates a crucial point of difference between the low-cost carrier market in Asia and its counterpart in Europe.

Heinemann says: “One of main things that [Malaysia Airports] figured out at the old LCC terminal is that people’s spend on certain categories was actually higher than at KLIA [the airport’s main terminal], which made them understand that it was less about low-cost flying being associated with low-cost passengers, but rather the opposite–that it was about smart flying and smart passengers.

“It’s a little bit different from what you see in the LCC market in Europe, where it’s really about saving and it’s really hard to make passengers spend money. Here it seems to have developed differently–people really save on the air ticket and spend in the airport, and that’s what’s led to [a new] terminal and to us deciding to put in a very interesting and engaging concept.”

Another point of difference is the dynamism of the regional market, Louis says.

“It’s by far the most fast-moving market in the world,” he explains. “And this translates into how passengers’ perceptions, needs and demands change in this part of the world– whether you see it in the Chinese customer, who comes from a very brand-driven mindset into potentially a more mature view on spending his or her money–the development

is extremely fast, and you have to be able to react to that.

“You also have a lot of variety within the region, and the region is really massive, so if you go from Japan to India to New Zealand, you have totally different markets, customer behaviour, brand behaviour and positioning.

Price perceptions are also different, as are local requirements.”

So amid all this market growth and concept development, will we see Heinemann Asia Pacific transition from being a brand that’s increasingly well known to airport operators to one that enjoys equal stature among travelers, as its parent company does in Europe?

Heinemann says: “The Heinemann name is 134 years old, and ... it’s a very powerful tool that you have to use wisely. Asia Pacific is very much a developing region, and there are so many things you can do wrong. We don’t have the pressure to [deploy the name] tomorrow–that’s the nice thing about being a family business.

“I’m pretty sure we’ll be looking at using it later on. We obviously want to grow the brand globally, not only regionally, and you will probably see the brand appearing. It would be wrong not to drive development in that direction, which we have [already] been doing for three-and-a-half years.

“We never put our name first on any wall, [but] we’ve started exclusive brands in Asia Pacific and we’ll see how we take it from there.

Every step is extremely exciting, and besides our own strategic plan, it’s good to have the luxury of spontaneity.”

Look out for some of that spontaneity when Heinemann Asia Pacific unveils its latest concept, Be Duty Free, at KLIA2 next May, and for the latest from the retailer at dutyfreemagazine.ca/asia. c

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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Dufry Taiwan

A profitable

partnership As Dufry joins forces with Taiwan Land Development Corporation to operate a 3,000-square-meter duty free space on Kinmen Island, the number of Chinese and Taiwanese visitors is sure to grow

D

ufry and Taiwan Land Development Corporation (TLDC) recently signed a long-term agreement to operate duty free spaces on Kinmen Island, Taiwan, which can only mean one thing: a surge in Chinese and Taiwanese visitors. The 3,000-square-meter duty free operation will be located at the Wind Lion Plaza development, the largest integrated entertainment, retail and dining complex on the island. Kinmen Island is connected by a 30-minute ferry ride from the mainland Chinese city of Xiamen and is a designated duty free island by the Taiwanese government.

With the first phase expected to open during the first half of 2014, the Dufry-TLDC Joint Venture (JV Co) will operate all duty free retail space in Wind Lion Plaza. The main duty free offerings will include core Liquor, Tobacco, Perfumes & Cosmetics, Fashion, Accessories, Watches & Jewelry and Confectionery categories.

Within this new space, Dufry aims to bring in a cutting edge retail offer carefully tailored to the two main customer groups—mainland Chinese and Taiwanese.

In addition, Dufry will introduce a range of popular mainland Chinese liquor and tobacco products currently not available in the Taiwanese market. A significant amount of retail space will also be dedicated to promoting souvenirs, confectionery, liquor and other local products from Kinmen and other parts of Taiwan.

Located 200 meters from Kinmen’s airport, the Wind Lion Plaza development will cover over 244,000 square meters of total space when finished, and will offer several attractions including hotels, a multi-functional entertainment center, medical, health and beauty care facilities, as well as a convention and exhibition center. The complex will be the largest of its kind in the island, with the JV Co between Dufry and TLDC as its anchor tenant. In addition, there

22

C

M

by MELISSA SILVA

Y

CM

will be electronic shops, locally themed boutiques, themed restaurants, and the largest Cineplex in Kinmen.

In 2012 Kinmen Island received close to two million arrivals from mainland China and Taiwan, with mainland Chinese arrivals having increased 40 times since 2002. The duty free designated island allows Taiwanese residents to purchase up to US$24,000 of duty free and tax free goods per year. With the recent easing of visa requirements for mainland Chinese citizens visiting Kinmen and capitalizing on its proximity to mainland China, the island also hopes to attract some of the 40 million international and domestic visitors who visit Xiamen each year.

“Our entry into Taiwan is yet a further important step in the development of our presence in Asia,” says Julian Diaz, CEO of Dufry. “Including these new operations, Dufry will operate in twelve locations in the Far East, Middle East and Central Asia.” The new project in Kinmen is a first step to develop the duty free activities in Greater China and complements Dufry’s existing duty paid operations in the region.

At the same time, TLDC’s significant investment in Wind Lion Plaza demonstrates its strong commitment and confidence in the tourism potential of the island. “We are pleased that TLDC has selected us as their anchor tenant in one of the biggest developments in their portfolio and we are looking forward to work closely with TLDC to create a cutting edge retail offering in Kinmen,” says Diaz.

Fu-Sheng Chiu, Chairman of TLDC, has expressed his contentment with welcoming Dufry to jointly invest in Kinmen with TLDC and predicts positive results as the partnership moves forward. “With this alliance and joint venture, I do believe we can create an innovative and exciting experience for visitors from China, Taiwan and other countries,” he says. c

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China Duty Free CDFG made a huge breakthrough when it opened its first duty-free store on Hainan, taking advantage of the island’s special status as a domestic duty free zone

Expansion and triumph

by P. CONVERY

China Duty Free Group already has by far the most impressive presence of any travel retailer on the Chinese mainland, and it just keeps getting bigger

W

hen China Duty Free Group (CDFG) announced back in March that the opening of the world’s largest duty free complex would not be delayed due to construction issues or cost overruns, which commonly plague such ambitious projects, but that it would in fact open ahead of schedule, some people in the travel retail industry may have been surprised. But probably not many.

After all, we’re talking about China, where, despite a recent easing in the pace of economic growth, the country’s emerging middle class continues to fuel a rapid expansion in the travel market, and with it, travel retail.

China Duty Free Group will now open its Haitang Bay International Shopping Center on the southern island province of Hainan in December, with a grand opening of the project’s initial phase scheduled for the following month. And the development will be the focus of much of the retailer’s energies for the near future.

The complex will add to the retailer’s stunning success on Hainan, the only Chinese province to allow duty free shopping by domestic travelers, with its first duty free store in the city of Sanya, where it says sales soared by 49% in the first half of this year to reach a value of 1.48 billion yuan (US$240 million).

A company spokeswoman says: “CDFG pays great attention to the Hainan duty free market. Since its opening, our Sanya duty free store has been tourist-focused and improved the service experience through tourist demand

24

exploitation, commodity structure optimization, service support upgrades and improvements in value-added services for new media such as microblogs and [mobile phone messaging service] WeChat. Hainan’s duty free market has great potential and … this potential is still far from fully explored.

“After the Haitang Bay International Shopping Center opens, it will form an effective complement in terms of business scale, brand quantity, and category mix with our Sanya duty free store. It will also attract more high-end international brands.”

CDFG’s Haitang Bay development is both part of the retailer’s growth strategy and also its response to a central government policy drive to keep Chinese consumers’ luxury spending within the country’s borders as a means of boosting the domestic market.

The spokeswoman says: “Facing the ever growing heat of Chinese travelers shopping

overseas, CDFG has taken an active part in pushing the … policy, developing such large retail platforms as our Sanya duty free store and the Haitang Bay International Shopping Center and upgrading supporting services.

In this way, the duty-free industry has great importance in attracting Chinese travelers overseas back to shop in mainland China.”

And keeping that spend in the country includes doing it on the high seas, following CDFG’s signing of a co-operation agreement with Star Cruises. The retailer now operates a 600-square-meter duty free store aboard the cruise liner SuperStar Gemini and will supply all duty free shops aboard the line’s ships, including the SuperStar Pisces, SuperStar Aquarius, SuperStar Virgo, SuperStar Libra and other vessels operated by Star Cruises in Asia-Pacific.

CDFG is also developing plans to open downtown stores in Beijing and Shanghai.

CDFG’s store in Sanya, Hainan, is a major facility, but its planned development at the island’s Haitang Bay will be the biggest duty free complex in the world when it opens in a few months from now

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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“At present, only five cities in China–Beijing, Shanghai, Dalian, Qingdao and Xiamen–have licenses [for downtown duty free stores], and CDFG is the only enterprise that has a downtown duty free store license,” the spokeswoman says.

CDFG may operate more than 200 stores on the Chinese mainland, and have a duty free market share of around 40%, but it is still identifying opportunities to expand, and one area in which it is seeking growth is on China’s rapidly developing high-speed rail network.

It already runs all of the travel retail except books & magazines and food & beverage at Shanghai Hongqiao high-speed railway station and has plans for more station stores.

“Commercial projects on high-speed railways have great development potential in the future,” says the spokeswoman. “The commercial project at Shanghai Hongqiao high-speed railway station is the first step in CDFG’s high-speed rail business, which will provide our staff with experience and practical ability for bidding and operating larger retail businesses in the future. It has also laid the foundations for further development of CDFG’s duty-paid business, and CDFG will strive for more [such opportunities] in the future.”

As the scale of the Haitang Bay project suggests, CDFG’s ambitions are big and growing, and, having already established a presence on Taiwan and bid for two of the three core category concessions at Hong Kong International Airport in 2011, the retailer is looking beyond the borders of the mainland for expansion.

With Beijing’s might behind it, and as the only duty free retailer licensed to operate across the entire Chinese mainland, it’s hard to see anything but further rapid growth in CDFG’s presence on its home turf and beyond. c

China Duty Free has been proactive in lifting its game to provide world-class offers in recent years, such as in its stores at Hangzhou Xiaoshan International Airport

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DFS Group

In honor of the occasion, DFS hosted celebratory activities for more than 600 of its guests, many of whom traveled to Hawaii specifically for the event

A NEW

JOURNEY

Global luxury leaders converge upon Hawaii to celebrate launch of T Galleria, the new downtown concept by DFS Group by RYAN WHITE

D

FS Group (DFS), the world’s leading luxury travel retailer, recently unveiled its first Traveler’s Galleria—abbreviated T Galleria—from the heart of Hawaii in Waikiki. The rebranded identity will replace DFS Galleria, the Group’s downtown store concept started over four decades ago, at each of their 14 locations across the globe.

In honor of the occasion, DFS hosted celebratory activities for more than 600 of its guests, many of whom traveled to Hawaii specifically for the event. Notable attendees included HRH The Crown Princess Marie-Chantal of Greece, Princess of Denmark; and Alexandra von Fürstenberg; Neil Abercrombie, Governor of Hawaii; Golden Horse award winning actor Ethan Ruan; international fashion model Jessica Michibata; Korean-American actor Daniel Dae-Kim; and British music icon Estelle, who also made a special performance exclusively for the rebranding.

The distinguished guests joined DFS executives, led by Chairman and CEO Philippe Schaus, as well as senior representatives from LVMH Moët Hennessy Louis Vuitton and the world’s premier luxury brands, alongside a large contingent of international press, in witnessing the milestone.

“After more than half a century of innovation in travel retail, we are thrilled to unveil our plans for continued industry excellence as we again adapt our business in service of world travelers,” said Schaus.

“We are proud to reveal the exciting path that lies ahead of us in the company of so many special guests, each of whom has played a key role in building our heritage through the decades and around the world.”

Blessed by Hawaii, hosted for the world At the pinnacle of the weekend, DFS revealed the new T Galleria logo during a breathtaking unveiling ceremony. A specially choreographed Cirque du Soleil performance ushered the VIP guests down a red carpet that wrapped around the store and led directly into the new T Galleria, while exquisitely costumed traditional Pacific Island dancers and drummers performed a synchronized act.

28

Notable attendees included Golden Horse award-winning actor Ethan Ruan; Chairman and CEO of DFS Group Philippe Schaus; HRH Marie-Chantal, The Crown Princess of Greece, Princess of Denmark; international fashion model Jessica Michibata; and Alexandra von Fürstenberg

As a crowd of thousands looked on, the blast of twelve conch shells heralded the guests’ arrival at the entry of the T Galleria and the beginning of the ceremony. Fifty hula dancers then performed a progressive Hawaiian dance, followed by traditional chanting.

Festivities continued inside the T Galleria at a Gala Event. With 45 cages filled with live birds hanging from the ceiling and stunning visual merchandising displays, the setting brought to life DFS’ dynamic Fall/Winter 2013 campaign, shot by renowned fashion photographer Craig McDean and featuring top international models Karen Elson and Sean O’Pry. Throughout the evening, guests enjoyed entertainment by Cirque du Soleil and the highly-acclaimed DJ Rashida. The event concluded with a show-stopping act by Estelle, epitomizing the spirit and energy of the fantastical evening.

“As the place where we first introduced our downtown concept in 1968, Hawaii is the ideal location from which to open a new chapter in the history of both DFS and travel retail,” said Schaus. “For more than four decades, we have been perfecting the downtown travel retail concept, and we are proud today to present the results of that dedication. As we now further deepen our expertise in the luxury segment with T Galleria, we once again confirm our commitment to evolving in line with the desires of our clientele, world travelers.”

The journey continues On Sunday, guests participated in a curated program of Hawaiian activities DFS specially designed to demonstrate how its service expertise elevates the destination itself. Activities included a tour of the North Shore with a surfing class taught by US surfing champion Ken Bradshaw; a spa retreat at the historic Sullivan Estate; and an exclusive DFS shopping experience. The unforgettable day ended with an elegant cocktail reception on Waikiki Beach, awash in the setting lights of the Pacific sun.

Following the event in Waikiki, the DFS journey will continue in 2013 with the conversions of three Galleria stores this autumn in Hong Kong, followed by two in Macao at the end of the year. c

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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LS travel retail Asia Pacific

The chameleon of travel retail

LS’s Fashion Gallery concept at Changi Airport manages to accommodate 17 brands in a mini-branded department store format

LS Travel Retail Aspac may be the biggest airport brand travelers have never heard of, yet it’s all over Asia-Pacific and expanding apace, writes P. Convery

H

ugo Boss. Dunhill. Virgin. Longchamp. Salvatore Ferragamo. Lonely Planet. Coach.

They’re household names all over the world, and brands that anyone who has ever set foot in an airport will have more than a passing familiarity with. Yet if you asked most air travellers whether they’d come across the brand LS Travel Retail as they made their way through any of Asia-Pacific’s increasingly busy airports, you could probably expect a brief look of concentration, followed by, “Errr, no.”

Well, LS Travel Retail Aspac, the AsiaPacific branch of global giant LS Travel Retail, is the force behind these and other leading

Chief Operating Officer Emmanuel de Place says LS’s success is built on combining top brands with winning concepts to make shopping memorable

30

global names in more than 16 of the region’s airports with over 200 stores, and it’s probably the most understated major success story in the entire industry. LS is everywhere in AsiaPacific’s airports – in Australia, China, Hong Kong, India, Malaysia, New Caledonia, New Zealand, Singapore and Taiwan – yet its name is nowhere to be seen amid its impressive range of third-party and proprietary brands. It is the chameleon of the industry.

Emmanuel de Place, Chief Operating Officer of LS Travel Retail Asia Pacific says: “We have many of our own successful brands, such as Relay, Aelia Duty Free, So Chocolate and The Fashion Gallery, for instance, which are very well known and recognized by passengers in more than 120 airports worldwide.

But we know that in airport retail it is equally important not just to have the right mix of renowned brands but also to deliver the best service, excitement and concept for travelers in order to provide a complete shopping experience for them to remember.

“And you will not see us put ‘LS Travel Retail’ on the front door of any of our stores, as it is our corporate name, but LS retail travel is well recognized within the industry.

“We’re quite a pragmatic retailer,” he says.

“Lagardère has been in the travel retail business since 1852, and with that experience plus the constant insight and innovations we

bring to our business, we know how best to attain the results – that’s the reason why we’re ranked among the top three travel retailers in the world.”

De Place says the rebranding of the travelretail businesses operating under parent company Lagardère Services several years ago has made a significant contribution to their visibility, and that LS Travel Retail Aspac is now much more front and centre among regional airport operators and brands. Yet even though LS is building a more readily recognised identity, it will probably go unnoticed by travellers, as de Place says the company’s focus is firmly on airport operators and landlords of other

Grant Fleming, Director of Operations & Marketing, says LS’s performance and size speak volumes to airport operators

ASIA DUTY FREE & TRAVEL RETAILING OCTOBER 2013

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LS’s Fashion Gallery has won awards and outperformed sales expectations

LS travel retail Asia Pacific travel retail locations.

But as LS raises its profile among AsiaPacific’s airport operators, its tried and tested strategy for targeting travellers remains the same: leveraging the brand names in its highly diverse portfolio. And being nimble and flexible in doing so while fielding brands in a cohesive fashion under the LS umbrella is something of a balancing act.

“We very much respect the brands,” de Place says. “If we’re opening a Longchamp store, for example, it’s the brand the customers want, and brands have very strong expertise on how design, operations and customer service should be. We completely respect and abide by that.

“Look at what we did with The Fashion Gallery [at Changi Airport] in Singapore. It was a feat in itself to put 17 brands into a very uniform store and to balance their expectations of brand alignment – one brand next to another versus one brand in front of another.

After all the hard work, all the brands are amazingly happy about it – the store has won awards. And we are proud it delivers above expectations in terms of sales. It’s something that should be relatively simple, but management of a mini-branded department store requires a lot of talent.”

