asia duty free & travel retailing magazine

TFWA /APTRA CHINA 2013

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MARCH 2013 • VOL 17, NO 1

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Welcome back,

China!

4 ASIA DUTY FREE & TRAVEL RETAILING MARCH 2013

Letter from the Editor

n the latest issue of Asia Duty Free and TravelRetailing, we present upbeat news from Chinaand give readers a look at a brand new oppor-tunity to get in-depth information and adviceon how travel retail can benefit as the world’s

second-biggest economy bounces back from the brink.China is on the rebound. After 2012 delivered a spate

of gloomy economic statistics and talk of a “hard landing,” the numbers and the con-fidence are on an uptick again. New domestic and international routes are being openedup, and more high-spending Chinese travelers are taking to the skies domestically andabroad. The number of Chinese travelers has been growing in the double digits, a pacethat the Civil Aviation Administration of China predicts will hold until 2015.

Travel retail in China is poised to benefit in a big way as the nation moves back intohigh gear. What’s needed right now is good up-to-the-minute information and advicefrom China experts and insiders.

A brand-new industry event promises to deliver exactly that. Titled “China’s Century—The Fast Pace of Change in China Duty Free & Travel Retail,” the conference will bringtogether key decision makers from China’s aviation industry, including airlines and air-ports, and retailers and suppliers from the international duty free and travel industry.

The event, which is being put on by TFWA and the Asia Pacific Travel Retail Asso-ciation (APTRA), is the first industry association event in China. And it couldn’t bebetter timed or more relevant. Already the key growth driver in Asia, China has vastpotential, and the conference will provide attendees with invaluable insights into howthe market works, what gets Chinese consumers to buy—both at home and abroad—and how the nation’s aviation and travel retail sectors are changing.

Airport architecture and airport retail design will be examined, and the conferencewill take a close look at how Chinese airports differentiate and engage Chinese and inter-national travelers. Independent consumer and retail spend research will be presented,and attendees will benefit from expert insight on connecting with Chinese consumersthrough new media.

To back up the positive numbers, our new issue also presents research from i2i GroupChina, which is based in Shanghai, Beijing and Hong Kong and focuses on the Chi-nese world traveler.

"The Chinese are learning to travel domestically and more importantly, they’re begin-ning to travel internationally," says i2i Group CEO Alexander Glos. In 2012 about 78million Chinese traveled, 20% more than in 2011. Chinese travelers are the highest spendersper capita in the travel industry, spending close to US$7,000 per person. And Glos saysChinese travelers take longer trips, often lasting for more than 12 days.

The future potential of this huge market seems almost limitless. It’s good to haveChina back!

Kind regards,

Hibah [email protected]

IAsia Free & Travel Retailing (ISSN 1360-9548) is

published annually by Global Marketing Company

Ltd., 26 Pearl Street, Mississauga, Ontario L5M 1X2

Canada. It is distributed in the following countries,

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Saipan, Samoa, Singapore, South Korea, Sri Lanka,

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The views expressed in this magazine do not necessarily

reflect the views and opinions of the publisher or

editor. March 2013, Vol. 17, No. 1. All rights reserved.

Nothing may be reprinted in whole or in part without

written permission from the publisher. © 2013 Asia

Duty Free & Travel Retailing.

Asia Duty Free & Travel Retailing26 Pearl Street

Mississauga, Ontario L5M 1X2 Canada

Tel: 1 905 821 3344; Fax: 1 905 821 2777

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PUBLISHER

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EDITORIAL DEPARTMENT

EDITOR

Hibah [email protected]

ASIA ASSOCIATE EDITOR

P. [email protected]

CONCESSIONS, LIQUOR, & TOBACCO EDITOR

Ryan [email protected]

ASSOCIATE EDITOR

Melissa [email protected]

ART DIRECTOR

Patrick [email protected]

