Asia TFWA AP May 2018

Page 1

TFWA AP 2018



Incheon opens new terminal p. 14  Mongolia’s high potential p. 30  Research drives Mumbai Duty Free sales p. 40

Letter from the Editor

Asia expansion W

ith every passing year TFWA Asia Pacific in Singapore continues to grow, and that is a reflection of the ever-increasing importance of the region in global travel retail. Given the iconic role Singapore’s Changi airport has created for itself in the industry and its constant evolution, it is appropriate that the event takes place in that city. Most recently, the airport announced the appointments of a number of senior positions providing architectural design and engineering consultancy services for the development of Changi Airport’s new Terminal 5. Last year the airport saw over 62 million passengers, and the new terminal will help increase the capacity by another 50 million. Air traffic in the region may be on an upward swing, but Incheon airport’s duty free has suffered after a plunge in the number of Chinese tourists to Korea. The airport has put up a notice of tender after leading retailer Lotte pulled out of three of its shops. Applicants must be prepared to launch in July. While airports are always top of mind in the travel retail industry, in Asia the booming cruise industry is of particular interest. With an annual growth of more than 40%, Asia is emerging as one of the most significant cruise destinations and cruise source markets in the world. Starboard is expanding in this area, partnering with prestigious brands and offering special invitation-only events for guests. Other Asian markets showing growth in the cruise market include Taiwan, Japan and India. Dufry has also been making news in the global cruise industry, and is now adding railway stations to its airports and cruise ships. The travel retail giant has won the duty free contract for Hong Kong’s state-of-the-art railway station in Hong Kong, serving the High Speed Rail connecting to Mainland China. This significant win will help drive more business in Asia and help in its strategy to expand into additional and alternative channels other than airport retail. Mongolian and other land border crossings are the focus for Prestige Supplies Inc. in its bid to diversify its customer base, though this country offers logistics challenges. The company has a land border shop in Boten, Laos, bordering China; in Tachileik, Myanmar, bordering Thailand; and a flagship store in Bavet, Cambodia, which has a retail area of 2,000 square meters, bordering Vietnam. You can read about these significant developments, brand news and much more in this issue of Asia Duty Free & Travel Retailing. We wish you great success at the event. Kindest Regards,

Hibah Noor Editor-in-Chief


MAY 2018 · TFWA AP · VOL 22 · NO 1 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. The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or editor. May 2018, Vol 22, No.1. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. ©2018 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 PUBLISHER Aijaz Khan EDITORIAL DEPARTMENT EDITOR-IN-CHIEF Hibah Noor ASSOCIATE EDITOR Jas Ryat SOCIAL MEDIA COORDINATOR Eman Khan ADVERTISING AND MARKETING MANAGER Kevin Greene ART DIRECTOR Jessica Hearn CONTRIBUTORS Mary Jane Pittilla Rebecca Byrne Claire Malcolm




What’s inside Lead Stories 14 Incheon Airport Second to none

South Korea’s main international gateway, Incheon Airport, opened its much-anticipated second terminal in January 2018


16 Everrich

Everrich hails Penghu’s largest duty free shopping mall More than 100 local and international brands have begun trading in the first large-scale shopping complex in the Taiwanese beach resort of Penghu

22 DFS Group A master plan

Asia Duty Free magazine recently spoke with Sibylle Scherer, DFS President Merchandising and Consumer Marketing about the benefits of consumer focused events

30 Prestige Supplies Inc

Mongolia’s high potential Thanks to investments in Mongolia from Japan and South Korea, Prestige Supplies Inc is diversifying its customer base

40 Mumbai Duty Free

44 Chinese tourism trends

A dedicated research program, recent retail developments at Chhatrapati Shivaji International Airport and hugely successful phase one of its ‘Mumbai Duty Free is now free’ campaign, have set the scene for Flemingo in 2018

A new report provides in-depth analysis into the current payment behavior of Chinese tourists overseas

Research focus driving Mumbai Duty Free sales

36 Starboard Cruise Services


With an annual growth of more than 40%, Asia is emerging as one of the most significant cruise destinations and cruise source markets in the world

Eraman celebrates 25 years Dufry on fast-track Chinese shopping habits Sydney Airport transforms offer

Setting Sail

26 34 48 54

The future is mobile for Chinese tourists

A digital marketplace takes shape Moroccanoil strikes oil MCM’s business goals FOREO changes beauty game

58 64 66 72


Lead Stories 74 Anthon Berg

A sure-shot success Anthon Berg continues to live up to its “You can never be too generous” motto by presenting its new Deluxe range and focusing on the ever popular liqueur bottles

81 Imperial Tobacco Blu smoke

blu launches next-generation e-vaping device in sleek new format

84 Beam Suntory Time for Toki


The House of Suntory has introduced a game changer with its new blended whisky product


86 Kavalan

Kavalan’s grand plan Highly decorated whisky Kavalan hails from the quaint city of Yilan, Taiwan, and is making a big impact globally

88 Distell

Distell to take operators on an African journey Distell is ready to share the hidden gems of South Africa with travel retailers and is going full speed ahead

94 Kremlin

New Russian vodka brand is born to rule in travel retail Originally only produced under the orders of the Kremlin in limited supply, Kremlin Award vodka is now looking to generate the same exclusive reputation in travel retail

81 Features Toscow cruises ahead Repetto steps into Asia Ritter’s towering success Diverse Flavours on a mission Liquor news

68 70 76 80 82

WGS takes Singapore by storm Chinese premiumization Macduff’s Asian appeal il miogusto shines Questionnaire: Gemma Bateson

90 92 95 96 98

Incheon Airport

Second to none South Korea’s main international gateway, Incheon Airport, opened its much-anticipated second terminal in January 2018 by REBECCA BYRNE

Incheon Airport opened its second terminal in January 2018



he opening of Incheon airport’s second terminal came just ahead of the Winter Olympics held in South Korea, significantly increasing passenger capacity during the event. The new terminal (T2) will allow 18 million more passengers to pass through the Seoul-area hub each year. It is anticipated that about 27% of total passengers using Incheon airport will pass through T2. This has had an uplifting effect on duty free sales airport wide as in its first month T2 accounted for approximately 29.3% of duty free sales. As a result, 2018’s Incheon airport duty free sales will likely surpass 2017’s recordbreaking duty free sales of $2.1 billion.

Large selection at T2

The new terminal features unique duty free shopping and eating opportunities within a total floor space of 387,000 square meters. The country’s big three duty free shop operators, Lotte, Shilla and Shinsegae each have stores in T2, offering different shopping selections. Lotte, for example, offers 110 brands of alcohol, tobacco and packaged food in its 1,407-square-meter store. Of note are its boutique stores including Ballentine’s, Johnnie Walker, Royal Salute, Hennessy, KT&G and IQOS. Shilla focuses on cosmetics and fragrances in its 2,105-square meter store.

Flagship stores with unique shopping experiences include Dior, Sulwhasoo, Lancôme, SK2, Estée Lauder and Chanel. Shinsegae has the biggest retail space, with its 4,300-square meter store selling 190 brands of fashion and accessories. These include Chanel, which returns to the airport since pulling out in 2015, and – exclusive to domestic duty free shops – Valentino.

Popular brand options

During January, the best-selling brands at T2 were Korean Tobacco and Ginseng (KT&G), Chanel and SK2. This is a similar profile to T1, where last year’s best

The food and beverage offer at T2 is extensive, with everything from popular fast food options to Michelin-starred restaurants

Shinsegae has the largest retail footprint, with its 4,300-squaremeter store selling 190 brands of fashion and accessories

sellers were KT&G, Louis Vuitton and Cheong Kwan Jang. The food-and-beverage offer at T2 is also extensive, showcasing familiar names such as Paris Baguette, Shake Shack and Jamba Juice, and a more luxurious dining experience with two-Michelin-starred South Korean Chey Yim Jung-Sik, serving “Naengmyun” and Pyongyang-style cold noodles at his restaurant Pyungwhaok.

Negative impact

Overall duty free sales in South Korea have been impacted by the well-documented THAAD crisis. Since last year, Seoul and Beijing have been at odds over Korea’s

The new terminal will cater to 18 million passengers

decision to install the US Terminal High Altitude Area Defense system in South Korea, with China taking various boycott measures against South Korean firms. According to CK Kim, Executive Director of Concession Development Group, however, sales figures this year offer a hopeful sign, showing increases over the previous January and February by 13% monthly. The positive impact of T2 undoubtedly helped buoy these figures, but signs had already been positive. Even with the many challenges of 2017, such as a reduction of Chinese passengers by 22%, duty free sales have rose by 4.1% compared to 2016. Kim adds: “Better relations among countries surrounding Korea will be beneficial to our industry in 2018.” He clarifies that the dependency of Incheon airport on Chinese customers is relatively low thanks to the passenger numbers of Korean and other nationalities. Another controversy dogging the airport is Lotte’s withdrawal from T1. In March 2018, Lotte informed Incheon International Airport Corporation that it would be pulling out of its leases for P&C, leather goods and fashion and all items in Concourse by July. This was in response to reduced Chinese customers, due to THAAD, and high rental costs. An international bidding process began in April 2018, with a new operator appointed by the end of June, ready to run the stores from the beginning of July. Kim does not believe that the change of operator will have an impact on duty free sales.

Increasing spend

Incheon airport has various promotions targeting customers from specific foreign countries. PREMIUM FRIDAY, for example, is aimed at Japanese customers. Those who screenshot the coupon image from the airport’s duty free website receive a voucher for duty free shopping. Other promotional activities such as partnerships with overseas credit card companies offer discounts or a prepaid shopping card, all to help push sales. Kim believes that passenger volume will continuously grow in 2018, leading to increased duty free sales. He says, “Passenger volume and the average amount of money a customer spends are the components that affect duty free sales. Passenger traffic is expected to steadily increase in Incheon International Airport. Chinese regulation against group tours to Korea seems to be lifted by the government, and LCCs are showing constant growth.” Average spend seems to have stagnated, however, and Incheon Airport is looking at strategies to counter this. The airport is offering promotions in both T1 and T2, such as a receipt lottery competition, with prizes to win airline tickets or a $1,000 voucher for airport duty free – all designed to lift sales.

Chinese passengers in T2

Kim does not believe that the passenger numbers in T2 will have a diluting effect on sales in T1, as the two terminals have mutually exclusive passengers and are not in a competitive setting. T1 and T2 together showed increased sales of 13% in the first two months of 2018, compared to the previous year. He adds: “Since future passenger numbers are expected to increase constantly both in T1 and T2, customer purchase would rise accordingly.” Interestingly China’s purchasing power is much stronger than expected at T2. Even though all Chinese airlines are operating at T1 or Concourse, the proportion of Chinese purchase is higher by 7% in proportion to the total sales in T2 than in T1 and Concourse together.


duty free shopping mall More than 100 local and international brands have begun trading in the first large-scale shopping complex in the Taiwanese beach resort of Penghu


verrich has celebrated the soft-opening of the Discovery Hotel & Profond Pier 3 Duty Free Complex in the Taiwanese resort of Penghu. Described by the Taiwanese duty free operator as “a really exciting project”, the complex is the latest tourism landmark in Penghu. The complex, which aims to offer a “different and extraordinary” experience, soft-opened on February 14, the day before Chinese New Year’s Eve. In addition to a 236-room hotel and the largest shopping mall in Penghu, the project boasts a number of firsts for Penghu and even a first for Taiwan. The Discovery Hotel and Profond Pier 3 Duty Free Complex face the South Sea Visitor Center and the third port of Penghu, with spectacular harbor views. Although Penghu has been hailed as one of the most beautiful bays in the world, the strong northeast occasional monsoons prevailing in winter often deter tourists from traveling to Penghu. With this in mind, the shops carry different product categories, and the entertainment and leisure facilities have been planned to extend the tourist period and enhance Penghu’s tourism development.

Everrich hails Penghu’s largest

Everrich’s Discovery Hotel & Profond Pier 3 Duty Free Complex is situated in the Taiwanese resort of Penghu

Over 100 domestic and international brands

In addition to being the largest shopping mall in Penghu, the Profond Pier 3 Duty Free Complex introduces more than 100 domestic and international brands, spanning fashion, perfumes and cosmetics, tobacco and liquor, accessories, and jewelry. The target group focuses on the young generation, young families and corporations that can use its facility as team-building or year kick-off meetings, since Penghu possesses famous beaches, all kinds of ocean activities, and is a popular travel destination among young people. Therefore, on the retail side, the percentage of young fashion brands is slightly higher, and cosmetics also tend to center on moisturizing cream, sun block cream, and whitening products. The well-appointed Discovery Hotel features popular sports brands Nike, Adidas, Puma, Sony, and GoPro. All major cosmetics and perfume brands are available, as well as sunglasses, accessories. Victoria’s Secret is set to open soon. Prestige and luxury brands now trading include Coach, Tumi, All Saints, Furla, Montblanc, Kate Spade, and Samsonite. A highlight of the mall is the first Godiva lifestyle store with products at duty free prices.

Many brands make their debut in Penghu, such as All Saints, Furla, Kate Spade, agnès b, Champion, and H:CONNECT. Brands coming soon include Polo Ralph Lauren. The mall also boasts the first Tomod’s drugstore in Penghu as well as famous food stands from different parts of Taiwan, brought to Penghu for the first time.

Whisky to the fore

Whiskey 101, located on the second floor of the complex, is Taiwan’s first and biggest Whisky Concept Museum, showcasing many types of whisky, from domestic to international, on a large scale. Taiwan is one of the world’s largest single malt whisky markets, tied with France and only behind the US, and is a developed and sophisticated market. However, not many Taiwanese have visited a whisky distillery or really understood the production process, Everrich explained. The exhibition showcases distillery equipment, as well as allowing visitors to experience the aroma of different casks. Leading Taiwanese brand Kavalan Whisky will launch various experiential activities, and rare whiskies will be displayed. The hotel and shopping complex is expected to be opened to


Whiskey 101 is located on the second floor of the complex, is Taiwan’s first and biggest Whisky Concept Museum

the public in March. Entertainment includes personal karaoke boxes and a lucky bag vending machine. In the future, there will be outdoor music festivals, a sky cinema, a fun fair and many regular events. The complex also takes into account environmental protection, contribution to the community as well as enhancing tourism development. “The Discovery Hotel and Profond Pier 3 Duty Free Complex will play an innovative and industry-leading role in upgrading local tourism development and creating a diversified recreational space for every traveler and customer,” says Everrich.

Taiwan’s biggest indoor X-Sport space

One of the most exciting facilities in the new complex is expected to be the Go Star Challenge, billed as Taiwan’s biggest indoor X-Sport space. The facility, which covers 1,679 square meters, is the work of the Everrich team alongside the Bulgarian manufacturers.

The complex features popular sports brands Nike, Adidas, Puma, Sony, and GoPro


The challenge has four sections, including augmented reality (AR) climbing. This AR technique is a first for Taiwan. As well as being the biggest indoor X-Sport court in Taiwan, it is also suitable for group competitions and corporate team-building activities. The complex also introduces the cinema brand “in89 Deluxe Cinema” to Penghu. The well-equipped cinema introduces the first BoomBoom children’s rooms, which enable a younger audience to drive a mini sports car to the cinema hall, and throw themselves around the artificial turf to watch the movie. There are about 45 flights flying from the Taiwanese mainland to Magong daily with a journey time of 50 minutes, while 10 ferries travel from the mainland to Magong each day. Penghu attracted more than 1.15 million visitors in 2017, which represents steady growth of 6% every year.


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DFS Group

A master


Sibylle Scherer, DFS President Merchandising and Consumer Marketing


Asia Duty Free magazine recently spoke with Sibylle Scherer, DFS President Merchandising and Consumer Marketing about the benefits of the consumer focused events More than 30 Cognacs and whiskies were presented at the Masters of Wines and Spirits

Asia Duty Free: How many special events does DFS hold in Asia? Sibylle Scherer: In terms of our Masters series, our key events are our Masters of Wines and Spirits event, held each year in Singapore in partnership with Changi International Airport, and Masters of Time, which we hold in Macau. We also hold numerous other key events in our stores around the globe. Our global First Class Beauty event was held for the fourth time last year, across 22 DFS stores. This is an annual offering of beauty experiences, events and promotions from the world’s leading beauty brands. Also, The Whiskey Festival has become incredibly popular; kicking off at DFS, Singapore Changi Airport in May last year, it traveled to eight other locations across Asia, the Middle East and North America, bringing together over 300 whiskies. Our customers were able to discover and taste some of the world’s best whiskies including rare, limited edition bottles exclusive to DFS.


ADF: Who are these events targeted at? SS: Our Masters events are first and foremost a celebration of our customers. We bring together the very best products from some of the world’s most well-known brands, along with brand representatives who are often the creators of those products, and we present both of these elements to our most loyal customers. The result is a series of events that are stunning from a sensory perspective, as well as highly educational – customers learn more about the categories on offer, and our brands get to hear directly from our customers about what they love. The response is always incredibly positive; our customers truly appreciate the lengths that we go to with the Masters Series. They feel celebrated and appreciated, especially in knowing that they are able to influence our product selection throughout the year, as we take their feedback very seriously. This year’s Masters of Wines and Spirits event is a perfect example of the experience we strive to offer our customers. It presented an extraordinary collection of over 120 Cognacs, wines, and whiskies from more than 60 legendary houses, and many were exclusive or limited edition pieces. As well as being the first to view the collection, our guests were given the opportunity to interact with brand ambassadors while delving into the creation of each bottle in a “master class” format that offered a truly authentic and privileged insight into the products.

Available at the Singapore Masters of Wines and Spirits event were three exceptional distillery releases from 1988, 1989 and 1990, presented as the oldest and rarest whiskies of Bruichladdich


Berend-Jan van Egmond Global Sales Manager Travel Retail The Kraft Heinz Company Mobile: +31 6 23 79 43 90

il e a et ang r l r e av s i ve r T lu c ex

DFS Group

The Aultmore Cast no 1635 was created for Masters of Wines and Spirits

ADF: What tangible benefit do you see from the events? SS: Of course these events are commercial as well as experiential. Our customers are able to browse, experience, and then purchase. In the case of Masters of Time, held each year in December in Macau, what really differentiates this event from other global watch and jewelry exhibitions is that it is the only event of its size and nature where anyone can walk in and purchase. It is not just for collectors or brands. Similarly with Masters of Wines and Spirits – this year was the first time we held the event over two days in Singapore, thanks to customer demand. While our guests are always able to benefit from duty free pricing by collecting their chosen products at Changi Airport, we also offered a selection of products that were available on the spot at duty-paid prices.

tage and close relationships with the brands are key here. We are able to offer many “firsts” and exclusives, not only in travel retail but often in the category itself. No sooner has one event finished than our merchants are already seeking quality products for the next year’s event! We also pride ourselves on introducing these exceptional assortments in our locations worldwide. In Singapore in particular, we have our “Changi First” program, where we work with the brands to launch worldwide or in Asia exclusively at Changi Airport.

