ASIA Volume 15 No. 2

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SEPTEMBER/OCTOBER 2011 • V OL 15, NO 2

TFWA WE 2011

Big in China p.

18

Buy in the sky p.

24

Celebrating p. scents

44

E-cigarettes: The p. new alternative

59

NEW NEW

A new vision for skin perfection.

A new vision for skin perfection.

VISIONNAIRE VISIONNAIRE [LR2412 24124%] 4%] [LR

ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS ADVANCED SKIN CORRECTOR - WRINKLES - PORES - EVENNESS

So powerful that more than half of women considering So powerful that more than half of women considering a cosmetic procedure said they would delay it* a cosmetic procedure said they would delay it*

LR2412 2412HAS HASBEEN BEENINDEPENDENTL INDEPENDENTL TESTED THE UK. LR YY TESTED ININ THE UK. 20PATENTS PATENTSPENDING. PENDING. 20

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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With Visionnaire, Visionnaire,wrinkles wrinklesappear appearvisibly visiblyreduced, reduced, pores look With pores look minimisedand andimperfections imperfectionssuch suchasasuneven uneven skin tone appear minimised skin tone appear moreeven, even,as asififcorrected. corrected. more

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63

Letter from the Editor

Asian boom eporting on new developments and growth in Asia, specifically in China, is a task that never grows old. China Duty Free, for instance, the biggest retailer in the country, is moving forward with amazing speed. It is almost surpassing the growth of the economy with all the new openings it has planned.

China International Travel Service, its parent company, will be opening the world's biggest duty free complex at Haitang Bay, on Hainan, an island province in China's far south. It is a region that the central government in Beijing aims to transform into a tourist magnet. The new complex will be between 350,000-square-meters and 400,000-square-meters in size and will house a mix of duty free and duty paid stores.

In other big news, Hong Kong International Airport (HKIA) has opened the bidding

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

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

Saipan,Thailand, Samoa, Tonga, Singapore, South SriPostage Lanka, is paid at London, England.

Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

The views expressed in this magazine do not necessarily The views expressed in this magazine do not necessarily reflect the views and opinions of the publisher or reflect Spring/TFAP the views and opinions of No. the 1. publisher or editor.

2008, Vol. 12, All rights editor. TFWA WE September/October Vol.or 15, reserved.

Nothing may be reprinted in2011, whole in part without written permission from No. 2.

All rights reserved.

Nothing maythebepublisher. reprinted © & Travel Retailing. in 2008 wholeAsia or inDuty partFree without written permission from the publisher. © 2011 Asia&Duty FreeRetailing & Travel Retailing.

Asia Duty Free Travel 26 Pearl Street Asia Duty Free & Travel Retailing Mississauga, Ontario L5M 1X2 Canada 26 Pearl Street Tel: 1 905 821 3344; Fax: 1 905 821 2777 Mississauga, Ontario L5M 1X2 Canada www.dutyfreemagazine.ca

Tel: 1 905 821 3344; Fax: 1 905 821 2777 PUBLISHER www.dutyfreemagazine.ca Aijaz Khan aijaz@globalmarketingcom.ca PUBLISHER Aijaz Khan

process for its core duty free concessions. The move is part of a major shake-up of the

aijaz@globalmarketingcom.ca EDITORIAL DEPARTMENT

airport’s travel retail operations and is likely to spark a fierce bidding battle between re-

EDITOR EDITORIAL HibahDEPARTMENT Noor hibah@dutyfreemagazine.ca EDITOR Liquor and Noor Tobacco Hibah Rick Lundstrom hibah@dutyfreemagazine.ca rick@dutyfreemagazine.ca ASIA ASSOCIATE EDITOR ART DIRECTOR P. Convery Patrick Balanquit padraic.asiadutyfree@gmail.com patrick@globalmarketingcom.ca

tailers vying for the contracts.

Airport operator Airport Authority Hong Kong (AAHK) has called tenders for the liquor and tobacco, perfumes and cosmetics, and airside general merchandise concessions.

The liquor and tobacco concession is currently operated by Sky Connection, while Nuance Watson (HK) runs perfumes and cosmetics and airside general merchandise concessions.

The existing two concessionaires that operate the three categories have confirmed that they will bid again, but are expected to face competition from rivals, including Dufry, Autogrill, Lagardère Services Travel Retail and Gebr Heinemann.

South Korean retailers, including Lotte Duty Free and Shilla Duty Free, are also expected to bid, along with Chinese retailers China Duty Free Group and Sunrise. Industry insiders are also predicting a strong showing by locally-based retailers DFS and King Power Group (HK).

Bidding for the concessions closes on October 28 at 11 a.m. Hong Kong time.

All in all, prepare yourselves for a busy season ahead in Asia!

See you in Cannes.

Kind regards,

CONCESSIONS,CONTRIBUTORS LIQUOR, & TOBACCO EDITOR Elizabeth Kerr Ryan White Lorna Strickland ryan@dutyfreemagazine.ca ART DIRECTOR ADVERTISING SALES Patrick Balanquit ADVERTISING & MARKETING MANAGER, patrick@globalmarketingcom.ca DUTY FREE TITLES, AMERICAS CONTRIBUTORS Beatrice Pitocco Andrew Brooks Tel: 1 416 908 1734 bpitocco@rogers.com James Ross Dan Ridout DIRECTOR OF SALES, DUTY FREE TITLES, EUROPE Meena Bedi ADVERTISING SALES Tel: +33 5 53702538 Mob: &+33 6 78343767MANAGER ADVERTISING MARKETING meenabedi@wanadoo.fr Kim Carrera kim@dutyfreemagazine.ca CIRCULATION & SUBSCRIPTION MANAGER Teresa Garrity CIRCULATION & SUBSCRIPTION MANAGER teresa@globalmarketingcom.ca Deepa J

Hibah Noor Editor hibah@dutyfreemagazine.ca

6

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

deepa@globalmarketingcom.ca

18

SEPTEMBER/OCTOBER 2011

•

VOL 15, NO 2

Content 10 18 24

8

IN BRIEF HKIA issues three retail licence tender invitations ■ Nuance-Watson (HK) unveils Talika at HKIA ■ LATR’s work on the Parker and Guess brands confirms them as market winners ■ The Wandering Monkey is back in Cannes ■ New members and sponsors for MEDFA conference

TOP STORY: CHINA DUTY FREE

Big in China China Duty Free has a virtual monopoly in its huge home market. But that doesn't mean it's sitting on its hands

OPERATOR NEWS: KOREAN AIR

Buy in the sky Korean Air’s revolutionary Duty-Free Showcase opens a new front in the fight for inflight sales

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

28 34

OPERATOR NEWS: DELHI DUTY FREE SERVICES

Capital gains It's been just over a year since Delhi got an airport terminal fit for the seat of power in a major emerging economy. And the anchor retailer in its world-class T3 has wasted no time in profiting from a unique opportunity

OPERATOR NEWS: KING POWER GROUP

Betting big A renovation program in the casino enclave of Macau seems to have prompted King Power (HK) to take a serious punt on expansion. Asia Duty Free spoke to the group's Travel Retail & Duty Free Managing Director, Sunil Tuli

24

36 38 42

AIRPORT NEWS: CHANGI AIRPORT GROUP

Singapore zing Changi Airport Group's retail record over the past 12 months is enviable - again. How does the airport operator do it?

COMPANY NEWS: L’ORÉAL GROUP

On the radar From exhibitors to brands to attendees, Asia Duty Free has your inside scoop on what’s in store for some of this year’s leading brands

COMPANY NEWS

Lancôme releases Visionnaire based on LR 2412 molecule L'Oréal breaks new ground with a revolutionary skincare product

44 45

BEAUTY BEAT: FRAGRANCES

Celebrating scents

46 52 56 58

Introducing the newest fragrances for the season

BEAUTY BEAT: SKINCARE & COSMETICS

The allure of beauty

60

34 COMPANY NEWS: FERRERO

Global appeal For Ferrero Travel Market, standardization and localization make a great mix

ASIAN FAVORITES

Supply and demand When the Asia market declares a preference, travel retail’s market makers take note

COMPANY NEWS: DIAGEO

A powerhouse in the making Sales of Shui Jing Fang in Asia travel retail have tripled in the past two years, and if Diageo has any say in the matter, this is will be the beginning of a much longer success story

REVITALIZING TOBACCO

Changing times The tobacco industry balances growth, regulatory restrictions and social responsibility

NEW & NOTABLE Kilbeggan 18 Year Old ■ Davidoff Chinese New Year pack ■ Chupa Chups Travel Tin

Cutting edge creams and colorful cosmetics promise to deliver optimum results for traveling consumers

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

9

In Brief Airport Authority Hong Kong has invited in- Tracking Survey for April 2011, over 70% of medium-priced popular brands. terested duty free operators to participate for passengers at HKIA are Asian, of which 27% Furthermore, 84% of the discerning, high-net anchor retail tenders including the airside gen- are from the Chinese Mainland.

worth passengers are tertiary educated and

eral merchandise, the perfumes and cosmetics, The outlets for airside general merchandise 55% of them are professionals, managers, execand the liquor and tobacco concessions – at demonstrate a high penetration rate of 75% utives or proprietors. The corresponding high both Terminal 1 and Terminal 2 of Hong Kong with customer spending of HK$888 (US$114) spending ability of this passenger group offers International Airport (HKIA).

on average. A balanced mix of high-end and solid business prospects for potential busi-

Comprising 10 to 15 outlets with sizes from 20- medium-priced brands is designed to cater to nesses. square-meters to over 750-square-meters for the diverse customer demand.

HKIA is one of the world’s busiest international

each tender licence, these three anchor tenders Meanwhile, customers spend HK$1,050 airports, with passenger volume up 8% year on comprise one of the biggest invitations ever in (US$135) on average on perfumes and cosmet- year to over 52 million passengers in the 12 HKIA since the airport opened. Most of the ics with a 50% penetration rate, reassuring the months ended on July 31 this year. Passengers tendered outlets are located in the restricted growth with sophisticated demand for both would spend over four hours at HKIA with an areas on Level 5 and 6 of the North Satellite breadth of desirable brands and depth of prod- average shopping spending of approximately Concourse and SkyPier in Terminal 1, with one uct offerings within individual brands. store located in Terminal 2.

HK$1,118 (US$143) per person per visit.

As a key attraction amongst HKIA’s visitors, The tender will close on October 28, 2011 at

These three licences (airside general merchan- liquor and tobacco shows a 46% penetration 11:00 a.m. Hong Kong time. For details visit dise, perfumes and cosmetics, and liquor and rate while customers spend HK$608 (US$78) “Tenders & Notices section” at www.hongkontobacco) offer incomparable business opportu- on average on the category. A positive accom- gairport.com or call +852 2183 3326, +852 nities at HKIA. According to HKIA Retail panying demand is seen for luxury and 2183 3072, +852 2183 3296 or +852 2183 3208.

Nuance-Watson (HK) unveils Talika at HKIA Nuance-Watson (HK) announced the launch of leading French skincare specialist, Talika’s new Light Duo technological skincare system, at Temptation Duty Free shops at Hong Kong International Airport (HKIA). Light Duo is an innovative blended product that satisfies users’ growing demand for a top quality solution to their whitening and anti-aging needs.

Talika’s new Light Duo technological skincare system

This is the first time that Nuance-Watson (HK) has showcased such an advanced technology-based beauty treatment device at its Temptation Duty Free shops. In further enhancing the launch’s vital initial impact, Nuance-Watson (HK) and Talika have pioneered a slate of innovative marketing activities targeted at both HKIA passengers and the airport community as a whole.

To this end, those who work at the airport will be invited to come and learn about Talika at the tailored workshop for the travel retail industry. At the consumer level, Nuance-Watson (HK) has set up eye-catching promotional area at Temptation Duty Free shop. In addition to introducing products to passengers, a helpful Talika skincare specialist will be on hand and giving out attractive promotional offers. At the same time, beauty advisors at Temptation Duty Free shops are standing by with up-to-the-minute Talika technologies and product knowledge. continued on pg 14 10

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Malaysia Airports (Niaga) Sdn. Bhd. (281310-V) (A Wholly-Owned Subsidiary of Malaysia Airports Holdings Berhad) 3rd Floor, Airport Management Centre, KL International Airport, 64000 KLIA, Selangor Darul Ehsan, Malaysia. http://eraman-malaysia.klia.com.my www.eramandutyfree.com

12

ASIA DUTY FREE & TRAVEL RETAILING TFWA AP MAY 2011

Where Else But Eraman!

The Premier Name In Travel Retail & Duty Free in Malaysia

ItÂ’s only natural if you prefer to shop with us. Given our amazing variety of products, competitive prices and attentive service, we promise you it will be a travel retail, fashion and F&B experience like no other!

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

13

continued from pg 10

“At Nuance-Watson (HK), we always aspire to bring to our passengers at HKIA exciting and innovative products,” says Lay Leng Tan, General Manager for Perfumes & Cosmetics, Technology, Nuance-Watson (HK). “As the airport’s leading retail operator, we also do everything possible to entice people who work in the airport with unprecedented privileges. The Talika launch is the latest example of how we are continuing to work closely with brand and vendor partners to deliver on these goals at Asia’s premier transportation hub.” she added.