Charn Cheng Lee, General Manager of LS Travel Retail, Singapore and Malaysia, is hopeful that LS will make further gains at Changi following its years of success there and that it will continue to be active at the airport.

LS has already chalked up wins this year in Malaysia, opening a Billabong store, a Lonely Planet outlet and a Longchamp boutique in January and successfully bidding for retail space at Kuala Lumpur’s upcoming low-cost carrier terminal, KLIA2, which is due to open in May 2014. Lee lavishes praise on the ambitious project and is excited about LS’s plans for its new space.

“It’s amazing what [Malaysia Airports] is

Charn Cheng Lee, General Manager of LS Travel Retail, Singapore and Malaysia, is hopeful of growing the retailer’s business at Changi Airport

32

doing, that leap of faith that they’re making in turning the low-cost terminal, which has a small footprint for retail space at the moment, into a truly international terminal. We bid there and won a multi-category lifestyle space for our concept My Lifestyle Gallery and also a souvenir store under our Discover brand,” he explains.

“My Lifestyle Gallery is a multi-category lifestyle store of just over 500 sq m with very few walls, a limited ceiling, and designed like an open marketplace of substantial branded stalls that really blends into the terminal area and its large spaces. It’ll have a mixed ‘lifestyle’ feel with some fashion, luggage, jewelry and gourmet food centered around a cafe – 500sq m is a really substantial space. It’s very open and discoverable when you walk through.

Lee says the development exemplifies the creative and flexible way in which LS engages with airports and other landlords.

“It’s not a cookie-cutter approach at all,” he says. “It’s our approach to what customers want and what the airport is dreaming of.

We have a great deal of experience to know what can work with a brand and what can be pushed on a concept to work for the customer and the airport.

“We’re very open to working with the airports on what they want and dream of – and with our experience we can be confident that [an idea] is going to work.”

And LS is nothing if not confident in the range of brands it has built alongside its portfolio of international brand names. The company’s Discover brand, which it is fielding at KLIA2, is one that Director of Operations & Marketing Grant Fleming says LS is quite proud of, as it again embodies flexibility and the idea of tailoring the offer to the specific

location while also leveraging the resources, experience and muscle of the formidable business that stands behind it.

Discover is a destination merchandise brand that LS runs worldwide, and although it’s one global brand, its identification with its location is so strong that it could easily be mistaken for a local brand name.

“Discover is a flexible brand that can be Discover Paris, Discover France, Discover Germany, Discover Sydney, Discover Australia,” Fleming says. “We’ve got 19 different country stores for Discover, and every store looks exactly like that country, so if you’re just leaving Malaysia, the Discover store will look like it’s a one-off souvenir store for Malaysia.

But there’s a formula that we’ve put down and we’re actually quite proud of it. The entire Discover concept changes for each country – from logos to uniforms and furniture, as well, of course, as the products. It’s a simple formula [but it] requires a lot of know-how and local input.”

De Place says that LS’s business model is built on what he calls three basic “needs units”: core duty-free stores, among which LS’s proprietary brands include Aelia Duty Free in Australia and New Zealand; travel essentials stores such as Discover, Relay, Purely Merino and Watermark; and food service, such as its Trib’s brand, recently opened in Australia. And he says that all the proprietary and third-party brands play a role in growing the business. The ability to operate across all three needs units is evident especially in the group’s Pacific arm, where in addition to being a key player in the travel essentials segment, the retailer has a strong presence in duty free and a growing footprint in food services.

“They’re all important,” Fleming says.

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“We’re not in retail to not make money, so all of our brands have a purpose and a reason.

He says they constitute a versatile means of meeting the needs of a market that’s geographically huge and highly diverse.

“We try to look at total retail planning, to see what’s missing and try to innovate either within the store or with the store concept,” Fleming says. “So are these specialist concepts essential?

Yes, we have a very attractive and diverse portfolio that, when we talk to airports, is quite nice to lay down on the table. Purely Merino might do better than an international fashion brand, for example, in a certain part of Sydney Airport, so it really is about our knowing what the customer wants in certain places and saying, ‘We’ve got a brand for that’.”

Beyond the brands, the retailer has also invested heavily in its infrastructure and talent.

Chief Executive for the Pacific Matt Mercier says: “For us, the key to operating such a diverse portfolio of brands is threefold – understanding what it is that travelers want, close partnerships with our vendors and landlords, and – critically – specialist teams focused on delivering operational excellence.

“It’s not enough merely to open a nice looking store. Every element – from service to product – has to exceed the expectations of our customers. This requires that you challenge yourself constantly and be honest in the areas where you need to improve.

And you must. Complacency is a killer in travel retail.”

LS’s commitment to growing its operations in Asia Pacific has accelerated rapidly, and Fleming says the regional market is changing in promising new ways.

“A t t h e TFWA shows a n d Tr i n i t y Forums over the past 10 years,” Chief Executive for the Pacific Matt Mercier he says, “there’s believes in a three-pronged strategy of understanding travelers’ desires, close been a change relationships with vendors and specialist teams of tone, from a decade ago saying, ‘Asia’s growing, it’s going to be important one day,’ to a few years back, ‘Sometime soon it’s going to be a very strong market’ to what we’re really saying now, which is just, ‘It’s the place. It’s completely overtaken everywhere else’.”

He says that despite widespread protectionism, travel retail markets in Asia-Pacific are continuing to open up, and suggests that has created a momentum that will be self-sustaining.

“There’s a massive change … and it’s brought by the combination of the brands having more access to the customers and the customers having more access to the brands,” he says. “It sounds really basic, but I think that’s all it is.”

As LS continues to build its operations in the region, tapping that sales momentum as the market matures, the company’s stature among airport operators and other landlords seems destined to grow, even if consumers barely notice the chameleon of travel retail, only its multi-hued spectrum of brands. c

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HKIA

HIGH achiever

Passenger numbers and service enhancements are on the rise as Hong Kong International Airport celebrates its 15th anniversary by MELISSA SILVA

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ong Kong International Airport (HKIA) is celebrating its 15th anniversary this year with a 7.7% increase in passenger traffic when compared to 2012 (July). The airport welcomed a total of 5.4 million passengers this past July, surpassing the previous record of 5.2 million set in August 2012. This growth has placed HKIA in a good position for the remainder of 2013 and has provided a strong launching pad for 2014.

“We foresee a continuous and steady growth in passenger traffic in the remaining months of the year,” says a spokesperson from Airport Authority Hong Kong (AAHK).

With recent forecasts indicating that traffic demand will reach 102.3 million passenger trips, 8.9 million tons of cargo and 607,000 aircraft movements per year by 2030, AAHK has begun looking into expanding the airport into a three-runway system to accommodate the predicted volume increase. “At this stage, we are dedicated to carrying out the statutory environmental impact assessment for expanding the airport into a three-runway system,” says the spokesperson. “We are also working on our medium-term development where 48 parking stands and a passenger concourse that can handle 10 million passengers a year are under construction.” AAHK has planned to commission these new stands and the concourse in phases by the end of 2015.

Passenger numbers aside, in August, the 36

Plaza Premium Lounge marked its 15th anniversary with the opening of a new flagship lounge at HKIA. The lounge provides services and facilities to transit passengers, arriving visitors or departing travelers when they travel via HKIA to make their journey relaxing and comfortable. “As one member of the airport community, we are pleased that our business partner could further enhance their business in HKIA,” says the spokesperson.

Raising the bar AAHK recently reported strong interest from retailers and brands for the 35 luxury goods boutique spaces offered at HKIA. Since this announcement industry-leading watch brand Rolex has opened a flagship store in the restricted area of Terminal 1. In addition, AAHK opened Le Grand Pokka Cafe and Maxim’s Jade Garden in the Terminal 1 departures hall.

HKIA has long been known for its promotions and campaigns, which it often runs through various channels, including social media. Earlier this year AAHK announced a partnership with Union Pay, offering Union Pay cardholders the opportunity to enjoy shopping and dining offers, as well as the chance to redeem HKIA cash coupons during festive seasons when making a purchase of a specific amount. “Other operators such as DFS have also rolled out promotion initiatives in

This past July marked Hong Kong International Airport’s 15th anniversary

celebration of HKIA’s 15th anniversary,” adds the spokesperson.

Looking to enhance HKIA’s services and facilitate passengers’ experience at the airport, AAHK has reconfigured the arrival hall to provide extra waiting zones. A total of five additional customer service counters were added in the past two years in departure and arrival halls, which allows passengers to make enquiries and obtain assistance more easily.

Promotions aside, HKIA continues to be known for its environmental initiatives, going so far as to pledge becoming the world’s greenest airport. AAHK has worked diligently to lower its carbon intensity by 25% from 2008 emission levels by 2015. “In 2012, HKIA’s carbon intensity was reduced by 13.5% compared with the 2008 baseline,” says the spokesperson.

In recognition of HKIA’s continuous efforts in the reduction of carbon emissions, HKIA was awarded the “Optimization” certificate of the Airports Council International’s Airport Carbon Accreditation program this past March. HKIA is the first airport in Asia Pacific to achieve this accreditation level.

HKIA has also adopted practical measures to reduce emissions from aircraft on the ground. Beginning in 2014, parked aircraft are banned from using their diesel-powered auxiliary power units for electricity and air conditioning and must use fixed ground power and pre-conditioned air supplied, which produces

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HKIA substantially lower emissions of carbon and toxic pollutants. To facilitate the ban, HKIA is completing a two-year upgrade of its fixed ground power and pre-conditioned air systems In addition, HKIA continues to promote the use of electric vehicles. Starting from mid2013, all new saloons used in the restricted

area will be electric. “By July 2017, saloons other than electric vehicles will be banned from operating in the restricted area,” says the spokesperson.

Although service enhancements and environmental initiatives are on the priority list, HKIA is also focusing on planning more

activities to celebrate its 15 years of service. A dinner and flash mob dance were held in July and the airport plans to host similar events before 2013 comes to a close. “We are planning to launch more activities to share our joy,” the spokesperson adds. c

To celebrate its 15th anniversary, HKIA hosted a dinner and a flash mob dance at the airport

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Changi Airport

Completed last June, the renovations at Terminal 1 refurbished the interior design and finishes, as well as improved passenger flow at key areas

Pushing the boundaries

by MELISSA SILVA

Already a top-performing airport, Singapore Changi continues to push boundaries with new renovations, promotions and attractions

A

lthough today’s global economic outlook remains uncertain, one certainty is that the number of travelers in Asia is growing at a rapid pace. This growth places Changi Airport in a good position to take advantage of the trend and achieve its goal of becoming a primary transfer hub for travelers in Asia.

The rise of travelers in Asia allowed for impressive passenger numbers at Changi Airport in 2012, as it handled record traffic of 51.2 million passenger movements. This trend continued this year, as the airport handled 30.8 million passengers during the first seven months of 2013, a 4.9% increase from the same period in 2012.

As of this past August, more than 100 airlines now operate at Changi Airport, connecting Singapore to 250 cities in some 60 countries and territories worldwide. Over the past few years, the airport has witnessed the exponential growth of low-cost travel and budget airlines, which is expected to keep growing. “With more than 6,700 weekly scheduled flights, an aircraft takes off or lands at Changi roughly once every 100 seconds,” says a spokesperson for Changi Airport.

Based on passenger carriage in 2012, the top five airlines contributing the most to traffic at Changi are Singapore Airlines, TigerAir, SilkAir, Jetstar Asia and AirAsia Berhad. The 40

top ten busiest routes in 2012 include: Jakarta Indonesia, Hong Kong, Bangkok Thailand, Kuala Lumpur Malaysia, Manila Philippines, Tokyo Japan, London United Kingdom, Denpasar (Bali) Indonesia, Sydney Australia and Ho Chi Minh City, Vietnam.

Non-aeronautical revenue takes up almost half of Changi Airport’s total revenue figures.

“Non-aeronautical revenue is important as it helps to keep aeronautical charges low for airlines,” says the spokesperson. “This would help to attract airlines to fly to Changi and is also in line with our mission of growing into a vibrant air hub.”

Promotional prodigy Changi houses a total of 350 retail and services outlets, 290 of which are located within the transit areas. The retail outlets include traditional duty free favorites such as liquor and tobacco, perfumes and cosmetics, chocolates and confectionery, as well as other products like electronics, luxury goods, fashion, watches and accessories.

To continually entice travelers, Changi Airport Group routinely runs various shopping promotions, most of them tied to major events and festivals. Special promotions were launched during the Lunar New Year and Changi’s “Project Jewel” complex, which is expected to be completed by 2018, will offer aviation and travel-related facilities, a wide range of retail offerings and unique leisure attractions

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Changi Airport handled 30.8 million passengers during the first seven months of 2013, a 4.9% increase from the same period in 2012

Christmas festivals, and free gifts were given with a minimum spend as part of the Christmas promotions.

Of all its promotions, Changi’s most notable is “Be a Changi Millionaire,” which awards a winning traveler with a prize of S$1 million (US$794,432). The six-month shopping promotion is already at its fourth run and had made three shoppers at Changi Airport millionaires. During the promotion period, shoppers and diners only need to spend a minimum of S$30 (US$24) for a chance to participate in the draw.

Fine tuning In terms of renovations, Changi Airport’s Terminal 1 was given a major facelift that began in May 2008 and came to a close last June. The oldest terminal at Changi Airport was rejuvenated with a “Tropical City” theme.

Renovations were carried out to refurbish the terminal’s interior design and improve passenger flow at key areas such as the Departure Check-in Hall, Departure Transit Mall and Arrival Hall.

In addition, About 22,000 square meters have also been added to the building, bringing the total floor space of Terminal 1 to about 308,000 square meters. “The larger floor area provides for more spatial comfort, better passenger flow, additional facilities and expanded retail and F&B offerings,” says the spokesperson.

With the renovations complete at Terminal 1, Changi Airport has moved its focus to new projects, namely a new Terminal 4 due for completion by 2017. When completed, Terminal 4 will replace Singapore’s Budget Terminal, which was demolished last September, and will serve both budget airlines and full service carriers. The aim of this project is to accommodate the continued growth of air traffic

at Changi Airport, as its annual passenger capacity is expected to increase to 82 million by 2017. Once completed, Terminal 4 will have a capacity of 16 million passengers per annum.

Alongside Terminal 4, another project is also in the works—the development of a new mixed-use complex. Named “Project Jewel,” the new complex is envisaged to be a worldclass, signature lifestyle destination that will enable Changi Airport to capture tourism mindshare, and boost Singapore’s appeal as a stopover point for global travelers. The complex, expected to be completed by 2018, will offer aviation and travel-related facilities, a wide range of retail offerings, as well as unique leisure attractions.

In the past few months, Changi Airport has added two new attractions to its wellestablished offerings—The Social Tree and Enchanted Garden. Close to nine meters tall and located at the Departure Transit Lounge of Terminal 1, the Social Tree allows travelers to take and share photos and videos and retrieve them on subsequent visits. At Terminal 2, The Enchanted Garden offers passengers an interactive experi-

Located at Terminal 2, The Enchanted Garden offers passengers an interactive experience with motion sensors that trigger nature sounds while fiber-optic and LED lighting creates a carpet of lights

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ence with motion sensors that trigger nature sounds and blooming flowers while fiber-optic and LED lighting embedded in the flooring creates a carpet of lights.

Although its plate is full, Changi has ambitious plans for the future. Singapore’s Senior Minister of State for Finance and Transport Josephine Teo, Chairperson of the Changi 2036 Steering Committee, recently announced that plans for a new mega-terminal, Terminal 5, are currently underway. Terminal 5 will be able to handle 50 million passengers per annum initially, and will be linked to the other terminals at Changi Airport. When it begins operations in the mid-2020s, it will boost the airport’s total handling capacity to 135 million passengers per year, allowing Changi to accomplish its mission of growing into a vibrant air hub. c Located at the Departure Transit Lounge of Terminal 1, The Social Tree allows travelers to take and share photos and videos and retrieve them on subsequent visits

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Chinese Travelers

SINO the TIMES

China’s onshore duty free market may be off limits to foreign players, but as ever greater numbers of Chinese travel abroad, and as their tastes develop and diversify, savvy travel retailers in Asia-Pacific have an opportunity that looks set even to dwarf the Japanese wave of the 1980s by P. CONVERY

M

uch has been made of the rise of China since it overtook Japan to become the world’s secondbiggest economy two-and-ahalf years ago, with players in all manner of industries looking to cash in on the growing spending power of Chinese consumers. Travel retail is one of those industries, but it faces an enormous obstacle when it comes to tapping this vast and fast-developing market: foreign retailers are legally prohibited from setting up at the Chinese mainland’s airports, ports and borders.

But that doesn’t mean they’re missing out on all the action. Chinese travelers prefer to make their duty free and luxury purchases outside China – to such a great extent that Beijing has made it a policy to encourage them to make those purchases at home rather than abroad. But getting increasingly wealthy Chinese to reverse that habit is akin to turning a supertanker around, and as Chinese travelers

Shilla Executive Vice President Head of Duty Free Division Jason Cha says the retailer’s sales to Chinese customers have almost doubled year on year

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fan out across Asia-Pacific, that’s not lost on travel retailers in the region.

Mainland Chinese have become the biggest customer segment for many duty free and travel retail operators in Asia-Pacific in the past few years, notably in South Korea, where their spending has outpaced even that of Japanese travelers, long the staple customer group of retail giants such as Shilla Duty Free and its rival, Lotte Duty Free.

“Sales growth among Chinese customers has been 90.2% compared to the previous year,” says Shilla Executive Vice President Head of Duty Free Division Jason Cha, adding that he expects the number of Chinese travelers shopping at Shilla’s stores in South Korea to continue to grow steadily over the next five years.