ADF: What decides the location of the event? SS: Our first priority is to host the event where we can both celebrate one of our signature destinations and offer our customers a shopping experience that matches the excitement of the gala event. Singapore is the birthplace and home of Masters of Wines and Spirits because the city state is the seat of DFS’ flagship wines and spirits duplex stores at DFS, Changi Airport’s Terminals 2 and 3. We opened a wines and spirits store last year in T4, and we also operate at T Galleria by DFS on Scottswalk Road and at the Singapore Cruise Center. We hold these events in downtown locations because it would simply be unfeasible to provide so many guests with access to an airside event at an airport. Masters of Time is held in one of our largest T Gallerias in Macau, while Masters of Wines and Spirits moves each year to a new location either within our stores or elsewhere in Singapore. We see over 450 people each year at our Masters of Time events, while this year Masters of Wines and Spirits hosted more than 800 attendees over two days.

ADF: Any new events planned for 2018? SS: This year, we are adding a further dimension to Masters of Wines and Spirits by exhibiting a selection of these incredible products in Macau and Hong Kong later in the year. This is in response to demand by our customers, and we are very excited to be able to share the very best whiskies, wines and Cognacs with them in these locations. Then, we will prepare to unveil the next Masters of Time event. This will be our tenth, and we are planning to celebrate this milestone in a very special way, so do stay tuned!

ADF: How do you choose the products to highlight? SS: Our Masters Series events are the culmination of a year-long search by our talented and knowledgeable merchants at DFS to curate the very best products they see while in market. Our heriThe annual Masters of Time event is held in one of DFS’ largest T Gallerias in Macau


Over 450 people each year attend the Masters of Time event

Malaysia Airports

During 2017 Eraman has capitalized on increased passengers to its airports

A year to celebrate As Eraman celebrates its 25 year anniversary, the company’s strategic plan implemented over the past years has put the company on track for future growth Zulhikam Ahmad, General Manager, Malaysia Airports (Niaga) Sdn Bhd



alaysia Airports (Niaga) Sdn Bhd, also known as Eraman, is the largest airport travel retail and duty free brand in Malaysia. Operating more than fifty retail and F&B outlets, including kiosks, it offers a wide range of world-class and exclusive products ranging from premium chocolate to liquor, wine and spirits, skincare, cosmetics and fragrance as well as tobacco products in the country’s international and domestic airport. 2017 was a year of strong growth for Eraman due to increased passenger movements at all Malaysian international airports. This has led to increased duty free sales particularly at KLIA, klia2 and Kota Kinabalu. The sales trend for category growth for 2017 was strong with perfumes and cosmetics, and chocolates leading the way. This was helped by: favorable passenger movements; strong marketing partnership and collaboration with major financial players; joint campaigns and promotions with brand principals; and umbrella campaigns and contests. Last year also saw the launch of the Eraman Shopping Extravaganza “Buy & Win” Contest for its second consecutive year. The contest, comprising of three phases, which is ending in May 2018, reinforces the Eraman’s brand value and offers customers bigger and better prizes worth RM1 million throughout its duration. The first two phases of the contest that ran during 2017 attracted more than 300,000 entries with majority of participants from Malaysia, China, and India, which is consistent with the nationalities that spend the highest within Eraman stores.

Malaysia Airports

To cater to the increasing Chinese visitors to the country, Eraman partnered with Alipay, the world’s largest online and mobile payment platform as well as Union Pay International, the fast growing global payment network. Both strategic partnerships saw attractive offerings in-stores for customers whilst giving the convenience in payments and an enhanced customers’ experience. Eraman also fosters strong relationships with its brand partners especially leading beauty houses. In October 2017, the company worked with Dior to introduce an innovative perfumes and cosmetics boutique at Contact Pier, KLIA. It has also worked closely with the many high profile perfume and cosmetics brands and is looking to bring in more well-known brand names in the near future. In the F&B category, Eraman won the Kulinary Top 25 Dining Choice Award 2017 for Bibik Heritage and Food Garden. The brands involved were Mamak Kandar Rice, Pantai Timur, Nyonya Taste and Selera Nusantara. Eraman also received the ‘Best Supporting Partner’ award during the 2017 Concessionaires Conference. In August 2017, Eraman expanded its F&B franchise business under Gloria Jeans Coffees brand with the introduction of a kiosk at the Arrival and Departure Halls in KLIA. Moving forward, in conjunction with Eraman’s 25th Anniversary, Eraman will roll out its brand refresh in a coordinated approach covering the website, uniforms and store, and is on track to launch its refreshed brand by quarter three in 2018. The annual Buy & Win Contest has made a positive impact on sales


Eraman has worked with partners such as Dior to introduce new concepts Eraman is set for a year of growth

Fin Base d us at m Boo ent 2, th E 28


Prestige Supplies Inc

Mongolia’s high potential by HIBAH NOOR

Prestige Supplies’ Christmas corporate event recognizes its staff and celebrates its annual success in Mongolia

Thanks to investments in Mongolia from Japan and South Korea, Prestige Supplies Inc is diversifying its customer base


ude Kumar, Supply Chain Manager, Prestige Supplies Inc, talks to Asia Duty Free about the fascinating Mongolian market, where the company is expanding its product offering in categories such as perfumes and cosmetics, luxury and fashion to target a growing customer base. Asia Duty Free: Can you tell me about your business in Mongolia? I understand it’s a good place to target the Chinese and Russian market. JK: We were the first operators to start a duty free outlet in Mongolia and it has been a decade since we opened our first duty free shop, a land border shop between Mongolia and China in ZaminUud. The following year we moved to the capital Ulaanbaatar to open a duty free shop in the airport, and ever since 30 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

we have opened many duty free stores bordering Russia and China, and even a diplomatic downtown outlet. The business is operated by team of people with a thorough knowledge of the Mongolian market, always looking for opportunities and constantly expanding our retail business. Our main customers are Mongolians, Chinese and Russians, and with investments from Japan and South Korea in Mongolia, it has only diversified our cus-

tomer base. The future is very promising for our retail business. ADF: How many stores do you have in Mongolia? JK: Currently we have seven duty free outlets including airport, downtown, diplomatic and border duty free shops. ADF: Have you opened any new stores? JK: Shortly we will be opening a couple more.

Prestige Supplies Inc

ADF: Your company runs a Christmas corporate event in December where Prestige Supplies staff get together. Can you tell me about this program? JK: Our Christmas corporate event recognizes our staff and celebrates the yearly success of our business. Mongolia can get very cold during winters and dip to -30 degrees, so logistically to move our stocks is very challenging, but we have the best team who make sure the products are on the shelf at the right time, with a worldclass customer service from our sales staff. Our success would not be possible without our business partners (suppliers), who also attend this event. Our stakeholders are also present. ADF: Apart from Mongolia, what other store locations does Prestige Supplies have? JK: We have our land border shop in Boten, Laos, bordering China; in Tachileik, Myanmar, bordering Thailand; and our flagship store in Bavet, Cambodia, which has a retail area of 2,000 square meters, bordering Vietnam. ADF: What is Prestige Supplies’ strategy for 2018? Can you tell me about new developments? JK: We are very strong in the traditional product categories. For 2018 we want to expand our offering in categories such perfumes and cosmetics, skincare, luxury and fashion, giving our customers a wider range of international products with the right pricing. The development and training of our staff is always our highest priority as they are the ambassadors of our organization and make sure the customer has the best experience in our outlets. 32 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

Prestige Supplies Mongolia fact file: Airport shop: Mas L’ecrin Duty Free at Chinghis Khan International Airport, Ulaanbaatar, Mongolia (55 square meters) Chinghis Khan International Airport is serviced by the following international airlines: MIAT Mongolian Airlines, Air China, Korean Air, Turkish Airlines. 1,094,974 inbound/outbound passengers in 2015 Downtown shop: Ambassador Duty Free, Ulaanbaatar, Mongolia (110 square meters) Land border duty free stores with Russia and China (4,324,975 inbound/outbound passengers in 2015): VIP 2 Duty Free Shop – Altanbulaag (Russia) 155 square meters Batsari Duty Free Shop – Zamin Uud (China) 65 square meters Batsari Duty Free Shop – Gashun Sukhait (China) 45 square meters Passport Duty Free Shop – Gashun Sukhait (China) 40 square meters Cheetah Duty Free Shop – Shivee Khuren (China) 40 square meters

Dufry Group


to success

Dufry wins Hong Kong’s High Speed Rail station duty free contract


ufry wins the tender to operate the duty-free stores in the new state of the art railway station in Hong Kong serving the High Speed Rail connecting to Mainland China. This is a significant win for Dufry as part of its drive to develop more business in Asia and is another important milestone in its strategy to expand into additional and alternative channels other than airport retail. The store development will include a Departures shop covering 1,200 square meters and an Arrivals shop of 300 square


meters. Dufry is now focused on delivering state of the art ‘flagship’ stores that showcase its expertise and are tailored to meet the needs of Chinese and Hong Kong travelers. The stores will include the core categories of beauty, liquor and tobacco, confectionery, fashion and also health and wellbeing, which is a very important category in the Asian market. Commenting on the new store development, Andrea Belardini, Dufry Divisional CEO for Asia, Middle East, Australia and Eastern Europe said: “The development of this new railway station is

a major project and we are delighted that we have been awarded with the contract which runs for five years. The duty-free experience that we are set to deliver will represent another important milestone in our drive to expand in the region and a great opportunity to showcase Dufry’s capabilities in the highly competitive market of Hong Kong. We look forward to working closely with the High Speed Rail team to develop a world-class store that reflects the vision they have for this prestigious new station.”

Starboard Cruise Services



Starboard Cruise Services introduces Tiffany boutique, World Dream, Asia’s first Tiffany & Co. at sea


With an annual growth of more than 40%, Asia is emerging as one of the most significant cruise destinations and cruise source markets in the world. Guests enjoy a set menu showcasing exclusive Tiffany treats and British delicacies at High Tea with Tiffany at Sea on World Dream


uring 2017, Asia’s booming cruise industry saw 10,196 operating days scheduled, a 137% increase from 2013, according to Cruise Lines International Association. This effectively tripled the total passengers from 1.5 million in 2013 to 4.2 million. There has also been a 53 per cent growth in ships cruising Asia in the same time period. Derek Wong, Starboard Cruise Services Vice President and General Manager, Asia believes Starboard is well placed to capitalize on the opportunities offered by this dramatic growth, saying: “Our greatest strength is in elevating the guest experience and turning shopping into an integral part of the cruise journey. We’ve been highly successful doing this for a while across all our markets by creating one-of-a-kind, exciting experiences and showcasing the best brands in the world in beautiful shops.”

Chinese passenger growth

China is a main driver of cruise passenger growth in Asia, adding more than one million passengers since last year alone. Starboard works closely with its cruise ship partners such as Costa Asia to create retail experience targeted at Chinese travelers, who make up the majority of the China itineraries. With an average


Starboard Cruise Services

The Global marine debut of a Dior Jewelry and Watches boutique was launched on World Dream

The Tiffany & Co partnership is being expanded with the launch on on Royal Caribbean’s Quantum of the Seas

age over 50, they are attracted to quality brands but also want their shopping to include fun with family entertainment. They also like to bring home a memento of their cruise vacation. Popular categories for Chinese travelers are fine jewelry, beauty products and fine watches. Successful watch brands include Cartier, Jaeger-Lecoultre, Omega and IWC. In beauty, top brands comprise SK-II, La Prairie, La Mer and Estee Lauder, and in jewelry, it’s Tiffany, Bulgari, Mikimoto and Hearts on Fire.

Popular events

Starboard works with several key brands to offer unique events designed to engage its guests. For its grand opening of the Bulgari boutique, Starboard served guests champagne and entertained them with dancers wearing Bulgari jewelry. During select voyages the company offers experiences such as Captain’s Collection watch events; beauty events, including beauty consultations and makeup seminars; fashion shows; and shopping shows to highlight featured collections. Wong comments: “These are great opportunities


to achieve visibility for our brands and drive sales.” Recently Starboard secured partnerships with Tiffany & Co. and Dior. On Dream Cruises’ World Dream, it opened the first Tiffany & Co. at sea in Asia, as well as the first boutique at sea in the world for Dior Jewelry and Watches. To celebrate Dior’s debut, World Dream guests were invited to several events, including “Lady Dior,” an afternoon tea event with entertainment, and a Chinese New Year Limited Edition Private Viewing for specially invited guests. The Tiffany & Co partnership is being expanded

with the launch on on Royal Caribbean’s Quantum of the Seas.

Further expansion

Other Asian markets showing growth in the cruise market include Taiwan, Japan and India. Starboard ensures its approach to experiential cruise retail is equally attractive and customized to all of these audiences. Along with Malaysians and Singaporeans who enjoy the Southeast Asian itineraries, Starboard customers respond well to its shopping guarantees: the best authentic product and best quality at favorable prices.

When I travel, I feel exhilarated!!

Maoli 猫力, Travel Writer in Auckland

Travel inspires my food and curiosity!

Yuna, Singer-Songwriter in Singapore

一 起 旅 行 #LetsTravelTogether Marcus Samuelsson, Chef & Restaurateur in Angkor



Mumbai Duty Free

Research focus driving Mumbai Duty Free sales 40 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

A dedicated research program, recent retail developments at Chhatrapati Shivaji International Airport and hugely successful phase one of its ‘Mumbai Duty Free is now free’ campaign, have set the scene for Flemingo in 2018 by CLAIRE MALCOLM

Mumbai Duty Free’s bespoke i-say research program continues to be an invaluable tool for the operator

Phase two of the hugely successful ‘Mumbai Duty Free is now free’ campaign went live in February AND With added benefits from existing brands and new brands live from April onwards, the campaign is here to stay


he Q4 2017 addition of Hamleys at three locations across T2 departures was partly led by consumer research data results, with passengers at the boarding gate also clearly indicating a preference for toys as a last-minute gifting purchase opportunity, and Mumbai Duty Free’s bespoke i-say research program continues to be an invaluable tool for the operator. “The program is useful for both small and big decisions, from understanding customer demand for assortment, brands and sub-categories through to gaining their feedback on visual signage and knowing their preferred store layout,” says Manishi Sanwal, CEO, Flemingo Travel Retail. “A total of 72% of respondents ranked Additional Value provided by a retailer as their number one decision making factor, which prompted us to successful shift all marketing campaigns to deliver better shopper value,” he continues. Reaction to the Hamleys offering has been extremely positive, with Sanwal noting a number of early bestsellers. “Some of the top sellers have been construction toys, preschool/early learning toys, science kits and board games. In addition to this, musical instruments and plush toys also tend to do quite well,” he says. Expansion of the existing electronics and accessories brand portfolio is also supporting the airport’s positioning as a leading regional duty free retail destination, and was, again, the result of customer research. The recently launched Maple store carries a wide range of Apple products and world-class accessories brands. Mumbai Duty Free’s ascension to the Asia’s 100 Greatest Brands hall of fame earlier this year marked another milestone for the Flemingo team. Says Sanwal: “Receiving awards and industry acknowledgement is not only appreciation, but also encouragement for any company. The recognition on a global platform assists in strengthening vendor and supplier relations while, for consumers, it reinforces brand image, making it their preferred shopping destination.” The team has also initiated the next phase of its ‘Mumbai Duty Free is now free’ campaign, which went live in February. Conceptualized to understand the Indian traveler who seeks ‘best value’ ASIA DUTY FREE & TRAVEL RETAILING


Mumbai Duty Free

The recently launched Maple store carries a wide range of Apple products and world-class accessories brands

Manishi Sanwal, CEO, Flemingo Travel Retail

from their purchase, the campaign provides discount vouchers, redeemable coupons, and complementary experiences from partner brands, which the customer can use to make purchases at partner locations across India. And with double the value back from partner brands, the customer’s Mumbai Duty Free purchase is technically ‘free’. “The next phase was launched to stabilize the new extended benefits to all customers before the main summer travel season from April to June. With added benefits from existing brands and adding new brands from April onwards, the campaign is here to stay,” remarks Sanwal. A long-term program with “spectacular results” to date, he says that partner brand offerings will continue to change every couple of months, depending on seasonality and demand, with the overall aim of capitalizing on increasing travelers and driving sales at all three stages of their journey – before travel, at the airport and after travel. The recently launched Visa Season of Joy campaign, has also been highly successful. Says Sanwal: “Customers spending more than US$80 with their Visa cards receive a US$10 gift card to be encashed at our stores until 31 May. In addition, one lucky customer gets a INR 5,000 INR (US$80) gift card. “The initial 40-day campaign was extended by a further month due to popular demand on the part of both staff, customers and on the back of successful results for Visa.”


The addition of three T2 Hamleys stores by Mumbai Duty Free is adding new value to the passenger experience

The Visa Season of Joy program has been extended by a further month due to popular demand

Contemporar y Skincare Brand with Aesthetic Spa Origin. AHC is a contemporary skincare brand for women all over the world. It originally began in high-end aesthetic spas and dermatological clinics in Seoul.