Talika’s award-winning Light Duo is an LED-based therapy device that harnesses the power of light wavelengths to resolve common skin concerns. Its attractive and compact design is easy to use, small enough to pack in hand luggage and easy to recharge. In launching the product at HKIA, Talika is adding other star items to the personal care range that currently includes the Lipocils unique treatment for eyelash growth, Bust Serum and Hand/Feet Therapy treatment. In making such best-selling technology-based high-performance skincare devices available at HKIA, Nuance-Watson (HK) is proud to add yet another dimension to its unrivalled beauty product range.

14

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

LATR’s work on the Parker and Guess brands confirms them as market winners Les Accessoires Travel Retail (LATR) has been very busy lately getting the Parker and Guess brands into more airport locations. International Director David Dayan reports that Parker setups are rolling along nicely with six to eight new openings a month and an overall increase of 38%. More than 50 new points of sales have opened in eight months in the Americas, in locations such as Seattle, New York, Washington, Montevideo and Miami.

“These first implantations showed a sellout of more than 88%,” Dayan says. And with the recent “Parker 5th Technology” launch, he adds, further rapid growth seems assured. continued on pg 16

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

15

Parker’s “5th Technology” system promises to drive category growth

continued from pg 14

The first half of 2011 has been very positive for the European territory and MEA, Dayan says, enumerating just some of the successes: contracts with Dufry Group in Moscow, Saveria in Vienna, Dee Tax Fashion in Beirut, Aer Rianta in Greece, Zainab Ltd. in Pakistan, Iraq Duty Free in Iraq, etc.

For the second half of the year, LATR will focus on developing Parker’s presence in Asia even further. The brand is already firmly and very visibly ensconced in signal locations such as Hong Kong, Singapore and Bangkok, but LATR

wants to get the most out of other markets in the region such as the Philippines, China, Taiwan, Malaysia and Indonesia.

After signing a distribution agreement with Guess Jewelry in March, Dayan is happy to announce openings at airports in Moscow, Montevideo, Panama, Sharjah, Punta Cana, Manila, Kuala Lumpur, China and more. To help maintain the momentum, LATR will be showcasing Guess Fall 2011 and Spring 2012 jewelry collections in Cannes.

“LATR, with its team, will continue to strengthen our presence with new openings throughout the global travel retail market,” Dayan says. “In addition to keeping up the pace of openings for Parker and Guess in airport duty free locations, for 2012 we’re working on special collections of each brand that we’ll be taking into the inflight and cruise markets.”

The Wandering Monkey is back in Cannes This year the Wandering Monkey will have a new stand, which will be unveiled at the TFWA show in Cannes. It will be the start of a new adventure for Wandering Monkey followers and will show the company’s dedication to providing products that are educational, fun, interactive and portable for boys and girls from three years and older, and tailor made with travel retail in mind.

Wandering Monkey will be launching a selection of games and gifting items to sit alongside its Activity Pack and coloring/stickers range of products, all with the traveling child in mind.

Working in partnership with customers has been a key strategy of the company for 2011 and one that they intend to continue in 2012 and beyond. One example of this is the joint promotion with Condor Ferries this year in their summer brochure. Using the colorful vibrant graphics associated with the Wandering Monkey, the company has supported games and fun for kids onboard as well as a coloring competition for all the children to get involved in.

Having won the recent Airline Retail Award at ARC this year for the most promising supplier to inflight retail, the Wandering Monkey invites buyers to visit at Marine Village S4.

For more information contact Jonathan Corbett on +447786 950139 or email him at sales@wanderingmonkey.com

16

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

F O R I N F O R M AT I O N , P L E A S E C O N TA C T : T R A V E L . R E TA I L @ TO M M Y. C O M

Regional Report: China

China Duty Free stores in Hangzhou airport

Big in China

By P. Convery

A

China Duty Free has a virtual monopoly in its huge home market. But that doesn't mean it's sitting on its hands

s China's turbo-powered

350,000-square-meters and 400,000-square-

cafes. We're talking with the brands and an-

economy

meters in size and house a mix of duty-free

alyzing budgets and many other things, so it's

and duty-paid stores.

very complicated.

continues

to

surge ahead, the country's biggest duty-free retailer is

It will be located at Haitang Bay, on

"We'll be making an announcement at

doing more than just grow-

Hainan, an island province in China's far

[the TFWA World Exhibition in] Cannes," he

ing with it. That retailer - China Duty Free

south that the central government in Beijing

says.

Group - looks set to steal a march on the

aims to transform into a tourist magnet to

Apart from retail and F&B, Chen says the

economy that's supporting its rapid expan-

rival the likes of resort destinations in Thai-

complex will also include a luxury brand ex-

sion. The Chinese economy is widely ex-

land and South Korea - although with dis-

hibition area and a designer hotel. He says

pected to become the world's biggest

tinctly Chinese characteristics.

the opening is planned for 2013 or 2014.

sometime around 2020, but more than half a

"The size of [the] Haitang Bay [complex]

Opening such a large project may strike

decade before that date, China Duty Free

hasn't been decided yet," says China Duty

some as overambitious, but CDFG has good

Group's parent company, China Interna-

Free Group (CDFG) Vice-President Charles

reason to be bullish. The retailer already op-

tional Travel Service, plans to open the

Chen. "It will depend on the requirements of

erates a 7,000-square-meter duty-free retail

world's biggest duty-free complex.

the different brands, and on those of the local

complex in the city of Sanya, also on Hainan,

partners for things like restaurants, bars and

which has proved to be a huge success.

The new complex will be between

Regional Report: China

Customers waiting for China Duty Free to open doors at the Sanya Complex

CDFG put the finishing touches to its Sanya Galleria in September last year, in anticipation of a change in China's duty-free rules that have seen sales there go through the roof.

On April 20, that change arrived - a tax rebate scheme allowing mainland Chinese visi-

of the complex from 5am and more than 60,000 cramming into it on the third day alone.

those airports.

CDFG first adopted this approach at

Chen expects strong sales to continue, thanks

Hangzhou's Xiaoshan International Airport

in part to the school holiday season, and says the

just over a year ago, and Chen regards it as

brands sold in the complex have enjoyed a sub-

both a success in its own right and as a step-

stantial boost.

ping stone on the way to securing more multi-

tors to the island to save up to 35% on

"The brands - especially the luxury brands -

domestic-market prices when purchasing at

are very satisfied," he says. "Just a few years ago,

"In the past we operated only some of the

CDFG's Sanya complex.

store concessions.

they were very reluctant and very hesitant about

duty-free shops [at Hangzhou], and the duty-

The response among consumers was imme-

[listing in] our shop [in Sanya], but now they're

paid and other retail and F&B were operated by

diate and overwhelming, and CDFG Marketing

very active and interested, and asking whether it's

other retailers," he explains. "This produced dif-

Director Antonio Hau admits the retailer wasn't

possible to supply their products to our shop.

ferent styles of decoration. We told the airport au-

prepared for such an onslaught.

Now they realize that the purchasing power of

thority it wasn't good for the duty-free shopping

"There were so many people that we had to

Chinese people is real, and that it's just amazing."

and that it would be better to expand our deco-

close the shop temporarily to limit the number

Even though Hainan continues to be one of

ration in a higher-class way. Now, under just one

of customers in it," he says. "The level of sales ab-

CDFG's main areas of focus, the retailer has been

operator, we've been able to use the same decor,

solutely surprised us."

no slouch when it comes to pursuing growth op-

the same colors and the same sales staff, and it's

portunities in other parts of China.

now a beautiful airport.

And the sales surge has proved to be more than just opening-week excitement, with contin-

One of its business strategies is to target air-

"Hangzhou has been very successful, and the

ued strong demand and a May Day holiday that

ports in China's so-called second-tier cities, and

airport authority has seen that CDFG can do not

saw lines of shoppers waiting outside the doors

to bid for the entire airside retail proposition at

only duty free, but also duty paid and F&B as well.

Regional Report: China business must have its limits. So how does the retailer propose to overcome the organic barriers to further expansion as its airport portfolio becomes more developed? One answer seems to lie in China's much-vaunted high-speed railway revolution. With nearly 10,000km of track, China already has the world's longest high-speed rail network, and the government plans to more than double its size by 2020. And with tickets priced at about half the cost of most airfares, fast rail is already becoming a popThe bustling perfume and cosmetics area by the cashier in the Sanya Complex

ular alternative to flying.

CDFG hasn't missed this, and Chen says its first travel-retail stores on the high-speed rail network

That's changed other airports' [attitudes to

"[Those] other airports will also be likely to

the single-operator model], too, like at Nanjing,

pursue [the single-operator] arrangement, be-

"We're investigating opportunities in venues

where we do everything - duty free, duty paid

cause now they realize that CDFG can do it all,"

such as railway stations," he says. "On the high-

and F&B," Chen says, referring to CDFG's re-

he says.

speed railway and in airports, the customers are

cently launched operations at the city's Lukou International Airport.

Chen emphasizes that CDFG's approach to this business model has been based on creating

Chen says CDFG is pursuing a similar strat-

a better airport experience for passengers rather

egy at the yet-to-be-named new international

than just a single-minded focus on the bottom

airport in the southwestern city of Kunming.

line.

should open in August.

the same - they're in the upper income bracket and they're people that travel a lot."

It's on that upper income bracket that CDFG has set its sights.

"Next year, China may become the world's

"We've just signed an agreement to run all

"It's been very important to tell the airports

the retail - duty free and duty paid - in interna-

that we really want to help them," he says. It's

The country has already overtaken the US,

tional departures," he says. "We'll sign the actual

not just about generating money for our com-

previously the second-biggest luxury market,

contract very soon. The new airport [in Kun-

pany - we want to help them improve every-

and now stands behind only label-obsessed

ming] is very beautiful - maybe even better

thing in the environment in [the passenger]

Japan. It's a development that, despite giving a

than T3 in Beijing. And it's bigger. It should of-

areas. We try to convince them that we can do

huge boost to CDFG's business, Chen finds

ficially open on January 1, and that's when our

better, and that as a result of the profits will also

hard to fathom.

stores will open there, too."

be better than before."

biggest market for luxury goods," says Chen.

"We can't understand why people are so

CDFG has also signed a strategic coopera-

He says that as airport operators in coun-

crazy for those things - even me, and I'm selling

tion agreement with Dalian's Zhoushuizi Inter-

tries such as China and other rapidly develop-

these goods," he explains. "People see a logo and

national Airport. Chen says the retailer will be

ing economies begin to appreciate the potential

say, 'Yes, I want that'. I really can't explain why!"

taking part in "some form of partnership" in

of non-aeronautical revenues, "we're on the

For a fast-expanding duty-free retailer with

the northeastern city's airport, adding that it is

edge of quite a big change in the airport busi-

a virtual monopoly in a turbo-charged econ-

in discussions with other airports in the cities

ness."

omy where travelers' spending power is soar-

of Chongqing, Xian and Chengdu.

Yet surely all this growth in CDFG's airport

ing, it must be a vexing problem to have.

Operator News: Korean Air

Buy in the sky Korean Air’s revolutionary Duty-Free Showcase opens a new front in the fight for inflight sales By Andrew Brooks

E

veryone had to push themselves

and engineers aircraft interiors, and of course

have been its key contributions to the inflight

to the limit,” says Heather Cho of

Airbus Industrie. Much of the design and devel-

store project.

her brainchild. The Senior Vice

opment work took place at the main Airbus fa-

Sebastien Guesney, who was Scental's Retail

President of the Catering & In-

cility in Toulouse, in addition to the outfitting of

Design and Merchandising Director during the

flight Sales Business Division of

the A380 prior to delivery.

six-year development process, recalls the role

Korean Air was the person who initially con-

“The challenge was enormous: create a de-

ceived of an inflight Duty-Free Showcase located

sign that was compact but still offered a genuine

aboard the carrier's massive Airbus A380 airlin-

consumer experience,” Cho says. “Korean Air

ers. After several years of development by a con-

had to think like a boutique retailer, Airbus was

sortium of partners from around the world, the

to accommodate the first real boutique on

first Duty-Free Showcase took flight on June 17

board, and AIM Aviation, the engineer

this year.

maximize the limited space available.

and manufacturer, had to de-

Duty-Free Showcase means that, for the first

velop numerous technical

time in history, passengers can browse a product

innovations to allow this

showcase while en route to their destination. The

whole novelty to fit within

concept was unveiled in a dramatic mockup dis-

the extremely rigorous technical

play at the TFWA Asia Pacific exhibition in Sin-

and safety requirements of the in-

gapore in May, a few weeks before the first

dustry.”

Duty-Free Showcase took to the skies aboard a

Korean Air approached Scental

KAL flight from Seoul’s Incheon International

to handle the design of SkyShop

Airport to Tokyo Narita International. The flight

because of its known expertise and

was flown by the first of KAL’s planned 10

experience in the luxury market

A380s, just days after the airline took delivery of

and retail design. Scental was

the airliner at a ceremony at Airbus headquarters

quick to sign on, immediately see-

in Toulouse, France.

ing the idea's huge potential.