CONTRIBUTORS

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The new fragrance

Letter from the Editor


欢迎回归，中国！在最新一期的《亚洲免税和旅游零售业》杂志中，我们发布了来自中国的利好消息，并向读者提供了获取深度信息和建议的新机会，使之了解中国作为世界第二大经济体可如何通过经济的起死回生使旅游零售业受益。

中国经济正在经历反弹。2012年，中国政府发布了一连串令人沮丧的经济统计数据以及关于“经济硬着陆”风险的报告，前景不甚乐观。然而，在此之后，中国的经济数据和市场信心重新上扬。中国新开辟了多条国内和国际航线，越来越多的中国高消费游客乘飞机在国内外旅行。中国游客的数量正以两位数的增速高速增长，中国民用航空总局预计此增幅将保持至2015年。

随着中国持续高速增长，中国的旅游零售业已准备好从中大举获益。现在，我们需要了解中国专家和业内人士关于新形势的中肯意见。

在此方面，一个全新的行业盛会将提供良机。此次会议主题为“属于中国的世纪— 中国免税与旅游零售业的快速变化”。会上，来自中国航空业，包括各航空公司和机场，以及国际免税和旅游行业零售商和供应商的主要决策者将齐聚一堂。

该活动由TFWA和亚太区旅游零售协会 (APTRA) 主办，是中国首个行业协会活动。本次盛会的举行可谓恰逢其时，顺应大势。作为亚洲增长的关键驱动因素，中国具有巨大的潜力。在此次会议上，与会者将获得宝贵的意见，了解市场如何运作、推动中国消费者在国内外消费的因素，以及中国航空和旅游零售行业的变化过程。

与会者将讨论机场架构及机场零售设计，并密切关注中国机场如何区分和吸引中国和国际旅客。会上还将发布独立的消费者和零售消费研究结果，使与会者通过新媒体受益于专家针对中国消费者提出的相关意见。

为了支持中国的积极增长，我们最新一期的刊物也发布了爱戴爱集团（中国）的研究。该集团在上海、北京、香港设有办事处，主要关注环球旅行的中国旅客。

爱戴爱集团首席执行官Alexander Glos说：“中国国内游日益走热，更重要的是，中国游客开始环游世界。”2012 年，中国游客数量达 7800 万人次，比2011 年高出 20%。中国游客是全球旅游业中人均花费最高的群体，人均花费接近 7,000 美元。另外，Glos 表示，中国游客每次旅行的时间更长，通常超过 12 天。

中国这一巨大市场的未来潜力不可限量。欢迎中国回归！

此致，

Hibah Noor

编辑www.dutyfreemagazine.ca

Want more? Visit us online to catchup on regional industry developments in oure.Newsletters and read recent print issues.

www.dutyfreemagazine.ca


10MARCH 2013 • VOL 17, NO 1

HONG KONG INTERNATIONAL AIRPORT

Cleared for takeoff Riding strong passenger numbers and with anarray of environmental initiatives in the works,Hong Kong International Airport is heading foranother successful year

EVER RICH

On top in TaiwanAlready boasting a strong presence in travel retail,Ever Rich is making its presence felt with majornew projects

CHINESE BUYING POWER

A force to be reckoned with The boom in Chinese travelers means thatoperators worldwide who aren't targeting thesehigh-spending shoppers are likely losing out

AIRLINE NEWSCathay Pacific maintains service focus � AirAsialooks to India for future growth � ANA celebrates60th anniversary with new livery design � JALGroup sees passenger numbers surge in 2013 �Singapore Airlines renews contract with IFEServices � Qantas linking east-west domesticroutes with widebodies

IN BRIEFShanghai to offer tax-free shopping for tourists �The Nuance Group unveils new branding andcorporate identity � Indian business body callsfor higher duty-free liquor allowance

BEAUTY BEAT: FRAGRANCES

Fragrance frenzyFlowers, fruit and foliage set the tone

TOP STORY: CHINESE TRAVEL RETAIL

Getting around the Great WallForeign travel retailers may find their activitiescircumscribed by Chinese regulation and theiroperations overshadowed by a local heavyweight,but they still have considerable room for maneuver