Chinese Tourism Trends

The future is mobile for

Chinese tourists A new report provides in-depth analysis into the current payment behavior of Chinese tourists overseas by MARY JANE PITTILLA


Chinese tourists increase spending

eading market research firm Nielsen and Chinese payment specialist Alipay have published a report revealing that more than 90% of Chinese tourists consider using mobile payment while traveling overseas. In this fascinating survey, Nielsen and Alipay provide in-depth analysis into the current consumption and payment behavior of Chinese tourists overseas, as well as assessing future trends. Unlike previous studies on outbound Chinese tourists and njoying Food Shopping Romantic njoying their Food Shopping Romantic spending habits, the Outbound Chinese Tourism and ConGetaway Getaway sumption Trends: 2017 Survey examines the usage of mobile payment platforms by Chinese tourists during their overseas travels. According to the survey, a growing number of Chinese tourists expect that they will utilize mobile payment methods while traveling overseas, bringing their cashless lifestyle overseas. The survey also includes a case study on Alipay, a leading Chinese mobile payment and lifestyle platform owned by the Chinese internetof giant Alibaba Group, which highlights the influence of nese tourists different generations traveling overseas ese tourists ofmobile different generations traveling overseas Chinese payment platforms on Chinese tourists’ spending %patterns overseas. % %

According to the report, Singapore was ranked the seventh most popular destination outside of the Chinese mainland for Chinese tourists to visit. Statistics from the China National Tourism Administration show that Chinese tourists made 131 million overseas trips in 2017, an increase of 7% from 2016. Amongst these, Chinese tourists continue to increase spending during their trips. Data from the International Association of Tour Managers Adventure Adventure shows that overseas travel spending by Chinese tourists reached US$261.1 billion in 2016, an increase of 4.5% year-on-year, and ranked first worldwide. Key findings include the fact that on average, Chinese tourists surveyed visited 2.1 countries or regions in 2016-2017 and are expected to visit an average of 2.8 in 2018. Chinese tourists exhibit stronger purchasing power than non-Chinese tourists, with the former spending an average of ~1,010 SGD [US$762] per person on shopping alone based on their most recent trip. NonChinese tourists spent an average of ~645 SGD [US$486].

or Chinese Chinese tourists tourists traveling traveling overseas overseas or

55% 55%

47% 47%

52% 52

12% 12%


OBJECTIVES FOR TOURISTS TRAVELING OVERSEASoverseas (TOP 5) Objectives forCHINESE Chinese tourists traveling Leisure

58%% 58 56%% 56

30% 30%

49%% 49

Enjoying Food


Romantic Getaway


33%% 33 1010%% 78% 55% 47% 30% 12% 45%%Objectives for Chinese 23%% tourists of different1111%generations % traveling overseas 45 23

90S Post-90s



POST-Post-80s S


POST-Post-70s S


Sources:Nielsen Sources:Nielsen %



Forms of travel preferred by Chinese Forms of travel preferred by Chinese 79% and non-Chinese 58% 49% 33% tourists and non-Chinese tourists





Chinese Chinese Tourists 56%Tourists

Non- Chinese NonChinese Tourists 45%Tourists 23%


34%% 34 1313%% of travel preferred by Chinese Semi-independent travel 42%%HAS BECOME 29Forms % and TRAVELING WITH SMART COMMUNICATION NEW TRENDtourists OUTBOUND Semi-independent travel DEVICES non-Chinese 42 29 % THE Package travel Package travel



异。调查显示,接近7成的外国 CHINESE TOURISTS. Chinese Non- Chinese 异。调查显示,接近7成的外国 Independent travel Tourists Tourists 式;而中国游客的出境形式则 % % Independent travel 式;而中国游客的出境形式则 % % 活选择出游形式。去日本和去 97% of Chinese tourists will purchase a data package or make other Package such preparations for using their smart travel 34% 13% 活选择出游形式。去日本和去 于自助游;去欧洲、北美和澳新 device while overseas, inCustomized order to enjoy the many benefits of mobile internet access, such as communication, travel % % 自助游;去欧洲、北美和澳新 Customized 29%、28%和39%。 Semi-independent travel socializing, and navigation, as well as travel exploring the local attractions, dining opportunities, and shopping 42% discounts. 29% % % 9%、28%和39%。 出境游“怎么玩”:旅游形式 中国人境外旅游形式与国外有较大差异。调查显示,接近7成的外国 Chinese tourists most commonly chose international roaming forSources:Nielsen mobile phone (62%) and purchasing discounted Independent travel 游客在境外游览时会选择自助游的旅游形式;而中国游客的出境形式则 % 70% or data plan packages (50%), while 38% chose to rent global Wi-Fi,Sources:Nielsen 34% chose to purchase local49 mobile phones

49 49 25 25


70 70 2121

SIM cards, and 18% rented local mobile phones or SIM cards. 台湾的游客中,分别有65%和56%更习惯于自助游;去欧洲、北美和澳新 Customized travel 25% 21% When旅游选择私人定制游的比例更高,分别为29%、28%和39%。 using mobile phones to connect to the internet, 81% of Chinese tourists used Wi-Fi, primarily choosing free public Wi-Fi hotspots (56%) or renting local Wi-Fi devices (49%). For the post-80s and 90s generationSources:Nielsen groups, who are more likely to try new things, 55% and 52% of them, respectively, chose to use rented global Wi-Fi services.

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调查显示,不同年龄段的中国游客,使用无现金支付消费(即用银行卡或移动支付)的次数基本相同:每10次消费支付 uring the most recent overseas trip, the Chinese tourists surveyed indicated that out of every 10 payments, 4.2 过程中约7次为无现金支付。然而对更年轻的中国境外旅行者来说,移动支付对其无现金消费的增益性更为突显:每10  Chinese Tourism Trends 次消费支付,90后平均使用3.3次移动支付,3.7次银行卡支付;70后平均使用2.3次移动支付,4.9次银行卡支付。 ere bank card payments, 3.0 were cash payments, and 2.8 were mobile payments.

owever, for non-Chinese tourists traveling overseas, the use of this method was quite low—only 5 in every 100 中国游客在不同热门境外旅游国家或地区中,对各类支付方式的使用次数比例围绕均值略有浮动。在泰国,受当地

ayments were made using a mobile payment platform. 丰富的旅游娱乐项目及结算习惯影响,中国游客使用现金消费的次数比例更高;在更接近国内支付环境的香港和新加坡,

中国游客用移动支付的次数比例相对更高;而发达国家或地区,如美国、澳大利亚、日本、韩国和台湾,信用卡结算习 惯和环境更为成熟,中国游客使用银行卡支付的次数比例相对更高。 USAGE RATE OF VARIOUS PAYMENT METHODS BY CHINESE

Fact file: Alipay


Operated by Ant Financial Services Group, Alipay is the world’s largest mobile and online payment platform. Launched in 2004, Alipay 44% 30% has more than 520 million active users and Cash Cash over 200 domestic financial institution partPayment Payment ners. Alipay has evolved from a digital wallet to a lifestyle enabler, according to its creators. NonChinese Users can hail a taxi, book a hotel, buy movie 52% Chinese 42% Tourists Bank Card tickets, pay utility bills, make appointments Tourists Bank Card Payment Payment or purchase后的 wealth management 的 外国游客境外游购物 with 的 doctors, 中国游客, 中国游客的 products directly from within the app. 更 ; 游国 地 支 的消费支 , 是中国游客境外 游购物 的 In addition to online payments, Alipay is 28% 5% expanding to in-store offline payments both Mobile Mobile inside and outside of China. Over 40 milPayment Payment Source:Nielsen lion brick-and-mortarChinese merchants now accept Tourists (Sources: Nielsen ) Alipay across China. Alipay’s in-store pay41% % 40% Average times of usage of each payment method for Chinese tourists ment service covers 38 countries and41regions HE YOUNGER GENERATIONS USE MOBILE PAYMENTS MORE FREQUENTLY WHILE TRAVELING Mobile payment usage rising of various age demographics in their last trip 52% 43% across the world, and tax reimbursement Payment Price Discounts VERSEAS.Mobile payment is gaining momentum among Chinese travelers method and via Alipay is supported in 24 countries overseas. 65% of Chinese tourists used mobile payment plat41% regions. Alipay works with over 250 overseas Cash of differentBank Mobile Card ccording to this survey, Chinese tourists age groups cashless payment methods (bank cards forms during overseas travels, more than six times use in compariPayment Payment Payment financial institutions and payment solution mobile payment platforms) at almost the same rate: about seven in 39%ten payments are cashless. For younger son to non-Chinese tourists (11%). In contrast to the last two Non-Chinese tourists providers to enable cross-border payments hinese tourists traveling overseas, mobile payments make up a greater proportion of cashless payments Post-90s 41% years, Chinese tourists’ use of mobile payment during overseas 30% 37% 33% traveling overseas an that of other age groups: for every ten payments, the post-90s generation made an average of903.3 mobile 52% and overseas 80for Chinese 70 43% trips saw a greater usage increase compared to other payment ayments and 3.7 bank card payments, while the post-70s generation of tourists made an average of 2.3 mobile customers who purchase products from Chi35% methods. tourists primarily use mobile payments for Product Travel supayments and 4.9 bank Chinese card payments. nese e-commerce sites. Alipay currently Price quality Budget Post-80s 30% 41% when 28% shopping, dining and visits to tourist attractions ports 27 currencies. 90 traveling overseas. 80 70 Sources: Nielsen According to the survey results, more than 90% of Chinese Top three factors affecting tourists’ Post-70s 28% using mobile payments 49% when travel- 23% overseas shopping tourists would consider FACTORS AFFECTING CHINESE TOURISTS’ ing overseas if more overseas merchants accept it in the future. FACTORS AFFECTING CHINESE TOURISTS’ OVERSEAS SHOPPING DECISIONS OVERSEAS SHOPPING DECISIONS Factors affecting Chinese tourists’ overseas shopping decisions More than 90% might purchase moreSources: goodsNielsen or services at certain overseas merchants if they are able to accept mobile payment. 41% Discount/ Special Offers “As a world-leading mobile and online payment brand, Alipay is Outbound Chinese Tourism and Consumption Trends committed to better supporting the needs of Chinese tourists by Supported Payment 41% Methods providing a more efficient, convenient payment method via its 40% Price platform,” Alipay states. The habit of using mobile payments in China, convenience 39% Product Quality of use, and additional discounts gained by using such platforms 33% Post-70s:35% are key factors for Chinese travelers to use mobile payment Shopping Location overseas, while limited merchant coverage overseas is cited 29% Travel Budget as the biggest obstacle. 27% On their most recent trip abroad, 99% of Chinese tourist Merchant’s Hospitality sampled have the Alipay App installed on their phones and 63% 25% Post-80s:27% Tax Refunds used Alipay for their transactions. While shopping was the most common expense for which Alipay was used, Chinese tourists 20% Exchange Rates also utilized it to pay for sightseeing, accommodations, dining, 19% Suggestion/ Behavior of Post-90s:22% transportation and recreation. Traveling Companions Sources: Nielsen Source: Nielsen




Chinese tourists no longer invariably choose to stay , 、 、 accommodation。options to in hotels, expanding 90 , places such as homestays, inns, and guesthouses. 53%。 , 、 The Post-90s generation tourists, well-known for their 、 , eagerness to try new experiences, are more willing to (64%)。 ,长线 try homestays, tourists in this age ( as 53% 、 of Chinese ) 。 do so. Compared to staying at hotels, group choose to homestays are cheaper, more personalized, have more









Airport Transit Hotel


tourists only spent an average of USD 486 per person.  Chinese Spending Trends

ng locations,Thailand 61% of Chinese Australia tourists shopped in States duty-free shops, making this the States Thailand Australia UnitedUnited EuropeEurope department stores (47%) and large supermarkets (47%). Convenience stores, large

Lifting the lid on Duty-Free Duty-Free ShopsShops

Duty-Free Duty-Free ShopsShops

LuxuryLuxury StoresStores

LuxuryLuxury StoresStores

ops, beauty shops, and pharmacies are also popular choices for Chinese tourists.

Chinese shopping habits Large-Scale Discount Large-Scale Discount

Department StoresStores Department LargeLarge Supermarkets SupermarketsChinese Convenience Stores Convenience Stores 8%) of post-70s generation outbound tourists chose to shop at dutyRetailRetail Stores Stores

80s and post-90s generation groups preferred shopping in beauty stores and at p


ts spent on on shopping by Chinese andand nonounts spent shopping by Chinese nonChinese tourists traveling overseas Chinese tourists traveling overseas Popular shopping loca ons for Chinese

nese Chinese rists tourists

tourists traveling ove

Non-Chinese Non-Chinese tourists tourists

$762 $762 Duty-Free Shops 61%

Top 10 10 most popular goods purchased by Chinese tourists while overseas Top most popular goods purchased by Chinese tourists while overseas Large supermarkets 47%

MARY JANE PITTILLA places to shop in different countries or regions. In Japan for hooseby Department different Stores 47% rtment stores and pharmacies is significantly higher than the average overseas d Skin Care Clothing, Skin Care Clothing, Local in special es es Souvenirs Food n terms and of shopping locations, 61% of Chinese tourists prefer Local special ese &tourists shopping convenience stores gift shops in Taiwan is Food compar Souvenirs Beauty Products Convenience Stores Shoes & Hats& Hats & Beauty Products Shoes Duty free shopping32% and to shop at duty free shops, according to a new report jointly issued by research firm Nielsen and Chinesestores mobile and and discou States, the proportion ofamong Chinese shopping at luxury dining are thetourists online payment platform Alipay. TOP1 TOP2 TOP3 TOP4 TOP5 TOP1 TOP2 TOP3 TOP4 TOP5 The report, titled Outbound Chinese Tourism and Consumpof othermost overseas travel destinations. Luxury Stores popular reasons why



Chinese travel overseas, Large-Scale accordingDiscount to a new survey

tion Trends: 2017 Survey, reveals that Chinese tourists’ top five goods to purchase while shopping overseas are, in order: skincare and beauty products; followed by local specialties; souvenirs; clothing, shoes and hats; and food.

31% FOR OUTBOUND CHINESE TOURISTS Retail Stores POPULAR SHOPPING LOCATIONS Bag Bag Watches Electronic Pharmacy Pharmacy & Health Care Care & Health Electronic Arts &Arts Cra &s Cra s Products Products POPULAR SHOPPING LOCATIONS FOR OUTBOUND CHINESE TOURISTS Products

Watches Popular shopping loca ons for Chinese tourists traveling overseas & Jewelry & Jewelry Products

& Suitcase & Suitcase

Beauty Shops 28% TOP8 TOP8

TOP6 TOP7 TOP6 TOP7 Duty-Free Shops 61%



Gi Shops 28%

Large supermarkets 47%

Pharmecies Department Stores 47%26% Smalland medium Convenience Stores 32% 21% -sized supermarkets Luxury Stores


Large-Scale Discount Retail Stores



Beauty LOCATIONS Shops 28% IN DIFFERENT POPULAR SHOPPING COUNTRIES OR in REGIONS FOR CHINE Breakdown of popular shopping loca ons different


Smalland medium Convenience Stores 32% 21% -sized supermarkets  Chinese Spending Trends Luxury Stores


Large-Scale Discount Retail Stores




Pharmecies Taiwan26%

Hong Kong

Small- and medium


Duty-Free Shops -sized supermarkets Convenience Stores


South Korea

Department Stores

Duty-Free Shops

Gi Shops



Beauty Shops

Electronics Stores

Gi Shops

Large-Scale Discount Retail Stores


Breakdown of popular shopping loca ons in different countries or regions for Chinese tourists

Hong Kong



South Korea

Convenience Stores

Department Stores

Duty-Free Shops


Duty-Free Shops

Duty-Free Shops Gi Shops

Luxury Stores Pharmacies

Duty-Free Pharmacies Shops


Beauty Shops

Large Supermarkets

Department Stores

Retail Stores



United States


Duty-Free Shops

Duty-Free Shops

Luxury Stores

Luxury Stores

Data from the International Association of Tour Manag-

Luxury Stores

Large-Scale Discount Pharmacies Retail Stores Large-Scale Discount

Gi Shops

Electronics Stores

Convenience Stores

United States


Large Supermarkets Convenience Stores and Consumption ersOutbound shows thatChinese overseasTourism travel spending by Chinese Trends tourists hit


Large-Scale Discount generation of Chinese tourists are more likely The post-90s Department Stores Retail Stores to spend more money visiting tourist attractions (15%) and on

s spent on shopping by Chinese and non-dining (17%) compared to other groups, while those born in the US$261.1 billion in 2016, an upswing of 4.5% year-on-year, and ranked first worldwide. 1970s spent more on shopping (26%) and on comfortable accomChinese tourists traveling overseas 16

modation (20%). Chinese tourists spent an average of US$762 per person on shopping during their most recent trip overseas, while nonmounts spent on shopping by Chinese and non- Chinese tourists only spent an average of US$486 per person. In Product price and quality are keyoverseas terms of shopping locations, 61% of Chinese tourists shopped in Chinese tourists traveling The post-1990s generation is the most adventurous group, with duty free shops, making this the most popular choice, followed 16% choosing adventure as the theme of their travel. The postby department stores (47%) and large supermarkets (47%). Non-Chinese 80s respondents are focused on food (58%) and shopping (49%), Convenience stores, large-scale discount retail stores, gift shops, Chinese while the post-70s prefer a relaxing travel experience, with beauty shops, and pharmacies are also popular choices for Chitourists tourists leisure as their primary goal when traveling overseas (82%). nese tourists. Key findings include the fact that Chinese tourists exhibit Over two-thirds (68%) of post-70s generation outbound stronger purchasing power than non-Chinese tourists. In SinChinese tourists chose to shop at duty free shops. In contrast, the Topfor10 mostthepopular goods purchased Chinese tourists whilegroups overseas gapore, example, former spend an average of SGD1,010 by post-80s and post-90s generation preferred shopping in [US$762] per person on shopping alone based on their most beauty stores and at pharmacies. recent trip, while non-Chinese tourists spent an average of Skin Care Clothing, Local special es SGD645 [US$486]. Beauty items and local specialties are must-haves Souvenirs Food & Beauty Products Shoes & Hats Chinese tourists spend 25% of total travel expenses on shopChinese tourists choose different places to shop in different Skin Care by accommodation (19%), and dining (16%). Clothing,In Japan for example, the popularity of ping, followed countries or regions. Local special es Souvenirs Food & Beauty Products Shoes Hatspharmacies is significantly higher than Other major expenses include local transportation, tourist attrac- department stores&and tions, recreation, and communications. Regardless of destination the average overseas destination. The proportion of Chinese TOP1 TOP2 TOP4 stores and giftTOP5 country or region, Chinese tourists tend to always spend TOP3 the shopping in convenience shops in Taiwan is largest portion of total travel expenses on shopping. comparatively higher, while in the US, the proportion of Chinese

ese ists

Chinese tourists travel overseas mainly for leisure, such as dining and shopping, with 78% choosing leisure as their top priority, the survey says.