Cho came up with the Duty-Free Showcase

“It is clearly the first time an

idea in 2005, the same year the Airbus A380

airline is investing so much cre-

made its maiden flight. As you might imagine,

ativity and time to propose such a

the steps that had to be gone through in design-

new experience to its customers,”

ing Duty-Free Showcase, and the number of

says Olivier Dubois, former

partners who had to work closely as a team to

L’Oréal Luxury Products Interna-

make the idea a reality, made the project a daunt-

tional Asia/Pacific Travel Retail Division Scen-

ing one.

tal General Manager. “We are really proud at

In addition to Korean Air, primary team

L'Oréal to have been considered the best part-

members included Scental – the L'Oréal Luxury

ners.” Dubois considers Scental's knowledge of

Products Division Travel Retail Asia Pacific –

travel retail, especially when it comes to cus-

AIM Aviation, an English company that designs

tomer behavior and category management, to

24

that Scental played in devising the best way to

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

The ‘dovecote’ fragrance display: the wall behind each shelf is sold as advertising space

Operator News : Korea Air

The inflight boutique maximizes every available square foot of space

“Our first input was in the architecture it-

AIM Aviation, explained some of the details

self,” he says, “defining the Duty-Free Show-

of Duty-Free Showcase to aviation magazine

The Duty-Free Showcase will be aboard all

case and all its technical constraints with

airliners.de at Aircraft Interiors Expo in Ham-

ten of the A380s that Korean Air has on order.

Airbus cabin definition and engineering team

burg in April. Whetter noted that the Duty-

The initial service to Japan has started to be

in Toulouse, France. Then we studied the cat-

Free Showcase in fact consists of five separate

complemented by flights to Hong Kong and

egory management in detail, to ensure the

units, each weighing about 130 kg (286 lbs.)

New York, after which Paris and Los Angeles

best and most attractive product catalog

and capable of storing some 30kg (66 lbs.) of

will be added.

would be visible and palpable.”

are brought to them later in the flight.

product. Each unit has a dedicated purpose.

The launching of the inflight Duty-Free

Duty-Free Showcase offers five main cate-

One consists of nine LCD screens which can

Showcase comes at a time when inflight duty

gories of display items: perfumes, liquors,

be used, for example, to display a ‘brand of

free sales for Korean Air have been struggling.

cosmetics, accessories and health supple-

the month’ promotion depending on which

After an uptick in the first half of 2010 occa-

ments. Items for sale are selected from the

brands have promotions planned.

sioned by a rise in passenger numbers, sales

best-selling products in Korean Air’s duty free

Another ‘dovecote’ style unit holds and

fell off in the latter part of the year and have

catalog. At the moment, perfumes and cos-

displays fragrances. This consists of 24 small

continued soft through 2011, Cho says. Ko-

metics account for about one-third of Korean

shelves, each of which can hold a sample. The

rean Air attributes this at least in part to in-

Air’s inflight duty free sales, while liquor ac-

back facing can be sold as ad space. There’s a

discriminate promotion on the part of

counts for about a quarter.

liquor unit, and dedicated units for particu-

airport duty free shops, which have eroded

Duty-Free Showcase has enough room to

larly high-value items like watches and jew-

the inflight business. The monthly revenue

display up to 54 items in full view. Alcohol

elry, where the products are displayed behind

has gradually decreased since June 2010 and

products are available in limited amounts,

clear PPSC (polyphenylsulphone) plastic

the slump is still continuing, the airline says.

and Duty-Free Showcase does not feature any

doors. The staircase from the upper deck en-

Nonetheless, Duty-Free Showcase repre-

tobacco goods. A cabin crew member is as-

ters the Duty-Free Showcase space between

sents an imaginative new step for inflight

signed to work sales in Duty-Free Showcase,

the liquor and cosmetics units.

duty free, one that KAL, which leads the

while traditional inflight catalog sales con-

Passengers can browse, try samples if they

global market in inflight duty-free sales,

tinue to be offered by cart as usual in addition

want, and then place their order with the

hopes will create a substantial new revenue

to Duty-Free Showcase.

cabin member staffing the counter. They re-

stream in addition to offering a totally new

turn to their seats and their bagged purchases

approach to the inflight market.

Chris Whetter, Sales/Project Director for

26

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Operator News : Delhi Duty Free Services

By P. Convery

Delhi Duty Free Services celebrates its first birthday in Terminal 3 of Delhi International Airport Ltd.

It's been just over a year since Delhi got an airport terminal fit for the seat of power in a major emerging economy. And the anchor retailer in its world-class T3 has wasted no time in profiting from a unique opportunity

D

elhi Duty Free Services (DDFS) may be just over a year

"It's making sure we have everything right with what we're operating

old, but it's come a long way in a very short time. The

at the moment and that all our ducks are in line when it comes to meeting

retailer - a joint venture between Aer Rianta Interna-

the customers' requirement in service, speed, efficiency and product

tional (ARI), local retailer Indian Duty Free Services

ranges," he says. "And likewise with our suppliers - making sure they're

(IDFS) and airport operator Delhi International Air-

getting the exposure that's been agreed and the presentation and the

port Ltd (Dial) - celebrated its first birthday in Terminal 3 of the Indian

branding, making sure they're getting exactly what's required."

capital's Indira Gandhi International Airport at the end of July, and it's

O'Connor says that India's reputation has sometimes suffered as a result

now looking to consolidate the stellar gains it has made since it burst onto

of shoddy business practices, and that reliability and consistency are the

the Indian travel-retail scene.

key foundations on which to build a strong duty-free business in the coun-

DDFS Chief Executive Steve O'Connor says: "Two or three months

try.

back, there was phenomenal growth the whole time. Now it's tapering off

"With our suppliers, it's important that what has been agreed is also

a bit, so we're getting a bit of breathing space, but up until then we were

honored," he says. "The same goes for our customers - it's important that

just chasing our tails the whole time.

they get used to the products being there and that those products are ex-

"Like most stores, you open and you get the surge, because it's all new and exciting and everybody wants to see it," he says. "[A reduction in sales growth] is almost inevitable. It's not that sales growth is stopping, by any means, but it's tapering off and we're getting to grips with the volumes and we're more at ease with the levels of expectation."

O'Connor says that now the business has begun to settle down after its frenetic first year, the priority is fine-tuning.

28

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

actly the same as they are everywhere else in the region. It's very important that there are no discrepancies and that they're of the same standard."

He says the fact that T3 is so well designed has been a major boost to DDFS's business.

"If you'd seen Delhi a few years ago, the shop looked like a cold store. It didn't matter what they had on the shelves, you didn't trust it, you didn't believe it, no matter what they told you. So you just bought elsewhere.

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Operator News : Delhi Duty Free Services

`"[But] the new T3 is spectacular. The whole focus right through is

"There's no point going charging over the hill if you're not too sure

really good. The longest walk for passengers is from duty free to the gates

what's on the other side. That's why I'd say our approach here has been

- everything else is pretty close together. You get into the airport and

calculated. Linking up with our local partner, IDFS, which has been op-

check-in is right in front of you, then Immigration and Security are di-

erating here for a number of years, has been a benefit because they know

rectly behind that, and straight ahead is duty free. It's maybe 100 meters

the local market and likewise with Dial, the airport operator."

from check-in to the duty free, so that helps us. And also, people can look into duty free while they're waiting at Immigration and Security.

They have a view into the entrance of the duty free area, so that helps build anticipation and it whets travelers' appetites a little bit."

And O'Connor says the passengers aren't the only ones on a learning curve.

"We're still trying to better understand the mentality of the Indian consumer and all the nuances we need to come to terms with that don't

O'Connor says another underpinning of DDFS's success at T3 has

necessarily hold true elsewhere," he explains. "They're simple things,

been, quite simply, awareness of the quality of the new duty-free oper-

like the fact that people don't buy tobacco when their kids are with

ation.

them, because they don't want to encourage them to smoke. It's also

"The key element is that you have individuals knowing that we have

like that with alcohol, to a degree. We wouldn't have an issue with those

an airport of international standard and duty free of an international

things in the West, but here these are things that people look at differ-

standard here in Delhi," he explains. "It's a learning curve for people

ently. These are the types of things we need to come to terms with."

who are so used to not having it. When they travel from Delhi T3 the

He observes that another key difference between the Indian duty-

first time, obviously they're not too sure of what's in arrivals, so you lose

free market and those in other countries is the importance of the arrivals

sales [among those first-time T3 travelers]. But more and more we're

business.

seeing our arrivals business growing as travelers become familiar with

"It's just the sheer volume that Indian travelers buy in arrivals," he

it. That's made our arrivals business almost as big as our departures

says. "There are allowances, but the vast majority of people use up their

business."

allowances because the [domestic market] duties are just so high. And

Asked if DDFS has taken a bold approach to launching its operations

there's always that feeling when you're shopping downtown, that you're

at T3, O'Connor laughs and says: "I'd say 'calculated'," adding that the

never too sure whether what you're buying is a legitimate product or

retailer didn't rush into its new and relatively undeveloped market.

whether it's counterfeit, so there's an emphasis on having that duty-free

"The key is waiting for the right moment," he says. "For the right op-

stamp, indicating quality and authenticity."

portunity and linking up with the right partners, who, going forward,

O'Connor says that in the time DDFS has been operating at T3, in-

will bring value to the table, rather than jumping in too quickly only to

creasing awareness of the new retail proposition among Indian travelers

find that it doesn't work or that you don't have the right partners or the

has given the retailer scope to develop the nature of its offer, encouraging

right facilities.

its customers to trade up and try new products.

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Operator News : Delhi Duty Free Services

DDFS Beauty Festival

"Indian consumers have spare cash now, and opportunity, and are no longer so restricted in their buying behavior because they can't afford

He's candid about DDFS's plans to grow its business in other airports in India.

things," he explains. "If [for example] you only have Johnnie Walker

"Our objective is to use DDFS as a springboard for launching other

Black [Label], they'll all drink that, so it's about giving them alternatives.

operations by showing the airport operators that this is the standard we

They're eager to try new things. And it's also a matter of prestige,

can provide," he says. "We're looking at all the main airports as oppor-

which revolves not just around the family but also around work and

tunities come up. People can come in and have a look and see that we're

friends and people's social networks. It's a part of showing your success

not just talking the talk but actually doing it. That's one of our strong

and your ability and part of a desire to move up, as well, and get the lat-

selling points. And that's particularly true here in Delhi, even in terms

est and the newest.

of just getting our products here. Other airports are near the sea, but

"To separate yourself from the herd in India is difficult, because the

we're inland, so the logistics are an even greater nightmare [than for

herd is huge. So anything you can do to advance your image or prestige

other airport retailers]. But even with all of that, we're still achieving

or social standing is always beneficial, and trading up is one way of doing

substantial growth.

that. With things like alcohol, there are some things that people at a

"So we have that in our back pocket when we're talking to [airport

middle-class level can afford to move up to, in order to give themselves

operators]. We can play the ARI and the ARI Middle East card as well.

that element of prestige and status."

From a regional perspective we have very strong local partnerships. We

If Delhi's international airport now offers an opportunity for Indian travelers to set themselves apart from the crowd with prestige purchases at DDFS's store, surely status-minded travelers in Mumbai, India's commercial capital, with its mix of Bollywood flashiness and deeply flawed modernity, are a fertile market for more of the same.

O'Connor says the duty-free offer at Mumbai's Chhatrapati Shivaji International Airport would probably be more like that at Delhi if the

also have IDFS as a strong local partner, and that can support us as well, which is very important, too.

So should we be looking out for a Delhi Duty Free shop at Mumbai's international airport anytime soon?

"Historically, Aer Rianta has used its brand all over," O'Connor says.

"But there's not much point in being in Mumbai and being called Delhi Duty Free!"

airport reflected the same kind of aspirational lifestyle. And with a new

If Delhi Duty Free's rapid rise to the top tier of India's duty-free in-

terminal in development, that may be about to happen. So is DDFS

dustry is any indication of the company's ability to fulfill its ambitions,

looking south to expand in India's business capital?

you might want to be looking out for "Mumbai Duty Free" in the not

"Of course," says O'Connor. "We're as greedy as the next man!"

32

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

too distant future.

Operator News: King Power

By P. Convery

A renovation program in the casino enclave of Macau seems to have prompted King Power (HK) to take a serious punt on expansion. Asia Duty Free spoke to the group's Travel Retail & Duty Free Managing Director, Sunil Tuli King Power operates domestic stores in Chinese airports including Xian and Harbin (pictured)

K

ing Power Group (HK) Travel

King Power is in the midst of renovating its

Nevertheless, Tuli says that Chinese mainlan-

Retail & Duty Free Managing Di-

stores at Macau's international airport, adopting

ders remain King Power's most important cus-

rector Sunil Tuli is a man with

a casino theme to reflect the main lure of the ter-

tomer group at present, across almost all

growth on his mind.

ritory.

categories but especially in luxury goods.

Invigorated by his company's ongoing store

"It's all being done right now," he says. "We've

And that's something that's unlikely to change

renovation program at Macau International Air-

just completed our chocolate shop, decorated

going forward, as the retailer continues its push

port, Tuli says King Power is now targeting Hong

with playing cards. Our liquor & tobacco shop is

into the duty-paid business in China's domestic

Kong International Airport and Singapore's

not ready yet, but the plan is to decorate it with a

airport terminals.

Changi Airport for further expansion.

main light on the ceiling in the shape of a roulette

"All the tenders are up for Hong Kong," he

wheel.