避开长城外国旅游零售商发现，尽管中国法规限制其活动，当地巨头也阻挠其运作，但他们仍有非常大的运营空间

OUTBOUND CHINESE TRAVELERS

Destined to shopThe number of outbound Chinese travelers is onthe rise, and they’re drawn by long-hauldestinations with ample opportunities to shop

购物至上中国出境游客的数量日益增加，亲睐购物便捷的长途旅游胜地

ASIA PACIFIC TRAVEL RETAIL ASSOCIATION

Strength in numbersThe Asia-Pacific Travel Retail Association, co-organizer of this week's "China's Century"conference, has a keen focus on the Chinesetravel-retail market. But as Aptra President SunilTuli tells Asia Duty Free, the China growth storymust be seen in the context of developmentsacross an industry in which the key stakeholdersmust speak with one vo ice

DFS GROUP

Roots maneuverDFS's return to its Hong Kong origins puts it inpole position to tap a huge and fast-growingmarket of mainland Chinese travelers

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BEAUTY BEAT: SKINCARE & COSMETICS

Refined tonesStronger colors, better skincare based on scientificsupport

VILEBREQUIN

A beautiful escape Swimwear leader Vilebrequin maintains its four-decade focus on quality and design

FERRAGAMO PARFUMS

Rising in the east Ferragamo Parfums looks to Asia for marketacceleration

LIMITED BRANDS

Beauty blitz Victoria’s Secret sets the pace with new locations,new products

HUNTING WORLD

Success with a conscienceHunting World positions its bags with bothconsumer and environment in mind as it developsits presence in travel retail

LESPORTSAC

Beyond the bagWith almost 40 years behind it, LeSportsac is ontop of its game when it comes to the bag andluggage category

AIGNER

New again Building on its history in travel retail, Aigner’s newreleases merge traditional and modern

CONFECTIONERY NEWS

Asian contendersLeading confectioners vie for more of the Asianmarket

CATERING TO ASIAN TRAVELERS

Tradition meets innovationFrom new variants of tried and true favorites tospirits that haven't traditionally been popular inAsia, suppliers are pulling out all the stops to catchtravelers' eyes

DIAGEO GTME

Positioned for growthDiageo focuses on innovation across Asia Pacificduty free to ensure Johnnie Walker maintains itsleading position as the Scotch of choice for Asiantravelers

GULF BEVERAGES

The power of partnership Gulf Beverages and Whyte & Mackay enter intostrategic distribution partnership

BERRY BROTHERS & RUDD

Learning curveBBR approaches Asian markets at different stagesof development

LIQUOR NEWSInniskillin welcomes subzero temperatures forIcewine harvest 2012 � Rémy Cointreaucontinues to pique the interest of consumers inAsia duty free � Prowood offers two exquisitespirits from France and Armenia � Lucky eighthGlenfiddich Crystal Stag in place at Seoul Incheon� Martell and Chivas Regal launch luxurywalkthrough boutique at KLIA � Bacardi mixesfresh new look and taste for RTS cocktails �Korean Air lists Diverse Flavours’ AvondaleSamsara in its Skyshop

BRITISH AMERICAN TOBACCO GLOBALTRAVEL RETAIL ASIA PACIFIC

New products, newopportunitiesBritish American Tobacco Global Travel Retail AsiaPacific plans new launches to cater to adultsmokers in Asia travel retail

TOBACCO NEWSHabanos launches Selección Petit Robustos fortravel retail � Davidoff releases Year of the Snakeedition � Imperial Tobacco celebrates a richtradition

DJARUM

Djarum gives smoking acreative edgeOver 60 years in the making, the company sits atthe forefront of the industry with innovations incigarette making

NEW & NOTABLEChupa Chups Smurfs Markers � Nestle AdventureMix 474g � Age of Discovery Red Wine Cask Finish

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Top Story: Chinese Travel Retail


hrough much of 2012, the writingseemed to be on the wall for the Chi-nese economy, with month aftermonth producing worrying eco-nomic statistics, and with observers

fretting that the country was headed for a so-called “hard landing.”