Cha says most Chinese visitors to the country make their purchases at the retailer’s main store in downtown Seoul, at the capital’s Incheon International Airport and at its outlet on the southern island of Jeju.

In Asia-Pacific region’s other hemisphere, the Chinese are also making their presence felt, says Philippe Boyer, Chief Executive of The Nuance Group Australia.

“Chinese inbound tourism to Australia is still strong and not expected to slow down,” he says. “Our airport partners at Brisbane, Sydney and Melbourne are all extremely focused on ensuring their overall airport offer caters to Chinese passengers’ needs. Obviously, from a route development perspective, as they continue to successfully market themselves to these regions we expect to see more Chinese passengers and this represents an ongoing opportunity for us.”

Contrary to the popular perception of Chi-

nese holidaymakers turning up by the busload in tour groups, Boyer says a good portion of Nuance Australia’s Chinese are independent travelers.

“Our Chinese passengers fall into two main sub-segments – tour groups and free independent travelers [FITs],” he says. “Within the FIT group we also have several further sub-groups.

“Obviously, we target our tour groups in a very specific way, mainly through direct marketing to tour leaders through relationships managed by our customer segmentation managers in-airport. This activity is supported by a direct marketing program which is delivered primarily via email. We have a very comprehensive tour group strategy in place, which means individual tour group leaders are targeted with special offers throughout the year.”

Steffen Brandt, Chief Executive of Singapore-headquartered travel retailer Heinemann Asia Pacific, says the Chinese passenger profile

Philippe Boyer, Chief Executive of The Nuance Group Australia, says limited editions, exclusives and GWPs are very popular with Chinese passengers

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in the region is changing.

“In all the big cities you see a lot of business travelers,” he says. “You still see groups, but I would say – and it’s my personal feeling – that groups are becoming fewer and individual travelers are becoming more.”

Heinemann’s Operations Director for Asia Pacific, Olivier Louis, says: “In the past few years, PRC [People’s Republic of China] customers are not so much traveling in groups but alone [as visa restrictions are eased]. Also, the habits of Chinese customers are changing.

We’re facing the same situation that we did with the Japanese in the mid-1980s to 90s – they were traveling in groups, and then step by step it became more individual.”

Another characterization of Chinese travelers that may be in need of an update concerns their purchasing patterns – at least in certain Asia-Pacific markets.

Shilla’s Cha says that as Chinese travelers show increased recognition of high-end brands, they are more liberally splashing out money on them.

“They are looking to buy luxury goods,” he says. “Louis Vuitton [which Shilla operates downtown in Seoul and at Incheon] is the most popular luxury goods store. They are also very interested in buying watches from traditional luxury brands such as Omega and Rolex, and luxury jewelry brands like Cartier.”

But Brandt says the apparent fixation with brands at the very top end of the market is giving way to a desire for more differentiation.

“It’s a development process,” he says. “When the whole thing started, everyone wanted the high-end brands, and then after a while, they find places where everyone has a Louis Vuit-

Nuance Australia is targeting Chinese customers with such upscale offers as this Penfolds wine ampoule, priced at US$155,000, at Sydney Airport

Chinese-speaking staff enhance the appeal of the luxury offer at Nuance Australia’s stores in Sydney

ton bag, and then you have a huge clientele who won’t go for that brand because it’s not something to buy to differentiate yourself.

“This is what you could call the peak, but then there’s a value for money consideration, and people start to understand that there are plenty of other products that offer really good value and they’re good quality. We are seeing this development. There’s the ‘show-off ’ phase, where everyone wants the best of the best, but we also believe in concepts, and at the end of the day not all Chinese will buy Chanel or Louis Vuitton – there will be quite a broad range of brands that are very attractive to mainland Chinese.”

Louis says he’s seeing this dynamic in the perfumes & cosmetics category.

“For P&C, whether it’s in Macau or Singapore, PRC customers are attracted to the main brands – Chanel, Lancôme, Estée Lauder and SKII are really the ones driving the business,” he says. “But that doesn’t mean they’re not looking for new brands – Kiehl’s has been a breakthrough in the past two years with PRC customers and you have Korean brands that are really coming strongly on the market and the PRC customers are really attracted to those because they really respect and trust Korean products. It is clear that step by step people will try new products and new brands, and this is the trend we’re seeing now.”

Shilla has been a direct beneficiary of Chinese travelers’ growing enthusiasm for South Korean skincare and cosmetics brands, says Cha. “In the case of some products, they check carefully whether the products are really ‘made in Korea’ before they buy,” he explains.

He says local brands such as Misha, The

Face Shop and Innisfree are particular favorites, thanks to their relatively low price and high quality, but adds that luxury names like Sulhwasoo, Estée Lauder and Dior are also top-sellers.

In Australia, health and wellbeing products are high on the shopping lists of Chinese visitors, and Nuance has enjoyed recent success in boosting the offering to the Chinese.

“Recognizing the success of health and wellbeing products within all of our Australian stores, in the first half of this year we signed a deal with Ocean King, a very successful producer of vitamins and health supplements,” says Boyer. “As well as performing extremely well in its own right, the introduction of this brand has driven overall sales in this category by over 10% across our business.”

Chinese travelers have eclipsed the Japanese as the most important customer segment at Shilla Duty Free’s stores in South Korea

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Exhibitor Spotlight

Gerzon set to launch several novelties in Cannes The Disney Planes Watch Collection features watches with easy-to-read dials, safe and durable materials and a one-year warranty

At this year’s TFWA World Exhibition in Cannes (Blue Village, F27), Gerzon will be launching several novelties, including the Disney Planes Watch Collection. Featuring the heroes from the recently released Disney Pixar Movie Planes, the collection offers colorful watches for children. Educationally designed, the watches feature easy-to-read dials, safe and durable materials and a one-year warranty.

Gerzon will also introduce three novelties from Vivaldi—the Blue Bijoux Box, the Vivaldi Watch Sets and Vivaldi Multi-Piece Sets. The Watch Set collection varies from sets with gold-plated, rhodium-plated or two-tone watches that can be combined with matching bracelets, pendants and pierced earrings. The new Vivaldi Multi-Piece Sets feature pierced earrings and pendants.

Lastly, Gerzon will introduce Vivaldi’s inflight exclusive brooch set—The Vivaldi Brooch Set—featuring a brooch with pierced earrings and a pendant, presented in a gift box. Each piece is Rhodium and gold-plated and features fine crystals.

The the

In h

Vivaldi’s Watch Set collection varies from sets with gold-plated, rhodiumplated or two-tone watches that can be combined with matching bracelets, pendants and pierced earrings

C

Thi Ch the Fon

The new Vivaldi MultiPiece Sets feature pierced earrings and pendants

The

Coccinelle builds its travel retail business Luxury accessory brand Coccinelle has been busy investing in its travel retail business over the last year, opening a shop in Rome Fiumicino and a shop in Malpensa just this month. The brand has developed major contacts and achieved double digit growth with sales up 45% versus last year. “New developments have been forecasted for next year and ultimately they should confirm the growth trend we had over the past year,” says Luca Piani, Commercial Director.

Coccinelle’s Spring/Summer 2014 collection features classic lines with contemporary additions. Handbags in the collection adopt a masculine shoulder strap for practicality. Each piece in the collection is a multipurpose accessory, from a soft sack that transforms into a small backpack to the multi-pocket cross-body bag with detachable clasps.

Other models in the new collection include the compact mail pouch, the flared shopping bag sealed with gold metal details and the Celeste Bag with the iconic “C” shape with a trompe l’oeil effect.

The collection features opulent materials such as elk print cowhide, saffiano calfskin and canvas. Other details include laser perforations for the shoulder bag, décor with satin buckles, mirror-like studs to enhance and amplify the glossy effect and rock-inspired rivets.

The color scheme for the Coccinelle Spring/Summer 2014 collection offers contrasting colors softened by butter-like colors and black. Primary colors are also featured, such as yellow, green, red, light blue, orange and pink. Alone or in patchwork, the two-tone design includes patterns like snakeskin and black denim with gold.

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Coccinelle’s Spring/Summer 2014 collection features opulent materials such as elk print cowhide

Handbags in Coccinelle’s Spring/Summer 2014 collection adopt a masculine shoulder strap for practicality

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The terroir, the art of blending, patience and respect for nature make Plume Frapin an exceptional Cognac.

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Exhibitor Spotlight

For men, the Cotton Superior collection features shirts, tops, briefs, pants and shortleg made from mercerized Egyptian Ghiza cotton with elastane

Hanro debuts a delicate offering in Cannes

New to travel retail, luxury lingerie brand Hanro of Switzerland, founded in 1884, will be exhibiting for the first time at this year’s TFWA World Exhibition. Known for using only natural fibers, yarns and innovative technology such as soft mercerization and seamless and hemless knitting, Hanro also designs and develops exclusive embroideries and laces with specialized suppliers, mostly from Switzerland or France. At this year’s show the brand will exhibit its NOS Basic assortment and its bestselling Basic ranges for women and men.

For women, Hanro’s bestselling Cotton Seamless line of products features a broad range of seamless daywear styles made of mercerized cotton with fine ribbing. Launched in 1985, products in the line feature flat hems and all tops have a delicate satin edging. Along with the bestselling Cotton Seamless Spaghetti Top—v-neck and round neck— other items in the Cotton Seamless line include: two Soft Bras, Tank-Top with v-neck and round neck, Short Sleeve Shirt with v-neck and round neck, Long-sleeve shirt with round neck, Mini brief, Midi brief, Maxi Brief and Shortleg.

All items in the Cotton Seamless line are available in size XS – XL in basic colors—

Hanro’s bestselling Cotton Seamless line of products features the bestselling Cotton Seamless Spaghetti Top, offered in both v-neck and round neck versions

white, black, pale cream and skin, plus additional fashion hues.

Also for women, Hanro’s Moments Collection features feminine lingerie made of Swiss mercerized cotton with French lace.

For men, the Cotton Superior collection features shirts, tops, briefs, pants and shortleg made from mercerized Egyptian Ghiza cotton with elastane. The Cotton Sporty collection features shirts, tops, briefs, pants and boxers made of mercerized up-twisted, casually cut cotton.

Additionally, highlights of Hanro’s Spring/ Summer 2014 trend collection featuring lingerie, nightwear and loungewear for ladies and men will also be displayed in Cannes.

Hanro’s Moments Collection features feminine lingerie made of Swiss Mercerized cotton with French lace

The new Phyto-Ombre Glow collection from Sisley features four single eyeshadows that capture and diffuse light

Sisley shines with new collection Cosmetics and skincare brand Sisley has launched Phyto-Ombre Glow, its latest collection, featuring four single vibrant and feather-light eyeshadows that capture and diffuse light when applied.

The eyeshadows were created by using a new gel system combined with an innovative complex of spherical powders and softening polymers. With a hybrid texture combining powder, cream and a molded formula, this new ultra-soft luminating eyeshadow blends easily with the skin thanks to its new gel system designed to ensure a creamy, melt-in glide. The eyeshadow’s texture smoothes easily over eyelids to create a natural, even film thanks to its spherical powders and softening polymers.

Each shadow contains plant-based active ingredients, including extracts of

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green tea leaf, white Lilypetals and Camellia oil, which creates softness and adds shine.

Phyto-Ombres Glow eyeshadows are suffused with illuminating effects to make eyes sparkle. An unprecedented percentage of mother-of-pearl—75%—and radianceboosting Mica provide the multidimensional shimmer and shine that give the shadows light-diffusing properties.

Each eyeshadow is housed in a chic and modern black case. The shadows are designed to be worn alone as a solid color on the upper eyelid; in combination with each other or with any of Sisley’s 21 Phyto-Ombres Eclat shades for a frosted, sheen, illuminating or warm effect; as a highlighter below the arch of the eyebrow or in the inner corner of the eye; and as eyeliner.

Each eyeshadow in the Phyto-Ombre Glow collection contains plant-based active ingredients, including extracts of green tea leaf, white Lilypetals and Camellia oil

Ice sta

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Ice-Watch

COMING ON

STRONG

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Already strong in travel retail, Ice-Watch is making strides to increase its presence further by MELISSA SILVA

f all its developments in Asia this year, Ice-Watch’s most prominent is its recent partnership with DFS. As a result of this partnership, Ice-Watch is now available at seven DFS travel retail locations in APAC: Waikiki Duty Free Galleria, Hawaii; DFS Galleria Honolulu International Airport, Honolulu; Tumon DFS Galleria Guam, Guam; DFS Bali Ngurah Rai International Airport, Bali; DFS Hong Kong International Airport, Hong Kong; DFS Naha Airport store at Okinawa Airport, Japan; and

This past July, Ice-Watch opened its seventh domestic flagship store in Amsterdam, which was followed by a grand opening celebration

DFS Watches at Changi Airport, Singapore.

In addition to these new locations, IceWatch is working towards increasing its exposure in inflight sales in APAC in 2014.

Compared to the same period last year (September), Ice-Watch increased its inflight exposure from one airline (Garuda) to 12 airlines

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Ice-Style big is offered in Black, Oxford, Blue, Forest Green and Brown

in the APAC region, including Cathay Pacific, Dragonair and Japan Airlines. In addition, Ice-Watch is available on Eva Air and China Airlines’ Home Delivery Program, which has further increased its exposure in the region.

Ice-Watch is now present in airports in Malaysia—KLIA, KKIA and PIA—through cooperation with Eraman. “Ice-Watch is the number-one-selling watch brand at the multibrand shop ‘From Time To Time’ at KLIA,” says Jean-Philippe Balon, Head of Travel Retail. Indeed, Ice-Watch is also available in Australia at airports in Sydney, Melbourne and Perth.

Outside of Asia and travel retail, Ice-Watch is expanding in Europe, specifically Amsterdam, where it opened a flagship store this past summer. Already well-established in the Netherlands with more than 380 stores selling the brand, Ice-Watch decided to go further with the opening of its seventh flagship store in Amsterdam. Located in the middle of one of the main shopping streets, the colored timepieces are in the company of popular brands such as Diesel, Guess, Mac, H&M, Scotch & Soda and others.

On August 21st, the grand opening party was held to present the brand and latest collections to the press, clients, relations and celebrities.

“We are very proud to have opened the first

Flagship store in the Netherlands,” says Paul Simons, Ice-Watch distribution, Netherlands.

“Not only does it show the full brand experience, but it also conveys an important message: We are here to stay!”

In other developments, in response to its retailers’ needs, Ice-Watch will be launching its new SSU display, a new self-service unit, at this year’s TFWA World Exhibition in Cannes.

Also set for launch are several new novelties from the brand, including Ice-Vintage (leather band), Ice-Denim, Ice-Style (steel case) and others.

The Ice-Style collection is a tribute to a unique material: steel. Available in two sizes (unisex and big) Ice-Style is offered in eight winter colors, four per size—the unisex size is offered in White, Dark Night, Purple and Taupe-Grey, while the big size is offered in Black, Oxford, Blue, Forest Green and Brown.

The Ice-Style collection features a steel case with pink-gold coloring. A timeless watch that is easy to wear, Ice-Style features a silicone wristband and is water resistant up to 10 ATM. In order to stay relevant, set trends and meet consumer expectations and demand, IceWatch takes inspiration in everyday life, from travel to design elements. “Most of the time the inspiration comes not from the watch industry, but from other sectors following the trends of fashion, like textiles and interior decoration,” says Nathalie Deroanne, Marketing and Communications Manager. “Of course we confirm our choices by checking many trend websites and trend books.” In addition, Ice-Watch works with external designers to explore new directions to develop new watch designs. c

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Frédérique Constant

A timepiece from the Classics Chronograph Collection featuring yellow-gold plated steel with a shiny dark brown crocodile leather strap

Above and beyond

Frédérique Constant maintains it top position in the watch category with the launch of several new collections

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hen it comes to collections, watch brand Frédérique Constant seems to always be one step ahead. Following trends closely, each collection speaks to a different style while staying focused on both consumer and retailer demands.

The Classics Art Déco Oval Range from Frédérique Constant features nine models and seems to embody the concept of “affordable luxury.” Each watch in the range is powered by the FC-200 quartz caliber movement, with seven jewels and a battery life of more than five years (63 months). The three-part, polished oval-shaped case will fit comfortably on the most petite wrist, measuring just 30mm x 25mm.

Other features shared throughout the range include the convex sapphire crystal protecting the dial, the hour and minute functions and the delicate guilloché decoration in the centre of the dial. Although delicate in appearance, each Art Déco Oval watch is water resistant to 30 feet below sea level.

Materials featured in the Classics Art Déco Oval Range include yellow gold and stainless steel, which are coupled with either Arabic or Roman numerals and satin, brown satin, yellow gold-plated or stainless steel bracelets.

Dials in the range come finished in silver,

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with several models featuring mother of pearl inlay. The FC-200MPW2VD6 model comes with 78 sparkling diamonds set into the bezel and horns.

Lady Chronograph Quartz Collection Also new is Frédérique Constant’s Lady Chronograph Quartz Collection. Each model in the range is a blend of clean, classic lines that call to mind watches of the 1940s and 50s juxtaposed with a contemporary face.

The three-part polished case, which measures 34mm in diameter, is large and attractive enough to be noticed without being a cumbersome nuisance on a feminine wrist. Each watch in the range is powered by the FC-291 quartz caliber, with four jewels and a battery life of four-and-a-half years.

The dials of each watch in the Chronograph Quartz Collection are protected by a convex sapphire crystal, and each watch is water resistant to 30 meters. All models feature four separate displays, including uniquely designed hour and minute hands, a date window at the 3 o’clock position, an individual seconds dial at the six o’clock position, and a fully functional chronograph at the 12 o’clock position.

Two watches in the new Classics Chrono-

by MELISSA SILVA

graph Collection come with cases finished in yellow gold-plated steel, while two come in polished stainless steel. The FC-291A2R5 and the FC-291A2R6 feature a striking, modern enamel dial and hand-applied Arabic numerals. The strap on the gold model is made of shiny, dark brown crocodile leather, while on the stainless steel model the shiny black crocodile leather strap offers an appealing contrast to the silver-colored case.