Non-Chinese tourists


$486 Top 10 most popular $762 goods purchased by Chinese tourists while overseas


Bag Bag & Suitcase & Suitcase


Pharmacy Pharmacy &&Health Care Health Care Products Products




Electronic Products Products



Arts & Cra sArts & Cra



s Watches

& Jewelry


Watches & Jewelry




Chinese tourists traveling overseas Chinese  Chinese Spending Trends tourists

Non-Chinese tourists




Skin Care & Beauty Products

Local special es


Clothing, Shoes & Hats






TOP5 Source:Nielsen

tourists shopping at luxury stores and discount retail stores is For Chinese tourists, the absolute price of goods and their higher than that of other overseas travel destinations. travel budget has far less influence on shopping decisions comPharmacy Skincare beauty products and and local specialties are the to their non-Chinese On the contrary, the "Skin care and &Bag beauty products" "local specialties" are pared the "must-buy" goods counterparts. for outbound Chinese tourists. Watches & Health Care Electronic “must-buy”&goods for outbound Chinese tourists, according to relative price of goods after discount is the biggest factor (41%) Suitcase Arts & Cra s & Jewelry Products bought these two More than half of all Chinese tourists types of items. In addition to these products, souvenirs, Products the survey. More than half of all Chinese tourists bought these considered when Chinese tourists shop overseas. At the same clothing, especially shoes and hats, special food items, and bags and suitcases areisalso items for Chinese two types ofTOP6 items. In addition to these products, souvenirs, TOP8 time, product quality (39%) also apopular key attribute Chinese tourTOP7 TOP9 TOP10 tourists. clothing, especially shoes and hats, special food items, and bags ists consider when shopping overseas. and suitcases are also popular items for Chinese tourists. In addition, the post-90s group tends to be influenced The inherent properties of the products in question, e.g. dismore greatly by their travel companions, while a greater counts, price, and quality, and the payment methods supported proportion of post-80s tourists place more importance on tax by the local merchant are the biggest factors influencing Chinese refunds, and the post-70s tourist group is more influenced by tourists’ spending decisions while traveling overseas. shopping locations.


The inherent properties of the products in question, e.g. discounts, price, and quality, and the payment methods supported by the local merchant are the biggest factors influencing Chinese tourists' spending decisions while traveling overseas. When traveling abroad, non-Chinese tourists are most concerned about cost, including the absolute price of goods (52%) and their personal travel budget (43%), while other factors have a relatively limited influence. For Chinese tourists, the absolute price of goods and their travel budget has far less influence on shopping decisions compared to their non-Chinese counterparts. On the contrary, the relative price of goods after discount is the biggest factor (41%) considered when Chinese tourists shop overseas. At the same time, product quality (39%) is also a key attribute Chinese tourists consider when shopping overseas. 的 外国游客境外游购物 的methods 中国游客, 后的merchants (41%) 中国游客的 For outbound Chinese tourists, the payment supported by local are equally important as 更 the absolute price and of the goods. of which generation ; 游国 地 the relative 支 price 的消费支 , Regardless 是中国游客境外 游购物 的 group the tourists

belonged (Post-90s, -80s or -70s) to, or whether they are traveling within Asia, or to farther destinations such as Europe, the United States, or Australia/ New Zealand, the question of which payment methods local merchants will accept is crucial to Chinese tourists when making their shopping decisions. In addition, the post-90s group tends to be influenced more greatly by their travel companions, while a greater Chinese Tourists ( proportion of post-80s tourists place) more importance on tax refunds, and the post-70s tourist group is more 中国游客,by shopping 后的 中国游客的 influenced locations.








Cederberg, Kleinood, 88 Vineyards, Deetlefs, Avondale, Groot Constantia, Napier, Mt Vernon, ErniePayment Els, Delaire Graff Discounts


Stand D34


Taste and discover award-winning wines from South Africa. TFWA Asia Pacific 2018 39% To schedule a meeting, contact Anthony Budd at Diverse Chinese Tourists Non-Chinese tourists Flavours: +27 71 255 41% 7344, 6-10 May, Singapore


70 % 41% 90 80 40 Premium South African Wines Payment Price Discounts method


Non-Chinese tourists

52% Price

43% 35% Product Travel quality


Sources: Nielsen Sources: Nielsen

Top three factors affecting tourists’ overseas shopping

Sydney Airport


its offering

T1’s luxury fashion precinct, with its 13 global designer brands, is delivering above expectations


Sydney Airport saw strong growth in its retail business in 2017, with revenue growth of 12.7% from 2016 to US$333.1 million

Glyn Williams, General Manager Retail, Sydney Airport



his growth reflected the first full year of operation of the new
T1 International luxury precinct, the completion of the new Marketplace area and T2 Domestic casual dining precinct, and consistent performance at the airport’s Domestic terminals. According to Glyn Williams, General Manager Retail, the luxury fashion precinct, with its 13 global designer brands, is delivering above expectations. “Gucci, in particular is performing well and resonating with customers,” he says. “It offers customers the opportunity to ring ahead and set aside product for five days prior to flying. The brand has also expanded beyond its core offering, bringing in footwear and fashion jewelry to enhance the offering.” Unique brands continue to be added to the T1 retail experience. Most recently, in an Australian airport first, popular Sydney restaurant Kitchen by Mike officially opened doors in the terminal. The transformation of the T2 Domestic terminal continued in 2017, with first to Australia concepts and a unique mix of

canada’s most admired wine br and Please enjoy our wines responsibly.

Sydney Airport

local and international brands, such as Desigual, Lorna Jane Active Living Room and Peter Alexander. Recently, Sydney Airport awarded its news and books portfolio in Departures to Lagardère Travel Retail following a competitive tender process that sought a partner to deliver a contemporary retail experience for passengers at Australia’s busiest domestic terminal. The first full year of operations for T2’s casual dining precinct has provided customers with a greater range of healthy and tasty food options, from outlets such as Joe & The Juice and YO! Sushi, within a reconfigured seating area that offers

Gucci has expanded beyond its core offering, bringing in footwear and fashion jewelry


greater comfort with new furniture and better connectivity. The next stage of works will deliver a consistent look and feel across the terminal, with a greater sense of space and light, better wayfinding and improved sightlines. Due for completion by end of 2018, the improvements will see the introduction of 10 new retail tenancies to deliver a revitalized mix of lifestyle brands for customers to enjoy. February 2018 saw the launch of a far reaching Chinese website and Sydney Airport branded WeChat account. This builds on the airport’s original platforms for a Chinese website and WeChat account established in 2015 and forms

part of the airport’s ongoing strategy of harnessing technology to deliver a seamless and positive airport experience for Chinese passengers. According to Williams: “The new website is accessible via our homepage and provides relevant and timely information about our airport including key services, airline and retailer information as well as great things to see and experience while visiting Sydney. WeChat is the most popular social app in China and we’re proud to be one of the first airports in Australia using this platform to showcase our exciting retail, food and dining offers.” Sydney Airport has garnered a series of awards for its retail offering including ‘Australia’s Favourite Airport – Eating and Shopping’ at the 2017 Cheap Flights Awards. It was also voted Best Airport in Australia/Pacific Region in the 2018 Skytrax World Airport Awards. With its contemporary offering of food and beverage concepts and retail brands in refurbished terminals, Sydney Airport is a clearly a firm favourite with passengers.

Please visit us at our booth 2-C28 at TFWA APE&C !

Candy Tin new collectable item in the iconic Goldbear shape



A digital marketplace

takes shape by HIBAH NOOR

Fast-growing global online platform MyDutyFree connects duty free operators and shoppers thanks to powerful and easy-to-use digital tools


yDutyFree, based in the CIS, has built a pioneering global duty free marketplace for retailers, airports, and consumers, aiming to connect retailers and customers. Katerina Furtak, CEO, Mydutyfree emphasizes that the system is easy to use, both for duty free operators and for shoppers. “For duty free businesses we are a fast and effortless way to go online. Within a week we prepare an online catalog with goods according to the store’s product range list and integrate a shop to our system. “Along with a catalog and pre-order option on the MyDutyFree website, our customers get advantage from infrastructure: our partners, marketing channels, and the most important – our existing user base. Since most frequent travelers go to different destinations, they will use the service they are used to in different locations. Thus, connecting MyDutyFree to a duty free business, the customer also receives clients who are familiar with MyDutyFree and are ready to make purchases. “For travelers we are a convenient service for duty free shopping: they can choose and pre-order goods, and get their purchases before the departure without waiting.”

More than 11,000 products

MyDutyFree launched in the end of 2015, and within two years the company has achieved 1,500 orders monthly, with 1,000,000 views per month, and €100 (US$123) average receipt. It carries more than 11,000 products in catalogs, boasts 25,000 app installations and 20,000 registered users. The most popular product categories are spirits and tobacco, perfumery, and cosmetics, but there are also gourmet foods and sweets, accessories, toys, and electronics sections. The firm operates in four CIS countries, with 11 airports and six border shops in its client roster. Now it is expanding outside the CIS with the focus on Middle East and Africa first. “We’ve established strong partnerships with global companies: MasterCard, S7 Airlines, TUI and others,” says Furtak. MyDutyFree has seen growth in 2017 compared to the previous year, and the numbers are impressive. Successful orders have surged by 509%, turnover (in euros) has jumped 526%, user registrations have climbed 636%, sessions are up 277%, and app downloads 210%.


Allowing operators to withstand competition

Furtak believes the duty free industry is ripe for change, particularly in the area of price transparency. “Duty free is still one of the most closed and conservative businesses,” she says. “It is still difficult to find clear and relevant information regarding duty free’s product range and prices. Unlike all other stores, duty free is available to the customers only for a limited period of time: 30-60 minutes before departure. So it is important for customers to know in advance if they would find particular products at the store and how much they would spend. So the biggest deficiency in the duty free industry is its lack of presence online. In our opinion, it could drive down the popularity of duty free shopping. The fact is that nowadays we are so used to solving all our problems and questions online it seems strange if duty free is not available online.” Online marketplaces such as Amazon are the biggest competitors of the duty free industry, Furtak believes. “They can offer advantages duty free can’t: direct access to information on prices and product range as well as delivery to the door and availability of shopping at any time. So along with great competition from online marketplaces and users’ common habit of looking for everything online, there is another trend in customer behavior: planning of purchases and spending. The current format of the duty free business, when people can choose and purchase only in the store, does not fully meet customer’s need of planning and saving time.” And this is where MyDutyFree comes in. “Our goal is to allow duty free businesses to keep up with current shopping trends and be able to withstand competition.” When consumers purchase products through the MyDutyFree website, data is collected that can help retailers. The company can track individual clients’ order and search history. Using this data, it can create charts of customers’ habitual destinations, frequency of travel as well as of their shopping preference. In the future, this could allow MyDutyFree and retailers to create predictions 60 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

for each particular customer and suggest relevant goods at the approximate time of their next trip. For the whole customer base, data can be collected on shopping cart split, shopping trends, demand fluctuations throughout the year or depending on destinations, and defining which goods are often bought together. “We can determine top destinations and top products, collect customer feedback on their shopping experience for each store. We can also help to track the efficiency of sales, promos and special offers,” she says. MyDutyFree has two sources of revenue: duty free operators, brands or similar advertising partners. The company charges duty free operators a fee, and this can depend on the level of sales made via the service. The whole fee system is flexible and is negotiated with each particular shop depending on the size and requirements of the store. Revenue is also generated from brand advertising. The company offers various packages that include different options for advertising on its website. They can include placing of promoted product in top positions of the catalogue, placing banners, blog articles, newslettering, and promotions on social networks.

Product delivery to lounges

MyDutyFree’s merchandise pick-up points are usually one of the cash registers at the shop, not specially developed kiosks, as Furtak explains: “This way we make our launch at the store as simple and quick as possible for both us and the shop, since we don’t have to find a place, build a kiosk and create the whole infrastructure. We put branding at the dedicated cash register, but it also can be used for the usual sales.” The firm is considering installing separate pick-up points in airports that won’t be located inside a shop. One option is delivery to the lounges, where visitors could choose goods, place an order and get their purchase delivered directly in the lounge. MyDutyFree’s website has a number of highlights. It features marketplace functionality, which allows customers access to vari-

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ous shops at the same locations (one airport but different duty free shops managed by different operators). This allows customers to compare offers and prices in different shops and choose the best. Another feature is the Shared Basket. This allows travelers to share their shopping cart, so their friends could choose goods in duty free. They pick the products on the website and add them to already existing pre-order of their friend and MyDutyFree user. This feature aims to combat duty free’s disadvantage that shopping there is available on-site only. For businesses the company provides flexible and adjustable dashboards with sales data and analytics. Using this tool, its customers can not only track sales, make efficiencies and obtain other important data, but also to predict customer behavior. It takes one week to integrate a shop into the MyDutyFree system, and the process is “very easy” for the retailer, says Furtak. After the agreement between the retailer and MyDutyFree is reached, the firm asks the retailer to send a list of products they want to see on the website. Usually, most of the products are already in the database. Together with the retailer the company sets up a simple synchronization system to keep the information on prices and stock updated. Connecting a new shop also includes designing branding for pick-up points, staff training, and preparing a marketing plan. Furtak is satisfied with the company’s progress so far. “All the retailers and partners we started co-operating with during 2017 have already stated their willingness to connect other locations or to extend their co-operation,” she says.


Expansion into the Americas

After the company’s operations have become strong in the Middle East and African markets, the company will consider expanding into the Americas market. “We’ve chosen this strategy after studying the duty free sector in the Americas: duty free stores are not very popular among the citizens of these countries, and the major part of customers are visitors from other countries. So expansion to the Americas is basically just following the needs of our existing customers: people who travel and get used to using our service in other countries will also expect to access it in the Americas.” The other target market is duty free on cruise ships. “Since this kind of traveling is popular in the Americas, particularly in US, we see it as a great opportunity for our growth,” he says. Meanwhile, the focus for 2018 is continued expansion and extended service. “We are going to start co-operating with lounge operators so that passengers can choose goods and have them delivered without leaving the lounge.” The other major initiative MyDutyFree will develop is packaging solutions for airports, which is a new branch of the company’s service. In addition, the company is working on optimization and better visualization of data for retailers’ dashboards and customer feedback. “Viral tools and developing social networks is another thing we are going to focus on. It’ll help us to grow the audience exponentially,” enthuses Furtak.





Moroccanoil is marking 10 years of success as an iconic brand in the hair care business with a global travel retail program

Moroccanoil signed Portugueseborn international supermodel Sara Sampaio in 2016 to promote the brand’s 2017 campaigns

M Moroccanoil started as a hair care company and has now evolved into a multi-category lifestyle beauty brand, as consumers demanded more from the brand than just hair care The Moroccanoil booth at the IAADFS Duty Free Show of the Americas in 2014 – the year it began to aggressively target the travel retail channel


oroccanoil is celebrating a decade of pioneering oilinfused hair care – a trend that sparked a worldwide buzz. This young company has certainly enjoyed a huge amount of global success in a short time, so what’s its secret? John W. Gates, Moroccanoil Vice President, Retail and Travel Retail Sales, is crystal-clear about the brand’s USPs, as he tells Asia Duty Free: “We are a brand that truly delivers on its promise, to provide performance-driven, easy-to-use products that inspire confidence, transforming hair and skin. We also offer our clients an iconic signature scent.” Moroccanoil started as a hair care company and has now evolved into a multi-category lifestyle beauty brand, as consumers demanded more from the brand than just hair care due to the performance results, signature scent and ease of use, according to Gates. He continues: “A story of success, an impulse for innovation and a relentless pursuit of simple, high-performing oil-infused beauty products fashioned our iconic brand: Moroccanoil.” As the pioneer of oil-infused hair care, the original Moroccanoil Treatment created the worldwide buzz on argan oil and paved the way for an extensive line of premium oil-infused hair care products to address the needs of all hair types. By popular demand, Moroccanoil has since continued to innovate and extend the line to include Moroccanoil Body™ and Moroccanoil Sun™ luxurious oil-infused collections inspired by the sea, sand, breeze and scents of the Mediterranean. The products feature proprietary formulas that seek to rejuvenate and replenish, leaving the skin and hair nourished and naturally radiant. The company will be celebrating its 10th anniversary by offering a global, multi-channel program with a focus on its iconic hair and body oils categories, reveals Gates. The company launched its first travel retail location POS with leading German operator Gebr Heinemann in Copenhagen Kas-

An artisitic rendering of the Moroccanoil stand for the upcoming 2018 TFWA World Exhibition located at level 1-S16

trup Airport in 2014. “This channel has given us the opportunity for further exposure and a whole new audience and has allowed us to create branded shop concepts,” says Gates. There is still much to do in the channel. “We are committed to building stronger volume location per location, and further expand branded fixtures and shop concepts globally. We also want to work to create products and promotions that are exclusive to travel retail.” Travel retail is an important channel, Gates believes, partly because of its global reach. “It is important to me because it is here to stay and it allows us to provide consumers with convenience and easy shopability. It also opened opportunities within emerging countries such as Southeast Asia, Latin America and parts of Gulf Africa.” In the summer of 2016, Moroccanoil launched its travel retail business presence in Latin America with inflight offerings onboard Avianca and LATAM Airlines with DFASS and DFW, respectively. “Demand for Moroccanoil is particularly enthusiastic in Latin America, which has always been one of our leading markets in both brand awareness and sales volume,” Gates told Asia Duty Free earlier this year. Moroccanoil is now available in Argentina at Buenos Aires Ezeiza International and Aeroparque Jorge Newbery airports. In Uruguay, the brand has a presence at Carrasco International and Capitán de Corbeta Carlos A. Curbelo International airports, and has launched in Brazil at Galeão International Airport in Rio de Janeiro and Guarulhos International Airport in São Paulo with partner Dufry. In addition, the company has secured partnerships with Duty Free Americas, DFS, Gebr Heinemann and Kappe, as well as established an inflight presence onboard British Airways, KLM, Lufthansa, Swiss, Korean Air and Singapore Airlines. Moroccanoil confirms that it is actively involved in a number of CSR initiatives. Firstly, Inspired by Women™ is its global corporate campaign bringing about awareness of the brand’s influencers through various foundations and organizations. Secondly, it is becoming more and more environmentally responsible as a company. “We are so proud that this year to date we are on track to save almost 40% more trees than last year. Additionally, through the use of solar panels on our warehouse and factory in Israel,” enthuses Gates.