More recent developments, however, havegiven China-watchers reason for relief, withseveral consecutive months of data showingeconomic expansion following a sustainedperiod of shrinkage.

T

Getting aroundthe Great Wall

Foreign travel retailers may find theiractivities circumscribed by Chinese regu-lation and their operations overshadowedby a local heavyweight, but they still have

considerable room for maneuver BY P. CONVERY

ARI's John Woodhouse says opening stores inKunming has been a learning experience, butthat the retail opportunity is there for the taking

China Duty Free Grouphas embarked on anaggressive drive to growits business in airportssuch as Hangzhou

[market] in terms of receiving of inbound tourists and outboundtourism, and the domestic tourism market is gradually developingto become the largest in the world," Naxin says. "Outbound tourismand domestic tourism among Chinese citizens will keep growingrapidly in the years to come, and Chinese are [set] to become theduty free consumers with the highest purchasing power in theworld. All of this ... will bring about new development opportuni-ties for the duty free industry in China."

John Woodhouse, Head of Business Development for China &East Asia at pioneering travel retailer Aer Rianta International(ARI), says: "What we're seeing at the moment is massive growthin domestic traffic, and slightly slower growth in international.International traffic is growing from a smaller base, while domes-tic is growing from a larger base."

He says China's aviation market is about 95% domestic, point-ing out that the split is similar in the US.

Economic headwindsTravel retailers in the world's second-biggesteconomy managed to sustain a solid rate ofsales growth in spite of the economic headwinds and, as China's eco-nomic growth gathers pace once more, they are poised to cash inon the country's seemingly insatiable demand for travel and top-notch retail to go with it.

Rising levels of air passenger traffic and the opening up of newroutes both within China and internationally have been two of thekey drivers of growth in the travel-retail sector.

The number of air travelers on Chinese domestic and interna-tional routes has grown at, or near, double-digit rates in recentyears, and the Civil Aviation Administration of China expects thatnumber to increase by 11% annually until 2015.

China Duty Free Group Assistant President Gu Naxin says thecountry's 12th five-year development plan for service industries,released in December, aims to make China's travel industry a strate-gic industry within the national economy.

"By the end of 2012, China had become the third-largest


www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 11

ARI's operation at Kunming is set to expand to about 750square meters of retail space, offering perfume & cosmetics,

fashion & accessories, jewelry, electronics and watches

Kunming's Changshui International Airport, boasting the fourth-biggestterminal building in China, has drawn local retailers such as China DutyFree and foreign players such as Ireland-based Aer Rianta International

ARI operates its Kunming stores under the brand “The Loop,”which it has also deployed at airports in its native Ireland

Aviation competition heats upChina's aviation sector may be overwhelmingly a domestic one, butin 2012, following China Southern Airlines' aggressive opening ofnew routes to Europe and Australia, non-Chinese carriers began tosit up and take notice of the potential of the Chinese air travelmarket. Much of the focus of their attention is on China's so-called "second-tier" cities—partly because these hubs are largely unex-ploited by foreign airlines, but also because slots at the airports serv-ing first-tier cities such as Beijing, Shanghai and Guangzhou are nowalmost impossible to secure other than at midnight hours.

This has led carriers such as British Airways and Qatar Airways toplan services to Chengdu, and Finnair to move into Xian as the city'sfirst non-Chinese airline. AirFrance-KLM and US carrier United arealso planning to enter second-tier Chinese cities. Not to be outdone,Chinese airlines have also stepped up their international services fromthese cities, with China Eastern launching a route between Nanjingand Sydney, and Hainan Airlines starting services from Dalian to Seat-tle. Sichuan Airlines has inaugurated Shenyang-Vancouver flights

and is planning to start flying from Chengdu to Melbourne this year.All this expansion is responsible for—and has been facilitated

by—a boom in airport construction. Under China's current five-year plan, which runs through 2015, the government plans to open72 new airports, and upgrades to 100 more are also on the cards.