The remaining two Classic Chronograph Quartz watches feature silver dials, with an intricate Guilloché design, while the indexes are jet black, hand-applied Roman numerals.

The FC-291MC2R5 is the yellow gold-plated version with the rich dark brown crocodile leather strap, while the FC-291MC2R6 is the stainless steel/black crocodile leather strap version.

Classics Index Collection The Classics Index Collection from Frédérique Constant features nine unique automatic models. Each model is distinct enough in appearance, yet all feature sleek, clean lines, elegant and uncluttered dials and an appealing combination of raw materials that blend together to make each watch a combination of classic art and modern-day architecture.

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Of the nine timepieces in the Classics Index Collection one features a luxurious brown ostrich leather strap with contrasting white stitching

Every watch in the Classics Index Collection is powered by the FC-303 automatic caliber with 26 jewels. The 28,800 alternances per hour and 38-hour power reserve ensure ultra-accurate and reliable service.

The polished two-part case measures 40mm in diameter, allowing these mid-size watches to sit comfortably on the wrist. Convex sapphire crystals protect dials, and every model in the range is water resistant to 50 meters. All models feature hour, minute and seconds hands, as well as a date window next to the 3 o’clock position on the dial.

Furthermore, all features can be accessed through the single-screwed crown.

The indexes and numerals for every model are carefully polished and delicately hand-applied.

Two of the new Classics Index models, the FC-303C5B4 and the FC303V5B4, are both built with stainless steel cases, are plated with rose gold—as are the indexes on the dial—and both are fitted with dark brown leather straps. One features a rich, dark chocolate colored dial, while the other a silver dial.

The remaining seven models each have stainless steel cases, but the range of design features from which to choose are many: two models with black dials, two with white dials and two in gleaming silver.

Additionally, four Classics Index editions come with hand-applied Roman numerals at the 12 and 6 o’clock positions. Three models feature sporty stainless steel bracelets, while three others give you the option of black crocodile leather straps. One model, the FC303WN5B6OS, is presented with a luxurious brown ostrich leather strap with contrasting white stitching.

Frédérique Constant’s Slimline Tourbillon Manufacture range was extended this year to include six models, including one with a dark navy blue dial and blue alligator leather strap

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A timepiece from the Classics Art Déco Oval range featuring yellow gold, Roman numerals and a brown satin strap

Slimline Tourbillon Manufacture range In 2012, Frédérique Constant launched a range of limited edition timepieces. This year, the brand announced that, due to the popularity of the Slimline Tourbillon Manufacture, it’s expanding the range to include six models in total. Each model in the range will be individually numbered and offered in a limited edition of 188 pieces.

Every model in the new Slimline Tourbillon Manufacture range is driven by the FC-980 Manufacture automatic caliber, which has been completely developed inhouse at the brand’s manufacture in Planles-Ouates, Geneva. The technological genius behind this movement, which in itself is made up of more than 200 individual parts, is further enhanced by the addition of a silicium escapement wheel and anchor, providing reliability and accuracy no one thought possible in a mechanical watch. The FC-980 movement also employs the unique, patented Frédérique Constant Smart Weight Balancing System, where even the cage surrounding the Tourbillon is individually numbered.

The silicium escapement wheel and anchor is a revolutionary development, pioneered inhouse by Frédérique Constant’s designers and a team of engineers. Not only does silicium provide unfailingly accurate timekeeping, but it is also a substance which is not susceptible to the same wear and tear as the materials traditionally used in watch movements, nor is it affected by elements such as heat and

humidity. This means Frédérique Constant has been able to extend the service interval for the Slimline Tourbillon Manufacture, providing the wearer greater assurance.

Other features shared by each of the new models include the Perlage and Circular Côtes de Genève decoration on the movement itself, as well as the 33 jewels and a 48-hour power reserve. The movement’s bridges are rhodium-plated, and the screws are blue due to being tempered at extremely high heat. The hand-polished, three-part cases are 43mm in diameter. The case, however, is only 0.12cm deep, befitting the “Slimline” name. Dials are protected by a convex sapphire crystal, and the see-through case back also gives owners a view of the Slimline Tourbillon’s “beating heart.”

As well as the hand-polished hour and minute hands, there’s also a day and night indicator, and all models feature a 60-second tourbillon, in which the seconds hand is actually an integral part of the rotating tourbillon cage, which sits between the 6 o’clock position and the centre of the dial.

The FC- 980C4S9 is the first of the two rose gold models on offer in the new Slimline Tourbillon range. The polished rose gold case contrasts nicely with the curved chocolate dial, which in turn blends with the dark brown, alligator leather strap and folding buckle.

The FC-980V4S9 combines the rose gold case with a silver dial and a chic black alligator leather strap.

Two models are offered with hand-polished stainless steel cases. The FC-980G4S6 blends the stainless steel case into a dark grey dial, offering a timeless appearance and understated elegance. A dark grey alligator leather strap completes the package.

The FC-980N4S6, on the other hand, presents a more colorful option. The dark navy blue dial stands out against the stainless steel case, and the blue alligator leather strap gives a modern look to this Slimline model.

The FC-980G4SZ9 matches this unique blend of case and bezel with a dark grey dial and grey alligator leather strap, while the FC-980C4SZ9 completes the new Slimline Tourbillon range with a dark chocolate dial and a dark brown alligator leather strap. c

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Watch News

Lambretta introduces new offerings, bespoke in-store furniture Lambretta has announced the release of a number of new offerings for travel retail. All of the watches, which fall under the Panos Emporio brand name, are made for an inspired by the ocean. Inspired by the light of the Mediterranean Sea and its surroundings, these contemporary watches communicate simplicity. For a chic sophisticated look at the beach, the watches come in classic colors, as well as some more luxurious and bold combinations.

Atlas and Calypso are the first new ranges to be released. The names of the watches derive from Greek mythology. Calypso’s (35mm) and Atlas’ (42mm) stainless steel cases feature a hardened mineral crystal and luminous hands. Both watches have a 10 ATM (100 meters) water resistant construction and are available with either a stainless steel bracelet or a soft premium silicon strap. Calypso and Atlas come in six styles each.

The watches come in what the company calls a “smart gift box” that serves multiple functions, such as a travel case for the watch.

The removable inner tray also transforms the box into a convenient travel case for earphones, eye wear and other essentials. Also included is a floating key chain, perfect for the beach or when out at sea.

The second new range, Velox, is designed to be an expression of futuristic simplicity with a Scandinavian touch. Lambretta has reduced elements in this range to the bare essentials while accentuating certain design characteristics to make the most of the Velox experience.

The ambition, says the company, is to “reach men and women with a modern conception of time and design.”

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time piece featuring a fine circular brushed steel top plate, slim body and an integrated case back. The watch also features digital movement with a sharp polarized display and is fitted with a soft premium silicone strap.

The XC 1 watch comes in modern, slim and attractive gift packaging. The box material is in frosted plastic with a vivid color print and

Lambretta’s Velox XC 1 is a contemporary unisex time piece featuring a fine circular brushed steel top plate, slim body, integrated case back and is fitted with a soft premium silicone strap

barcode, while inside is a perfectly fitted foam padding that holds the watch and warranty booklet in place.

In addition to the above, the complete Velox XC 1 concept includes a space-efficient, open display that requires minimum space in store (only 16 x 17 x 27 cm for 25 watches), from which the customers can select timepieces.

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Lambretta’s Calypso is available in six styles, including rose gold and silicon strap and each style is water resistant up to 10ATM

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Watch News

Scorpio Worldwide launches timely souvenirs for FIFA World Cup 2014 In celebration of Brazil hosting the 2014 FIFA World Cup, Scorpio Worldwide is distributing the official licensed logo souvenir watch to travel retail outlets globally. With orders being taken now for delivery before the end of the year, the watch is expected to be a sell-out success as fever grows in advance of the 2014 FIFA Football World Cup. Offered with a choice of three colored silicon straps (white, green or yellow), the watches have a white face with strong “FIFA World Cup Brasil” branding, including the official emblem, mascot and trophy, as well as— naturally—a ball. The watches are offered with either a floor standing or counter top display.

“We’re expecting very strong consumer demand for the watch in the run up and during the FIFA World Cup,” says Garry Stoner, Scorpio Worldwide’s Global Travel Retail Director. “As the official licensed souvenir watch of the games, it really is the timeliest memento that travelers can buy!”

Scorpio’s FIFA World Cup souvenir watch features white, green and yellow silicon straps, a white face with the official emblem, mascot, trophy and ball

Oxygen introduces new Vintage, Pink Gold and colorful collections Oxygen’s signature Exchange collection was launched back in July 2011 in France and today is available in 18 countries. The Sport and Diver models come in a gift box with one interchangeable nylon strap, like those used by NATO soldiers.

These straps can be easily switched with no tools required.

The straps are sturdy and dry instantly if wet. Also sold separately, Exchange straps come in a wide range of plain and striped colors.

The entire collection is made of steel and is waterproof to 100 m/10 ATM. The Sport model sells for €89 (US$120) and Diver, with its unidirectional rotating bezel, sells for €139 (US$188). Straps start at €18 (US$24).

Following the success of the above watches, Oxygen has announced the release of its new collections—Vintage, Pink Gold and colorful versions.

Also from Oxygen is the new Diver Vintage 42mm watch. Available in five styles—Cigar, Jean, Bordeau, Flag and Black Cat—Diver Vintage features a stainless steel case and screw back with polished vintage finishing and mineral-domed glass. Water resistant up to 10 ATM, the Diver Vintage has an interchangeable strap and steel buckle and comes with a two year warranty.

Oxygen’s Diver Vintage is available in five styles including Black Cat, Jean and Cigar (pictured) and features a stainless steel case and screw back with polished vintage finishing and mineral-domed glass

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Tateossian launches the Tateossian Carbon Watch White and Rotondo Guilloche Tateossian has announced the launch of the Tateossian Carbon Watch White and Rotondo Guilloche.

The Carbon Watch White is an ultra light, slim stainless steel watch made with carbon fiber and finished off with an Italian leather strap. The large face, combined with its retro style, makes this an on-trend, must-have piece.

The Rotondo Guilloche sports a simple design that is based on the guilloche pattern—a repetitive architectural pattern used in classical Greece and Rome, featuring a decorative, precise and intricate engraving technique. The dial features the engraved guilloche pattern set against an individual numeral font. The Rotondo Guilloche is available with silver or rose gold and priced at US$220.

The Carbon Watch White is an ultra light, slim stainless steel watch made with carbon fiber and finished off with an Italian leather strap

The Rotondo Guilloche watch is based on the guilloche pattern used in classical Greece and Rome, featuring an intricate engraving technique

Rotary unveils Ladies Jura and Aquacore ranges, sees success onboard, inflight Since 1895, Rotary has cemented its position as a true pioneer within the watch industry. By implementing innovative technologies it has received acclaim for its design-led ranges. The latest groundbreaking watch families to be developed by Rotary’s in-house design team are the Ladies Jura and Aquacore.

The Ladies Jura carries Rotary’s proprietary movement, called “Calibre R.1002.21.” Indeed, Ladies Jura is an exceptional collection of Swiss-made, automatic watches with a stunning dial opening feature.

Rose gold PVD, gold PVD or sophisticated stainless steel cases are either plain or set with Austrian crystals and are available in a selection of seven-link bracelets and classic leather straps.

Aquacore, on the other hand, is Rotary’s first sport-inspired watch family that is Swiss-made and automatic. Each model is a unique hybrid of sport and skeleton that appeals to both men and women.

The Jura is offered in rose gold PVD, gold PVD or stainless steel, either plain or set with Austrian crystals and are available in a selection of seven-link bracelets and classic leather straps

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The true spirit of Aquacore is captured in the design details such as chronograph and aperture dials. Orange is the statement color running throughout, from bold rubber straps to hour markers and hands. Gents models have bigger, bolder casing and a masculine design, while the ladies model has a softer aesthetic, combined with performance and substance. Features such as mother of pearl dials and a feminine rose gold PVD bracelet make this an incredibly elegant timepiece.

With regard to duty free-specific news, Rotary has announced that Starboard Cruise Services Inc has more than doubled the number of vessels upon which Rotary’s watches are available due to the instant success that the company has experienced onboard, with sales exceeding all expectations by more than 50%. Additionally, Rotary is about to embark on another journey with the Columbian Emerald International Group. Rotary timepieces will feature in stunning free standing display units within a number of stores in the Caribbean.

Rotary also notes that it has continued to develop its core airline business with a specially developed airline range to cater for travelers’ needs.

“We are delighted to announce an 82% increase in Rotary airline listings, speeding ahead at an astonishing rate from 18 months ago,” the company says.

The latest airline listings to be secured include LAN Chile, Avianca, Sun Wing, Aeroflot and Transaero, to name but a few. This year Rotary will be extending its exclusive airline gift with purchase models.

Aquacore is Rotary’s first sportinspired watch family that is Swiss-made and automatic

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L’Oréal Luxe

The compact version of the top-selling Maestro Foundation was launched last year

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OF STYLE Giorgio Armani relies on its fashionforward cachet to open Asian markets

Since the end of last year, Armani has devoted a lot of attention to its three-axis stance at brand counters, and through its “Masterbrand” marketing activities. “Giorgio Armani ‘Red Carpet Glamour,’ our first Masterbrand animation early this year, played around the Armani Iconic Red and the best-selling products in each category: Maestro Foundation, Lip Maestro, Crema Nera and Code Women,” Hagege says. The animation, in which the brand’s Face Designers construct a personalized Armani look from skin care, makeup and fragrances—and can provide a full makeover consultation— broke sales records during the highly competitive Chinese New Year period.

Stressing the synergy of the three-axis strategy as well as the Armani Couture link has significantly helped brand awareness, Hagege says. “Today there are real Giorgio Armani iconic products in each category, from facial to color to skin care and fragrances. It’s great for link selling or recruitment.

On the retail side, it’s true that every time we open a new Giorgio Armani counter, it’s a fantastic opportunity for us and the retailers to boost their total department sales, as consumers—whether Chinese travelers or local consumers—are craving the brand.” One result is that Armani is growing at at least two to three times the market.

Hagege says that the new generation of Asian travelers are decidedly more sophisticated, knowledgeable and demanding when it comes to products and services, and have a good eye for the best deals. “A Chinese customer from Shanghai can buy her favorite Armani foundation during a business trip in Hong Kong, and discover a new Armani fragrance during some holidays in Thailand,” he says. This makes Armani’s strategy of offering a consistent luxury brand experience in all global points of sale doubly important.

Hagege says that Armani’s presence in Asia is based on a perception there that the brand is bold in color, sophisticated, feminine and—with particular reference to its foundation offerings—comfortable, in sync with Armani Couture. “And yes, of course, stylish,” Hagege adds, taking as an example the strong red packaging and intense color finish of Maestro. “Pulling out a Lip Maestro from your bag for a quick touchup is a real statement of your style.”

For this quarter, Armani plans to launch its latest innovation in foundation products—the compact version of the top-selling Maestro Foundation, which was launched last year. Hagege says this will offer the same weightless texture with high buildable coverage and semi-matte radiant finish.

Another forthcoming release, also in the lip category, is Rouge Ecstasy, the first “Color and Care” lipstick, which will offer skincare properties in feminine glamor shades. c

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his year’s launch of the new Armani “Sİ” fragrance for women, with Cate Blanchett as the face of the new marque, provides the classic brand with a new icon, says Steeve Hagege, Designer Brands Division Manager (Giorgio Armani, Shu Uemura and Designer Brands) for L’Oréal Luxe Travel Retail Asia & Pacific.

“Next to heroes in the men’s category such as Aqua Di Gio Homme and Code Homme, Sİ is definitely the new Giorgio Armani feminine icon,” Hagege says. “It’s the highest scale and most strategic feminine launch in years for us, with a clear objective to reconquer a leading position in the women’s category.” Hagege quotes Armani himself as saying of the new fragrance, “Sİ is my tribute to modern femininity—an irresistible combination of grace, strength and independence of spirit.”

Hagege says that the trademark craftsmanship of the Armani house goes over very well in Asia, as illustrated by the success of Armani Couture, in China Mainland and HK. “As the ultimate Italian luxury brand, Giorgio Armani always seeks to offer the highest quality products, innovative textures, bold colors in makeup, premium skincare efficacy and unique fragrances, which perfectly answer the very demanding Asian customers,” Hagege says. Armani also handles expansion very carefully so that high standards of service and exclusivity are maintained, along with the desirability of the brand.

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Rouge Ecstasy, the first “Color and Care” lipstick, which will offer skincare properties in feminine glamor shades

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Interparfum

The Repetto fragrance features notes of rose, pear, orange blossom and vanilla

Making Scents

by HIBAH NOOR

Fashion house Repetto ventures into the art of perfumery

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ong known for its successful line of ballerina shoes and, more recently, a leather goods collection and ready-to-wear wardrobe, French fashion house Repetto has expanded its reach once again by launching its first ever fragrance.

The company signed a 13-year worldwide licensing agreement in 2011 with Interparfums, the fragrance and beauty partner for a growing list of brands including Balmain, Lanvin and Karl Lagerfeld. Together with perfumer Olivier Polge, Repetto has since created a unique fragrance featuring notes of rose, pear, orange blossom and vanilla, all of which were chosen to evoke images of dance and ballet. Similarly, the pink packaging is just as feminine, with sleek curves akin to a ballerina, an elegant drop pendant and a satin ribbon knotted at the neck.

“I sought to achieve a hand-sewn effect by combining a selection of luxurious and authentic raw ingredients,” says Polge. “A musky powdered rose, real quintessence of femininity. It’s a refined formula for which I had the pleasure of using essence of rose and vanilla.”