In 2008, Moroccanoil Treatment was introduced, the single product that revolutionized the industry with oil-infused hair care

Moroccanoil has achieved a lot in a short time since its pioneering product launch in 2008. Here are some exciting milestones: • 2008: Launched Moroccanoil Treatment, the single product that revolutionized the industry with oil-infused hair care; • 2011: Opened its New York office showroom and Moroccanoil Academy in December; • 2014: Launched its Beauty/Retail Division, which includes resorts worldwide, retail and travel retail; • 2014: Launched its CSR initiative, Inspired by Women™, in September; • 2015: First exhibited at the TFWA show in Cannes; • 2015: Brand distribution reached 65 countries; • 2015: Signed its first supermodel as the face of Moroccanoil with Rosie Huntington-Whiteley. Signed Sara Sampaio a year later; • 2016: Launched local market retail and duty free through Hyundai and Shinsegae partnership in Korea; • 2017: Opened our first Asia-Pacific duty free downtown shop with DFS in Hong Kong. ASIA DUTY FREE & TRAVEL RETAILING



Fashioning a

brand billion-dollar

Sung-Joo Kim, the dynamic Korean owner of German luxury brand MCM, speaks exclusively about her business goals and her personal mission by MARY JANE PITTILLA

MCM is at the leading edge of defining a new school of luxury for millennial consumers


ung-Joo Kim is Founder and Chief Visionary Officer of Sungjoo Group and Chairperson of MCM Holding AG, the owner of German luxury fashion brand MCM. Sungjoo Group was founded in 1990 and has earned a reputation as Korea’s fashion leader, having launched leading brands into the market, including Gucci, Yves Saint Laurent, Sonia Rykiel and Marks & Spencer. In 2005, Sungjoo Group acquired MCM, a brand founded in Munich in 1976 that became very popular with the well-known MCM backpack, which became the big trend in the luxury space. Mrs Kim estimates that MCM’s turnover could reach US$1 billion in the coming years. In this exclusive interview, she explains how this major milestone could be achieved. “MCM is facing a new era where we are at the leading edge in defining a new school of luxury. Despite the current uncertain global environment, we plan to become the world’s premier purveyor of luxury fashion by focusing on new growth markets and building our retail foot-


MCM is creating new retail experiences, value-added marketing and communications, and unconventional products

products place a strong emphasis on practicality and functional features and are crafted from lightweight environmentally friendly materials. “In five words, we want to design products with the values of multifunctionality, mobility, modernity, boldness and innovation. We want our product experiences to integrate an emotional value that transcends the product itself, in order to build brand value. “Through innovative gender-blind designs and technologically-enhanced merchandise, our MCM team endeavors to strengthen its competitive edge by building momentum in Asia, America and Europe.”

A message for women’s economic empowerment The well-known MCM backpack has become a big trend in the luxury space

print with enhanced mobile/e-commerce infrastructure. We have devised three steps to achieve this ambition.

Avant-garde product experiences

“First, we are targeting a younger audience. MCM’s current and potential core clients are millennials. This new generation has its own personal values, purchasing habits, lifestyle, communication style and media consumption behavior. In order to target this diverse market, MCM is creating new retail experiences (future retail), value-added marketing and communications, and unconventional products that anticipate their needs. “Second, we aim to bring more innovative products. The next trend is

to combine high-tech materials with natural fibers to enhance avant-garde product experiences. “Third, we aim to be the leader of future luxury brands with speed and a smart game. To achieve this, we are implementing a major digital transformation, from the customer experience to supply chain management. “MCM has been known as a newgeneration, lifestyle-driven product developer. These new products – including our best-selling backpack collection – combine fashion and function by converging craftsmanship expertise with travel and mobility-inspired designs. While many shapes are designed with genderless, unisex aesthetics, these new

Mrs Kim, a passionate philanthropist, established the Sungjoo Foundation in 2009 under its social responsibility and business philosophy, “Succeed to Serve”, which is also her personal motto. She works with several non-profit organizations, including World Vision and the Global Summit of Women as an IPC member, and lately served as President of the Korean Red Cross. As a prominent role model for businesswomen in Asia and around the world, Mrs Kim has an important message for women’s economic empowerment, especially for the next generation of girls. “Be proactive,” she enthuses. “Take on challenges and have a critical perspective in the 21st century knowledge-based economy, as this world needs high quality women’s leadership desperately. The privilege I have is to be really able to say to any woman around the world: “Girls, be ambitious!” ASIA DUTY FREE & TRAVEL RETAILING



Toscow’s product highlight for the 2018 TFWA Asia Pacific fair is the romantic La Vie en Rose collection

Toscow sales cruise ahead While inflight and airport duty free shops are its biggest markets, Toscow is developing rapidly in the cruise business


ewelry specialist Toscow has been in the travel retail business for over 30 years and has recently been seeing growth in the cruiseline business. The brand is very dedicated to the channel, with most of its revenues generated from this sector. “Inflight and airport duty free shops are our biggest markets but we are now developing rapidly in the cruise business,” said Francis Ng, General Manager, Toscow. Freshwater pearl and jade jewelry performed very strongly in 2017 and the trend keeps going for the first quarter of 2018, he noted. Pearls have broad regional appeal and they sell everywhere. Jade is particularly strong in Asia, mainly in China and Hong Kong. “Asia remains our biggest market because our designs are more suitable for this market. Freshwater pearl and jade are among our best-sellers and they are


particularly well received in the Asian market,” said Ng. Toscow is seeing the level of sales increase while the number of items purchased per transaction has decreased, as Ng explained. “As customers travel more frequently, they tend to buy fewer items per visit, as they think it is likely they will travel again soon and so they do not see the need to buy too many items per visit.” Toscow is observing an increase in spending in travel retail. “Our high-end jewelry such as Australian opals and Tahitian pearls are having double-digit growth compared with last year,” he said. “We see there’s a strong demand for jewelry sets from customers. Customers like to buy a set as it saves them time to mix and match jewelry. Jewelry sets are particularly popular as a gift, too. Toscow creates some travel retail exclusive sets to meet this demand. The sets mostly consist of pendant, earrings and ring but some also include a bangle,” he continued.

The biggest challenge for travel retail comes from the internet, Ng believes. “Travelers used to think that if they saw an item when they traveled abroad, they may not be able to buy that item again. Nowadays, the internet makes overseas shopping much easier and customers are likely to buy the same item even when they are back home.” Toscow’s product highlight for the 2018 TFWA Asia Pacific fair in Singapore will be the romantic La Vie en Rose collection. The crystal collection features a delicate crafted resin rose. This rose goldplated collection comes with a necklace, earrings and adjustable ring. The ornate pink rose is set among glittering olive and round shaped crystals. Designed for casual daily wear, La Vie en Rose is also perfect for special events such as summer garden parties or weddings, the company said.

Repetto Paris

Repetto travels light

Parisian fashion brand Repetto is bringing its unique approach to the lifestyle category with several new airport store openings



epetto Paris began 2018 with a bang – or should we say a pirouette, as the dancewear-inspired fashion brand makes further headway onto the travel retail stage. In Asia Pacific, an 80 square meter stand-alone store opened in Pudong Airport Terminal 2 in January 2018, followed by a 15 square meter corner at Guam Airport in February 2018. The company is looking at opening more stand-alone stores. “We already have 60 stores in the domestic market in Asia and 120 worldwide,” says Lucas Torres, Sales Manager Asia Pacific, Repetto Paris. “In duty free, the network is smaller with less than 20 doors. We are looking at opening more doors in major airports worldwide, considering our growth in the last three years. Also, we see an important increase of Chinese tourists in all our stores worldwide, and this clientele is vital in duty free,” he notes. Repetto is busy building brand awareness in Asia travel retail and domestic markets. “We invest more and more in social media and digital. We also do collaborations with famous fashion bloggers to develop the brand amongst the millennials. Last year, we did a very nice collaboration with Chiara Ferragni, for example,” he says.

Lightness and freshness

The new Spring/Summer 2018 collection is described as a hymn to nature and freedom with the theme of the elements. Inspired by the scenographic and artistic world of great choreographers, this colorful collection reveals unique new pieces influenced by earth, water, fire and air. The earth is expressed by a monochrome of browns and an authentic “crackle” graphic effect, recalling the cracked soil formed during the summer season, which punctuates the collection. Represented on all three lines, this design is played on the iconic Camille heeled of the ballerina model, the new oval shape of the Adage bag and the stretch mesh of a sporty jacket, dynamizing the silhouette with style and singularity. Repetto’s signature Bambino pink color softens the collection and reinforces the imaginary world of dance. A skirt falls in a remarkable way thanks to the subtlety of the material, while its powdery touch allows for total freedom of movement. A deep stream of blues reflects the theme of water: the Riviera color brings softness, and the Capri revives the collection with its satin and metallic variation. The pool graphics, sublimated on stretch mesh and printed on patent for the shoe, offers a strong image of the Spring/ Summer 2018 season, the company says.

Fire, represented by powerful colors such as Campari and Scala, is used strongly with an impactful effect. The Sur Pointe model with its delicate, fine heel is revisited in a cross-strap sandal and Salome version, while an oversized Cuban heel from the new Vogue line brings a retro and sophisticated touch to the collection. Air is expressed by a range of greys, which the brand sees as an essential color of the athleisure wardrobe. The finesse and extensibility of the fine knit pieces provide optimal comfort, and touches of white illuminate the silhouette by bringing lightness and freshness. Small metallic silver threads slip into the collection, animating knits and highlighting the products for a graphic and dynamic effect.

Repetto’s Spring/ Summer 2018 collection is described as a hymn to nature and freedom with the theme of the elements



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Beauty reinvented by HIBAH NOOR

FOREO has developed revolutionary innovations that aim to surpass the cosmetic, providing a smarter and more effective way to care for yourself


OREO is taking the beauty industry by storm with its new range of high-tech beauty solutions. Through top-flight specialists at the FOREO Institute, the Sweden-based company has developed revolutionary innovations that aim to surpass the cosmetic, providing a smarter and more effective way to care for yourself. “FOREO is here to revolutionize the beauty industry with a simple promise – to give a new-found confidence to millions, through innovative beauty solutions that work,” says Paul Peros, CEO, FOREO. FOREO is the number one brand in beauty tech devices with a global

Swedish company FOREO is seeking to change the beauty game with its awardwinning, high-tech devices presence in 50 countries and more than 7,000 doors worldwide. Some 5.6 million FOREO products were sold in 2017, and over 2.1 million LUNA range devices were sold to travel retail channels alone. This ambitious, young brand was founded in 2013 as a game changer, with a goal to disrupt and create new technologies for the beauty industry. The company has since won more than 70 beauty awards. Foreo found early success as the inventor of the record-breaking LUNA sonic facial cleansing brush range. “We thrive in transforming daily routines into vibrant rituals, with cutting-edge technology and sleek, modern designs,” says Peros.

Travel retail debut in the Americas

FOREO is the number one brand in beauty tech devices with a global presence in 50 countries and more than 7,000 doors worldwide, according to the company


Foreo devices are found in more than 180 travel retail stores in 22 countries around the world, boasting 25 new listings for Q1 2018 alone. Recent new store locations in the channel include Los Angeles, Guam, Sydney, Paris, Bali, Singapore, Venice, Poland, Czech Republic, Macau (Peninsula Hotel), and Uruguay. The company works with leading operators such as Dufry, DFS, Gebr Heinemann, Shinsegae, The Shilla, Lotte, Doota Mall, King Power, Lagardère, Dongwha, and China Duty Free. The company recently opened a 50 square meter FOREO store at Ngurah Rai International Airport in Bali, Indonesia, where the duty free operator is DFS. It is looking forward to trading successfully in

this top honeymoon destination. FOREO also opened its first duty free stores in Uruguay with Duty Free Americas, the brand’s debut travel retail presence in South America. The five new locations are Aceguá, Chuy, Rio Branco, Bella Union, and Rivera. And in North America, FOREO recently celebrated its first opening in the US duty free market, at Los Angeles International Airport. Meanwhile, in Oceania, FOREO established its first locations in the region with Gebr Heinemann and Dufry, opening in Melbourne and Sydney airports.

FOREO’s recipe for success

FOREO’s objective is to innovate and disrupt the beauty sector. It does this by using what it calls T-Sonic Pulsations and Hyper Infusion Technology, depending on the device. In addition, the groundbreaking product design alone has won more than 50 design awards. The firm puts quality and durability at the heart of its philosophy. Medical grade silicone is used, hypoallergenic, non-toxic and phthalate-free. The LUNA brush does not absorb dirt, oil, cleanser or makeup residue, is quick-drying and easy to clean. The brush never needs to be replaced and the products have a long battery life. Each one-hour charge with a compact charger can last for up to five months. Foreo seeks to disrupt the beauty sector in its marketing and communication strategy, too, as the devices are known by top celebrities and key opinion leaders.

Anthon Berg

A sure-shot success

Anthon Berg continues to live up to its “You can never be too generous” motto by presenting its new Deluxe range and focusing on the ever-popular liqueur bottles


nthon Berg is no stranger to being a top contender when it comes to unique chocolate products. Over the last 50 years it has become a leader in the chocolate liqueurs category. This past fall the brand also presented two new Anthon Berg flavors in its Deluxe range, White Nougat and Sweet Caramel, to expand the already successful collection. In an interview, André Haunsø Kampmann, Senior Brand Manager, Anthon Berg International, explains that the brand has had a very strong year in the Asian region. In partnership with Asian agent, Focus Network Agency (FNA), the company has been able to develop a strong presence in Malaysia, the Philippines and Thailand. FNA is a distributor and retailer of chocolate and confectionery in Asia and is based out of Singapore. The strong platform built with FNA, combined with heavy investment and strong promotion, has led to growth in the region.

Stellar products

The company’s success in Asia is driven by Anthon Berg Chocolate Liqueurs, Cocktails and Coffee Liqueurs. Peter Dige, Travel Retail Director, Anthon Berg International, explains: “We are very proud to be the inventors of the liqueurfilled chocolate bottle concept worldwide. Each new concept has performed excellently. So naturally we are confident that the Chocolate Liqueur Collection will fly off shelves as an elaborate gift or for the curious fan of chocolate liqueur products – or simply to share with friends or enjoy


for yourself. We are literally combining all our competences in this specific type of product into one single delicious box. And we believe it to be a bullet-proof successful product.” Another notable introduction to the global range is the expansion of the Deluxe series to offer new flavors, White Nougat and Sweet Caramel. The traditional marzipan line, a Nordic favorite, has been expanded to cater to a larger global palate. The new product is also non-alcoholic, making it ideal for a global audience. This will help the brand enter into markets where alcohol is prohibited and offers an alternative for labeling issues that may eventually be problematic in the industry. Most importantly, being flexible to the market encourages turnover on customer shelf space. Finally, the brand continues to promote its Drinks Time and Cocktail Hours dual pack that features its two bestsellers in one elegant package. The Drinks Time range has always been a success with men, and the additional Cocktail Hours – the pink-wrapped feminine counterpart – was added 12 years ago. Both ranges are sold as a dual pack, making them ideal to gift, share or self indulge. “When we develop new products, we obviously look at the best way for us and our customers to make a profit. This often means building on a proven success rather than reinventing the wheel. We want to take to market what we know to be a sure-shot. We

Anthon Berg diversifies its Deluxe range with the addition of White Nougat and Sweet Caramel to expand its customer demographic

are confident that the combination of our Chocolate Liqueurs and Chocolate Cocktails will be just that. After all, 50 years of sales figures in global travel retail back up that bold assumption,” enthuses Dige.

A toast to experience

Anthon Berg is focused on giving the consumer the full experience when eating its products. The company has upgraded the packaging with instructions on how to properly enjoy the chocolate bottles. Choose your chocolate, unwrap it, bite off the bottom, drink the contents and finally enjoy the remaining chocolate. In the future, the brand will be focusing on product launches and innovations, and it is planning to unveil its new communications at the TFWA World Exhibition in October. Kampmann has a clear strategy in every different continent, focusing on displays and promotions. However, the spotlight continues to be on the fact that Anthon Berg offers consumers a travel retail exclusive, which is a main driver for the brand. A consistent best-seller: Drinks Time and Cocktail Hours dual pack continues to appeal to both males and females

Please visit us at the TFWA ASIA PACIFIC EXHIBITION AND CONFERENCE SINGAPORE Stand Basement 2 J29 Pure goodness!


Planning to be a towering success

Ritter Sport is aiming to tailor its existing flavors to create mixes that appeal to different regions

Family-owned German confectionery brand Ritter Sport seeks to bring a colorful approach to the duty free channel by JAS RYAT


hen I first sat down with Jan Pasold, Head of Global Travel Retail at Ritter Sport, during the TFWA World Exhibition at Cannes in October 2017, he was new to the position and brimming with ideas and ambition. It was great to hear the passion for the direction he wanted to take the German confectionery brand. A couple of months later, Asia Duty Free had the pleasure to talk to him again, together with Simone Weiss, International Key Account Manager for Ritter Sport, to get a better understanding of how the brand has performed in the Asian region and what the 2018 focus will be. The pair are pleased with the results Ritter Sport has seen in Asia, considering that they don‘t have anyone working directly in this region. “We have opened an office in Singapore for our Domestic operations in the region last year in July. Having a Ritter-Sport office now in Singapore we can also benefit from it in Travel Retail as we have now the possibility to hire people in the region. As you cannot manage Asia properly, as it’s too distant. That’s why we are currently looking for

someone there who can take care of the Asia region and to develop new products with a clear objective of why we developed it,” Pasold explains.