King Power opened a 74-square-meter multibrand store with Tumi, Lacoste, Safilo and Lux-

says, "and we'll be bidding for the main ones -

"I'd say we're about 30% [of the way through

ottica at Shanghai's Pudong Airport in April last

liquor & tobacco, perfumes & cosmetics and gen-

the renovation program]. It's an ongoing process

year. That December it cut the ribbon on an 88-

eral merchandise."

and it's going to continue until early next year,"

square-meter China Gold boutique and a liquor,

Tuli explains.

tobacco and packaged foods store. And by April

He says that King Power has also put in bids at Changi, adding that the retailer will consider

"We've got a multi-brand fashion store that's

this year it had opened three boutiques - a 46-

bidding for concessions in any category, in any

been completed, and the confectionery and pack-

square-meter Swarovski store, a 46-square-meter

suitable locations, so long as there's a sound busi-

aged foods shop is complete and three boutiques

Nautica shop and a 25-square-meter Kiehl’s bou-

ness case to do so.

have been done - Dunhill, Burberry and Bally.

tique.

King Power has weathered the economic tur-

Now we've got to do the main liquor & tobacco

King Power is also at the airport in

moil of recent years well, and Tuli regarded the

store and the big perfumes & cosmetics shop.

Chongqing, operating a 56-square-meter Lacoste

recession as a chance to reassess and remodel the

Also we've got to do watches, we have three more

boutique and two L’OrÊal luxury cosmetics

company's business. He says that sales have re-

boutiques coming up - Coach, Ferragamo and

stores, each measuring 150-square-meters.

covered strongly, especially in Hong Kong and

another high-end brand - and then we've got an-

China, despite what he calls "ups and downs" in

other store opening selling general merchandise."

Singapore before a return to steady growth.

But it's the company's Macau operations that have really taken off.

"Sales have been fantastic," Tuli says. "They've shot through the roof - it's incredible."

But that's certainly not where the retailer's China ambitions end.

He says the passenger profile in Macau has

"We're also in domestic at the airports in Xian

changed, bringing in customers from a wider

and Harbin," says Tuli, "and we're looking at

range of countries than those in greater China.

other domestic terminal airport opportunities in

"Now there are all sorts of nationalities. The

different cities in China."

majority of passengers are still mainland Chinese

King Power's strategy is nothing if not a mil-

Asked which categories have shown the most

and Taiwanese, but with all the casinos that have

lion-dollar bet on growth in China and beyond.

spectacular sales growth, he answers: "Liquor &

opened in the past few years, there are also a

And that seems fairly appropriate, coming from

tobacco, luxury products, jewelry, perfumes &

whole lot of other people coming in - passengers

a travel-retailer flush with its recent winnings in

cosmetics, and now also confectionery."

from Japan, [South] Korea, Australia, India,

Macau.

In other words, almost all of them.

Malaysia, Indonesia..."

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

35

Airport News: Changi Airport Group

Singapore zing

F

Changi Airport Group's retail record over the past 12 months is enviable again. How does the airport operator do it?

Artistic rendering of T3, Changi Airport, Singapore

By P. Convery

or Singaporean airport operator Changi Airport Group (CAG), success seems to be simple: it's just a

She says the promotions the airport runs are a key driver of sales in its burgeoning retail business, citing the first run of the "Be a Changi Mil-

also played a key role in expanding and

matter of doing what you do well, and then doing it better.

The airport ended 2010 having handled a record 42 million passengers – 13% more than the previous year – and with concession sales 15%

lionaire" draw last year, which boasted a cash prize of S$1 million (US$823,000) and which the airport operator is repeating this year.

"In addition to the second run of the ‘Be a Changi Millionaire’ draw that we are organizing

improving the airport's retail offer, and in helping the airport maximize its already formidable nonaeronautical revenues, and Lim says there's plenty more of it to come.

"The upgrading of Terminal 1 will be com-

higher.

"We hope to see this trend continuing, says Changi Airport Group Executive Vice-President of Commercial Lim Peck Hoon. “In the first six months of this year, Changi Airport handled 22.4

in conjunction with Changi Airport’s 30th anniversary celebration, we have the ‘Fabulous Friday’ deals promotion," Lim explains. "It offers travelers and visitors at Changi the opportunity to grab some of the season’s hottest buys at a frac-

pleted in early 2012 after three-and-a-half years of extensive works," she says. "Upon completion, it will boost concession space by over 10% - more than 2,000-square-meters - and increase the number of concessions by about 25% in both the

million passengers, an increase of 10.7% com-

tion of their original retail prices."

transit and public areas, allowing Changi Airport

pared to the same period last year. If traffic growth at Changi maintains its course, we should also be looking forward to having our retail sales increase in tandem this year."

The promotion runs for 30 weeks until 30 November 2011 and will feature a different product at a bargain price every Friday. Shoppers must spend a minimum of S$30 (US$24) in a single

to expand its retail and F&B offerings.

Across 20,000-square-meters of space, Terminal 1 will feature over 120 retail, F&B and service outlets.

One measure of CAG's success is the number of new brands it has attracted.

transaction at the airport using their Visa card or S$60 (US$49) by any other means to enjoy the

"In the public area, concession space will be increased and enhanced with a wide variety of retail

In November 2010, a new luxury fashion concept named The Fashion Gallery opened in the

Fabulous Fridays deals.

Besides draws and discounts, Lim says CAG's

and F&B offerings," she adds.

"We have also embarked on a development

airport's Terminal 2 Departure Transit Lounge.

At 764-square-meters, it's one of the region’s biggest multi-brand airport fashion outlets, car-

experiential promotions and events have also helped to boost retail sales and raise the profile of the airport as a shopping destination.

project at Terminal 3 to expand and revamp the retail space in the public areas," Lim says. "Covering Basement 2 and Levels 2 and 3, the project will

rying 17 internationally renowned luxury designer fashion brands, including Changi Airport debutants such as agnès b., Loewe and Yves Saint

"The Master of Spirits event that DFS held in partnership with Changi Airport in March generated a lot interest in high-end collectible liquor,"

increase the total floor space for retail and F&B by about 20%, to more than 10,000-square-meters.

At the Departure Check-in Hall on Level 2, a new

Laurent.

Lim says: "Other notable brands that opened

she says. "Some of the products from the event were also showcased in the main concourse area

row of retail shops has been created. In addition, reconfiguration works are being undertaken on

in the transit area this year include So Chocolate, Polo Ralph Lauren, Hugo Boss, Shanghai Tang, Godiva, Candy Empire, Cedele, Bonia Natural

at Terminal 1, and that garnered quite a lot of buzz among our travelers.

"And in May, we worked with DFS and Dia-

Level 3 to further optimize the retail layout."

She says all the new spaces in the transit areas have already been leased, and that in the public

and Adidas. And in the second half of the year, new brands that will introduce their first stand-

geo to introduce a Johnnie Walker Greg Norman golf simulator booth in Terminal1. That initiative

areas there will also be leasing opportunities for newly created space in Terminal 3's Basement 2.

alone shops include Marc by Marc Jacobs, Longchamp and Alfred Dunhill in the transit area, and Cotton On, Home Fix and Souperlicious in the public areas."

contributed to a significant increase in sales of Johnny Walker Blue Label during the event period."

Redevelopment of the airport's terminals has

As Changi looks forward to rounding out 2011 with another round of robust retail results, it seems there's no end to the apparently boundless energy of its commercial division.

Lim Peck Hoon, Executive Vice-President of Commercial Changi Airport Group

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As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision.

Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts.

For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.

TFWA News: Exhibitors

By Kim Carrera

From exhibitors to brands to attendees, Asia Duty Free has your inside scoop on what’s in store for some of this year’s leading brands

Fratelli Rosetti

Spring Summer 2012 Collection Sophie Weber, Area Manager, Fratelli Rosetti

Travalo

TRAVALO EXCEL Yusuf Okhai, Managing Director, Aydya Limited

Toscow

Celestial Cascade Golden Bangle Francis Ng, General Manager, Toscow

38

Where are you based?

For the past 58 years, Fratelli Rossetti has been based in Parabiago near Milan, Italy.

What are some new collections that you will be exhibiting during the show?

We will be presenting some very representative models of our Spring/Summer 2012 Collection, many of which are iconic products that combine contemporary proposals of outstanding quality with a heritage built up over the course of 60 years of work. Working on colors and styles, we give a new take to tradition. Exclusively for travel retail, we have created a women’s jacquard handbag line.

What are your best sellers in travel retail?

Fratelli Rossetti’s new strategy is to focus on growing the brand in travel retail. We have experience with shoes in several points of sales in airports but this is our first Cannes exhibition.

How long have you been supplying travel retail and duty free?

We started some years ago, supplying shoes in Beirut and Brussels airports. In Beirut we sell around 800 pairs per season.

Who are you reaching out to during the show?

Consumers, travelers and tourists know our name but are not always aware of the contents of our products or our history. Giving the brand more exposure will enable us to educate people and let them discover that craftsmanship still exists with affordable prices. The TFWE exhibition is a great opportunity to meet duty free operators and local actors. Fratelli Rossetti’s big challenge today is to further expand in South East Asia and the Americas.

Where are you based?

Travalo’s parent company, Aydya Limited, is based in the U.K. What are some new collections that you will be exhibiting during the show?

We will be exhibiting the new Travalo Excel refillable perfume spray. Travalo Excel carries up to 30% more fragrance than the Travalo Classic, so you can travel longer before refilling. The new display and storage case protects the Excel from scratches and optimizes cart and counter space. The advanced aluminum spray head is totally drip free and comfortable to press.

What are your best sellers in travel retail?

Currently the Travalo Classic refillable perfume spray with 185 travel retail listings globally.

How long have you been supplying travel retail and duty free?

We started in the spring of 2010 and have been going strong since.

Who are you reaching out to during the show?

It’s our first ever booth at the show, so our objectives are more generalized than some other exhibitors. The show allows us to demonstrate and showcase the Travalo opportunity to a wider audience, and also allows us to introduce the new Travalo Excel. We spent six months gathering feedback from tens of thousands of users, and then six months making an array of changes that, in terms of features, retain the best and improve the rest. Cannes is the perfect place to present the results of these efforts.

Where are you based?

Toscow is an Australian brand. The company was established in 1984 in Sydney.

What are some new collections that you will be exhibiting during the show?

We will launch our new collection Celestial Cascade at TFWA Cannes. This new collection is inspired by the shimmering elegance of a waterfall. Celestial Cascade includes pendants, rings, earrings and bangles. The bangles are designed to cater for the requirements of the travel retail, especially inflight sales where free size is preferred. The bangles are flexible and can fit almost any wrist.

What are your best sellers in travel retail?

From the debut launch of Glitter Glamour to the recent collection such as Spangle Splendour and Paradise Garden, our colorful crystal jewelry has always been popular and sell extremely well.

How long have you been supplying travel retail and duty free?

Ever since the company was established in 1984, we have been supplying to travel retail. As a matter of fact, the company was totally dedicated to travel retail when it was first established. Until now, travel retail is still the core of our business.

Who are you reaching out to during the show?

During the show, we would like to catch up with our existing customers. Due to the broad geographic locations of our customers, it is a good opportunity to meet our customers from all over the world.

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

39

Jack Russell Malletier

SS 2012 Collection Cederic Flachard, General Director Duty Free Manager Jack Russell Malletier

Pandora Jewelry A/S

Moments Charm Collection Julian Mullins, Travel Retail Director, Pandora Jewelry A/S

Polaroid

Where are you based?

Jack Russell Malletier is based in Paris, France.

What are some new collections that you will be exhibiting during the show?

We will be promoting the new SS 2012 collection that includes a full line of trunks, bags, luggage and trolleys, SLG in leather, coated canvas in leather, as well as accessories for iPhone, iPad and other smartphones in leather, coated canvas or polycarbonate.

What are your best sellers in travel retail?

Some of our best sellers include travel items such as Travel Bag 48HOO, Trolley’s and SLG, iPhone Sleeves.

How long have you been supplying travel retail and duty free?

We started with Air France back in 2010.

Who are you reaching out to during the show?

We would like to reach new airline companies and duty free operators worldwide looking for original and exclusive products.

Where are you based?

Pandora Travel retail is based in our head office on the outskirts of Copenhagen in an area called Glostrup.

What are some new collections that you will be exhibiting during the show?

We will be displaying a broad selection of products from all of our collections including Moments (Charm collection) through to Love Pods our 18kt gold collection. We will also have some very exciting new introductions.

What are your best sellers in travel retail?

Our Charm collection still is a major share of our business and within this, classic items such as hearts, our miniature airplane, suitcase, 'wrapped present' and Murano glass charms are always winners. However this year we have also seen a significant increase in sales of rings as we have introduced our Touch and Feel displays into an increasing number of outlets worldwide.

How long have you been supplying travel retail and duty free?

This is very new for Pandora as we only started just over two years ago. In that time we have opened our own concept stores in airports such as Copenhagen, Singapore and Sydney; entered into partnerships with many of the major TR operators such as WDF/Aldeasa, Heinemann, Nuance, Aer Rianta International, MSC and Lagadere; gone from no airline listings to now being onboard over 25 carriers globally.

Who are you reaching out to during the show?

Naturally this is a mixture of building on existing relationships both with the land-based retailers and also airlines to see how to take the business to the next level, plus in particular we are actively seeking own store locations globally.

Where are you based?

The company is based in Zurich, Switzerland.

What are some new collections that you will be exhibiting during the show?

We will be exhibiting our new 2012 collections, Best Under the Sun, Suncovers (glasses that fit over an optical frame), 3d glasses, Polaroid Junior, Hello Kitty Premium and Disney Premium sunglasses.

What are your best sellers in travel retail?

Best sellers in 2011 have been P4036a, P8150b, P4034a. We are forecasting that best sellers in 2012 will include P4250a, P4212b and P8224b, P8211a.

How long have you been supplying travel retail and duty free?