Since entering the travel retail market in Paris airports, feedback has been overwhelmingly positive. According to Pierre Desaulles, Marketing Director at Interparfums, “Results were far above expectations, which we had already set at a high level. We received very positive and qualitative feedback wherever we presented the Repetto fragrance in travel retail. We are going step by step in order to

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launch with a proper and impactful set up.

The fragrance appeals to a wide audience and stops traffic in a unique way.”

Following its success in Europe, Interparfums will roll out the new fragrance in Asia where the Repetto brand has already established a strong presence. Its top four markets in the region are Japan, Hong Kong, South Korea and Taiwan, followed by emerging China and South East Asia, which includes Singapore, Thailand, Malaysia and Indonesia. The fragrance will make its regional debut in Japan in both the local market and travel retail, followed shortly by all other top markets in Asia.

“Asia is a key region of growth for Repetto fragrances, travel retail being a key player in that matter,” adds Desaulles. “We have great expectations about the implementation in travel retail.”

What Desaulles is really banking on when it comes to success in Asia’s travel retail is the fragrance’s gift appeal. “The first Repetto fragrance combines two assets when it comes to travel retail. First, it’s affordability makes it an easy self-rewarding gift one can make oneself when going abroad and when wanting to try something new as a crush item. Also, it is a perfect valuable gift one can get to offer friends and family back home. It is delicate, soft, subtle and very inspiring, all the ingredients one likes to share,” he says.

This one-two punch, combined with Repetto’s strong partnership with Interparfums, is more than just good business – it’s a winning recipe. In fact, Desaulles is so optimistic about

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To celebrate the fragrance’s official launch, Repetto debuted an advertising campaign that included a series of film clips starring French ballerina Dorothée Gilbert

the new alliance that he considers its potential as “enormous”.

“Repetto is a perfect match for Interparfums. More than a brand, it is a fantastic name, has an authentic story and incredible products,” he adds. “Repetto has all the ingredients in its DNA that Interparfums likes to promote, to highlight and to share with consumers. The stories to be told are fascinating. It is a worldrenowned and highly desirable luxury brand with loyal fans everywhere, including in Asia.”

To celebrate the fragrance’s official launch, Repetto debuted an advertising campaign on July 1, 2013 that included a series of film clips starring French ballerina Dorothée Gilbert, who dances with the Paris Opera Ballet. Using black and white flashbacks, the film follows Gilbert as she prepares to perform on stage.

Gilbert has served as the Repetto ambassador since January 2012. c

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Unilever

High PROFILE

by HIBAH NOOR

Unilever International looks to Toni & Guy for success in the spotlight

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o handle business in the travel retail channel and assorted niche markets, global consumer goods giant Unilever set up the Singapore-based Unilever International division more than a year ago, and Rosalyn Frayna, Business Manager Travel Retail for the new department, can look forward to some high-profile work as the team continues to grow the business globally.

High on the list is the launch of the Toni & Guy hair care line, the first premium hair fashion salon brand that Unilever has brought into travel retail. Toni & Guy is an iconic British brand, with a reputation founded on close work with British designers at major fashion shows in the UK. It’s well known as a “backstage” brand, used by professionals, and this ‘semi-secret’ cache represents a major opportunity as there’s a lot of brand awareness potential in the market. This also means that promotional activities around Toni & Guy will have to be conducted on a large scale and carefully calibrated to the needs of the intended target market.

The decision to launch with Toni & Guy was made to capitalize on

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Rosalyn Frayna, Business Manager Travel Retail, Unilever International

the massive opportunity the hair care category represents. “Hair care is a growing priority for travel retail,” Frayna says. “We’re looking at a €41 billion (US$53.6 billion) market in 2015.” Frayna adds that, as the global leader in volume for total hair care, and the volume leader in styling, Unilever logically felt it was well positioned to introduce this new platform to travel retail.

The range features four women’s collections: Casual, with a 1g Sculpting Powder and 200ml Sea Salt Texturising Spray; Classic, with a 30ml Shine Gloss Serum and 150ml Spray Gel for Curls; Glamour, with a 75ml Firm Hold Hairspray, 30ml Serum Drops and 90ml Volume Plumping Whip; and Creative, with a 75ml Extreme Hold Hairspray, a 150ml Style Spray Wax and a 90ml Stick It Up Gum. Each of the four ranges has its own character to match the styles of individual users, as Frayna explains. “Casual is for a carefree, laid back, effortless but cool look, Classic for sleek and chic looks that never go out of style, Glamour for a powerful look, with height and waves fit to party, retro-Hollywood with a modern day twist, and lastly Creative

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Unilever

is all about shaping up to a finish that is adventurous, daring and has no boundaries.”

The men’s collection includes: a 250ml Deep Clean Shampoo, a 250ml 2in1 Anti Dandruff Shampoo, a 75ml Styling Wax Stick, a 100ml Styling Glue, a 75ml Styling Clay, a 75ml Styling Putty, a 75ml Styling Pomade and a 25ml Styling Fibre.

The Men Styling Fibre is available only in the travel retail exclusive Men Styling Essentials kit, which also includes the Men Styling Pomade and a 50ml shampoo for normal hair. The travel retail line also includes three other kits. The Sleek Classic kit contains the 75ml Heat Protection Mist, the 30ml Classic Shine Gloss Serum and the 75ml Dry Shampoo. The Plumped Up Glamour kit includes the 90ml Glamour Volume Plumping Whip, the 75ml Glamour Firm Hold Hairspray and the 75ml Dry Shampoo. Finally, the Everyday Casual kit contains the 50ml Shampoo for Normal Hair, the 50ml Conditioner for Normal Hair and the 75ml Casual Sea Salt Texturising Spray.

Toni & Guy is being made available in three separate platforms, Frayna explains; Cleanse and Nourish, Prep and Styling. The Prep platform includes Heat Protection Mist, Smoothing Detangler and Leave-in Conditioner.

Toni & Guy is all about the end look, Frayna says. “Toni & Guy believes that your hair needs to work with your wardrobe to complete your look from head to toe and express your style from the head down is the campaign’s point of sale mantra.”

A unique proposition “With this we have a very unique proposition,” Frayna says. “First, by introducing a new platform we will grow the category. Secondly we’ll create excitement in-store because of the linkage to fashion. All our key visuals and video communications will change in time for seasonal fashion shows in London.” The key visuals will be changed for the Spring/Summer and Fall/Winter cycles, which Frayna says will help to create added excitement in-store. “The global consumer is into fashion, willing to invest in fashion. They’re looking for the total look, not just the products.”

Among professional brands, Toni & Guy has the highest conversion rate in terms of cross-selling, Frayna says, where a purchaser of a 64

Toni & Guy has created a number of travel retail exclusives that are available worldwide

styling product also picks up the Heat Protection Mist or a shampoo and conditioner.

For travel retail, Frayna says that Unilever International has put together exclusive ensembles such as handy on-the-go packs, presented with a specific look, and is featuring the Dry Shampoo which is compliant with carry-on liquid and gel (LAGs) regulations. Used by session stylists, the shampoo adds body, volume and texture, and the advanced formula employed leaves no white residue. The shampoo absorbs grease and natural oils, which provides added long-term freshness.

The shampoo comes in a compact, travel-friendly size.

The plan, Frayna says, is to become the top global premium styling brand by 2015. “By next year we should be in all key markets for travel retail. There are many positive responses received from different retailers across regions, and we are working on expanding and opening new doors, one airport at a time.”

Following negotiations at the TFWA Asia Pacific event, Frayna says that the first “mega promotion” event will take place through Dufry Bali in October. In-store stylists will be offering consultative and educational interactions with customers to guide them on how to recreate contemporary looks. Other activations are slated for Nuance Bangalore and with other retailers in the Asian region.

The in-store communication to back the Toni & Guy campaign will be very much aligned with the brand’s identity, which tellingly includes the brand’s use as a “backstage weapon” for the London Fashion Week.

To promote the first premium hair care fashion brand in travel retail, all of the in-store furnishings will feature keynote visuals. How-to videos will be played in select Toni & Guy personalized gondolas, and these will be changed to line up with the seasonal collections.

“Our communication will always be fresh and updated, and that will create anticipation among our customers to look forward to the latest trends in fashion,” Frayna says. “Unilever International’s launch plans are designed to key market development focused benefits that are unique in the travel retail channel.” Getting this message across will require a sense of novelty, excitement and interaction to be generated so that sales can capitalize on correspondingly higher levels of shopper awareness and engagement. c

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Skincare

News Yves Rocher’s bestselling Elixir 7.9 Serum

YVES ROCHER GAINS NEW PARTNERS As Yves Rocher Travel Retail prepares to launch a new range featuring extended products from its bestselling Elixir 7.9 serum line, sales for the brand are on the rise, a result of new partnerships in Cyprus, Ukraine, Prague and in France with Charles de Gaulle Airport.

The brand notes that it is currently in touch with several operators and airports and is looking at some opportunities in the inflight channel with several airlines.

“Interest in partnerships [with Yves Rocher] continues to increase and we continue to receive more and more requests and tenders,” says Henri-Bernard Bedoin, Zone Director Eastern Europe and French Overseas Territories. “Being an affordable brand is an advantage.”

Equally advantageous for Yves Rocher is its patented processes and plant expertise that the brand continually develops by annually discovering new active ingredients. “Our products and methods have always been achieved respecting sustainable development,” adds Bedoin.

With the category opening its door to more accessible brands that offer high-quality products, Yves Rocher is positioned to do well. “Yves Rocher Travel Retail continually adapts its products to meet travelers’ needs” says Bedoin.

Looking ahead, Yves Rocher plans to develop its presence in Russia, Turkey and Asia Pacific.

Polaar looks to Antarctica for inspiration

Polaar’s Anti-Aging Care for men prevents wrinkles, firms and moisturizes with each use

Strong in the domestic market, Polaar is working towards increasing its presence in the Asian travel retail market. A unique addition to the skincare category, Polaar uses ingredients from the Arctic and Antarctic in an innovative fashion.

This year the brand has been diligently renewing its women’s skincare line and has begun doing the same for its men’s line.

“Our design is younger, more affluent and is easier to understand, buy and sell,” says Daniel Kurbiel, President.

This month, Polaar is launching its Intensive Anti-Aging Care, a new anti-aging product in its men’s line. Based on a specific active ingredient—PPNF3 Antarctica—Intensive Anti-Aging Care is the first Polaar product that prevents wrinkles, firms and moisturizes with each use.

“The function of the product is to fiercely treat all signs of aging,” says Kurbiel. “Its light texture merges with the skin for a unique and immediate result.”

In November, under its Extreme Care line, Polaar will launch a new product called La Véritable Crème de Laponie (the genuine cream of Lapland). Designed to protect all skin types regardless of age, La Véritable Crème de Laponie acts as a shield on the face that protects, nourishes and repairs.

Polaar’s La Véritable Crème de Laponie is designed to protect, nourish and repair all skin types regardless of age

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Nougat London focuses on ingredients Since exhibiting at TFWA Asia Pacific in Singapore this past May, Nougat London has successfully launched its products with Malaysia Duty Free at five international airports. The brand has also started working with a number of new domestic distributors including in Vietnam where it will launch in time for Christmas, and in Taiwan where its first department store concession opened in September.

Nougat London has launched two new collections, which the brand is really excited about. “The first new range was developed in response to consumers who are becoming more and more aware of ingredients,” says Philippa Thomas, Brand Development Manager. This awareness is not only regarding whether an ingredient is linked to potential health concerns, but also regarding the environmental impact of the ingredients themselves.

“Every year we are astounded by the knowledge that consumers have and the research that is done prior to buying products,” explains Thomas. “It is good to know that where in the past, substandard products have been able to sell due to clever marketing, now consumers are much wiser and understand ingredients, manufacturing processes and quality control.”

Nougat London feels that this research and focus on ingredients is exceptionally high in Asia. “In Asia this seems to be much more apparent than in some other markets where consumers even expect batch coding and production dates to be clear and simple,” says Thomas. “Brands must now be able to substantiate claims, keep stock fresh and the supply up-to-date and keep a really close eye on quality.”

In response to this growing awareness, Nougat London launched Nougat Naturals, a range of products featuring natural ingredients such Argan Oil, Shea Butter, Seaweed and Aloe Vera. The collection is centered on two essential oil blends— one that uplifts and revives and one that calms and relaxes.

The uplifting and reviving fragrance combines ten essential oils including Bergamot, Lemon Myrtle, Ginger, Lemongrass and May Chang. The calming and relaxing fragrance is a blend of eleven essential oils including Palmarosa, Sandalwood, Roman Chamomile, Ylang Ylang and Rose Geranium.

The Capsule Collection contains everyday essentials including the Moisturizing Shower Gel, Hydrating Body Lotion and the Nourishing Hand Cream, as well as the beauty must-haves— the Refining Body Scrub and Intensive Body Oil. Nougat London’s second range, Bubble T Bath and Body, is a younger, edgier range that takes inspiration from the

Nougat London’s Bubble T Bath and Body range takes inspiration from the Taiwanese Bubble Tea drink phenomenon

Taiwanese Bubble Tea drink phenomenon. It’s a small collection of everyday essential products in three tea-inspired fragrances and featuring natural extracts of super fruits.

The fragrances in the Bubble T Bath and Body range include Reviving Moroccan Mint Tea, Restoring Hibiscus and Acai Berry Tea and Stimulating Lemongrass and Green Tea. All formulations are Paraben- and SLS-free, feature natural ingredients such as Shea Butter and Goji Berry Extract, and are housed in vibrant and eye-catching packaging.

As Nougat London continues to increase its exposure, it feels the main key to its success is the brand’s quality. “It is extremely important to us that we maintain this quality standard as we have built our reputation on it,” says Thomas. “We are constantly manufacturing to ensure we keep our stock levels high enough to fulfill all customer orders, but that all the stock in our warehouse is fresh with a long shelf life.”

In addition, Thomas cites the brand’s dedicated staff and skilled perfumers as key components to achieving success in the category. “We work with highly experienced perfumers to ensure our fragrances are unique and on-trend and really capture the Nougat personality,” she says.

Nougat London’s Nougat Naturals offers a range of products featuring natural ingredients such as Argan Oil, Shea Butter, Seaweed and Aloe Vera

Institut Karité Paris lends royal appeal Institut Karité Paris has launched its limited edition Precious Hand Cream, which is inspired by Marie-Antoinette, the late Queen of Versailles, specifically her French elegance and refinement.

The package is decorated with floral patterns and refined colors. The cult formula is enriched with Shea Butter, making for a silky and non-sticky texture. Quickly absorbed by the skin, Precious Hand Cream offers a sweet scent of almond and honey.

Institut Karité Paris’ Precious Hand Cream is enriched with Shea Butter and offers an almond and honey scent

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Face Matters uses organic silicon to stimulate the production of collagen and elastin to keep skin looking fresh even after hours on an aircraft

Face Matters

DOES YOUR

face matter?

WOPI launches Face Matters at the TFWA World Exhibition

by JOHN GUISE

D

ry and aged skin. It can be the fear of every traveler after a long flight.

Whether a person is traveling for business or pleasure, she does not want to look worn out when she arrives. So what is the solution? Face Matters, a UK skincare line that uses organic silicon to stimulate the production of collagen and elastin to keep skin looking fresh even after hours on an aircraft.

According to Face Matters founder, Sally Curson, who launched the line in 2012 after two decades in the beauty industry, the line’s key ingredient is what makes it stand out from its competition. “We have blended [organic silicon] with highly effective active

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anti-ageing ingredients. Every beauty expert knows that the standard collagen molecule is too large to penetrate into the epidermis,” she says. “The reason FM is so successful is that within our organic silicon the hydroxide group of molecules has been replaced by a methyl group that provides the silicon molecule with properties that allow it to be absorbed into cells. It is this deep absorption which naturally stimulates the production of collagen and elastin.”

The UK-based product line was picked up for distribution by World of Patria International (WOPI) in March this year. Face Matters was brought to WOPI’s attention by its business development head, Mark Ozmen, who was looking to launch a new range of prestige beauty products for the travel retail market. The company will be exhibiting Face Matters at the TFWA World Exhibition this month (Its booth is located in the Blue Village, G13).

At TFWA, WOPI will be showcasing Face Matters’ All Day Spritz, Evening Elixir, 24/7 Balm as well as its new Anytime Cleanser and Morning Moisture products.

“Face Matters is an exceptional brand and we are very confident in its potential within travel retail. The response that the brand has received in the UK from women has been really quite phenomenal. It’s not only the product range that is unique, the passion shown by Sally, and her belief in the products is outstanding. What’s more – these are products that really do deliver on their promise,” says Rob Nichols, WOPI’s Managing Director.

Face Matters is also launching in the UK market this fall and has an exclusive distribution deal with Feel Unique, the UK’s top beauty website, which starts from this month.

Curson said major retailers such as Fenwick are also interested in Face Matters products.

In addition, a number of UK airlines, ferries and duty free retailers are looking forward to seeing the line at Cannes.

After entering the UK market, Curson said she hopes to see Face Matters available as part of Asian airlines’ duty free product lines within the next two years. “FM products have great potential for duty free and travel retail as they offer genuine innovation and efficacy in the world of prestige beauty,” she said.

For the woman on the move, WOPI is offering an exclusive Anytime Travel Essentials pack for the duty free market. A great introduction to the line, the set is designed to be an anti-ageing collagen boost on the go.

It is made up of Face Matters’ pure collagen cleanser, pure collagen moisturiser and pure collagen spritz products. The line’s Evening Elixir will also be available as a separate product. c

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EC-210

ESSENTIAL COMMUNICATIONS

knowledge CLIENT understanding MEDIA

Essential Communications is an independent Public Relations agency specialising in the travel retail and duty free industry. Established for over ten years, our goal is to raise the profile of the companies we represent in the international and regional media.