Know your customer

One thing Pasold emphasizes is the importance of knowing your customer. Ritter Sport has yet to focus on research to really understand its customer base in Asia and how this information can be used to adapt the brand to that region. He goes on to explain how flexibility is key to understanding the needs of the Asian customer and then product development should be based on this. “We know a bit more about China as they like smaller sizes, which is good for Ritter Sport, as we have a good assortment with small packaging. Unlike American and European travelers, who enjoy big chocolate bars, the Minis or Choco Cubes appeal to the Chinese travelers,” explains Pasold. Asian tastes also differ from European ones. Marzipan is a core flavor for Europe but does not resonate with the Asian palate. Pasold goes on to explain that it’s not about developing new products, it’s about being flexible with the flavors Ritter Sport does have and delivering the right ones to the right place. The focus going forward for Ritter Sport is to really engage with its customers in Asia. The brand wants to be physically present in the region to generate strong customer relations. “We want our customer relationship to be deeper and discuss how we can improve the business, and get more customers onboard,” says Pasold. Simone Weiss, International Key Account Manager for Ritter Sport with Jan Pasold, Head of Global Travel Retail at Ritter Sport, are part of a growing team that plans to increase the global appeal for the confectionery brand


Slow and steady

Ritter Sport is not in a rush to get to the finish line. The brand has recently started with social media for certain Domestic Markets, and it is also a key tool for communication in travel retail but the brand has to look in it how to use it in Travel Retail. Pasold says the brand generates a lot of ideas and understands that it’s a work in progress. “We are not in a rush,” he explains. “We definitely need more the resources, things will be a bit slow until we develop and research more as well as having more resources.” Ritter Sport has one factory located in Waldenbuch, Germany. All the products are manufactured at the plant and most of the TREX are hand-packed. Pasold hopes that futures business in global travel retail will help expand and update these facilities to meet volume demands. Although Ritter Sport has hosted successful tastings in Hong Kong, Malaysia and Singapore, Pasold stresses the need to amplify its presence with an expanded travel retail team in the region. “The goal is to have people recognize the colorful brand wherever they travel. It’s important to have travelers automatically connect the colorful squares to Ritter Sport,” he says. One of the top sellers continues to be the 250g Mini Tower in this region. During promotions, it continues to be one of the top four best-sellers. It was refreshing to hear that Pasold had accomplished so much in the couple of months between our meetings. With the addition of Weiss, the team continues to expand globally to strengthen the brand presence. “The lovely thing is that we just started. Let’s really pick what we believe and what’s the most important,” Pasold concludes.

unlock OCCASIONS. unwrap SALES.


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Contact your Hershey business partner today for details.

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trade up. up * *Source: 2016 CIR Global Study

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of Confectionery purchases are for a gift.*


Butlers Chocolates brings Asian appeal to Singapore Family-owned Irish chocolatier Butlers Chocolates is returning to the TFWA Asia Pacific fair this year with a new assortment of luxury chocolates called The Chocolate Collection. The chocolates are tailored to the Asian palate using popular Asian flavors, including Green Tea, Spiced Chai and Mango & Lemongrass. The new Butlers Chocolate Collection will be presented in ivory gift boxes with a sleeve in rich metallic tones of gold and bronze. The sleeve has a distinctive Art Deco feel with an elegant hoop-shaped reveal that features the three signature chocolates. The product will be available to travelers in three sizes from May 2018. After a successful TFWA World Exhibition launch in Cannes last October, Butlers will introduce to the Asian market its successful edit on the flavor of the moment, gin. This range offers Drumshanbo Gunpowder Irish Gin chocolate truffles and bars and continues to gain global traction.

Butlers will also present its entire travel retail collection, including elegant assortments, mini bars and impulse bars as well as Irish Cream and Irish Whiskey chocolates.

Butlers Chocolate Collection contains flavors of Green Tea, Spiced Chai and Mango & Lemongrass, geared to Asia

Perfetti Van Melle returns to TFWA Asia Pacific Exhibition with Limited Edition Mega Chups Perfetti Van Melle Global Travel Retail (PVM) returns to TFWA Asia Pacific Exhibition with new display concepts and on-stand activations to amplify its ‘must have’ products and new lines (stand basement 2, E29). The new Lollipop Art Mega Chup is highlighted amongst the mix as a limited edition giant chup consisting of 15 fruit flavored lollipops and will be available in Q2 this year. The Suitcase display offers a playful answer to space issues for retailers


Also new for the Chupa Chups range is the ‘Do You Love Me?’ concept which uses popular emoticons on Chupa Chups packaging and lollipops to create higher brand awareness amongst teens. The range includes a hand-held resealable bag filled with 25 fruit flavored Chupa Chups. Every single 3-D lollipop will answer the question: ‘Do You Love Me?’ PVM will be also showing the travel retail exclusive Mentos Connecting Tin containing 275 grams of fruit flavored dragees. To support the launch of the Mentos Connecting Tin, PVM will be making use of a Mentos themed selfie wall on its stand – featuring a world map with detachable speech bubbles. Visitors to the exhibition can stand in front of the map, hold one of the speech bubbles, and take away a momento of their experience or leave one behind for the wall of fame. PVM continues to embrace innovation with the development of a new 360 degree visibility display, which will carry all of the company’s best performing ‘must have’ items and new products, and guarantees prominence to customers approaching the store from every angle. “As we know, space is often an issue for retailers - our new Suitcase display perfectly caters to this issue, measuring at just 80cm x 80cm. We will have a prototype present on our stand in Singapore for all to see, and we will be taking input from our customers to create and perfect the final display,” said Femke Van Veen, PVM’s GTR Marketing Manager. Speaking on PVM’s travel retail performance in the ASPAC region, Benedict Ho, Area Manager Travel Retail Asia says: “PVM has performed reasonably better than the category in the region during 2017 and also for the first two months in 2018. I expect challenges due to the changing dynamics of the Chinese travelers as they seek more excitement in the product offerings, but I am optimistic as a whole because of the generally positive economic outlook.”


Mars ITR talks value gifting with SKITTLES gift tin Gifting remains an important element within the confectionery category with the fastest growth coming from lower priced items. At this year’s TFWA Asia Pacific Exhibition, Mars International Travel Retail (MITR) will be meeting this need with the introduction of its new SKITTLES gift tin to the region. Containing 195g of the best-selling mixed fruit flavors, the

tin builds on the success of the iconic M&M’s candy tin (Basement 2, K28). MITR will be discussing how best to market the new tin with retailers in APAC, recommending cross-branded promotions with M&M’s. “Most often we work in Asia Pacific with ‘BUY 3, GET 1 FREE’, enabling consumers to combine multiple tins of both SKITTLESand M&M’s in one promotion,” explains MITR Category Director Raghav Rekhi. “This definitely is the best way to generate purchase as consumers can see the value while recognizing brands they know and love.” Seasonal promotional opportunities for gifting are also important and MITR again uses global brands as the basis for exclusive limited editions. “For example, this Chinese New Year saw us develop a special sleeved edition of our CELEBRATIONS bottle exclusively for airports, downtown and border stores in the APAC region including Singapore, Malaysia, Macau and Hong Kong,” continues Rekhi. “We developed secondary display units to highlight the offer and worked with various key customers including FNA’s The Cocoa Trees. The results were very positive, again proving the demand by traveling consumers for value gifting items from blockbuster brands.”

Loacker adds new dimension to snacking Italian confectionery brand Loacker brings the Mix Classic Minis 300g pouch bag to showcase at this year’s TFWA Asia Pacific Exhibition. Loacker Minis are individually–wrapped 10g wafers that offer a lighthearted approach to snacking. The pouch contains two flavors Napolitaner and Cremkakao that can be differentiated by their bright and varied colors. Napolitaner Hazelnut is made with traditional Italian hazelnuts roasted by Loacker and the Cremkakao cream filling consists of the original blend of cocoa and chocolate. The wafers are made of three layers of cream filling (75%) covered by four layers of crispy wafers. The quality packaging offers 100% protection from humidity and keeps the products fresh and crispy for up to 18 months. The convenience of the 300g pouch allows for ease of traveling and a new dimension for snacking. Loacker is world renowned for its wafer and chocolate creations based on guidance from the third family generation. Over the years, the company has gained international success with continued dedication to its art and traditional recipes. The selective ingredients include Italian hazelnuts, real Bourbon vanilla, cocoa, sun-ripened raspberries, fine Loacker chocolate, high quality milk and fresh mountain water. Loacker will be exhibiting at the TFWA Asia Pacific Exhibition in Basement 2/J29.

Loacker Mix Classic Minis offer two popular flavors Napolitaner and Cremkakao ASIA DUTY FREE & TRAVEL RETAILING


Diverse Flavors Avondale Cyclus is a white wine blend that will be poured on Emirates in Business Class during 2018



The 100% handcrafted Tamboerskloof John Spicer 2012 is made by Kleinood Estate and will be launching in duty free in the year ahead


Diverse Flavours is on a mission to share the hidden gems of South African wine with GTR, while making them more approachable for consumers


iverse Flavours returns to the TFWA Asia Pacific tradeshow boasting a full line-up of approximately 50 wines to taste and review. The company continues to offer new and exciting products, whether it is premium wines from South Africa or Japanese sake, and proves that flexibility is key to approaching duty free.

Wine portfolio

Anthony Budd, Managing Director of Diverse Flavours, notes that wine consumers are constantly looking for fresh challenges, new wines and experiences. “I think this is reflective of the amazing growth in the wine offering across Asia duty free over the last 10 years,” he says. “The last 12 months has seen no change in this evolution. The wine section gets larger, the selection gets larger, the consumer gets braver, and more consumers enter the wine category, which drives us all harder (producer, supplier, retailer, channel) to make great and interesting wines available to them and ensure choice.” Diverse Flavours offers a wide choice of wines. Favorites such as Avondale – one of the top organic and biodynamic 80 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

wineries from South Africa – continues to have its wines poured in First Class. Budd returns with Cederberg, South Africa’s highest winery at 1,000 meters, the popular Ernie Els range of wines, and from South Africa’s oldest wineries there will be Groot Constantia. Budd will also be showcasing a personal favorite, The Ghost Corner Pinot Noir, produced at the most southerly end of South Africa in the Elim area. Although best known for its wines, Diverse Flavours also offers Japanese sake. Japanese sake, like the South Africa wines, is a category that will take some time to strengthen in Asia and GulfAfrica. “The reaction so far has been very positive and I see a long-term potential for Japanese sake. Like wine, the sake category is multi-layered and sometimes seems even more complex and daunting. The key is to find the right brands and Japanese producers who can understand the dynamics of the travel retail industry and have a long-term vision. This takes time. We have now placed our sake into shops in UAE, Korea, and Hong Kong and even into the inflight shopping catalogue,” explains Budd.

Evolving purchasing habits

Diverse Flavours prides itself in focusing on the ever-evolving customer demographic. The flexibility to constantly bring something new to the table allows Diverse Flavours to tailor the offerings based on what the consumer wants. Budd continues: “No consumer group is the same. The Indians buy differently from the Chinese, who buy differently from the Japanese or Singaporeans. I think purchasing habits evolve. Therefore we have probably seen more Indians buying wine in the last two years than ever before, while the Japanese may have slowed down.” He also explains that there are emerging independent travelers, and business travelers that are looking to buy a unique or different product as a gift. These consumers are flexible, intuitive and adventurous and aren’t always drawn to the mainstream brands. Budd is taking this opportunity in Singapore to help delegates understand South African wines and Japanese sakes. He notes that there is an interest in sake from a broad range of consumers. His job is to educate the consumer and make it more approachable. He concludes: “The consumer shifts like sand in the desert and we must be agile and prepared to try new things and ideas to earn the sales and deliver customer satisfaction.”

Imperial Tobacco

Blu smoke blu launches next-generation e-vaping device in sleek new format

myblu is designed to deliver strong performance in a sleek and compact closed system, according to Imperial Tobacco

myblu’s pre-filled Liquidpods feature 11 flavors in three nicotine levels, including 2.4%, 1.2%, and a nicotine-free option


mperial Tobacco’s blu brand launched its new myblu electronic vaping product with retailers across the US in February 2018. blu’s next-generation e-vapor device, which boasts a sleek new form, has a prefilled POD system designed to revolutionize today’s vaping experience, Imperial Tobacco said. blu, a leader in the electronic cigarette industry, said the introduction of its myblu e-vapor device would provide “the utmost satisfying vaping experience available on the market today”. myblu seeks to deliver strong performance in a sleek and compact closed system – with none of the hassle, according to Imperial Tobacco. myblu fits comfortably in the palm of your hand. With a long-lasting and fast 20-minute USB recharge, myblu can be used anywhere at any time. Featuring new pod technology with pre-filled Liquidpods, changing flavors is designed to be easier with its click-andgo system. myblu boasts the brand’s most expansive flavor range yet. The pre-filled Liquidpods feature 11 flavors in three nicotine levels, including 2.4%, 1.2%, and a nicotine-free option. They include Classic Tobacco, Carolina Bold, Gold Leaf,

Magnificent Menthol, Polar Mint, Cherry Crush, Vivid Vanilla, Blueberry, Blue Ice, Mango Apricot, and Green Apple. The full assortment of flavors is available for purchase exclusively on blu’s website. In addition, blu’s best-selling flavors such as Gold Leaf, Magnificent Menthol, Polar Mint, Cherry Crush, and Vivid Vanilla are also offered for retail sale in 2.4% nicotine. Wayne Jones, Senior Vice President Sales Operations at blu’s brand owner Fontem US, said: “Our constant quest for innovation and improvement has been a long-time tenant of the blu brand, and we are kicking off 2018 strong with our firstever product for the growing Pod segment here in the US. We believe myblu is truly the introduction of a next-generation standard in electronic vaping products for the industry. “Having received continued positive feedback from consumers and selling out of product pre-orders faster than ever before, we are confident that myblu will truly add a game-changing e-vapor device to the current market line-up, answering smokers’ call with product that will transform the way consumers view and experience vaping today.” myblu starter kits, which include the myblu device, one USB charging cable,

and one liquid pod in the Gold Leaf flavor, retail at US$19.99, with mybluLiquidpods including two pods priced at US$8.99. Following the February 2018 launch, myblu is now available across retailers nationwide in the US. The new product carries a myCARE guarantee — blu’s first lifetime device warranty. This guarantee is only available in the US. blu is available online and in stores across the four largest vapor markets worldwide, including the US, UK, France and Italy. The brand is owned by Fontem Ventures, a subsidiary of the Imperial Brands Group, with international headquarters in the Netherlands and Charlotte, North Carolina. ASIA DUTY FREE & TRAVEL RETAILING



Bottega shares growing portfolio Bottega will be attending this year’s TFWA Asia Pacific Exhibition again, as the region represents a crucial market for the Italian winery and distillery. Owner and Managing Director Sandro Bottega believes Asia Pacific will reach 50% of sales in the company’s long-term plan, in line with the rise in emerging market consumers. Visitors will be able to taste the complete Bottega and Alexander ranges, including best-sellers such as Bottega Gold – the iconic Prosecco presented in a gilded bottle – along with Bottega Stardust (Bottega’s premium Prosecco Dry in a crystal-encrusted bottle), Bottega Limoncino (organic lemoninfused liqueur), and Il Vino dell’Amore Petalo Moscato, a sweet sparkling wine. The Singapore show will mark the launch of several new products in the Asian region. Bottega Gin Bacûr is a distillate produced in Italy based on a recipe of natural ingredients including juniper berries. The gin is locally sourced from the surrounding Veneto region at the foot of the Alps and contains lemon zest and sage harvested in the Italian countryside. The distinctive blown-glass bottle is glazed with a metallic paint that gives it a warm and refined look reminiscent of copper stills. Described as expressive on the nose, Bottega Gin Bacûr opens with an intense and clean scent of juniper, followed by citrus and sage notes, which give a truly Mediterranean flavor. Recently launched, Bottega Gin Bacûr is distributed in over 50 countries worldwide. Asian locations include Bangkok, Malaysia, Shanghai, and South Korea. Additionally, the Bottega range has grown with Vermouth Bianco Bottega and Vermouth Rosso Bottega. Both wines were created in partnership with Sandro Bottega and Lamberto Vallarino Gancia. Vermouth Bianco Bottega and Vermouth Rosso Bottega are unique due to the base wine and the selected botanicals used in the recipe. Veneto, in the northeast of Italy, is renowned for producing Pinot Grigio (used for Vermouth Bianco Bottega) and Merlot (used for Vermouth Rosso Bottega).

Bottega is showcasing Bottega Gin Bacûr, locally sourced in Italy and containing notes of lemon zest and sage, in Singapore


Disaronna wears Missoni was a successful collaboration that resulted in an increase in sales

Illva Saronna strengthens presence in Asia Illva Saronno returns to Singapore for the TFWA Asia Pacific Exhibition & Conference (Basement 2 M10), riding the wave of success for Disaronno and Tia Maria in the region, particularly Australia, Japan and China. International Sales Director Domenico Toni explains: “Following the appointment of Trent Russell as our new Regional Director for APAC in August 2017, we’ve secured business with a number of key Markets including Australia, Japan and China.” He continues: “Trent is doing a fantastic job for us and will be on the stand during TFWA Asia Pacific to outline our strategy moving forward to both existing and new partners.” One product that buyers will be keen to see is the new Disaronno Icon – the name of which remains under media wraps until October. The collaboration – which will be with an Italian designer of renown – will be the sixth in the icon series, bringing a one of a kind look to the world’s favorite Italian liqueur. This year’s version, Disaronno wears Missoni, has already proved to be another winning collaboration with excellent sell-through wherever it has been listed in travel retail, with success sales in Heinemann, Lagardère, Weitnauer, DFA, in Cruise Lines as MSC, Carniva, Royal Caribbean, Holland America, Celebrity and P&O Ferries. Domenico Toni adds: “TFWA Asia Pacific Exhibition & Conference is a vital date in the annual travel retail calendar and an important showcase for our brands. We believe that this year will be pivotal for us in really establishing a strong foothold in the region and are very much looking forward to meeting friends old and new.” After a long, hard day work in the exhibition hall, visitors to TFWA Asia Pacific Exhibition & Conference are encouraged to try Disaronno’s famously refreshing cocktail; Disaronno Sour, at the TFWA Asia Pacific bar from Monday to Wednesday.