Cosmic P8150B Sunglasses Rebecca Harwood Lincoln, Global Duty Free Manager, Polaroid Eyewear

Wolford AG

The company has been supplying travel retail for 15 years.

Who are you reaching out to during the show?

We hope to further strengthen our relationships, establish new contacts and grow our travel retail business.

Where are you based?

The company is based in Zurich, Switzerland.

What are some new collections that you will be exhibiting during the show?

During the Cannes exhibition we will be presenting our Spring/Summer 2012 collection including the String Body collection. The String Body makes an impact with the deep, transparent neckline, decoratively tied with a satin band. The winged chiffon sleeves provide a summery look.

What are your best sellers in travel retail?

String Body Sonja Bernhard, Customer Service Travel Retail & Duty Free, Wolford AG

40

Popular products are our Individual 10 Tights, Satin Touch 20 Tights, Fatal Dress and Lisbon String Body.

How long have you been supplying travel retail and duty free?

Approximately 10 years, but at a small level.

Who are you reaching out to during the show?

We hope to further strengthen our working relationships with worldwide operators, airport authorities and airlines.

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

The Gold Of Royalty

TFWA World Exhibition

18-23 September 2011

www.clogau.com

Yellow Village D35

Company News: L’Oréal Group

Lancôme releases Visionnaire based on LR 2412 molecule L'Oréal breaks new ground with a revolutionary skincare product

T

Visionnaire [LR 4212 4%] Corrector Serum

42

he core of the L’Oréal Group’s Lancôme brand is skincare, and at the moment the most important news in that line is the release of Visionnaire [LR 4212 4%] Corrector Serum. Based on molecular research that has uncovered what L’Oréal calls “a miraculous new molecule” – the LR 4212 in the product’s name – Visionnaire promises to rejuvenate skin, imparting finer texture, erasing wrinkles, reducing pigmentary and vascular irregularities and tightening pores.

“There is a reason, why we call it the ‘Fundamental Corrector’ – for a ‘New Vision of skin perfection.’ Upon application, one can immediately see the skin being transformed,” explains Stefan Lehner, Brand Director Lancôme for Travel Retail Worldwide, L’Oréal Luxe. “Such major scientific breakthrough in skincare does not happen every three months.

We are particularly excited about this skincare launch and are putting all our energy, creativity and excitement in this successful launch.

We are convinced that we can recreate a similar success story as we continue building with Génifique Youth Activator.”

The “miracle molecule” in Visionnaire 'self-propels' through the layers of the epidermis, to set off what Lancôme calls a series of tissular micro-transformations. The result, the company says, is that “skin becomes finer, wrinkles are erased, pigmentary and vascular irregularities are reduced and pores are tightened.”

The company’s researchers have always paid attention to the processes that plants use to repair themselves. When damaged, plants produce a “signal molecule” called jasmonic acid, which activates healing processes in damaged tissues and makes them more resistant.

The performance of the new Visionnaire LR 2412 4% product has been tested on Hispanic,

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Caucasian, Asian and Afro-American complexions. Lancôme says that the product can be used on all skin types, including sensitive skin, and on the eye contour regardless of the time of year or time of day. Besides the uniqueness and newness of the new molecule, Visionnaire LR2412 4% is proven to be effective on every type of skin and on all different skin carnations.

“We have tested the product on four different ethnicities, always with outstanding results. Visionnaire LR2412 4% truly is a transversal skincare innovation for each and every woman on this planet – particularly those who are currently not Lancôme skin care users. Third, the powerful molecule LR2412 has 100% tolerance – even around the eye contour – and is active on 100% of the subjects tested, which makes it perfectly suitable even for sensitive skin types,” says Lehner.

He continues: “Test results on Asian women are just amazing. They especially love the visible skin perfecting properties of Visionnaire LR2412 4%. This product integrates itself perfectly in the Lancôme skincare routine. One starts with Génifique to activate, then applies Visionnaire LR2412 4% to correct, before using one’s skin care cream(s).

“Exclusively for the Asian clientele we have developed in addition a Visionnaire Emulsion and Lotion, to offer a complete ‘Skin Perfection’ Routine,’” says Lehner.

The bottle design is inspired by a hightechnology mix of glass and metal, centred on a fusion of silver and malachite green.

The company’s skincare focus for September and October will be on Visionnaire. Apart from the regular POS and animation programs, it will use different visuals, i.e., testimonials with different ethnicities at the same POS in order to communicate that Visionnaire LR2412 4% truly is a product for every woman.

The World Travel Retail, Duty Free & Luxury Goods Exhibition

Where buyers and brands do business Taking place in Dubai – the commercial heart of the UAE and the wider Middle East – Middle East Exclusive is the definitive travel retail and duty free event, for the most dynamic air transport region in the world.

Middle East Exclusive showcases duty free brands, luxury goods, and new products for travel retail buyers, duty free outlets, agents and decision makers, who are keen to source high quality goods for the region’s thriving travel retail sector.

The travel retail world comes to Dubai!

Take part in this special event – which includes business networking opportunities and a unique VIP buyers’ programme – and build your sales in this booming marketplace.

For Stand Booking and to know more about the Hosted Buyers programme, please contact the organiser, Channels Exhibitions, PO Box 55254, Dubai, United Arab Emirates.

Telephone +971 (0)4 282 4737, or email info@middleeastexclusive.com

27-29 February 2012 Dubai World Trade Centre middleeastexclusive.com Venue

Supported by

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

43

Beauty Beat: Cosmetics & Skincare

Celebrating scents

Oh, Lola! By Marc Jacobs Company: Coty Prestige Description: A sparkling fruity floral opens with a refreshing top note of raspberry with a peony heart and a vanilla dry down. It comes with the same signature floral top bottle design and features a feminine pink facette Booth: Marine Village Foyer 3

Introducing the newest fragrances for the season

Kaloo Fluffy Dragée gift box

Viva Rock by John Richmond

Deep by Gap Company: InterParfums Inc. Description: This new scent for him captures the natural green masculine notes of sequoia leaves, mountain sage and nettle, filtered through water. These wet green notes are combined with warm masculine notes of canoe cedar and eucalyptus bark. A reflective green bottle is reminiscent of the color found in a deep forest canopy viewed through filtered light Booth: Ambassador Village V9

Company: Euroitalia Description: Viva Rock opens on the sparkling and energizing blend of star fruit and Sicilian mandarin with an unexpected touch of cactus flower. The heart reveals floral notes of damascena rose, watery jasmine and delicate cherry blossom. The dry down seals a sophisticated rock’n’roll femininity enveloped by delicate musks, sensual ambergris and elegant orris Booth: Riviera Village RE2

212 VIP Men Company: Puig Description: The new masculine fragrance completes the 212 VIP range and represents the style and attitude of VIP men in New York. The fragrance is a cocktail of vodka with frozen mint, lime caviar and vibrant spices inspired by the scent and attitude of the most exclusive parties Booth: Riviera Village RE19

Attimo L’Eau Florale Company: Ferragamo Parfums Description: Fashion designer Salvatore Ferragamo unveils its newest creation: Attimo L’Eau Florale, which is a celebration of femininity with a chic personal touch by the designer.

The outer packaging expresses the femininity and romance of the fragrance with the soft color palette Booth: Riviera Village RC13

Vera Wang Lovestruck Company: Coty Prestige Description: The floral scent captures mouth-watering pink guava and mandarin, followed by a delicate mix of tuberose and lotus blossom. The dry down includes precious woods and sheer musk Booth: Marine Village Foyer 3

Vince Camuto Company: Parlux Fragrances Description: Vince Camuto is a floral chypre created by celebrated perfumer Steve Demercado. The delicate outline of the Camuto family crest surrounds the cap and appears on a ribboned medallion adorning the facade of the angled bottle Booth: Green Village M64

44

Company: The Millennium Essence Company Description: This gift box contains a soft toy twice the size of a regular Kaloo plush toy, along with clinically tested, 100ml alcohol-free scented water, featuring subtle notes of almond and vanilla. The box is beautifully decorated with a satin ribbon Booth: Ambassador Village U5, U7, U11

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Beauty Beat: Fragrances Jasmine Body Cream & Rose Body Cream Company:Jurlique International Pty Ltd Description: This unique biodynamic blend of ingredients provides an easily absorbed and powerful solution for creating softness and eliminating dryness. The nourishing body cream is enriched with jojoba oil, shea butter and cocoa butter that leaves dry skin hydrated and lustrous Booth: Yellow Village F49

The allure of beauty

Cutting edge creams and colorful cosmetics promise to deliver optimum results for traveling consumers Anti-Aging Neck Cream Company: La Prairie Description: This cream effectively helps to recondition and recontour skin that becomes dehydrated and slackens with age. The result is tighter, smoother, firmer skin with a noticeable lessening of age-related symptoms Booth: Riviera Village RE6

Luminys Silk Company: Micys Company, Pupa Milano Description: This baked eyeshadow is available in a new, satin version for a sophisticated and elegant make-up result.

The vibrant colors are silky and soft to the touch. The eyeshadow can be used with a dry look for elegant and sophisticated eyes or a wet look for intense and bright colors

Black Rose Cream Mask Company: Sisley Description: A new soothing skincare mask that instantly refreshes, smoothes and energizes the face thanks to a rich formula that includes vitamins and antiaging active ingredient. It is available in 60ml Booth: Harbour Village, Costa Magna

Nourishing Body Cream Company: Institut Karite Paris Description: This body cream, rich in Shea Butter, nourishes and softens the skin. Its complex mix fights against slackening skin to firm and strengthen it. It gives the skin a smooth and radiant glow

Skinleÿa – antiaging lift foundation Company: Sisley Description: All of Sisley skincare technology can be found in this new foundation, sheer and silky as a second skin and able to correct the visible signs of aging. Available in 30ml in nine natural shades Booth: Harbour Village, Costa Magna

Huile Absolue Face & Body Serum Company: PATYKA Cosmetics Description: A treatment that can be applied to the face, body and hair daily. It is composed of 12 essential plant oils with antioxidizing, regenerating, toning and nourishing properties that add radiance and softness to the skin Booth: Blue Village H21

Cellular Power Infusion Company: La Prairie Description: The formula utilizes a threedimensional age-defiance system to restore skin to a more youthful state at any stage of the aging process. The company says that the product employs a threefold action to secure cellular energy supply and protect skin from the effects of external stresses, backing up the skin’s own natural renewal processes Booth: Riviera Village RE6

Company News: Ferrero Travel Market The “Dog Stories” themed Kinder Chocobox

Global appeal

By Andrew Brooks

For Ferrero Travel Market, standardization and localization make a great mix

F

errero Travel Market had an ex-

While Asia is growing rapidly, along with the

orange, white and blue in the shape of a Kinder

cellent year in 2010,” says Gian-

Americas, Ferrero Travel Market is eying the

Surprise egg. “The Ferrero Rocher golden pyra-

nicola Losacco, General Manager

potential of other markets too, such as India,

mid display is a real eye-catcher and all our

of the Ferrero Travel Market Di-

the Middle East and Europe. “The whole con-

merchandising and display material is coordi-

vision. “We closed up 30% in

fectionery category is growing rapidly and Fer-

nated and premium in appearance and quality,

sales by value versus 2009, which puts us at

rero is investing resources in making the most

so that it creates a top end display overall,”

number five in the confectionery rankings. This

of the opportunities,” Losacco says.

Losacco says.

remarkable performance, which far exceeds the

Being a global product sold into both do-

The Happy Hippo themed Kinder lines,

rest of the category, can be put down to inno-

mestic and travel retail markets, Ferrero is

which have enjoyed particularly strong success

vative products and the huge contribution of

highly standardized throughout its markets,

as children’s gifting items, are scheduled for a

our partners – the retailers and operators who

with only presentation and packaging differing

relaunch based on a new “Dog Stories” theme.

share our vision.” 2011 has also started very

to some degree from one market to another, de-

Each cartoon dog has a unique character and

well, he reports.

pending on localized preferences. There are also

temperament, reinforcing the appeal for

Ferrero is a global company with a solid

some items that are exclusive to travel retail. In

youngsters. New presentations in the Nutella

presence and performance in Asia. “We are

Asia, Ferrero Rocher and Kinder Bueno are very

series include the special weekly 7 x 30g pack

present in all the major airports in the region,

popular choices, Losacco says, and accordingly

which is being widely distributed in travel re-

and sales are progressing very satisfactorily in-

the company offers a wide selection of SKUs in

tail. In addition, Losacco says, “the new-style

deed,” Losacco says. Confectionery demand in

these brands, including several designed specif-

Kinder Mix 420g in its smart and original shape

the region is increasing rapidly, he says, as the

ically to cater to the sharing impulse – these in-

will make a great purchase for sharing with fel-

expanding Asian middle classes travel more fre-

clude Kinder SchokoBons and Kinder Friends,

low travelers or for friends back home.”

quently – a growth scenario that is reinforced

which are important sellers in Asia.

by the strong sharing impulse that drives purchasing behaviors across the region.

Ferrero Rocher is a heavy hitter in Asia

Ferrero Travel Market’s near-term plans to

case the newest lines from each of its brands,

build on its success in Asia include new POS

such as a Nutella destination sleeve with images

materials and high-profile promotions. “We

of international cities, the Kinder Mix 420g and

will be reinforcing the Kinder brand with new

the Kinder “Dog Story” themed collection of

packaging and some Dog Story themed chil-

the Kinder Chocobox 144g, the Kinder Surprise

dren’s items,” Losacco says. “Kinder

T4 with doggy characters and the Kinder

has great potential as it offers a

Chocolate multipack, which features collectable

range of attractive gift and sharing purchases for all ages.”