At Essential Communications, the client always come first and we will bend over backwards to put together a proposal that meets your needs...and your budget. Flexibility is the name of our game, so if you’re looking for a simple, straightforward press release program or an all singing, all dancing media campaign, we’ll give you a nononsense solution to your needs. And..we do it with a smile.

“I have worked with Essential Communications since it was first established in 1996. The company has always been the mainstay of a proven successful marketing strategy for the various companies I have been involved with. In working with Morgan & Oates for the last four years, EC has helped us to develop and establish a solid brand image within the Travel Retail sectors. Excellent editorial coverage, assistance with activities at exhibitions, and full assistance with Web site developments has ensured that Morgan & Oates is well respected in the Travel Retail arena. I would not hesitate to recommend their services.”

Jeannie Archer, Managing Director, JA Associates Ltd

“Scorpio Distributors appointed Essential Communications in 2006 as part of an upgraded marketing strategy. They provide us with a friendly, efficient, pro-active service and, certainly for Scorpio, represent excellent value for money.”

Stuart McGuire, Group Managing Director, Scorpio Distributors Ltd ‘Essential Communications has proved to be a vital part of the success and growth of Counter intelligence Retail in the channel.

Always quick to respond to our needs, the reach the company has provided us has ensured we’ve always had the right amount of exposure and the most appropriate coverage at the right time’.

“I don’t know why everyone doesn’t use Row at Essential Communications. Fast, efficient, and makes sure that everything is done in the right way, is in front of the right people and in time for publication. Row has become a vital tool in our communication strategy and we are delighted to be working with her.”

Ian Taylor, Global Marketing Manager, William Grant & Sons

Garry Stasiulevicuis, Managing Director, Counter Intelligence Retail

Rowena Holland Essential Communications 110 Falconwood Road Croydon Surrey, CR0 9BD, UK

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Tel: 44 (0) 208 405 8109 Fax: 44 (0) 208 405 0330 Mob: 44 (0) 771 021 9784 Email: row@essentialcommunications.org www.essentialcommunications.org

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Jewelry News

Flo Accessories launches a new fragrance jewelry line At this year’s TFWA World Exhibition in Cannes, Flo Accessories will launch its new Fragrance Jewellery Collection. The range can be seen for the first time on the Sea & Sky Inflight Supply stand alongside Flo’s patented Universal Fragrance Atomizers and its full range of travel accessories, including the Flo Beauty Organizer, the Flo Crystal Travel Nail File Set and Flo’s Celebrity LED Mirror (Blue Village G31).

The Flo Fragrance Jewellery Collection presents a simple product concept. The patented AbsorbPearls, which can be sprayed with any fragrance, are inserted into an item of jewelry from the Flo collection. The AbsorbPearls then slowly diffuse the fragrance for a long-lasting scent. The strength of the scent emitted is easily selected by controlling the amount of spray applied to the Pearls.

“I had this idea of finding a way for women and men to wear their favorite fragrance for longer than simply a day or evening,” says Adoram Leshem, Flo founder and CEO. “It took four years of development to create the AbsorbPearls, which, unlike any other product on the market, can retain the scent they are sprayed with for at least two

weeks.” Leshem says the next step was to design a unique jewelry collection that was both attractive to travel retail consumers and suitable to wear on any occasion.

The result is a groundbreaking product, which includes the AbsorbPearls as well as a specially designed range of necklaces, earrings, bracelets and charms for women, as well as pendants and cufflinks for men. Keyrings and bag charms complete the collection. Each piece has a carefully thought out receptacle, perforation and opening mechanism for inserting and diffusing the AbsorbPearls. There is enough room in each piece of jewelry for a variable quantity of AbsorbPearls— another simple way to control the scent level.

With each piece of jewelry, Flo offers an AbsorbPearl refill pack. There are many different options for packaging, including gift sets with Flo Universal Atomizers and Flo Fragrance Jewelry.

The charms can also be packaged with several different accessories, so it can be used as a necklace, bracelet, or keychain. Display options will include an interactive shelf where travelers can try the concept before they buy.

With suggested travel retail price points in

Colors and combinations shine in Scorpio’s new watch and jewelry offer At this year’s TFWA WE, Scorpio (Mediterranean Village P8) will display its latest collections from brands such as Aviator, Sturmanski, Timberland, Montine and Pierre Cardin, as well as adding new lines and putting more focus on re-emerging brands such as Beverly Hills Polo Club.

Scorpio’s iconic Aviator range was exclusively designed and manufactured for travel retail, with the philosophy of creating reliable watches that meet the rigorous standards of time instruments, while still offered at an affordable price point (US$95–$195). New models set for launch in Cannes include gents World Time and World Cities watches in various color ways, along with ladies models with either interchangeable straps or bezels. The latter offers a gorgeous sparkling evening watch with plain or crystal set bezels in two designs.

“On trend and in style—the Scorpio Worldwide watch and jewelry offer meets the needs of all travelers, providing fantastic value and quality,” says Richard Kennedy, Sales and Marketing Director.

Timberland introduces a new Campton’ watch for gents, while fashionable models in the increasingly popular designer Beverly Hills Polo Club range include gents models with striped straps in blue and red or black and grey.

Ladies versions are also offered for BHPC and Montine, which includes models with trendy oversized faces with Roman numerals in popular rose gold.

Jewelry sets continue to be an inflight and travel retail favorite. Pierre Cardin and Andre Piasso are both exclusive brands for the sector offering fashionable and versatile jewelry sets at affordable price points, while Hot Diamonds will unveil their latest exclusive offering for inflight.

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Flo’s new Fragrance Jewellery Collection features AbsorbPearls, which can be sprayed with any fragrance and inserted into an item of jewelry, such as pendants

the US$20-$35 range, Leshem says that he has begun to introduce the idea to buyers and consumers, and the initial reaction to the Flo Fragrance Jewellery Collection has been phenomenally encouraging. “There really is nothing else like this on the market and we are confident that the range will be a real game changer for the travel retail industry,” he adds.

Scorpio’s new iconic Aviator range includes gents World Time and World Cities watches in various color ways, along with ladies models with either Theinterchangeable straps or bezels

Andre Piasso collection offers a fabulous choice of contemporary sets and individual pieces from a rhodium-plated petal bracelet and bi-colored gold and silver rose necklace to full jewelry sets, including two pendants and four pairs of earrings in various designs.

Expected to be particularly popular is a heart pendant with six interchangeable colored heart-shaped discs which insert inside for a different daily look.

Colored stones are another feature for the coming season, with both Andre Piasso and Pierre Cardin offering set options with different colored stone combinations of earrings and pendants. Additionally, Pierre Cardin offers watch and jewelry gift sets for ground shops with floor fixtures and countertop display units. All pieces are hypoallergenic and nickel free and come in sophisticated, modern packaging, ideal for airlines and ground stores.

Finally, a new brand on Scorpio’s stand this year is Lydia, which features man-made pearl necklaces, pendants, earrings and bracelet options in different colors.

Scorpio will display the Campton watch for men, the new timepiece from Timberland

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Jewelry News

The First set features dark cultured freshwater pearls surrounded by rose gold

Misaki launches Pearlity Misaki has launched Pearlity, meaning “pearls and purity,” a collection featuring pearls highlighted by jewelry with fluid lines that echo contemporary design. The Pearlity collection will be launched at this year’s TFWA World Exhibition in Cannes.

Misaki designed its new collection with what the brand calls a “return to essentials” approach, where the designs celebrate pearls as one of nature’s treasures. At the center of each piece, the pearls are embellished by flowing lines that showcase each pearl.

The Pearlity collection showcases Misaki’s expertise as a pearl jewelry brand, best known for hand-picking pearls that are then integrated into its jewelry creations, such as Freshwater Cultured pearls, Tahiti pearls, South Sea pearls, Mother of Pearl and Misaki’s technologically advanced Handmade X-Treme Lustre pearls.

Approximately 30 themes comprise the collection. Key themes include the First set, which features dark cultured freshwater pearls surrounded by rose gold. Articulated components allow the ring to be worn in two different ways, either open or closed.

The Adore set adds Parisian chic to each piece. The pearls are arranged in a contemporary fashion in this set, which features Misaki’s high-quality Handmade X-Treme Lustre emulated pearls. The earrings display a prong setting on the top pearl and the matching sautoir reveals open work on decorative

elements set with white pavé Cubic Zirconium.

A notable piece in the Adore set is the True bracelet. A minimalist adjustable silver bangle, the True bracelet showcases a 12-13mm button-shaped cultured pearl in enigmatic silver, pure white or magical black.

The Love set is an ideal gift for romantic occasions such as a wedding or Valentine’s Day. White cultured pearls—commonly symbolic of purity and innocence—are combined with a silver heart and a decorative element set with pavé Cubic Zirconium, which adds romantic appeal.

Individual statement pieces, the Enjoy necklaces feature warm golden shades combined with a bead set with pavé white Cubic Zirconium. Sterling Silver-925 and Rose or Hamilton Gold plated, for a tone on tone effect.

The Agate pieces explore the beauty of white cultured pearls combined with Agate stones. Agates, whose talismanic properties have been recognized since ancient times, display themselves effortlessly in these statement jewels.

Lastly, the See glass holder is easily an essential accessory.

A long cultured pearl glass holder, See is available in white, pink or black and doubles up as a stylish sautoir.

Enjoy necklaces feature warm golden shades combined with a bead set with pavé white Cubic Zirconium

The Love set features white cultured pearl combined with a silver heart and a decorative element set with pavé Cubic Zirconium

Pandora launches its first airline exclusive travel charm

Pandora’s I Love To Travel charm is the first charm created exclusively for airline customers

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Pandora has launched its new “I Love To Travel” suitcase, the latest charm in its travel collection. I Love to Travel is the first charm created exclusively for airline customers, designed to encapsulate the wonderful moments of traveling. Pandora’s I Love To Travel suitcase charm is available now on board selected airlines.

The solid sterling silver suitcase is engraved with five continents and inscribed with “I ♥ To Travel,” showcasing a translucent red enamel heart.

The solid sterling silver suitcase is engraved with five continents

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SHOP AT AI G NE R M UNI C H. C OM

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Haribo unveils “The Smurfs” and “Starmix during the TFWA WE

Haribo

SOMETHING FOR

EVERYONE

German confectioner Haribo targets all ages in its ambitious travel retail strategy by HIBAH NOOR

G

erman confectionery success story Haribo is paying closer attention to the travel retail channel these days, after many years during which the category was a secondary focus for the brand. Haribo is best known for its colorful “Goldbear” fruit gums, but also makes liquorice and “Chamallow” marshmallows under the Haribo name, and a product line under the Maoam brand.

As Haribo’s Manuel Coronilla, Head of Travel Retail explains, the company is in the process of ramping up its distribution in travel retail, and is also focusing on building its presence through the signal travel retail events.

“For us the TFWA AP show was fantastic,” he says. “We had a lot of meetings prepared and also a lot of people passing by. We see a huge potential in Asia-Pacific—people are telling us that yes, there is potential for our products.”

Retailers respond in particular to the new arrival’s upbeat and highly colorful presentation, and to the potential offered by what is essentially a new confectionery category.

“We’re a new player, bringing some color to the industry,” Coronilla says. “Obviously it’s a new category to travel retail. When you talk about chocolate, there is a different target

The new “Sea Parade” line has been targeted at the cruise ship and ferry market

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group, more for the adults. We talk about a very happy and colorful brand—it’s sugar confectionery, which might have different target groups. We’re targeting kids, teenagers, adults—everybody.”

Haribo does have listings with some major retailers in travel retail, but Coronilla notes that the distribution side is still in the building phase. So far Haribo’s main distribution in its European homeland is in Germany, Spain and Scandinavia. “We do have some new listings in the Asia-Pacific region, in HKIA and Singapore to name a couple.”

Coronilla says that right now Haribo is strongest in Europe, followed by Asia-Pacific, but that the Americas is also on the agenda.

In the Middle East Haribo has secured the regional travel retail benchmark by listing with Dubai Duty Free. Other businesses in the region are being lined up now.

Haribo is also working on developing travel retail exclusives. The new “Sea Parade” line has been targeted at the cruise ship and ferry market with marine-themed shapes. The idea grew out of the “Air Parade” line, a series of airplane-shaped sweets that Haribo has sold for many years.

“We thought that if you can sell airplanes at airports, why not sell some sea-related shapes for cruise ships?” Coronilla says. “We can apply this concept to other countries like Singapore where we have some landmarks from Singapore.” The packs are available in a 500 gram size, though this may change in favor of a smaller format more suited to the Asian market.

The gold bear image is proving to be very popular with Asian consumers. On the Asian domestic market the Gold Bears and Happy Cola is the top seller. Coronilla describes it as a “very traditional product,” which retains the top spot in many markets.

“We have an understanding of the Asian consumers—we know what they want,” he says. “For example, while we produce liquorice candies, we don’t sell these in Asia because they’re not familiar with the taste. So we adjust our assortments according to the consumers

who are traveling through the airports.”

An example is the “Sour Mango” candy, developed specifically for the Asian clientele. Similar cultural customization is reflected in the halal range that has been introduced for the Middle East, as well as a line of vegetarian products.

Two travel retail novelties due to be unveiled at TFWA World Exhibition in Cannes are “The Smurfs” and “Starmix.” “We decided because of the new movie to launch the product on an international level,” Coronilla says.

Haribo recently brought out a new display unit exclusively for travel retail that can accommodate 240 pieces. The gondola was unveiled at the TFWA AP trade fair. For gifting, Haribo also offers several items, such as metal cases in a number of themes, the most recent of which is a “Candy Store” version.

The cases can be kept and put to other uses once the candy is consumed. The Candy Store case holds three bags of sweets. Once the candies are gone it can be re-used as a nostalgic money box. c

For gifting, Haribo offers several items, such as metal cases in a number of themes, the most recent of which is a “Candy Store” version

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Paton’s

To increase its appeal in Asia, Paton’s developed its Chinese New Year gift box

UP TO SPEED

Focusing on flavor profiles specifically in Asia, Paton’s is increasing its product offering and growing its business by MELISSA SILVA

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amily-owned confectionery company Paton’s has been working with macadamia nuts for close to 35 years. Founder and Australian native Craig Paton started the business following a trip to Hawaii where he discovered Australian macadamia nuts were being grown, harvested, covered in chocolate and sold as gifts. Paton realized he could develop his own industry, as macadamia nuts are native to Australia, and promptly got to work.

Today, Paton’s not only produces macadamia nuts covered in chocolate, but also roasts and flavors them as well, selling them under the Suncoast Gold brand. Paton’s premium range includes macadamia nuts and almonds covered in toffee, dark and white chocolate, and a Contreau flavor.

Paton’s offers a range of packs, from counter displays to those sold on airlines. It’s new pack taps into the sharing trend that has been dominating the confectionery category for some time now. “It’s the first time we’ve done the share pack,” says Stuart Redman, Head of Marketing and Product Innovation. “We’re the pioneer of destination packs in the whole of travel retail,” Redman says. “So the challenge

Paton’s Milk Chocolate covered Macadamia Royals gift box

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we have now is staying ahead and [determining] the next steps we need to take.”

Paton’s next steps involved upgrading its 15-piece packs to 21 pieces. “We’re moving to a higher piece count, because we’ve done a lot of shopper research and the research has come back outlining a value-for-money perception,” says Redman. “This means shoppers would much rather have more pieces in a pack.” Paton’s has also noticed that the piece size preference has come down as well, as the feedback outlined that women felt the bite was too big. “We’ve noticed that size is a big trend, specifically in Asia,” Redman says.

Paying close attention Paton’s is developing these changes more in Asia than in any other region, which makes sense, as it’s the brand’s largest market. “Asia is our strongest market along with the Middle East, so we’re present in every major airport in Asia and the Middle East,” says Redman. Most of Paton’s target audiences are in Asia, so the brand has made it a priority to pay attention to the region’s culture when developing new products. “We’ve really learned a lot about the Asian consumer, and we’ve tried to tailor our packs more towards them,” says Redman.

In addition to the recent upgrades and adjustments, in Australia Paton’s has developed a new product range called “Mini Macs” a range geared towards impulse purchasing. “Because gifting is only one part of chocolate consumption, what we have never done is tried to do anything in the impulse channel, so

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Paton’s decided to tap into the gifting trend by developing holiday gift boxes

we’re testing this and if this works, we can roll this out in Singapore, Hong Kong and elsewhere in Asia,” says Redman.

In other news, Paton’s is tapping into the gifting trend and developing holiday gift boxes specifically targeting Asian holidays. “Chinese New Year is something that we’re focusing a lot more on, so we’ve got a box especially for Chinese New Year,” says Redman. “What’s special about it is that it includes both Abalone and Sea Salt flavors.” Abalone, a shell fish, is Paton’s number one selling flavor in nuts.

To maintain relevancy in the category, Paton’s works with global flavor houses to come up with flavor profiles and then proceeds with testing each one. “Luckily for us there’s a lot of Chinese in Australia, in particular in Melbourne, so I can test drive my flavors on locals,” says Redman. Through testing each flavor, Redman has noticed that Wasabi is big for the Japanese and Abalone is popular among the Chinese.

With a number of developments on the go, Redman says Paton’s is busy, which is exactly what he had hoped for when he joined the company. “When I started in the business a year ago, my job was to come in and grow the business 25% in the next two years,” he says. With several developments on-the-go, aided by focused research and testing, it looks as though Redman is successfully bringing Paton’s up to speed. c

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The Macallan’s latest activation in Asia gives travelers the chance to win a trip to Scotland while also offering a GWP and the option to trade up to higher-end expressions of the brand

Spirits Promotions

EYES ON THE

PRIZE Travel retail has long been a channel particularly devoted to luxury, and in the increasingly competitive spirits category, time and again suppliers pull out all the stops to ensure that new launches stand out from the pack. Indeed, the increased focus on high-end brands and gifting propositions in Asia sometimes makes it all the more difficult for brands to differentiate themselves. From trip giveaways, GWPs, exclusive offers, tastings and even a standalone store, Asia Duty Free looks at what three major spirits suppliers—The Edrington Group, Bacardi and Pernod Ricard—are doing to ensure that their brands are top of mind with traveling consumers in Asia.