Limited edition Absolut World promotes global unity Absolut Vodka announces the launch of a limited edition bottle called Absolut World, exclusive to travelers that celebrate global unity. This collectible bottle is the first travel retail exclusive from Absolut in three years and features a design by Swedish Illustrator Kari Moden. The bottle design is meant to express love, peace and togetherness, while the colorful bottle design uses evocative symbols such as a hand making a peace sign, an ampersand and a heart to signify the joining of people, drawn together by the values and experiences we share. Created by the artist through a retro clip art technique and using strokes of neon pink, green and yellow, contrasted against matte gold, the result is a playful, decorative and bold bottle. The launch will be marked by a global movement asking people to share the experiences and places they love as part of an online Travellers Exchange via This hub is meant offer local insider tips. To get involved, people will first take a picture of themselves and see it become a global selfie – a mosaic of hundreds of faces from around the world. Zooming into the image will reveal the details of the people

that make up the face; from their location and names, to the places they recommend eating, drinking and getting together with friends in their home city – ensuring everyone can travel like a local this summer. “Absolut World is a strong statement and expression of a world without borders, united in peace, love and friendship. We’re proud to be adding to the celebration of togetherness through technology and a digital campaign that connects people around the globe as well as enhances the travel experience,” said Lisa McCann, Brand Director Absolut, Pernod Ricard Global Travel Retail. Pernod Ricard Global Travel Retail will create high impact activations in airports including Frankfurt, Singapore Changi, Sydney, Melbourne, Brisbane, Perth and Auckland Airports throughout May, June and July 2018. Absolut World is a limited edition bottle designed by Swedish Illustrator Kari Moden

Bacardi introduces new positions to its commercial leadership team  Bacardi Global Travel Retail has announced restructuring its management team with an enhanced focus on key accounts and talent development. Managing Director & Vice President of Global Travel Retail and Commercial Development, Mike Birch, will be taking on additional responsibilities for the wider Bacardi group including global ecommerce, global hotel and resort chains, global advocacy, and commercial. He will retain overall responsibility for Global Travel Retail (GTR), reporting to Maurice Doyle, President - Incubation Brands and Global Commercial Development. Vinay Golikeri is promoted to the new role of Bacardi GTR Senior Commercial Director, reporting to Birch. He will lead the GTR commercial team, development of customer strategy, commercial management and brand building in the channel.

Bacardi President -Incubation Brands and Global Commercial Development, Maurice Doyle is confident the new structure will strengthen relations with customers and help develop opportunity

Managing Director & Vice President of Global Travel Retail and Commercial Development, Mike Birch, will have expanded responsibilities within his new roll

He joined Bacardi in 2003 and Bacardi GTR business in 2011 as Marketing Director. David Hughes is promoted to GTR Director, Europe & Global Advocacy. Hughes joined Bacardi GTR in 2013 with responsibility for the UK and Ireland and has stimulated the development of advocacy across GTR. Gaurav Joshi is promoted to GTR Director, Asia Pacific. Gaurav joined Bacardi GTR in 2007 and has worked across diverse emerging markets. Geoff Biggs, GTR Regional Director, Americas, will now also take on responsibility for the development of the cruise channel. Biggs joined Bacardi in 2014, following 15 years in the drinks industry. Sandeep Chugh is promoted to GTR Regional Manager, Middle East and Africa. Over the past three years, Sandeep has played a key role in driving successful plans in the GTR Middle East & Africa region. Thomas Koch is promoted to the new role of GTR Director, International Key Accounts. Since joining GTR in 2006, Koch has worked with multiple customers and across several geographies. He will lead the International Key Account Managers for DFS, Dufry, Heinemann and Lagardère. “Global Travel Retail is an important and dynamic market for our brands and offers tremendous potential for us to build our premium brands and deliver commercial results, particularly with emerging market travelers,” said Doyle. He continued: “The travel channel has seen considerable retail consolidation and this new structure enhances our agility to get closer to our customers and develop opportunities for mutual benefit.” ASIA DUTY FREE & TRAVEL RETAILING


House of Suntory

Time for Toki

The House of Suntory has introduced a game changer with its new blended whisky product by REBECCA BYRNE IN JAPAN

The House of Suntory’s Chief Blender Shinji Fukuyo took a fresh approach with Suntory Whisky Toki


t is Japanese culture to make something new out of old traditions,” says Mike Miyamoto, Global Brand Ambassador of Suntory Whisky and the history of the House of Suntory is a compelling example of this. Japanese whisky making began with the passion of one man, the founder of The House of Suntory, Shinjiro Torii in 1923. Though initially inspired by traditional Scottish whisky, Torii envisioned a Japanese approach by choosing a terrain and climate completely different from those of Scotland. He selected land in Yamazaki, Kyoto, a place located in a rich natural environment with famously soft water, and began construction of the first malt whisky distillery in Japan. The quality of the water was so important that Torii sent a sample to a Scottish professor to approve it. In 1937 he launched Kakubin as the ‘The origin of Japanese whisky’ which appealed to the delicate Japanese palate. Offered in a square cut tortoiseshell bottle, the product remains the most popular and longest selling Japanese whisky.


Half a century later Torii’s son Keizo Saji, who had inherited his father’s vision and quest for innovation, decided to expand the production facilities. Miyamoto describes how Saji’s undertook a two and a half year nationwide search for a location with water of a premium quality for the whisky he wanted to create. He chose Hakashu where the water offers a rare softness and purity made possible by filtration of rain and snow through thousand-year-old granite rocks. The Hakushu Distillery, built in 1973, is one of the highest distilleries in the world, built amid forests in the Japanese Southern Alps. The region is also blessed with four distinct seasons, which affects the character of the whisky maturation. To create its malt whisky, Yamazaki uses malted barley, wood and steel fermenters, and seven different style pot stills. With the five types of oak casks the distillery can make many types of whiskies. The same thing can be said for Hakushu, the distillery uses peated and unpeated malt, wood fermentation, seven different pot stills and four oak casks. A grain distillery was built in

The creation of Toki

Mike Miyamoto, Global Brand Ambassador of Suntory Whisky

Shinjiro Torii, the founder of The House of Suntory

Toki, the new blended whisky from the House of Suntory

1972 on the shores of the Chita Peninsula dedicated to creating the highest quality Japanese grain whisky. Offering three types of grain whisky, this again demonstrates the uniqueness and diversity of Suntory’s whisky making as the majority of grain distilleries will only product one grain whisky. Discussing the differences between Scottish and Japanese whisky, Miyamoto comments that: “The Japanese take a product and give it a twist.” Nowhere is this truer than in the latest launch Toki. Its creation pays respect to tradition, but also challenges whisky convention by combining seemingly contrasting components to create something balanced and complex. Miyamoto describes how traditional blended whisky uses a layering concept with a grain whisky, base malt and key malt. Suntory has turned this concept on its head by creating a two- pillar structure for the blend, using whiskies from each of its three distilleries. As he comments: “It is easy to say but not to achieve because malt whisky usually overwhelms the grain whisky”. Toki was created using a combination of lighter malt whiskies from

Suntory blends often use Yamazaki malts as its key component. Inspired by the spirit of innovation, the House of Suntory’s Chief Blender Shinji Fukuyo took a fresh approach with Suntory Whisky Toki, selecting the singular Hakushu American white oak cask malt whisky — with its unique freshness, mellowness and spectacular green apple notes — as one of the blend’s two pillars. To complement that selection, Fukuyo chose Chita heavy-type grain whisky as the blend’s second pillar, adding a clean taste with notes of sweetness and vanilla. Traditionally in Suntory blends, grain whiskies have played merely a supporting role, acting as a broth or dashi to accentuate key malts. But the unrivalled sophistication and wide range of grain whiskies produced at Suntory’s Chita distillery led Shinji Fukuyo to rethink that role. This unique encounter between Hakushu malt and Chita grain whiskies gives Suntory Whisky Toki its silky taste and vivid character. To give the blend greater depth and complexity, Fukuyo carefully selected two Yamazaki malts. Long aged Yamazaki American white oak cask malt whisky harmonizes the Hakushu and Chita components, while bringing roundness and reinforcing the sweetness of Chita heavy-type grain whisky with peach and custard aromas. Finally, Yamazaki Spanish oak cask malt whisky adds woody and bittersweet notes to the blend. The result is a vivid, well-balanced and silky blend with a subtle sweet-and-spicy finish.

Hakushu with a heavier single grain whisky from Chita as main components. It is very light but still maintains the Suntory character of being subtle, refined yet complex. Miyamoto points out that its complexity will be key to its longevity. Toki, launched in 2016 in USA, is classified as an entry whisky from the House of Suntory. While is a very versatile drink, it is often used in the popular Japanese cocktail known as a highball, which is a blend of whisky and sparkling water or soda over ice. Popular in the 1950s, Suntory is playing an important role in reestablishing the highball as a popular cocktail for a new generation of whisky drinkers. It will make its duty free debut later in 2018. “It is Japanese culture to make something new out of old traditions,” says Miyamoto. The versatile and creative approach taken by the House of Suntory since Shinjiro embarked on Japanese whisky making 95 years ago has garnered the company a plethora of awards for its whisky over the years. Suntory’s Hakushu 25 Yo recently received the World’s best single malt from World Whiskies Awards. ASIA DUTY FREE & TRAVEL RETAILING




grand plan by JAS RYAT

F Kavalan is known for its cask collection that has won many awards through the years

Highly decorated whisky Kavalan hails from the quaint city of Yilan, Taiwan, and is making a big impact globally 86 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

or a Taiwanese distillery that opened up in only 2005, Kavalan has made quite the name for itself. At first, people felt somewhat skeptical of whisky being made in Taiwan’s subtropical climate. Now, eleven years later, and the launch of a second distillery, the whisky has a global following. Americas Duty Free spoke with Yvonne Chou, Deputy Director of Global Marketing, to understand the full scope of Kavalan’s recipe for success. Kavalan is again attending this year’s TFWA Asia Pacific tradeshow fully loaded with an array of award-winning whiskies. “We are going to showcase seven expressions of Kavalan whisky at TFWA Asia Pacific in Singapore, including Kavalan Classic, Kavalan Concertmaster, Solist Ex-Bourbon, Solist Sherry, Solist Vinho Barrique, King Car Conductor and Kavalan Podium. Most notable are the Solist series, which consist of a range of non chillfiltrated single cask releases, matured in various types of casks,” explains Chou. The distillery has a prominent cask collection that has gained accolades over the past years. In fact, the Solist Ex-Bourbon Single Cask Strength has recently just won its second International Spirits Challenge award and IWSC Trophy, making it a third-time winner of the biggest award in its class. Japanese whisky has also evolved to mass appeal and global recognition, says Chou. This has encouraged Kavalan’s success story, as it has highlighted the market for whiskies from Asia. Recently, in some whisky competitions, Kavalan has won the biggest awards in over a decade, enabling the brand to rival many of

The demand for Kavalan has led to a second distillery and expanded the production line from 10 copper stills to 20 stills, boosting annual production to 10 million bottles annually in 2016

the established Japanese whisky brands. Winning these awards has also helped solidify its reputation among a global audience. Kavalan attributes many of its accomplishments to the openmindedness of drinkers around the world. The curiosity for “new world” labels has played out in its favor. “This creates a huge opportunity, especially for the producers in new world nations. As one of the new world distilling nations, we feel that there are a growing number of whisky consumers in our home nations who are game to try home-grown brands, making the market for new labels even broader,” notes Chou. The brand also hosts global tastings to entertain and educate the whisky enthusiast by sharing not only facts about whisky, but Kavalan’s story itself. This knowledge helps consumers connect the story to the brand, strengthening the brand identity.

Kavalan’s customer

Kavalan’s portfolio comprises many award-winning whiskies. As the high-end whisky trend continues, more people are willing to have an open palate and mind when it comes to trying new world whisky. “After the World Whiskies Awards named our Kavalan Solist Vinho Barrique ‘The World’s Best Single Malt’ and the Kavalan Solist Amontillado Sherry Solist Amontillado Sherry Single Cask the World’s Best Single Cask Single Malt’, we saw remarkable growth in both our domestic and export sales,” enthuses Chou. Kavalan’s strongest export market continues to be Taiwan, followed by the US and then France. The brand’s customer following is peppered with higher income drinkers, dubbed

“affluencers”, who appreciate the finer things in life and who are continually seeking new things to satisfy this demand. This luxury-seeking group is made up of both male and female millennials that crave quality.

New on the horizon

Following the high demand for Kavalan, the brand has opened a second distillery, with a third maturation warehouse in the works. “With worldwide demand outstripping supply, we officially launched our second distillery and expanded our production line from 10 copper stills to 20 stills, boosting annual production to 10 million bottles annually in 2016,” explains Chou. The potential annual capacity of 10 million bottles means Kavalan will be able to release more whiskies aged in different types of barrels. This innovation and diversity, along with consistent good quality, lays out the groundwork for recognition as a premium whisky brand, and this will in turn increase sales and a loyal customer base, she says. This May, Kavalan plans to launch a new expression in a 70cl size bottled at 40% abv. The whisky is described as creamy and works well as for entry-level whisky drinkers. From something that seemed like an impossible venture seven years ago, the Kavalan brand has a lot to look forward to. Global expansion has extended to over 68 countries. The subtropical climate has worked in favor of the maturation of the whisky, allowing it to have a richer and more complex body. It seems Kavalan has created a unique product that is steadily taking command of the whisky category. ASIA DUTY FREE & TRAVEL RETAILING



Amarula celebrates Africa by collaborating with designers and artists from the four corners of Africa to create a limited edition North-East-SouthWest African Range

Distell to take operators on an African journey Distell is ready to share the hidden gems of South Africa with travel retailers and is going full speed ahead by JAS RYAT


istell, the South African producer and marketer of alcohol, is entering 2018 with its best foot forward. After witnessing double-digit growth in Asia for Amarula liqueur in the last two years, the company is confident that 2018 is its time to shine. Distell has invested in a larger exhibition space at this year’s TFWA Asia Pacific fair in an effort to show its commitment to expanding in Asia. Asia Duty Free magazine sat down with Luke Maga, Managing Director Travel Retail, in Toronto during his whirlwind tour of the Americas. He explains: “We can expand on Distell and on its commitment to the travel retail channel. It’s all about streamlining our portfolio, really


being strategic about where we play and how we play and investing in the right areas to see it pay off.” Amarula will be a strong focus for the firm in 2018. Currently, the strongest markets for the brand are Europe and South America, followed by South Africa. However, Asia is seen as being an emerging market for Amarula, and Distell plans to amplify this opportunity. “Amarula from an Asian perspective needs convincing. It is a product that is unknown in that region so they are a little more skeptical of purchasing something they have never tried before. However, looking at consumers that are purchasing Amarula out of Johannesburg, the Asian consumer is actually the third largest buyer of Amarula as they depart

from South Africa. We see this as a great opportunity in terms of building a brand,” shares Maga. August 12 will mark World Elephant Day, a day dedicated to the African elephant and centered on the conservation and preservation of the world’s elephants. Elephants in Africa are slaughtered at a very high rate for their Ivory. Distell wants to highlight this issue in Asia due to a high amount of ivory purchases traveling through Asia. On World Elephant Day Amarula will launch limited-edition bottles to accelerate global awareness of the fight to end ivory trade, and will donate €0.50 from every bottle of Amarula sold to WildlifeDIRECT’s global conservation efforts.

daweely, is influenced by the blending of different and bold African cultures and customs. The East African bottle reflects the work of Kenyan Kate Mayeye, CEO of African Fabric & Designs Kenya Ltd, who expresses an aesthetic blend of African authenticity. The South African bottle showcases Siphathisiwe Hlongwane, Director and Founder of Inkaturah, and reflects an elegant and sophisticated African sensibility. And the North African bottle inspiration, by Nigerian Olubunmi Adeyemi, founder of AFROMINIMA, depicts a contemporary expression of Afro minimalism. Like Amarula, they are all made in Africa.

In the pipeline

Spicing it up

Innovation is a key part of Distell’s growth strategy. The company will be unveiling Amarula Vanilla Spice cream liqueur at the TFWA Asia Pacific exhibition. Vanilla Spice is made from ethically sourced and African ingredients, namely distilled marula fruit spirit, vanilla extract from Madagascar and Nigerian ginger root. Vanilla Spice is made for easy drinking. In another exclusive travel retail launch, aimed at inspiring the world through Africa’s cultural diversity, Amarula will collaborate with talented artists from the four corners of Africa to create a limited-edition range that is set to hit retail shelves in October 2018. The North-East-South-West African Range will provide a platform to showcase the artists and their premium craftsmanship, while allowing consumers to explore what Africa has to offer. The North African bottle, inspired by Egyptian fashion designer Amna Elshan-

Why is now the time for Distell? Maga explains: “We were not in a rush. We wanted to make sure the story was right. I think the market is right for us at the moment. We are seeing Amarula continuing to grow. We had the chance to sit back and look at other competitors and see where they were heading and we thought it was time to take people on an expanded journey of South Africa.” Maga points out the importance of industry trends, crafts, creating excitement for the consumer, and brand loyalty. He promises that there are still “a pipeline of things” to look forward to in the next two years.

Turning to the marketing strategy, many Amarula drinkers are female. Distell continues to engage in social media platforms through its various brands. The company is investing in research about what millennials are drinking and on what occasions they are drinking. Maga believes that there will be a shift in focus from millennials to Generation Z – a group that is all about having the product ‘yesterday’ and not waiting for it. Distell is also choosing to highlight its wine portfolio in Singapore. South African wine is considered a part of the new world wine trend. Consumers are more open to trying different varieties, thus increasing opportunities for listings. “It’s starting to sink in with retailers. People don’t want to drink what they drank two years ago. The success we are having is due to the specific grape varieties that grow in South Africa. It is our job to prioritize and to almost over-invest in some parts of the world to promote our wines,” says Maga. Distell is a company that stands strong in the duty free channel. Its core focus for the next 12 months will remain Amarula, premium wines and single malt whiskies. Maga concludes: “Wine starts conversations on any occasion. You can share your experience through a bottle of wine.” Distell is ready to share its experience in travel retail.