46

At Cannes, Ferrero Travel Market will show-

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

stickers.

The new Ferrero Rondnoir will also be un-

Losacco’s team has

veiled in Cannes and rolled out worldwide in

developed new dis-

redesigned luxury packaging, Losacco says.

plays for each of its

“The recipe has been improved with a

brands, for example the

crunchier, more delicious wafer and chocolate

Nutella stand in the shape

sprinkles on the outside and a dark chocolate

of a Nutella jar, and

coated half-almond at its center, for an even

Kinder displays in bright

more enjoyable experience.”

All of the styles, none of the damage.

Satin•Hair Boutique

Braun GmbH, Dept. IAM-DF, Frankfurter Straße 145, D-61476 Kronberg, Germany, Tel.: +49 6173 30 2221, E-mail: mellin.k@pg.com, www.braun.com/global

Confectionary News

Chocolate Frey promotion stand

Asian

flavorings

The Orient brings sweet success to these confectionery stars

By Andrew Brooks

The Chocolate Frey Chocobloc Family Pack

Chocolate Frey: growing fast

C

hocolate Frey is well covered in Asia, with the key mar-

new item launched this year is Chocobloc Air, with the launch heav-

kets being Singapore, Korea, the Philippines and

ily supported by a lucky draw promotional activity – titled “Airis-

Malaysia. Expansion is in the works in the near future,

simo” – that gives customers the chance to win a sport bag.

says Jacques Isler, Export Manager Travel Retail. “Asia

At TFWA WE in Cannes, Chocolate Frey will introduce a new

is a very important market for us,” Isler says. “We’re a young brand

item to the Chocobloc range. The company team has expanded,

which started its activities in 2008 and we see fine growth potential

Isler says, and the new staff member will also be on hand. The in-

in Asia as well as in many other markets around the world.”

creased staffing will help Chocolate Frey open new markets.

Chocolate Frey’s best sellers are in the Chocobloc range, which

Overall, 2011 has been a good year for Chocolate Frey, Isler says,

comes in five variations in almond, honey and nougat: Chocobloc

thanks to the opening up of new markets and the building of brand

Milk, Chocobloc White, Chocobloc Dark, exclusive Chocobloc Dark

recognition. However, the strength of the Swiss Franc is undermin-

72% and Chocobloc Orange. The complete line was redesigned this

ing competitiveness, and Isler hopes to see the currency exchange

year and Isler says customer response is backing the change. One

situation improve in the not-too-distant future.

Duc d’O: new and improved Gijsbrecht Ostyn, Brand Manager for

crèpe dentelle or feuilletine. The second contains small strawberry pieces

Belgium-based Duc d’O Chocolaterie,

in the strawberry mousse. Duc d’O says that consumer research has

has revealed that the Swiss chocolate

The Duc d’O Intense Collection

shown that strawberry is one of the most popular chocolate flavors.

maker will reveal two new additions

Both will be launched in a 100g box, with visuals provided by well

as well as some major improve-

known food photographer Stephane Verheye. The box will be a first for

ments to existing products. A

Duc d’O in stating that all truffles are 100% natural.

major innovation in the truffle segment will be clearly distinguished from

Duc d’O has also launched five limited edition truffle, praline and mini

the company’s existing offerings by being introduced as a new line – the

praline package designs called “Winter Tales” for the 2011 holiday season.

“Intense Collection.” This collection now appears alongside Duc d’O’s

The designs are by leading international design firm Brandimage. A new

well known Original Collection.

product will be launched in the La Boule sharing range, marked by new

Defined as a sub-brand, the Intense Collection will contain all the ex-

packaging with a window, adjusted weight, new foils and value pricing.

clusive truffle varieties that are marked by unique flavors and features. At

The 5.5g mini pralines, first launched in 2001, will get a new look that

the same time, Duc d’O will launch two new truffle variants: a milk choco-

brings them into line with the rest of the range, and Pâtes de Fruits will

late truffle with a crunchy biscuit filling and a white truffle with strawberry

receive new packaging, with the original ballotin replaced by a modern

mousse. The first features one of France’s most renowned biscuits – the

bottom-lid box with a brighter design.

Jacobsen’s Bakery: building the TR side At this year’s TFWA WE in Cannes, Denmark-based Jacobsen’s Bakery will be featuring three new products: Teddy Bear 300g vanilla cookies, Tivoli 150g cookies with pieces of orange, cranberry, pear and chocolate, and Market Place 150g and 340g traditional butter cookies.

48

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Tivoli cookie collection with fruit pieces

The Market Place traditional butter cookies

Paton’s Dubai-themed chocolate-coated coffee beans

Oreo’s travel retail debut range

Toblerone is one of Kraft’s travel retail frontrunners

The new products will join an expensive range that is enjoying double-digit growth

Kraft covers all key segments

figures in the Asian market, an important

Paton’s Macadamia Royals, as seen on Qantas

brands are well represented in Asia and enjoying strong brand awareness. With Cadbury as part of our portfolio, our position is further

theater of operations, says Bo Keller, Senior

For Cannes this year, Kraft Foods World

Sales Manager. Jacobsen’s is present in all

Travel Retail (KFWTR) is launching a mix of

major markets in the Asia-Pacific region in

new offers from recognized travel retail brands

terms of traditional food retail, while in

like Toblerone, Cadbury and Milka, as well as

travel retail it is still a relative newcomer,

launching the Oreo biscuit brand into the

though one with a presence in key markets,

travel retail channel. “The TFWA World Exhi-

Paton’s is consolidating existing markets

including China. “We like to grow our busi-

bition has always been the ideal launch plat-

and won’t be launching anything new until

ness and open new markets,” Keller says,

form for our new concepts, and following our

2012, so the company won’t have new re-

“but we’re in no hurry. Finding the right

integration with Cadbury, this year we come

leases to reveal at Cannes this year, says

partners to work with is critically important

to Cannes with a stronger-than-ever portfolio

James Kfouri, Chief Operating Officer. Due

to us.

in all the key confectionery segments – choco-

to the current depressed situation in Europe,

late, gum and candy,” says KFWTR Managing

and the fact that Asia has bounced back more

Director, Andreas Fehr.

strongly from the economic downturn, Asia-

“To stay competitive and relevant, we need to be very focused and good at what we

strengthened given the strength of the Cadbury brand within Asia.”

Paton’s looks eastward

Pacific is Paton’s primary focus at the mo-

do, and execute with precision,” Keller says.

Fehr and his team will unveil the Toblerone

“The Asian consumer is demanding and has

Variety Gift Box with four flavors, including

lots of choice, and new products enter the

milk, white, dark and the ‘Snowtop’ milk-

“Sales have been adversely affected by the

market all the time. We work hard to try to

white combination, available in travel retail for

natural disasters in Asia and Australia, but

stay ahead – by innovating to meet con-

the first time. And the Toblerone White Minis

are showing positive signs,” Kfouri says.

sumer expectations, today and tomorrow, in

Pouch brings one of the most popular To-

“Elsewhere sales have been steady and are

order to be able to offer unique and sellable

blerone flavors to the market in a snack size

showing some positive changes in the last

products to travel retail.”

format.

couple of months.”

ment – and the company’s largest market.

Jacobsens Bakery has a number of very

New from Cadbury are two new offers in

Paton’s is represented in virtually all of the

popular cookie products and designs, some

the gifting sector. The Cadbury Chunk Box of-

major Asia-Pacific hubs, Kfouri says, as well

of them exclusive to travel retail. The con-

fers 26 individually wrapped pieces of Cadbury

as secondary airports and downtown stores.

cept and image of Danish butter cookies is

Dairy Milk chocolate in a gift box modelled on

Add Australia, where travel retail sales have

generally well understood and appreciated

a chunk of Cadbury Milk Chocolate. And the

been very lively over the last four months, and

in Asia, Keller says.

new Cadbury Travel Mix contains Dairy Milk,

it’s easy to see why this part of the world is

“Cookies in tins remain a popular gift

Caramel, Twirl, Fudge, Eclairs and Twist. The

taking up so much of Paton’s attention.

item, and we constantly work to improve our

Milka brand will be augmented with two new

“We’ve already established a footprint in

product offerings,” he says. One way Jacob-

offerings – Milka Popcorn and the Milka

China where retailing facilities are develop-

sen’s has done this is by working with

Crispello Pouch. Popcorn combines Alpine

ing at a fantastic rate, and we’re working

smaller-sized tins with top-end design in-

milk chocolate with slightly salted popcorn,

with several retailers in India too, another

cluding embossing and gold print. The

while the Crispello Pouch offers individually

burgeoning market,” Kfouri says. “Markets

smaller size makes Jacobsen’s offerings a

wrapped pieces of chocolate-covered wafer

such as Hong Kong and Singapore are also

more convenient option for buyers who are

filled with a smooth milk chocolate cream.

instrumental to our presence in the region.

traveling, improving travel retail uptake and

“KFWTR is very present in Asia,” says Fehr.

We also see great potential in Europe, Middle

also ‘shaking up’ presentation modes as a

“With the number one position in the confec-

East and Americas, but at the moment Asia

way of creating more interest in the category.

tionery category according to Generation, our

is the number one focus.”

50

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

51

The strongly promoted Dewar’s range

Liquor Report : Asian Favorites

Supply and demand

By Andrew Brooks Baron Otard’s rarest-ever: Fortis et Fidelis

When the Asia market declares a preference, travel retail’s market makers take note

V

inay Golikeri, Marketing Director for the Bacardi

de-vie from the Chateau de Cognac cellars. The cognac is presented in a

Global Travel Retail Division, has a lot to talk about

crystal carafe handcrafted in France by renowned glass maker Saint-Louis.

when asked about Bacardi’s bestsellers in the Asia mar-

Golikeri says that in Bacardi’s experience, the decanter, which retails for

ket. “Dewar’s is enjoying massive growth in Asia,” Go-

US$4500, has proven to be exactly what the Asian market is demanding,

likeri says. The Dewar’s Gold Rush promotion last year

and Fortis et Fidelis is making steady headway in getting Asian listings.

was a great success and continues to bolster Asian sales, he notes.

This July Dewar’s Gold Rush was joined by a new promotion called

“Dewar’s World of Discovery,” in which the brand has partnered with

Pernod Ricard takes off

National Geographic magazine. “This is a particularly exciting promotion

A taste for brown spirits and a taste for luxury

in Asia, where the National Geographic magazine and TV channel attract

items—put them together and these hallmarks of the

huge audiences,” Golikeri says. The promotion is currently running in

Asia market are keeping Pernod Ricard in a leadership

China, Malaysia and Hong Kong.

spot in the region. John O’Sullivan, Marketing Director

Grey Goose vodka is what Golikeri calls a “star performer” throughout

for Pernod Ricard Asia Duty Free, notes that the Martell

travel retail, and in Asia the brand has posted growth significantly ahead

Experience Boutique concept at the international air-

of the overall vodka category. As elsewhere, Grey Goose has been a stand-

ports in Hong Kong and Kuala Lumpur have ex-

out in building the super-premium vodka segment. Asia travel retail is

ceeded sales expectations but have also gone

proving to be a key channel in establishing the brand as a luxury icon in

above and beyond in strengthening the

the region.

brand’s connection with its customer base.

Staying on the topic of vodka, 42 Below is embarking on what some

O’Sullivan says that while the intangibles

would consider a highly unconventional promotion—and in the world

were as important as the raw sales figures

of promotions and marketing, “unconventional” tends to mean “good.”

from Pernod Ricard’s point of view, sales to

For this year’s Rugby World Cup, which takes place in New Zealand Sep-

Malaysian and Chinese customers have been

tember 9 to October 23, 42 Below is “renaming” the country “42BELOW-

especially strong, driven in particular by the

LAND – New Zealand in a bottle.” Golikeri says the promotion will

Prestige range, which consists of L’Or de Jean

include the first ever limited edition 42 Below bottle, which boasts a cus-

Martell, Martell XO, Martell Creation and

tomizable label: the label’s wraparound photograph of 42BELOWLAND

Martell Cordon Bleu.

can be customized with stickers included on the bottle’s neck-hanger.

Earlier this year, Absolut Watkins coffee

Golikeri points out that rugby fans will be especially attracted by the ac-

and almond flavored vodka was premiered

companying GWP: for the purchase of two one-liter bottles of 42 Below,

in travel retail, first in Singapore Changi Air-

buyers will receive a 42 Below rugby ball cocktail shaker.

port and then in Hong Kong, Thailand,

“42 Below promotions always deliver in both originality and effective-

Malaysia and Korea. The bottle features a

ness and perfectly represent the level of innovation that we as a team

graphic devised by famous designer and

pride ourselves on,” Golikeri says. “42BELOWLAND is a brilliant way of

graphic artist Liselotte Watkins. Overall, the

capturing the attention of the 85,000 rugby fans that are expected to visit

vodka category is showing good growth, al-

the country during the Rugby World Cup, and increasing footfall

though on a smaller scale so far.

throughout the retail spaces of the region’s airports.”

Earlier this year, the rarest-ever cognac from Baron Otard was launched.