Taking travelers home The Edrington Group is offering travelers in selected airports in Asia the chance to win an exclusive trip to Easter Elchies House, the spiritual home of The Macallan Highland Single Malt Whisky in Scotland. The “Capture the Precious Moment” promotion, which runs until the end of October, uses the latest augmented reality technology to provide consumers with a fascinating virtual tour of The Macallan distillery.

To enrich the traveler’s experience, consumers traveling through key airports in Singapore, Malaysia, Taiwan and Korea before the end of August were encouraged by brand promoters to scan an icon of The Macallan’s “Six Pillars”—the brand’s spiritual home; the 78

Spirits brands in Asia use engaging promotions as a way to cut through the brand-heavy Asia travel retail environment and connect with traveling consumers by RYAN WHITE

curiously small stills used in production; the finest cut of new make spirit (only 16%) selected for maturation; the exceptional oak casks used for aging; the natural color of the liquid after maturation; and the peerless spirit produced—using their iPad. The icon opens the door to the world of this exceptional Single Malt Whisky with The Macallan Oscuro as the hero of the promotion. During September and October the activation is running in Hong Kong International Airport.

Passengers at selected airports who buy a bottle of The Macallan Oscuro, or one of the premium decanters of The Macallan, are being offered a Lucky Draw card giving them the chance to win a luxury trip for two to The Macallan distillery in Scotland. In addition, consumers will be rewarded with a branded travel bag for every purchase above a certain amount on Macallan products.

“This interactive tool is designed to generate consumer interest in The Macallan and introduce them to the Six Pillars, which make our whisky unique, in an interactive and fun way,” says Claren Wong, Regional Marketing Manager, Asia Travel Retail at Edrington. “The Lucky Draw is a wonderful incentive to our customers to trade up to one of our beautiful decanters or to a bottle of The Macallan Oscuro with the chance to win a trip to the Highland home of this extraordinary malt.

“We have been most impressed and delighted by the willingness of the respective

retailers to assist us in staging these promotions, which I am sure will result in high visibility and excellent sales of The Macallan,” Wong adds.

Unveiling the secret Bacardi Global Travel Retail has launched B&B, an artisanal blend of Benedictine liqueur and the finest French brandy, in Asia. Available exclusively in Asia in travel retail, B&B is being premiered in Malaysia, where Benedictine has been a much loved and hugely popular liqueur for generations.

B&B was first created as a hugely successful cocktail when Benedictine was mixed with brandy during the Prohibition era in New York. It then went on to be blended and bottled in the late 1930s. In the Eraman and DFZ stores in Kuala Lumpur International Airport (KLIA) and the Eraman stores at the city’s Low Cost Carrier Terminal (LCCT), the arrival of B&B has been heralded with a highprofile promotion entitled “Unveil the Secret.”

Passengers are invited to Unveil the Secret by enjoying samples of B&B to be among the first in Asia to taste the exquisite liqueur. B&B can be enjoyed neat, over ice or in cocktails.

The launch has been accompanied by extensive advertising throughout the stores in KLIA and LCCT, as well as striking displays of B&B in an elegant gift box especially designed for Asian travel retail.

“We have received an incredible response

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Spirits Promotions moment for us,” says Paul Duffy, CEO of The Absolut Company. “With the Absolut Brand Store in Kuala Lumpur International Airport, we are creating the ultimate brand experience for our traveling consumers.”

“It’s yet another testament to the unique brand and image building qualities of our global duty free/ travel retail market,” adds Anders Olsson, Director of The Absolut Company Global Travel Retail.

The Absolut Brand Store is an important initiative in the quest to create next-generation shopping arenas in the global duty free/travel retail market—scenes with the potential of achieving increased sales in combination with more intense and exciting shopping experiences, as well as with image B&B was first created as a hugely successful cocktail when Benedictine was mixed with brandy during the Prohibition era building and consumer-relation in New York; now it comes to Asia as a limited-time exclusive strengthening effects. from consumers to the launch of B&B in Asia On entry into the 45 square-meter Absotravel retail,” says Philippe Jouhaud, Sales and lut Brand Store, shoppers are greeted by an Marketing Director for B&B and Benedictine. Absolut host before exploring a number “Benedictine has a long heritage in Malaysia of exciting attractions. In the center is the and this travel retail exclusive has generated Absolut bespoke bar, a piece of art in its own a lot of excitement. We’re looking forward to right. New digital innovations are delivered inviting more Asian travelers to enjoy B&B through projection mapping, which catches for themselves as we roll out the launch across the imagination of the traveler. An Absolut other Asian markets.”

Drinkspiration display offers exciting cocktails The incredible story of Benedictine began more than 500 years ago in the Abbey of Fécamp in Normandy when the Benedictine monk Dom Bernardo Vincelli created a secret elixir. Today, Benedictine is still made in Fécamp using a secret recipe of 27 different herbs and spices. An Asia exclusive at Eraman and DFZ stores in KLIA and LCCT airports until the end of August, B&B was available there at a retail price of RM138 (US$42) for a 1 liter bottle.

for travelers to experience in an inspiring and dynamic lounge area.

“Kuala Lumpur is a key hub in an important and fast-growing market for Absolut—a market also distinguished by its exceptionally international mix of travelers,” says The Absolut Company. “Eraman Duty Free has a long and successful brand building history with Pernod Ricard. Thus, the choice of venue is strategic as well as being based on an excellent relationship.”

“We’re thrilled to have the opportunity to execute this pioneering endeavor in Kuala Lumpur International Airport,” says Con Constandis, Managing Director of Pernod Ricard Asia Travel Retail. “Eraman has been a great partner for breaking boundaries in the duty free/travel retail market. Our conviction is that this will be a transforming experiment for the Absolut brand while enhancing the traveling experience for our consumers.”

“This cutting-edge venture is a manifestation of our determination to infuse new, exciting energy and creativity to lifestyle marketing in order to meet and surpass the high demands of savvy air travelers,” says Fawzy Ahmad, General Manager of Eraman Duty Free. “We are proud and happy to integrate the world’s first Absolut Brand Store amidst the leading fashion, cosmetics, designer and luxury labels in this new lifestyle arena. Travelers passing through KLIA will now be able to take pleasure in the latest and most exciting shopping experiences all under one roof, in the essence of comfort and convenience which the new area personifies.” c

Brand dedication The Absolut Company, in cooperation with Pernod Ricard Asia Travel Retail and Eraman Duty Free, has opened a dedicated Absolut Brand Store in the new cutting-edge lifestyle and shopping experience area in KLIA. The new lifestyle shopping scene features leading fashion, cosmetics and luxury brands. Absolut is the only spirits brand to open an exclusive store in this new innovative shopping area.

“This is the first brand store that Absolut has ever opened, so it’s a great and historical 80

Pernod Ricard Asia Travel Retail says that the Absolut Brand Store is an important initiative in the quest to create next-generation shopping arenas in the global duty free/travel retail market

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Liquor News Russian Standard Vodka extends reach with Philippine Airlines contract Russian Standard Vodka recently announced that it has secured a contract to supply the inflight pouring vodka on all flights operated by Philippine Airlines (PAL). Russian Standard Original is being offered in the business class and economy class cabins of PAL’s international flights and also in the airline’s Mabuhay Lounges. The first cases of Russian Standard Original went onboard the fleet in July.

PAL is the country’s flag carrier, offering both domestic and international flights. It boasts the largest fleet and the widest route network covering 30 domestic and 36 international destinations. Service innovations have been put in place inflight and on the ground, all geared towards improving passenger service.

PAL’s expansion plans include flights to Asia, the Middle East and Europe, with flights to London, Paris, Amsterdam and Rome in the pipeline, among other destinations.

Michael Chew, Sales Director South East Asia, Rémy Cointreau GTR, which distributes Russian Standard in duty free and travel retail, said: “The contract with PAL marks an important step for Russian Standard as it expands its distribution in Asia. We take pride in this working partnership with the Philippine flag carrier and we know that this tie-up will bring the best of both brands to the fore, ensuring passenger satisfaction.”

Russian Standard Original is now being offered in the business class and economy class cabins of PAL’s international flights and also in the airline’s Mabuhay Lounges

Mouton Cadet launches Reserve Mouton Cadet Bordeaux Réserve Mouton Cadet, the premium range of Mouton Cadet, is expanding its offer with the launch of a new AOC Bordeaux red wine: Réserve Mouton Cadet Bordeaux. Produced from selected grapes from the Bordeaux and Côtes de Bordeaux appellations, Réserve Mouton Cadet Bordeaux is a blend of dominating Merlot and Cabernet Sauvignon.

The result is a generous and rich wine enhanced with elegant oaky notes. The nose is intense, revealing red and black fruit aromas. The palate is round, powerful and fruitdriven, with supple tannins and a lingering finish. Réserve Mouton Cadet Bordeaux is also available as a white wine, where it is comes primarily from the Semillon grape variety.

Réserve Mouton Cadet Bordeaux will be distributed throughout World Duty Free and Biza Tax and Duty Free stores in airports across the UK. It will also be featured in the company’s “Wine Festival,” which is running from August 28 to October 16.

Produced from selected grapes from the Bordeaux and Côtes de Bordeaux appellations, Réserve Mouton Cadet Bordeaux is a blend of dominating Merlot and Cabernet Sauvignon

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Global Drinks Finland releases updated Laplandia vodka packaging, production processes Global Drinks Finland has announced that Laplandia vodka is now a super premium product both inside—with its award winning smoothness—and outside—boasting a new and delicate snow white appearance.

Indeed, Laplandia vodka has recently gone through a ravishing transformation, now being even more authentic and pure than ever. The bottle design has been changed to complete snow white with a touch of gold to better convey the high-end appeal of the liquid within.

Furthermore, Global Drinks Finland notes that the water filtration process for Laplandia has also been updated, ensuring that the vodka is purer than ever. The new bottle—and of course its contents— are now available to be listed in global travel retail.

New both inside and out, Laplandia’s bottle and filtration process have received a makeover, making it purer than ever

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Protégé International to launch new tobacco and spirits variants at TFWA WE Protégé International tells Asia Duty Free that despite tough economic times in many regions, sales of the company’s tobacco and premium spirits show strong growth in travel retail.

In response to this success, Protégé International has launched a number of new products and has added to the Fender tobacco and The Wild Geese spirits ranges.

“Fender Tobacco’s new High Flyer cigarettes are now also available in nano as well as king size formats,” says Ian Smart, Director of Business Development at Protégé International. “They were introduced at Inter-tabac in September and will be showcased at TFWA Cannes in October.”

Also from Fender is the new Cyggyes range of cigarettes and RYO tobacco, The Wild Geese The Caribbean Spiced Rum and High Flyer cigarettes in nano available in different sizes and formats. and king size variants, two new releases Spirits fans attending this year’s TFWA for duty free from Protégé International WE will be familiar with The Wild Geese range of Irish Whiskies, and the more recent line extension The Wild Geese Rum Collection. This year’s show will see the launch of The Caribbean Spiced.

“Made with golden rum aged for up to five years, and blended with tropical fruits around a heart of spice, this rum is subtle yet strong and made for mixing,” Smart explains. The Caribbean Spiced joins The Wild Geese Golden Rum and Premium Caribbean Rum, with Premium being a blend of rums aged for up to eight years and Golden having been created from specially selected rums.

Testament to the quality, The Wild Geese Premium Rum Collection has won four Gold, three Silver and two Bronze medals since it was launched in October 2012.

“Included in this accolade is a Gold Medal award for The Wild Geese Golden Rum at the Miami Rum Renaissance 2013, one of the most important and biggest rum events in the world,” Smart says. The collection also took home Gold and Silver medals at WSWA 2013.

The Beverage Tasting Institute in Chicago awarded Gold to each of the rums at the beginning of July, and recognised both as “Exceptional” products within their category. The Golden Rum was also labelled a “Best Buy” option for consumers.

In addition, Smart tells us that sales of The Wild Geese Irish Whiskey Collection continue to increase. “Irish Whiskey is the fastest-growing spirits category in the world, and this is being reflected in emerging Asian markets, where demand for The Wild Geese continues to grow,” he says.

Smart concluded on noting that Protégé International has just scratched the surface in Asia, and sees much more potential in the region as tastes continue to evolve. “We see a growth in the demand for premium spirits and brands that reflect the aspiration of the emerging middle classes in these new Asian markets. The Wild Geese Collection is a perfect fit, as it celebrates the achievements of extraordinary individuals and reflects the growing optimism of these markets.”

Haleybrooke International launches Russian Diamond Vodka in travel retail Haleybrooke International has announced the launch of Russian Diamond Vodka in travel retail. The brand is produced by Russian Spirits Group, based in Moscow.

“Russian Diamond Vodka is produced in the emblematic region of vodka’s historic birthplace by taking the crystal clear, soft deep-well waters of Mytishchi springs, used for vodka manufacturing since the Russia of the Tsars,” says Patrick Nilson, President of Haleybrooke International.

Indeed, drop by drop Russian Diamond Vodka goes through the most complex filtering system ever known for vodka production. Like a diamond which has 57 facets, Russian Diamond Vodka has an astonishing 57 purification stages. Speaking to the quality of the liquid, Nilson notes that Russian Diamond Vodka was previously entered in the San Francisco World Spirits Competition and won a coveted Gold Medal.

Nilson also tells us that in addition to the vodka itself, the bottle is perfect for travel retail: “We think that consumers seeing the brand for the first time will be drawn in by the packaging,” he explains. “Russian Diamond Vodka comes in a tall, beautiful bottle with diamond-like facets on the shoulders that reflect the unique purity of the vodka, while the premium glass stopper symbolizes the prestige and noblesse of the product. Finally, the thick pedestal bottom will keep a refrigerated bottle chilled longer, and the label is not paper—it is a velvet fabric with a metal logotype.”

Despite vodka being a highly saturated subcategory, Nilson tells us that the shelf standout of Russian Diamond Vodka is sure to turn heads, while the liquid in the bottle will quickly establish the brand as a must-have for travelling consumers.

Like a diamond which has 57 facets, Russian Diamond Vodka has an astonishing 57 purification stages

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Pernod Ricard Pacific Travel Retail launches Chivas Regal’s World’s First Luxury Whisky campaign in Australia With Chivas Regal introducing World’s First Luxury Whisky, Pernod Ricard Pacific Travel Retail is supporting the global travel retail campaign with a special activation at Brisbane International Airport with Nuance Australia. The activation is located in the F1RST Tax & Duty Free store in departures and runs until October 27, 2013.

The Chivas World’s First Luxury Whisky activation in Brisbane includes a projection animation of a film set from the streets of New York on an impressive 2 m x 3 m screen; the first of its kind in the region. The activation pays tribute to the history of the brand as the first luxury blended whisky in the world. The animation is supported with special offers in-store for the Chivas range, including Chivas Regal 25YO, 18YO, The Chivas Brothers’ Blend and Chivas Regal 12YO. “We’re really excited to launch the Chivas World’s First Luxury Whisky campaign in such a dynamic way in Brisbane International

The Chivas World’s First Luxury Whisky activation in Brisbane includes a projection animation of a film set from the streets of New York on an impressive 2 m x 3 m screen

Airport,” says Pernod Ricard Pacific Travel Retail Senior Brand Manager Kate Maxwell. “I think this oversized movie projection will create strong brand visibility for Chivas and provide our consumers with a new level of engagement.”

Kathryn Martin, Nuance Australia’s Category Manager – Liquor, says: “Our customers are looking for more theater and opportunities to interact with our products in-store. Nuance Australia is delighted to be hosting this innovative activation, which gives our customers at Brisbane airport the chance to learn more about the Chivas story and develop a deeper connection with the Chivas brand.”

The Famous Grouse drives sales in India with giant promotion The Famous Grouse has retained the Guinness World Record for producing the world’s largest bottle of whisky, which was awarded to the brand in August 2012. A replica of the giant bottle arrived in India in early August and was installed in the departures duty free shop at Hyderabad International Airport.

The Famous Grouse giant bottle is showcased in a special high profile display with a branded wall backdrop where traveling consumers can have their photo taken next to the bottle. A permanent gondola display is also in place to present The Famous Grouse, The Famous Grouse Gold Reserve 12 year old, The Black Grouse and The Black Grouse Alpha Edition.

Consumers purchasing a bottle of The Black Grouse Alpha Edition and either a bottle of The Black Grouse or Gold Reserve will be presented with a free travel bag.

After display at Hyderabad until the end of December 2013, The Famous Grouse giant bottle will be showcased at various airports around the country over the course of 2014.

“It is an honor to be the first outlet in the ISC region to display The Famous Grouse giant bottle,” says Anjan Kumar Mahato, Category Manager, Hyderabad Duty Free.

“We thank Edrington for giving us the opportunity to run this campaign and the excellent work that they have done on creating the visuals. We also thank Bommidala Enterprises, authorized distributors for Edrington, which has worked closely on this project and made the campaign successful.”

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The original huge glass bottle of The help us to drive growth in sales of The Famous Grouse, which was declared the Famous Grouse in India,” Wong continued. largest bottle of whisky in the world by “The giant bottle makes a stunning centeran adjudicator from the Guinness Book piece to our display, it draws the passengers of World Records in August 2012, is on into the store for photos, it raises the profile display at The Famous Grouse Experience of The Famous Grouse variants and thereby at Glenturret Distillery in Scotland. Standing increases sales both of the standard blend 1.65 m tall and weighing a quarter of a ton, and of the premium expressions.” the giant glass bottle holds 200 liters of whisky, equivalent to 8,000 drams, and is an exact replica of The Famous Grouse’s iconic bottle. It was blown by Czech glass manufacturers BOMMA. “The Famous Grouse is the 10th largest brand in travel retail in IWSR’s top 100 wine and spirits brands and its importance in Asia is growing,” says Claren Wong, Regional Marketing Manager – Asia Travel Retail, Edrington. “India is a market which offers lots of potential for this high quality blended Scotch and we have therefore arranged with some key retailers to put it center stage. Its reputation is immense and now we have the larger-than-life bottle to prove it.