Luke Maga, Managing Director Travel Retail, is optimistic that Asia is a major potential for Distell and sees it as a “great oppurtunity” ASIA DUTY FREE & TRAVEL RETAILING


William Grant & Sons

William Grant takes

Singapore by storm William Grant & Sons returns to the TFWA Asia Pacific Exhibition with new, innovative expressions to warm the soul by JAS RYAT


illiam Grant & Sons (WGS) has reason to celebrate as it returns to the TFWA Asia Pacific exhibition on the heels of a solid regional performance in 2017. The company continues to generate buzz with the success of Glenfiddich Cask Collection and Experimental Series. WGS also reports growth ahead of the industry in almost every spirits category in which it is present, with Glenfiddich maintaining the top spot in single malt both in volume and value. Singapore sets the stage for the unveiling of the third Glenfiddich Experimental Series: Glenfiddich Winter Storm. This new expression is a single malt whisky finished in Canadian icewine casks. WGS partnered with Peller Estate winery in Niagara to create a 21yo whisky finished in French oak icewine casks. Unlike a real Canadian winter, Winter Storm is short and crisp, with a layer of sweetness. Glenfiddich Winter Storm joins Glenfiddich IPA Experiment and Glenfiddich Project XX, which both launched to global travel retail in 2017.

Glenfiddich Experimental Series offers its third instalment, Glenfiddich Winter Storm


Glenfiddich Winter Storm is a single malt whisky finished in Canadian icewine casks to give a layer of sweetness

Also being showcased will be Glenfiddich Cask Collection Finest Solera, the first in a series of rare whisky expressions by Glenfiddich developed in partnership with Baccarat, the world famous manufacturer of fine crystal glassware. Finest Solera is presented in a handblown, numbered and signed decanter that is exclusive to travel retail. Glenfiddich Malt Master Brian Kinsman created the complex whisky, which was then hand-decanted in the Baccarat decanters. There is a maximum of 600 bottles per batch, with a different cask used for every new batch, ensuring no two batches are the same. Monkey Shoulder Scotch whisky and Hendrick’s gin continue to be an area of focus for WGS with a series of activations. Hendrick’s will be the main character to lead up to this year’s World Cucumber Day on June 14. The company plans to use trial with theatre to attract, engage and convert travelers. WGS also welcomes a new member of staff, Matthew Williams, Regional Director for Asia Pacific Global Travel Retail. He joins from Amer Sports Corporation, where he was Regional Sales Director (Vice President) Asia Pacific, prior to which he held various leadership roles with Diageo.

“This is an incredibly exciting year for WGS,” says Global Travel Retail Managing Director Ed Cottrell. “We plan to continue winning and to win bigger with our customers through resourcing and aligned planning, continuing to be best known for our disruptive creativity through brand activation and product innovation. There are ongoing challenges in the channel, of course, but we will see huge potential for growth and new business.” “One of these growth areas is North Asia,” notes Williams. “Following our strong performance in South Korea, new distribution agreements in Japan and a changing landscape in Greater China, the Global Travel Retail Asia Pacific team has been making significant progress in growing our footprint across these markets as a whole.” Williams concludes: “We continue to see huge potential for WGS brands in Asia Pacific and, with our ability to bring fantastic theatre and consumer engagement to the airport environment, we predict a very exciting time ahead for us in a region leveraging the massive growth in tourism over the next few years.” WGS shows no signs of slowing down. Its consistent innovation and global reach keeps the firm continuously aiming to win big in the whisky showdown.



premiumization CIDF premiumizes product range and unveils fresh packaging formats


he headline focus for CIDF at this year’s TFWA Asia Pacific show is the travel retail exclusive “China” series of tobacco products. An international-only Chinese tobacco brand co-developed by CIDF and Jiangxi Tobacco, china Jinsheng was created to cater to the primary purchase drivers of Chinese travelers in 2018 – the search for exclusivity in travel retail and high quality tobacco. Following the successful launch of the kingsize variant across key travel retail locations in 2017, CIDF is bringing to market a range extension of three new variants in May 2018. “The addition of these three new variants not only premiumizes the range, but also expands our portfolio offering of format innovations such as superslim, capsules, recessed filters and resealable packs,” said Fred Combe, Executive Chairman, CIDF. “Consumer reaction was very positive after we launched china in key locations such as Singapore, Hong Kong and Dubai, and therefore we put a lot of work in to ensure the full range would live up to the standards we had established.” He added: “We continue to see strong demand from Chinese consumers for travel retail exclusive products such as china and, due to our strong business 92 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

relationships with CNTC, we are very fortunate to be able to produce them in China – benefiting from China National Tobacco Corp’s world-leading standards in tobacco packaging and stick production. There is so much more to these products than simply their attractive ceramic packaging.” CIDF is launching a superslim variant at US$33 per carton, targeting a key demographic identified as Chinese consumers who purchase for self-consumption but wish to upgrade from existing value-for-money superslim brands. Sitting comfortably above the superslim and kingsize variants are china 9 + 1 and China Red, two premium products hand-made in limited quantities. 9 + 1 features nine white ceramic packs, each containing premium leaf 74mm sticks with recessed filters. The 10th pack, a striking shiny gold and blue ceramic, contains an entirely different cigarette, which features an Organic Jasmine-flavored capsule and gold tipping paper. China Red is the flagship variant in the newly-expanded range and is one of the most sought-after products in the Chinese tobacco market, as it featured as the cigarette of choice to be consumed at the People’s Congress in 2017, according to CIDF.

Sitting comfortably above the superslim and kingsize variants are china 9 + 1 and China Red, two premium products handmade in limited quantities

It has been developed and engineered from every aspect to honor the origin and history of China and only released in limited quantities in the domestic market. China Red is now available exclusively through CIDF for release in selected highprofile international travel retail locations. In addition to the china series, CIDF continues to expand its Chinese tobacco supplier representation, and is now the official distributor and marketer for seven CNTC manufacturers across 30+ countries and almost 100 markets. The travel retail exclusive series Mao Cigarillo continues to do well in the super-premium segment (with the two variants retailing at US$230 and US$460 respectively), and the company’s hallmark Ashima series continues to shine. Combe is most excited about the work CIDF have been doing with CNTC behind the scenes in the next-generation product space. “We can’t go into big detail publicly just yet,” he said, “but the ascent of the heat-not-burn category has not gone unnoticed and we have been working closely with CNTC on helping bring to market and distribute a suitable offering in the space. I encourage our existing retail partners and those interested to come seek us out on this point and we would be happy to go through the roadmap in more detail and discuss timings.”


New Russian vodka brand is born to rule in travel retail

Quality over quantity is one of the main ideas that give Kremlin Award Grand Premium Vodka its luxury positioning in travel retail

Originally only produced under the orders of the Kremlin in limited supply, Kremlin Award vodka is now looking to generate the same exclusive reputation in travel retail by JAS RYAT


hen a team of specialists worked for two years under the strict control of the Kremlin, Kremlin Award vodka was born. Newcomers to the travel retail market, Kremlin Award vodka has a long history and an ancient recipe that sets the brand apart from its many Russian rivals. At launch, the name Kremlin surprised Russian customers when applied to vodka. However, due to its premium quality and history, the Russian Government allowed the brand to be named Kremlin Award. Today, Kremlin Award vodka is the official vodka of Russian Government officials and their guests when they visit the Kremlin, located in the historic heart of Moscow. Next on the award-winning vodka’s itinerary is to expand its global presence in the travel retail market. Artur Ghazaryan, General Director at Moscow-based spirits supplier Prevelon Rus, explains: “Our main focus is to present Kremlin Award vodka as a global brand which represents in its history and recipes the best traditions of Russian vodka. As you know in our country, the first proven facts about vodka date back to the 1400s, so we have quite a long and sophisticated tradition.”

Capturing the potential market

The brand continues to expand its growing portfolio with Kremlin Award


Kremlin Award Vintage is a limited-edition vodka crafted from a valuable variety of wheat to create a high quality vodka

Organic and Kremlin Award Vintage vodkas. Both lines have been added to capture more of the potential market. Kremlin Award Organic vodka is made from ecologically pure products: natural drinking water and alcohol of the Alfa category. The alcohol is produced from the organically grown wheat grain from an ecologically clean area of Russia. Kremlin Award Vintage is a limitededition vodka crafted from ecologically pure grain products of the same year’s harvest. The alcohol is made from a valuable variety of wheat of the highest quality in the selected year. In order to obtain a high-quality alcohol, the wheat grains of the given year’s harvest are stored in the grain silo for a year until maturity is achieved. The alcohol made of these wheat grains is mixed with natural drinking water and passes through a multi-stage cleaning process via ecologically pure birch charcoal with a following mandatory rest and extraction.

Brand sparks high demand in Asia

The vodka performs well in the Asian market as it caters to the demand for premium products. 2017 marked a special period for Kremlin Award vodka when it made its debut in Asia. The brand entered Vietnam and China for the first time and performed exceptionally well, sparking high demand, more so than the brand had

previously predicted, according to Ghazaryan. Ghazaryan aims to ensure the vodka will appeal to the majority of buyers, based on two current spirits trends. “There are two trends which we consider interesting: organic production on the basis of ecologically pure products, and vintage product ranges with limited production, where consumer attitudes are more personalized. As for consumers, nowadays most people care about their health and the quality of the products they consume and, as a result, are looking for high-quality goods to meet their standards. We do our best to satisfy our customers and preserve our reputation as a producer of premium vodka,” he says. Ghazaryan also notes that millennial customers are drinking less today, but when they do drink, they are looking for quality. The simple rule of quality versus quantity aids Kremlin Award vodka in establishing growth with this new generation, he believes. The production of Kremlin Award vodka remains under strict control and is produced to exacting standards. This message of luxury and exclusiveness is expected to resonate well in travel retail, and Ghazaryan is optimistic that Kremlin Award vodka will thrive on such a global platform.


MacDuff creates Asian appeal with authenticity Scotch whisky maker MacDuff International shares its vision for success as the company tackles the Asian region Lauders 25YO demonstrates the strength of premium products in the Asian regions


cotch whisky specialist MacDuff International is a high-flyer in what the Scottish know best – whisky. The company, created in 1992 and based in the city of Glasgow in Scotland, boasts a strong duty free portfolio. Core brands are Lauder’s, Islay Mist and Grand Macnish, which are the company’s main focus. John Scott, Export Sales Director at MacDuff International, outlines what we can expect from the firm in the coming year. “We aim to continue the growth both in volume and distribution that we have achieved in recent years and to make our core brands, Lauder’s, Islay Mist and Grand Macnish, as visible as possible in travel retail,” he explains. Following a successful show at the TFWA World Exhibition in October 2017, where MacDuff featured a tasting pack


featuring three miniatures of Lauder’s Finest, Oloroso Cask and Ruby Cask, the company is looking forward to the TFWA Asia Pacific fair in Singapore.

A quality product at the right price

Although its strongest markets are located in the Nordics and the Gulf region, MacDuff is looking to strengthen its brands in Asia through trade shows such as TFWA Asia Pacific. “This will be the first time we have had the replica Lauder’s miniatures at TFWA Asia Pacific, and we will also be focusing on some aged products in both Lauder’s and Grand Macnish, plus the Solera cask finish range of Islay Mist,” says Scott. The Asian market responded positively to the special-edition Lauder’s 25yo, which was launched in 2017. This edition sold out quickly last year, which, the company believes, proves the desire for premium products in this region, making this brand a natural fit for customers. The Asian region is an area of focus for MacDuff International to expand and evolve, continues Scott. The challenges continue to be in the competition for retail space. The barriers to entry into airport retail stores also remain challenging,

The Lauders Tasting Pack features three miniatures of Lauder’s Finest, Oloroso Cask and Ruby Cask proved to be a success at the 2017 TFWA WE Cannes show

but MacDuff hopes to show the channel’s operators that the company has the product strength to show results in the travel retail environment. The current numbers speak for themselves when Scott enthuses: “As a company, the percentage of our sales through travel retail versus domestic is much higher than the norm, I am sure.” Customers are looking for a quality product at the right price, and MacDuff reckons its products do just that. The company doesn’t focus on gimmicks or a quick device to drive sales, instead focusing on the quality of its products to speak for themselves. The tasting pack featuring three miniatures of Lauder’s Finest, Oloroso Cask and Ruby Cask is an innovation around which MacDuff aims to stay ahead of the curve. “There is certainly a drive towards greater detail on provenance and authenticity, and this has impacted on a number of new product development projects we are currently looking at,” explains Scott. The tasting pack was well received at last year’s TFWA show in Cannes. Today, MacDuff International has grown its portfolio to include a variety of blended Scotch, single malt and pure malt whiskies, bottled in Scotland, and currently exports more than 2 million bottles a year to over 50 countries. This performance illustrates promising results for the Scotch whisky firm as it continues to expand globally, concludes Scott. ASIA DUTY FREE & TRAVEL RETAILING



A drinks brand with a difference

Amarenissima is the only sparkling wine flavored with a distinctive black cherry produced in Bologna, Italy

An ambitious new Italian brand called il miogusto is set to shake up the duty free drinks world with its distinctive bottle designs and flavors by HIBAH NOOR


new wine brand is set to enter the duty free world, courtesy of Jan Baljet, Managing Director of QDSHOLLAND BV. QDSHOLLAND BV is the exclusive distributor/agent for Italian drinks brand il miogusto for duty free worldwide. il miogusto is a drinks brand with a difference. The company says: “We want to impress you with design and good taste in a way that only Italians can do. We want you to discover our colorful bottles and let you feel the passion that we have for Italian design. We want you to experience our wines, surprise you with new unexpected flavors and give you a taste of the best that Italy has to offer.” Mike Poortvliet is the brand owner and was present with Baljet at the MEADFA Conference in Dubai in January 2018, and he will also be attending the TFWA Asia Pacific show in Singapore. “This year I don’t have a stand [in Singapore] but hopefully next year we will, if we get space,” he tells Asia Duty Free. In the local market the brand has 1,500 doors in the Netherlands, Belgium and Germany, and the company recently opened new markets, in Denmark, the UK and Ukraine.

Striking colors and Italian design

il miogusto says it is not a traditional winemaker, and believes its wines are for those who dare to stand out with its striking colors and Italian design. “il miogusto’s sparkling wines are unique; they look different and feel different, but they always will be of exceptional quality. That will always be our goal,” the ambitious company states. 96 ASIA DUTY FREE & TRAVEL RETAILING MAY 2018

For festive occasions, the company offers Peachelino, a fizzy wine cocktail presented in an attractive bottle

Because every country has its own local flavors and local regulations, the company has made its products flexible to serve different needs. For instance, if you need a lower alcohol level or a screw cap instead of a cork, these demands can be accommodated. The wines are all produced in Italy, and range from 4.9%abv to 6.9%abv. They are available in 250ml, 750ml and 1,500ml sizes. New in the selection is a sparkling Limonsecco, a blend of Limoncello and sparkling wine, available in a cork-sealed bottle. Fresh yellow in color, it has a dry, fruity flavor. Meanwhile, Melonsecco is the latest trend from Italy. Presented in an attractive, soft red corked bottle, the dry and fruity Italian cocktail contains watermelon and a dash of mint. Hugo is a dry and fruity Italian cocktail flavored with elderflower and mint.

This slightly sweet drink is available in a turquoise cork-sealed bottle. Amarenissima boasts a fashionable pink design that can be used in cocktails. Described as fresh and sweet, Amarenissima is the only sparkling wine flavored with a distinctive black cherry produced in Bologna, Italy. Orange Rosmarino is il miogusto’s first limited edition. This wine cocktail combines bittersweet orange and the flavor of Italian rosemary. It has a bittersweet orange and rosemary flavor. For festive occasions, the company offers Peachelino, a fizzy wine cocktail, dry, fruity Vino Spumante Millesimato sparkling wine, and Prosecco DOC. All il miogusto’s wines are available in small, light, sleek aluminium bottles (250ml). The wines will be ready for duty free distribution from May 1, 2018, and are the perfect gift in travel retail, enthuses Baljet.

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All about

Gemma Bateson,

Corporate Affairs and Communications Director, JTI WWDF Where were you born and raised? I was born and raised in North Norfolk in the UK. Our summers were spent on the beach and our winters at the rugby club! If you attended post-secondary school, what did you study? I did a ‘double degree’ which gave me the opportunity to study in both the UK and in France. I did International Business in the UK at Oxford Brookes, UK and Economics and International Business at the Ecole Superieure de Commerce, La Rochelle, France Are you married? Do you have children? I am married to a New Zealander and we have two boys, ages 6 and 9 What is your favorite movie? I love movies and I recently watched ‘The Shape of Water’ on the plane (where else?!). It has gone right in at the top of my favourite movies…for now!

What is the last book you read? Philip Pullman’s La Belle Sauvage What would you choose as your last meal? A perfectly prepared fresh plate of sashimi. Japanese food is a favorite Your favourite drink? Very British - a cold beer on a hot day. Or a cup of English tea with milk – anytime of the year! Do you have a passion in your life (or more than one)? What?


I am passionate about many things: sport, rugby especially, good food, good company and a gripping read! Do you have a pet (or more than one)? If so, what animal and name? Two cats – Noodle and Ketchup (never let your 4-year-old name your pets) Do you prefer country or city? For me - one is not truly enjoyable without being able to escape to the other! What is your favourite place to vacation? The Greek island of Kefalonia. It’s very green, surrounded by clear blue sea and very good food What’s the first thing you do in a new place? Unless I talk myself out of it - go for a run! It’s the best way to see the sights and burn off some calories, the ‘travel retail’ life that we all lead means the waistline needs constant care!

Which historical figure do you most admire? I am writing these responses on ‘International Women’s Day’ (8/3/18) so Emmeline Pankhurst is my choice. Emmeline was instrumental in securing the right to vote for women in Britain in 1928 Where and when were you happiest in your life? This may sound terrible - but the three years between getting married and having children was a wonderful time! Building careers, lots of holidays, late nights and spontaneity! What in the world would you most like to change? I would like to change what I see as a growing ‘antipathy’ around the world towards the fate of others and their suffering. What about yourself would you most like to change? I am always looking ahead. I should live in the moment more!

If you could choose any place in the world to live, where would it be? London - a true cross-section of the world, the perfect mix of humor, culture and connectivity. It’s a shame about the weather, but you can’t have everything!

What is the most important piece of advice anyone ever gave you? ‘Don’t ever allow yourself to be intimidated’ by people, personalities, achievements or titles – my father used to tell me this all the time as a child and sometimes still does!

Which living person do you most admire? Nobody famous, but we all know family and friends in this position – living with a life threatening disease, raising a family at the same time and getting up every day to face the world. I admire these people very much.

What is something about you that most people would find surprising? I am absolutely terrified of turbulence. Completely irrational and not ideal when you spend half your life on a plane!