Fortis et Fidelis is an exclusive blend of some of the oldest and rarest eaux-

52

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Absolut Watkins coffee and almond flavored vodka was premiered this year in Singapore Changi, Hong Kong, Thailand, Malaysia and Korea

Pernod Ricard notes that the Martell Experience Boutique concept at Hong Kong and Kuala Lumpur Airports has exceeded expectations this year

At around the same time, Pernod Ricard Travel Retail launched a new

Marketing Director for Pernod Ricard Asia Duty Free, the launch trappings

Chivas Regal 18 Year Old limited edition in major Asian airports, starting

surrounding Royal Salute 62 Gun Salute were probably the most lavish that

with Hong Kong and then moving to Incheon and Kuala Lumpur. The run

his team has mounted so far in 2011. This is the top-end whisky in the Royal

is limited to 3,000 bottles, a selection of which was earmarked for the Asian

Salute range, and it was launched early in 2011 at Hong Kong International

duty free channel.

Airport, Singapore Changi Airport, Taiwan Taoyuan Airport and Korea In-

The Chivas 18 Year Old launch was a major event, with detailed and or-

cheon Airport. Premium display units carried the new brand in Korean

nate displays in high-traffic locations, but according to John O’Sullivan,

Air’s first class and business lounges.

Edrington Group maximizes value “The Asian spirits market remains significantly driven by brown spir-

Maker’s Edition and the Limited Release decanter are all popular, as

its, and this trend looks set to continue in the short to medium term,”

they encapsulate the premium position of the brand.” Oscuro was re-

says Ryan Hill, Area Director, Asia Duty Free for The Edrington Group.

leased in October of last year, and is priced between Estate Re-

“We are also witnessing strong growth in Chinese white spirits.”

serve and Limited Release in the 1824 range.

For Edrington Group, the single malt category is especially favorable,

Thanks to Edrington Group’s ongoing educational and pro-

showing 17% percent growth. “Travel retail continues to be an excellent

motional campaigns, Hill says that consumers understand that

platform, or shop window, for building strong brand visibility and driving

all versions of The Macallan are created with the same stress on

the position of our premium SKUs,” Hill says. “A key to

high-end quality. This creates strong market awareness and also

our position in Asia comes from the fact that we man-

a sense of “reliability” in that buyers know what they’re getting.

age distribution of The Macallan, in tandem

“This is coupled with the fact that we have inherent

with our strongest domestic markets whilst

strength in the domestic Asian markets, which gives us

also driving targeted distribution for future

greater traction in travel retail,” Hill says. “We also know

growth.” In March, the Macallan range was

there’s a strong desire for collectability and gifting within

augmented with the addition of Limited Re-

the Asian markets, which also helps drive demand of the

lease MMXI, part of the 1824 single malt collection, which is exclusive to global travel retail.

exclusive travel retail range.

At present, Edrington Group is experiencing growth through current distribution channels across Asia in

Ultra-premium spirits in particular

combination with a longstanding high sales success rate.

are a favorite with Asian buyers, Hill says.

Plans for the near- and long-term future are to focus on

“As our 1824 Collection is exclusive to

building presence in China and Korea. “The approach for

travel retail, and not available through

us isn’t necessarily about growing distribution to grow the

domestic channels, we know that the

business, but about managing and controlling distribution

brand appeal is strong and drives con-

to maximize value for The Macallan given the very strict

sumers towards the Macallan on shelf.

supply constraints.”

“Within the range, Oscuro, Whisky

The Macallan Whisky Maker’s Edition

The Macallan Oscuro www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

53

Liquor News

White Gold looks for continued success in travel retail While Gold broke into duty free and travel retail just two years ago and has already seen some impressive successes. The company’s products are now listed in Gebr Heinemann and Aer Rianta International stores worldwide, as well as with Dufry shops in Russia.

“We are currently in negotiations with other operators such as DFS Group, Aldeasa - WDF, The Nuance Group, B&S Paul Global, Weitnauer, ATU Duty Free and many others, who seem to be very positive about the idea of launching of our main brands, White Gold Black Edition vodka, White Gold vodka and Russian Gold vodka,” says Marketing and Travel Retail Manager Kirill Pechenkin.

White Gold says that given the growth of the vodka subcategory, especially in duty free, it sees a great opportunity for its brands as they continue to penetrate the channel. Currently working on its own to supply clients and organize activities, the company is interested in meeting with experienced

distributors to discuss increasing the reach of its brands.

“Our brands have a perfect presentation and are known for their quality,” Pechenkin says. “We’re looking for a company with sufficient sales and marketing strength to drive our brands into this competitive market and share in White Gold’s success.”

Indeed, the company’s products are getting noticed on the world stage.

According to a recent IWSR report, vodka brand Gzhelka, produced and distributed by White Gold, is a new entrant on the list of the top 20 vodka brands worldwide. The company’s latest offering is a new variant called White Gold Black Edition. The limited edition spirit comes in a sleek black bottle and is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate. The variant is designed to appeal to trendy clubgoers, with a design that pays tribute to the traditional cues of the original spirit while communicating a sense of modernity and mystery.

White Gold Black Edition is triple-filtered in black coal and a silver ion filter for crystal clarity and a pleasant palate

Jose Cuervo returns to its roots… and to the Indian Subcontinent Jose Cuervo recently announced that it is launching a new brand volcano provides the mineral-rich soil in which the indigenous Blue positioning for its international markets. The new positioning— Agave plant grows for a minimum of 7 years, soaked from below by

Cuervo. The tequila from Tequila—will cover the entire product the volcanic minerals and from above by the Mexican sun. Indeed, portfolio, from Especial to Reserva de la Familia. In conjunction with an unbroken 270-year story of one family’s passion, one commuthe launch, Gulf Beverages FZE announced that Jose Cuervo is once nity’s endeavor and a unique natural environment have combined again available in the Indian Subcontinent. Gulf Beverages will be to produce Jose Cuervo Tequila. selling and marketing the product throughout the Subcontinent in “To me it’s a tragedy that the story of Cuervo, and the magic of both the travel retail and domestic channels.

The tequila’s new positioning celebrates Jose Cuervo’s authenticity, provenance and independence. The Cuervo family started the tequila industry from its base in the town of Tequila, Jalisco 270 years ago and

tequila, remains a mystery,” says Jose Cuervo’s International Managing Director Peter Gutierrez. “It’s our mission to put this right. It’s time to shine a light on what Cuervo really is. You don’t get to be the world’s favorite tequila by accident. Things happen for a reason. It’s

they are still there today, ten generations later, crafting the world’s about who’s making it, where it’s been made, how it’s been made number one tequila and the eighth biggest spirits brand in the world. and how it’s meant to be enjoyed. That work starts now.”

The secret to this extraordinary tale lies is the 270-year pact between the family, the people of the town of Tequila and Mother Nature.

Generation upon generation of townspeople has been passionately invested in the art of working with the family to make Cuervo in the same way it always has been produced. As is reflected in the new positioning, in the town of Tequila, it’s about who you are not what you are. Social hierarchies are forgotten as the town comes together to create Cuervo Tequila. Together is how it’s made and together is how this unique spirit is best enjoyed.

Both the town and the drink are named after the Tequila volcano that lies there. The 54

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Liquor News

XO 24 Carats completes the A. de Fussigny range, which consists of Selection, Supérieur Fine Champagne and XO Fine Champagne

A. De Fussigny launches XO 24 Carats at TFWA WE A. de Fussigny has announced the release of XO 24 Carats in the travel retail market. Developed for the duty free channel, XO 24 Carats completes the range of A. de Fussigny Cognac, consisting of Selection, Supérieur Fine Champagne and the brand’s flagship, XO Fine Champagne.

A 100% Grande Champagne (Premier Grand Cru) cognac bottled at 43% vol. for maximum aromatic revelation, XO 24 Carats develops outstanding aromatic richness, balance, elegance and softness.

A. de Fussigny notes that 24 Carats will be available in an upscale, modern and slick design with a golden topped decanter in a luxurious embossed gold and red gift box. To see more of this new release, as well as the rest of the A. de Fussigny portfolio, visit Red Village K21 at this year’s TFWA WE.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

55

Company News: Diageo

A powerhouse in the making

W

Sales of Shui Jing Fang in Asia travel retail have tripled in the past two years, and if Diageo has any say in the matter, this is will be the beginning of a much longer success story

hile many rightfully asso- Fang was declared as the oldest distillery in the

ciate Diageo with top-selling world by the Guinness Book of World Records,” spirits such as Johnnie Walker, says Mirana Baileys, Smirnoff and a host of

other

Only carefully selected ingredients, crafted by

internationally a highly accomplished master blender and per-

renowned brands, Asia Duty Free recently learned fected by generations of experts, go into every botfrom Edward Mirana, Diageo’s Regional Market- tle of Shui Jing Fang, thus producing its powerful ing Manager – Asia Pacific, that the spirits pow- yet graceful flavor and aroma. Furthermore, classic erhouse, working in partnership with the Shui and elegant packaging makes Shui Jing Fang disJing Fang manufacturers in China, continues to tinctive from other super deluxe Baijiu brands. pleasantly surprise with new regional offerings Given the above, it’s clear that the brand has pothat have worldwide potential.

Part of Diageo’s portfolio and a top seller in

tential throughout the world.

Asian duty free is the Shui Jing Fang family of Chi-

An all-star lineup

nese White Spirits, or Baijiu, as it is locally referred

The core Shui Jing Fang expressions are called ports outside of Asia. Diageo has plans for further

airports in Asia Pacific plus an additional 4 air-

to. Sales of the brand have tripled in the last two Wellbay and are available in 38% and 52% ABV expansion of distribution to 20 international airyears alone in travel retail in the region. “To give variations with a Classic 61% ABV offering also ports across Europe and the Americas by the end you an idea of how popular Shui Jing Fang is with in the portfolio. Mirana notes that innovation is a of this year. This has led to an accelerated sales traAsian consumers, it is now Diageo’s second key driver of future growth and a series of new of- jectory, with the sales value for Shui Jing Fang havbiggest selling brand in Asia Travel Retail, behind fers and limited editions have been launched ing grown in travel retail by over 120% in the fiscal only Johnnie Walker,” Mirana explains.

under the Shui Jing Fang umbrella. These include year ended June 2011. “We are very excited about

Chinese White Spirits is actually the largest Forest Green and the Scholar’s Edition Pack plus the future potential for Shui Jing Fang in travel respirits category in the world. In the global spirits exciting new limited edition Chinese New Year tail,” concludes Mirana. market, Baijiu accounts for 31% of volume ac- and Mid Autumn Festival packs. Demand for cording to IWSR. The next biggest category is more offers and limited edition packs is overVodka with 19%. In China alone, Baijiu is by far whelming given the success of the brand in the the largest category, contributing 55% of total past few years, Mirana says. beverage alcohol sales value.

A long tradition

“There are a lot of opportunities for the Shui Jing Fang brand outside the Asia Pacific region,” he explains. “First and foremost, it’s a

Baijiu refers to an alcohol beverage made from brand that has a proven track record of qualgrain ingredients. These fresh ingredients are ity and tradition. Additionally, the increase steamed and mixed together using traditional in Chinese travelers worldwide and the limChinese fermenting yeast (Qu) and brewing itless opportunities to buy a unique gift through different processes such as distilling, stor- when traveling have already made the brand age, blending and aging in specially designed cel- hugely popular with Koreans as lars. Baijiu is later extracted with a special process well as Chinese, with a growing by the master distiller.

number of both Asians and West-

“Shui Jing Fang is a pioneer of Baijiu and an erners increasingly exploring the acknowledged trendsetter in the super deluxe cat- segment for a gift or appreciating egory. Our workshop is China’s first and oldest the liquid with a Chinese meal.”

Baijiu distillery in continuous operation, honored

Distribution for Shui Jing Fang

as one of the country’s Major Historical and Cul- in travel retail has expanded altural Sites under State Protection, with an extraor- ready in the past 6 months dinary 600 years of heritage. In 2001, Shui Jing to 20 major international 56

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

Forest Green (above) and Wellbay are from Diageo’s Shui Jing Fang family of Chinese white spirits

Changing times BAT’s Burgundy Shop at Hong Kong International Airport

The tobacco industry balances growth, regulatory restrictions and social responsibility Despite challenges, many tobacco companies have lately maintained

“Sales are mainly driven by increased travelers, especially during fes-

and in some cases improved their market share. They have also begun to

tive seasons,” says Nurman. “Our adult tobacco consumers are looking

take social responsibility, sustainability and ethical marketing very seri-

for additional value when they purchase in the travel retail environment.

ously. In some cases, they have initiated research to lessen the potential

Another trend we have observed is the proliferation of premium product

risks posed by their products.

offerings.”

BAT sells more than 200 brands sold in over 180 markets. The com-

Asia, says Nurman, is well positioned to lead the growth in travel retail,

pany has 45 cigarette factories in 39 countries, employing more than

including in tobacco products. And this is what is driving companies such

60,000 people worldwide. BAT’s strategy is based on growth, delivered

as BAT to innovate. Good examples are the Kent Convertible and Lucky

by an organization that acts responsibly at all times. The company is es-

Strike Click & Roll brands, wherein crushing the filter results in a men-

tablishing a benchmark for the industry by applying strict marketing

thol-flavored cigarette. Meanwhile, BAT’s classic brands such as State Ex-

standards to its activities to ensure that no marketing activity is directed

press 555 and Dunhill continue to hold top spot among smokers in Asia.

at, or particularly appeals to, youth.