“With this unique, recordThe Famous Grouse giant bottle is breaking bottle of The Famous showcased in a special high profile Grouse we have an exceptional display with a branded wall backdrop where traveling consumers can have promotional mechanism which, their photo taken next to the bottle combined with the ongoing personalized bottle promotion, will

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head of this year’s Cannes show, Diageo Global Travel revealed a limited edition range of Johnnie Walker Blue Label bottles engraved with designs inspired by the skylines of some of the world’s most famous cities, from New York to Hong Kong.

The handcrafted range consists of seven city editions, each bearing an individually etched skyline design that has been filled with golden liquid blended by skilled craftsmen. The seven cities featured are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland. Accompanied by a bespoke sleeve, each bottle celebrates the unique craftsmanship of Johnnie Walker Blue Label, in which just 1 in 10,000 casks of the house’s rarest whiskies are handpicked by the master blender to create the exquisite blend.

The bottles are individually numbered and available in limited quantity only in the cities that inspired them, reflecting the rarity and exclusivity of Johnnie Walker Blue Label. The seven city editions are available only at the airport stores of the DFS Group.

“We know that travelers love to bring back unique mementos from their journeys which serve as a beautiful reminder of the experience,” says Steve White, Global Marketing Director of Diageo Global Travel and Middle East. “The Johnnie Walker Blue Label skyline range meets that need for our high-flying consumers. Tailoring a product to the local market is a mark of our commitment to offering innovation and differentiation to our travelers.”

“It is an honor to be the first travel retailer in the world selected to launch this special range,” added John Hoover, Senior Vice President of Global Merchandising - Spirits, Wine, Tobacco, Food and Gifts for DFS Group. “We are confident that these exceptional bottles, which capture the spirit and energy of some of the most iconic destinations where DFS is found, will delight world travelers.”

The seven city editions of Johnnie Walker Blue Label will be available from September 2013 in DFS airport stores in Singapore Changi, Hong Kong International, Mumbai Chhatrapati Shivaji, San Francisco International, Los Angeles International, New York JFK and Auckland International Airports at a recommended retail price of US$399 (or local equivalent) for 1 liter.

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The seven cities featured on the Johnnie Walker Blue Label skyline range are Singapore, Hong Kong, Mumbai, San Francisco, Los Angeles, New York and Auckland

A number of famous city skylines get the blue treatment with the new limited edition Johnnie Walker Blue Label skyline range by RYAN WHITE

“Bespoke, limited editions have a high appeal for Asian luxury shoppers. The launch of the Singapore city edition coincides with the Formula 1 Singtel Singapore Grand Prix, and we are working with DFS to also deliver high visibility for the range in the other key locations across Asia Pacific.”

Steve White, Global Marketing Director, Diageo Global Travel and Middle East

White told Asia Duty Free that The Johnnie Walker Blue Label skyline range is particularly relevant to the Asia Pacific travel retail market, where the growth of the super deluxe category is significantly driven by the rise in Chinese and Asian travellers, and where liquor is an established choice for gifting.

“Bespoke, limited editions have a high appeal for Asian luxury shoppers,” White concludes. “The launch of the Singapore city edition coincides with the Formula 1 Singtel Singapore Grand Prix, and we are working with DFS to also deliver high visibility for the range in the other key locations across Asia Pacific.”. c

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Berry Bros. & Rudd

CRAFTING THE

EXTRAORDINARY

The Glenrothes Manse Brae range, exclusive to travel retail

by RYAN WHITE

Berry Bros. & Rudd Spirits announces the launch of two very special ranges of The Glenrothes that highlight provenance, rarity and quality

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erry Bros. & Rudd Spirits has unveiled two new whisky collections in time for this year’s TFWA WE. The first is the most recent single cask bottling of The Glenrothes—called “The Extraordinary Cask Collection.” The second, a travel retail exclusive called the “Manse Brae” range, looks back on The Glenrothes Distillery’s storied history for inspiration.

Mike Harrison, Sales Development Director at Berry Bros & Rudd Spirits, told Asia Duty Free first about the Extraordinary Cask Collection: “As a merchant, the role of Berry Bros. & Rudd has always been to select the finest quality wines and spirits for its customers. The Extraordinary Cask Collection is a continuation of this philosophy.”

Since 1994 The Glenrothes has released less than one single cask a year. However, whisky enthusiasts around the world have expressed a demand for more, older and rarer bottlings.

Such has been the popularity of Glenrothes spirit among the whisky industry’s master blenders that, unlike some distillers, there are no remaining parcels of ancient stock either at the distillery or in the Berry Bros. & Rudd inventory.

However, a cache of casks of unimpeach-

The Glenrothes Single Cask 1970 #10573, the first release in the Extraordinary Cask Collection

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able provenance came to the attention of Ronnie Cox, Brands Heritage Director. After a lengthy process of assessment, a small number of these casks was selected as being worthy of being bottled as The Glenrothes Extraordinary Cask Collection.

The first to be bottled is The Glenrothes Single Cask 1970 #10573, described as a beautifully-balanced, elegant and well-mannered single malt with peerless texture that perfectly expresses the hallmarks of quality and purity that set The Glenrothes apart.

For this very special release, the shape of the instantly recognisable Glenrothes bottle has been enhanced further, using hand-blown lead crystal for the single cask decanter, but in a manner that is in keeping with the elegance of the whisky and the heritage of The Glenrothes. The essential shape has been retained but is now multi-faceted—heavy crystal at the base elevates the bottle and frames the whisky within. A plaque made of polished brass is applied to just one front facet and engraved with the year of distillation and the bottle number to ensure the uniqueness and authenticity of each individual decanter.

A very special offering As mentioned, Berry Bros. & Rudd Spirits has also announced the launch of an entirely new series of whiskies exclusively for the international travel retail channel. This range celebrates the spiritual home of The Glenrothes. Named after the street on which Rothes House stands, the Manse Brae range comprises Manse Reserve, Elders’ Reserve and Minister’s Reserve.

This is the first time that The Glenrothes has released an entirely new range of whiskies specially bottled for travel retail. The range will also benefit from stunning packaging as The Glenrothes, winner of the World’s Best Design at the World Whiskies Awards 2013, enhances the quality of its presentation while retaining the distinctive frame and bottle.

Rothes House was formerly the Minister’s home, known as the Manse. Overlooking the town below, it was a place where the Elders of the Kirk would meet. The history

of Glenrothes Distillery is inextricably linked with the Church of Scotland.

Indeed, the United Presbyterian Church of the nearby village of Archiestown lent the sum of £600 (equivalent to £50,000 today) to the distillery in its infancy.

“With the success of Robur Reserve over the past few years, we looked back at the distillery and its history for inspiration for this travel retail exclusive,” explains Harrison.

“The link to the Church provided the solution.

In this respect it was probably a little easier than some of our competitors to base a range around multiv i nt age res e r ves while still embracing the house style of vanilla, citrus, spices and rip e b err y fruits. It was also important to provide a range which covered relevant price points, which we have accomplished. Lastly, we took the opportunity to enhance our packaging to provide a more valuable proposition for the consumer, vital in a very competitive environment. “ Travel retail for The Glenrothes now accounts for around 10% of our global sales,” he concludes.

“As a result, we were confident of launching this relevant and exclusive range for both Asian and European operators.” c

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Barry Global Innovation

IN THE

KNOW

Babco Europe has partnered with Barry Global Innovation to promote cocoa leaf liqueur Agwa de Bolivia in selected travel retail markets

Barry Global Innovation announces a number of new partnerships with companies eager to increase awareness in the global travel retail channel by RYAN WHITE

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y all accounts it’s been a great year for Barry Global Innovation in Asia and abroad. From new partnerships with Chateau Bernadotte, Concha y Toro and Babco Europe to the continued success of Paul Sapin wines, Founder Barry Geoghegan has certainly stayed busy reminding retailers both on the ground and in the air of the increasing importance of maintaining a strong wine portfolio.

Ahead of this year’s TFWA WE, Asia Duty Free spoke with Geoghegan, who started by giving us the back story related to the recent Chateau Bernadotte development. “Antares Cheng of King Power Hong Kong recently bought two Bourdeaux chateaux, one of them being Chateau Bernadotte,” he explains. “We’ve started a new partnership with Chateau Bernadotte and I’m very excited about the prospects for the wines in travel retail.”

In fact, Geoghegan has already secured a listing for Chateau Bernadotte’s 2006 vintage aboard Korean Airlines and expects more interest from operators at this year’s Cannes exhibition. “The diary is already filling up fast!” he told us just over a month before the exhibition.

Of course, Barry Global Innovation has also announced a partnership with Concha y Toro, one the world’s largest wine companies.

Geoghegan will act as Concha y Toro’s advisor and work with their team on further building presence in global travel retail. The company, which owns wineries in Chile, Argentina and most recently the USA through the 2011 acquisition of Fetzer-Bonterra from Brown-Forman, can offer the travel retail operators a Pan-American supply base of premium quality wines.

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“I am delighted to be working with the superb wines of Concha y Toro in travel retail,” Geoghegan tells us. “I have enormous respect for the company and its wines and look forward to working again with some old and new friends to introduce travel retail operators to one of the world’s truly great wine ranges.”

“We look forward to working with Barry in the very important travel retail channel, and to bringing to key operators some of the world’s most awarded and admired wine brands,” added Duncan Brown, Head of CyT Travel Retail Europe, when the news was announced.

Branching out As mentioned, Barry Global Innovation has also announced a partnership with Babco Europe for worldwide travel retail, with the exception of North America (the region is handled by duty free veterans Haleybrooke International) and South America (handled by Laura Klingemann of Seva Group). The company’s Agwa de Bolivia brand has the distinction of being the only cocoa leaf liqueur in the world, and Geoghegan tells us that the unique brand is perfect for duty free. “We are so excited about bringing the Agwa de Bolivia to the global travel retail channel,” he says.

Indeed, Agwa de Bolivia has wide-ranging appeal, with ingredients such as Chinese Green Tea, African Mint, Amazonian Guarana, Argentinian Black Mountain Tea, Ginseng, Lavender and Cucumber in its recipe. Furthermore, the liqueur can be served in a variety of ways, from frozen in a shot glass to mixed as a key ingredient in cocktails.

“The brand is already a huge success in the Korean and Australian domestic markets and we are hoping to have some new listings very soon in global travel retail to report,” One of Barry Global Geoghegan says.

Innovation’s latest partnerships Barry Global Innovation will again be exhibiting at the is with Concha y Toro Paul Sapin booth in Blue Village H17 at this year’s TFWA WE. Geoghegan notes that in addition to the above, attendees will be able to see how Paul Sapin is sharpening its focus on travel retail by focusing on the gifting opportunity. “The World Wine Cellar gift set was a huge success, and given the fact that operators are now clear on the benefits of multi-layer PET bottles, Paul Sapin will be positioning itself as ‘the travel retail wine gift specialists’ with a new gift pack,” he explains. “We will be showing our new ‘French Classics’ premium gift set for the first time—an offering that is sure to be very popular with our Asian customers.” c

Barry Geoghegan (center) with King Power Group’s Sunil Tuli (left) and Antares Cheng (right); Chateau Bernadotte was recently purchased by Cheng and is now working with Barry Global Innovation

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British American Tobacco GTR Asia Pacific

CAPITALIZING ON OPPORTUNITIES

by RYAN WHITE

British American Tobacco Global Travel Retail Asia Pacific launches a wide range of innovations to take advantage of the boom in travel—and duty free purchases—in Asia

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ritish American Tobacco has always been known for its innovative products, and this year the company has developed a number of new offerings that are sure to add some excitement to the category at the TFWA exhibition in Cannes. New products from the supplier include 555 Platinum, the Dunhill Grand Cru Special Reserve range and Lucky Strike Click & Roll Fresh.

Asia Duty Free sat down with Justinus Nurman, Head of Global Travel Retail Asia Pacific at British American Tobacco to discuss the latest offerings and the company’s business in general in Asia travel retail.

Asia Duty Free: Will you be showcasing any new products/variants at Cannes this year tailored towards Asian adult tobacco consumers?

Justinus Nurman: 2013 has been a year full of excitement as we have launched quite a number of new products. Dunhill has introduced a new super premium range called Dunhill Grand Cru Special Reserve, which has two variants. The Dunhill Grand Cru Special Reserve Uganda Taste contains 61% Virginia, Burley and delicate Maryland tobaccos acquired from the Nile Valley, Uganda during the special year of 2010.

This harvest was carefully laid down, allowing layer upon layer to mingle and mature, balancing and perfecting the flavor.

Eighteen months later this leaf, enhanced by time and nature, was complimented with the finest Maryland and Oriental tobaccos. The resulting sensation has a deeper, toasted experience with hints of spice and cedar wood. The Dunhill Gran Cru range can be found in Hong Kong Airport and Singapore Changi Airport.

Riding on the State Express 555 house upgrade, State Express 555 Platinum was launched earlier this year. Its exclusive blend features premium Brazilian tobacco with an extraordinarily and distinctively smooth taste.

Indeed, the unveiling of State Express 555 Platinum is in line with British American Tobacco’s strategy of delivering the full range of prod-

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uct choices that meet adult smoker preferences. It is well positioned within a range of premium and consistently high quality products, especially key in the all-important travel retail and fast-emerging luxury segments in China. The variants can be found in major Asian locations, including China, Hong Kong, Singapore and Japan.

ADF: We know that British American Tobacco International is a pioneer when it comes to capsule technology. Will attendees at TFWA WE see anything new in this regard?

JN: Capsule products have enjoyed a high level of success in Asia, for example Kent iSWITCH in Japan and Dunhill Release. The capsule innovation involves a menthol blend with a real difference. Kent iSWITCH features a small liquid-filled flavor capsule inside the filter that can be activated by the consumer to change the taste of their cigarette.

This year, we have introduced another new member to the Lucky Strike brand family in Hong Kong and Singapore, Lucky Strike Click & Roll Fresh. The variant offers a distinctive yet balanced experiThe Dunhill Grand Cru Special Reserve range, offering discerning adult consumers an experience not unlike enjoying a fine wine vintage

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dav_tb

British American Tobacco GTR Asia Pacific products under different brands, namely State Express 555 Platinum and Dunhill Special Reserve, as previously mentioned.

For travelers looking for new generation cigarettes, we have been launching innovative products to deliver additional consumer value, such as the capsule product, Lucky Strike Click & Roll Fresh. For travelers looking for superior products beyond the normal brand and product, we have been actively bringing various travel retail exclusive offers under different Justinus Nurman, Head of Global Travel brands to meet their demands.

Retail Asia Pacific, BAT ADF: What are the top three regions in Asia you’re concentrating on in terms of travel retail? Why do you feel these regions show particular potential? ence through a unique harmony of freshness and real tobacco taste.

JN: For Asia Pacific, China continues to be a key growth engine in the Consumers are introduced to a gentle, fresh taste from the start. Upon region with its growing wealth and affluent class. Asian governments clicking the green capsule, consumers can increase the fresh taste with are keen to support the growth of the travel and tourism industry with a twist as and when they choose. airport expansion plans and huge marketing investments to promote their countries as a destination of choice. The growth of budget airADF: Special editions are also something that British American lines is another significant force to fuel passenger growth by making Tobacco is known for. Are there any new special editions to be traveling more affordable for more people. released in Cannes?

JN: In travel retail environments, Asian adult consumers pay special ADF: What challenges do you feel will present themselves in Asia attention to special edition products exclusive for travel retail. British travel retail in the next 12 months?

American Tobacco continues to work hand in hand with our customers JN: Asia is a very dynamic region, which still has its fair share of ups to leverage on those unique qualities. We continuously provide travel and downs in all areas, from political and economic to social. Travel retail exclusive offers to support our customer partners to meet this retail as an industry is not immune to all of these variables. In fact, unique demand amongst travelers. the travel retail industry will be among the first that gets affected by them. Just like other industries, over the next year, Asia travel retail ADF: Can you tell us a bit about the profile of your adult consumers will face challenges related to the uncertainties of the global economy, in the Asia Pacific region and how you’re targeting them? the impact of some political tensions in certain areas, as well as inflaJN: Adult travelers looking for superior brands and products are tionary pressures. On the regulatory front, tobacco control legislation indeed our key profiled adult consumers because we believe that British will continue to appear in some countries.

American Tobacco is in the best position to meet these travelers’ needs with our wide brand and product portfolio. For the ever-increasing ADF: What do you feel is the major opportunity for your brands Chinese travelers and luxury-seeking travelers who are keen on in Asian travel retail in the next 12 months? super-premium products, we have launched several super-premium JN: Growth in traveling passengers is definitely the first step to fuel growth in travel retail. Recovery of the world economy is coming into sight and this will surely encourage more traveling, be it for business or leisure.

China will continue to maintain relatively strong economic growth, so the growth of Chinese traveling passengers is expected to present a major opportunity for us. With the successful State Express 555 house upgrade and new variants added to the brand family, it is well positioned to capture the growth in Chinese traveling passengers. Our other super-premium and travel retail exclusive offers will further help us win their purchases. c

“China will continue to maintain relatively strong economic growth, so the growth of Chinese traveling passengers is expected to present a major opportunity for us.”

State Express 555 Platinum’s exclusive blend features premium Brazilian tobacco with an extraordinarily and distinctively smooth taste

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British American Tobacco is a pioneer in capsule technology; pictured is the new Lucky Strike Click & Roll Fresh

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ASIA DUTY FREE & TRAVEL RETAILING

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