“We believe that Asia is definitely well positioned to lead growth in

Social responsibility and sustainability are key for BAT. The Group is

travel retailing, including in the tobacco category,” says Nurman. “We

very active in promoting sustainable agriculture,

see both business and leisure traveling continue its

for example, by educating farmers on good prac-

recovery since the recent financial crisis. Nation-

tices, by preserving water and protecting the soil,

ality-wise, Chinese are the leading traveler growth

in leaf processing and through eliminating child

numbers in Asia. Winning Chinese, with their in-

labor.

creasing spending power, is at the top of the strate-

Justinus Nurman, Head of Operational Mar-

gic growth agenda within travel retail.”

keting for BAT’s Asia Pacific duty free business,

Kelly Song, spokesperson for KT&G, agrees,

doesn’t hold back in saying that “tobacco con-

saying that geographically and demographically

sumption poses real risks to health, so we agree

the growth area "will have to be China. In addition

that tobacco products should be regulated in ap-

to their growing economy, Chinese travelers are

propriate ways. We believe, however, that duty

becoming a big influence in the travel retail sector.

free sales are a legitimate part of our industry and

Asian airports have played a significant role in

that balanced regulation should be applied.”

travel retail. I think that the importance of Asian

Of course, along with addressing these issues,

countries will only grow."

BAT has been adapting in different ways to the

This fall will be the sixth year in which KT&G

major surge in travel by previously more static

will be participating at TFWA WE. As South

communities, among them Chinese, Koreans and

Korea's leading manufacturer of tobacco products,

Japanese. The company has lately registered double-digit growth on the travel scene.

58

it enjoys a market dominance of more than 65% KT&G’s ESSE superslims, stocked up and ready to go

ASIA DUTY FREE & TRAVEL RETAILING SEPTEMBER/OCTOBER 2011

in that country.

It mainly exports its products to the Middle East and the CIS coun-

KT&G is getting ready to introduce its flagship ESSE, BOHEM and

tries, including Russia, and is currently widening its markets in South-

RAISON brands at this year’s tradeshow. "Having been successfully ac-

east Asia, America and Eastern Europe. Direct investment for building

cepted and loved by young, stylish smokers across the world, ESSE has

manufacturing facilities has also been made in countries such as Turkey,

grown rapidly in sales volume and brand awareness," says the company's

Russia and Iran. KT&G’s 2010 revenue totaled US$3.3 billion, up from

marketing literature. "ESSE has been introduced in more than 40 coun-

US$2.9 billion in 2007.

tries and has become a prestigious name for super-slim cigarettes."

E-cigarettes: the new alternative Since 2008, electronic cigarettes have become increasingly popular as an

alternative to smoking traditional tobacco cigarettes given the fact that e-

on its website and has carved out a very respectable niche selling in mall kiosks throughout the US.

cigarettes can be used virtually anywhere. At the forefront of this burgeoning

The worldwide duty free channel is attractive to a company like Vapor

movement is pioneering e-cigarette company Vapor Corp. [OTCBB:

Corp. for two main reasons, says Frija: “First of all, airports are very high-

VPCO], which offers a range of e-cigarette brands—from the rechargeable

traffic areas for retail, which is what any company looks for. Furthermore,

Fifty-One brand to the disposable Krave brand—to satisfy the varied needs

e-cigarettes are a perfect fit for the duty-free customer, for the busy traveler

of virtually any smoker.

on the go. Vapor Corp. has increased its business exponentially year over

“Vapor Corp.’s e-cigarette brands are distinct from many other e-cigarettes available today, both in terms of the quality and the cutting-edge tech-

year since its inception and I have no doubt that both the traveling public and the duty free industry will see immense value in our brands.”

nology employed,” says Adam Frija, Director of Business Development at Vapor Corp. “Our electronic cigarettes do not emit any second-hand smoke.

Instead, our products emit an odorless vapor. Our electronic cigarettes look like, taste like and feel like a cigarette, but they aren't cigarettes."

The filter of the Fifty-One contains flavoring, nicotine and an atomizer that essentially vaporizes the nicotine. When you inhale, a microcomputer activates the atomizer and the battery (contained in the white part of the ecigarette). The end of the Fifty-One even glows when you puff it.

Over the last 3 years, Vapor Corp. has crossed into virtually every distribution channel available in the US, such as convenience stores, tobacco

The Fifty-One starter kit will retail in duty free for about US$100; a refill cartridge costs US$3 and each can last as long as two pack of traditional cigarettes

shops and supermarket chains. The company also sells direct-to-consumer "Banning tobacco is the ultimate aim for

key to New York and individuality is the key to

many governments," says Ian Smart, Director of

After Hours. We’ll be showcasing the new look

Business Development at Protégé International

Five & Dime brand at the forthcoming TFWA

Ltd. "We only have to look at Australia, Ireland

WE. It’s already proving to be a great hit in Asian

and the UK to see where the tobacco industry is

duty free markets." Smart describes Five & Dime

heading. But as these governments are still ad-

as individual and modern, reflecting today’s fast

dicted to the income derived from excise duty,

paced lifestyle.

the momentum has to be maintained over a

Although king-sized cigarettes still have a large

longer period of time to allow them to wean

market share, Protégé has noticed that new pack-

themselves off their tobacco dependency."

aging formats such as slims, superslims and short

Protégé was formed in 2000 and provides a

cigarettes are becoming increasingly popular.

global and exclusive marketing service to its

"There seems to be a distinct sea change in con-

momentum must not be lost," he says. "At which

clients. Initially it worked in tandem with a sister

sumer buying patterns in Europe as well and we

point, they will create a whole new criminal class

company, Zeitgeist Productions, which designed

see a dynamic growth in categories such as roll

of their own citizens, which would be approxi-

iconic and evocative products for the interna-

your own and make your own. In Asia and North

mately a quarter to a third of their population in

tional market, but the two companies were

America, the increasing popularity of cigarillos

many countries. History has taught us that when

merged in 2006.

and cigars among over 30-year-olds again shows

governments try to ban products, all it does is set

that the choices that the consumer makes deter-

up a criminal class that will supply it. Let's not

mine the direction the tobacco industry takes."

forget prohibition."

As with the other companies, Asia is where it’s happening for Protégé’s cigarette brands, and the global twist is that each brand is associated with

And what is Smart’s projection for the indus-

Smart says that while his company has always

a dynamic North American city. "The High

try, given all the pressures from governments,

believed in responsible marketing, it also believes

Roller brand captures the spirit of fabulous Las

global agencies and the media?

that tobacco “is a legal substance, and producers

Vegas,” says Smart. “After Hours is a sophisti-

"Governments will continue to push towards

cated reflection of New York. Individuality is the

a total tobacco ban in the mistaken belief that the

should have the right to market it”—ethically and responsibly, of course.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

59

New & Notable LIQUOR & TOBACCO Davidoff Chinese New Year pack Company: Imperial Tobacco Description: To celebrate the Year of the Rabbit, Imperial Tobacco has introduced a travel retail exclusive carton cover printed with an elegant Year of the Dragon symbol Booth: Gold Village GO6

Il de Ré Cliffside Cellar Company: Camus Wines & Spirits Description: Cliffside Cellar is drawn from eaux-devie grown, distilled and aged on the Island of Ré, the most westerly part of Cognac AOC. Distinctively marine and mellow, Cliffside Cellar undergoes final maturation in a cellar deep in the Fort de la Prée Booth: Blue Village F11

Kilbeggan 18 Year Old Company: Cooley Distillery Description: The new brand packaging pays homage to the rich heritage and quality of the Kilbeggan brand while maintaining a contemporary look and feel.

Smooth and very easy to drink, with spices, aniseed balanced with sweet malt, fresh fruits and oak dryness Booth: Mediterranean Village N17

CONFECTIONERY 2012 Tablet Collection Company: Godiva Chocolatier Description: The new tablet features a White Vanilla Bean flavor that consists of white chocolate infused with vanilla from the highest quality whole vanilla beans. The new assortment replaces Dark Raspberry, Dark Mint & Dark Orange, keeping the selection fresh and modern Booth: Yellow Village F33

60

ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011

Orbis Aged World Whiskey Company: St James Distillery Description: Orbis Aged World Whiskey is a global blend of finest aged whiskeys selected by a Master Blender from the five great whiskey nations of Scotland, Ireland, America, Canada and Japan. Many of the whiskeys included in Orbis are of great age, produced in small batches and each bottle is individually numbered and presented in a gift tube Booth: Green Village M 71

ESSENTIAL COMMUNICATIONS COMMUNICATIONS

kn kknowledge nowledge ge CLIENT CL IENT understanding u ndersta tan nd diin ng MEDIA MEDIA

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

At Essential Communications, the client always come first and we will bend over backwards to put together a proposal that meets your needs...and your budget. Flexibility is the name of our game, so if you’re looking fo for a simple, straightforward press release program or an all singing, all dancing media campaign, we’l’l give you a no-nonsense solution to your needs. And..we do it with a smile.

“The support that we have received from Essential Communic Co icca atio ions has ex exxccce eede ded our expectations. Having sold successfully into travel reta re tail channel for many years, we enlisted Essential Communicatio ion o s in early 2010 to develop a focused travel retail PR campaign. Our existing customers are delighted and within weeks we gained new customers as a direct result of our PR. We continue to be impressed with the depth th of knowledge and contacts that Essentia ial Communications has been able to sha hare re wi with us.”

Rebecca Harwood Lincoln, Global Travel Retail Director Director,, Polaroid Eyewear

“Scorpio Distributors appointed Essential Communications in 2006 as part rt of an up upg pgra rade ded marketing strategy. They provide us with a friendly, efficient, pro ro-a o-activ ive ve serv rvic ice and, certa tain inly ly for Scorpio, represent excellent value for money.”

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

Always quic ick to to re res e pond to our needs, the reach the company has provided us has ensured we’ve always had the right we amount of o exposure and the most approp opriate coverage at the right time’.

“Essential Co Communications has been instrumental in us achieving the hig th igher profi fille that we seek as we continue to build the business globalllly. The profile is essential to us in in securin ing ng th the co con onfi fid dence de ce of both new and existing cruiseline customers as well as the various constituent elements of the supply chain in all of the various territories in which we operate. From trade press to corporate profiles, from interviews with the main department heads to national assistance with our recruitment drive, Essential Communicatitio ions has been totally professional and innovative in its approach.”

Harold Gittelmon, Managing Director,r, Harding Brothers Retail Ltd

Garry Stasiulevicuis, Managing Director, Counter Intelligence Retail Director,

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

Tel: 44 (0) 208 405 8109 Fax: 44 (0) 208 405 0330 Mob: 44 (0) 771 021 9784 Email: row@essentialcommunications.org www.essentialcommunications.or www .essentialcommunications.or www.dutyfreemagazine.cag ASIA DUTY FREE & TRAVEL RETAILING

61

New & notable

WATCHES Jacques Lemans Porto for Men

CONFECTIONERY Cocoa Truffles ballotin Company: Guylian Description: Guylian presents the new 200g Cocoa Truffles ballotin. The collection contains 23 pieces of high quality Belgian chocolates, perfect for sharing Booth: Mediterranean Village P10

Chupa Chups Travel Tin Company: Perfetti van Melle Global Travel Retail Description: An exclusive gift tin containing 16 lollipops. The tin is decorated with typical travel symbols such as passport stamps and signposts. This can also be customized for specific destinations Booth: Blue Village G27

TRAVEL ACCESSORIES

Company: Furla Description: The collection mixes bags with shoulder straps, unusual forms and constructions, to create unique pieces for the woman’s wardrobe Booth: Bay Village 5B

Company: MCM Description: MCM’s Spring Summer 2012 Collection repositions the brand at a new premium level with enhanced quality materials and improved detailing throughout. This color inspired collection offers a wider choice of styles and designs, creating an offer that caters to all profiles and age ranges Booth: Rivera Village C4

The Hape Range Company: Scorpio Distributors Description: The Hape Range uses unique materials including bamboo. Educational, fun and ecologically sound, Hape toys has won several awards Booth: Mediterranean Village P8

62

ASIA DUTY FREE & TRAVEL RETAILING TFWA WE 2011

Jacques Farel Kids Gift Packs Company: Harston Group Description: The Champion set is a perfect combination of fun and style for boys. The set includes five interchangeable straps and is available with a trendy silver dial and is water resistant up to 30 meters Booth: Yellow Village B23

Jacques du Manoir

Spring/Summer 2012 Collection

Spring/Summer 2012 Collection

Company: Harston Group Description: These sporty dynamic chronographs have a striking dial design and exudes quality with its solid stainless steel case, special hardened mineral crystex and a high grade caoutchouc-grain leather or rubber strap with Jacques Lemans lettering Booth: Yellow Village B23

Company: Scorpio Distributors Description: The Jacques du Manoir collection features a classic Swiss style watch that is made with high quality materials and is perfect to adorn any wardrobe Booth: Mediterranean Village P 8

eConnect Company: Scorpio Distributors Description: eConnect allows users to create a Wi-Fi hotspot with either a USB dongle or via a cat5 cable (USB 3G Dongle is not included). The eConnect is ideal for hotels or cafes as many only supply a cat 5 connecting cable Booth: Mediterranean Village P8

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The innovation? Visionnaire is the 1st skincare with LR 2412, a molecule designed to penetrate throughout all the layers of the skin’s epidermis, triggering a range of micro transformations.

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING

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never look your age again

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ASIA DUTY FREE & TRAVEL RETAILING TFWA WE AUGUST 2011