One of the biggest new projects of 2012 was Changshui Inter-national Airport, which opened late last June in the southwesterncity of Kunming. The airport boasts the fourth-biggest terminal build-ing in China, covering nearly 550,000 square meters, and handledabout 24 million passengers last year, with traffic throughput set torise to 38 million passengers by 2020.

ARI was quick to spot the opportunity presented by the new hub,and opened its first China stores there on the same day as the ter-minal began operations. Like all foreign travel retailers in China,ARI is shut out of the duty free business, and it instead offers a widerange of duty paid products in the perfume & cosmetics, fashion& accessories, jewelry, electronics and watches categories acrossmore than 650 square meters of airside space.

"We'll end up with about 750 square meters of space when we'reall fitted out," Woodhouse says.

Learning curveARI chose a second-tier city airport for its first foray into the Chi-nese market and will focus on "getting things right" before movingto expand its local footprint, notes Woodhouse. And he adds thatsetting up on the Chinese mainland has been a learning experience.

"Average spend is very high, but the number of transactions isquite low," he says. "The spending is extremely high, especially fora duty paid operation, but the actual penetration is lower than weexpect it to be over time."

Nevertheless, Woodhouse says Changshui International Air-port represents a big opportunity for ARI.

"We're starting from the bottom in terms of growing the mar-ket," he explains. "But the potential is significant, absolutely significant."

CDFG also got in on the action in Kunming, opening duty-free storesin the airport's F2 international lounge that offer an impressive lineupof international brands, including Chanel, Biotherm, Clinique, Laneige,L'Occitane, Lancôme, L'Oréal and Dior in the beauty category, watchesand sunglasses brands Longines, Tissot, Armani, CK, Gucci and Boss,and bag and jewelry labels Lesibo, Samsonite and Swarovski.

Naxin says CDFG's duty free stores at the new airport—and itsnewest crop of stores in the airports serving Dalian and Hangzhou—are operating smoothly, with sales performing well.

CDFG has its own strategies for improving conversion rates, andNaxin says the retailer is active on a number of fronts when itcomes to driving sales growth.

He explains: "CDFG [is] devoted to researching consumptionhabits and [the purchasing] tendencies of Chinese travelers. Based onthat, we adjust our goods and brand structures continuously, intro-duce brands favored by Chinese according to sales and attract moretourists to our stores with a range of marketing methods. CDFG is alsodedicated to improving its own capacities to optimize service proce-dures and improve service quality in accordance with consumer feed-back. In addition, CDFG tends to co-operate with hotels, tourism web-sites, banks and airlines to attract high-end customers from theseenterprises and increase the [value of] transactions per customer."

CDFG may have its sales growth strategy mapped out in the dutyfree channel, but the more lightly regulated duty paid market towhich foreign players are confined nevertheless remains a majoropportunity for them.


King Power subsidiary Orient King Power is responsiblefor much of the company's business in mainland China



Revenue potential for duty paidSunil Tuli, Managing Director of King Power Group (Duty Free &Travel Retail) Hong Kong, which through its subsidiaries operatesretail businesses in airports and the domestic market in China,says: "The potential is there, and everybody is either there or try-ing to get there."

Asked whether its revenue potential is as great as that of the dutyfree channel, Tuli nods deeply and exclaims: "Oh yeah! There's noreason why it shouldn't be."

Woodhouse also sees the channel not merely as a way into a dutyfree market that may open up to non-Chinese players at somepoint in the future, but as a lucrative business in its own right.

"Duty paid in its own regard has significant potential," heexplains. "The issue is that it takes a long time for the customers tounderstand the marketplace. The first thing they're looking for isgood value, so the best retailers can offer at the moment is a pricepromise that pledges [pricing that's] competitive with downtown.But brands and retailers [need to] come together and decide theycan introduce a discount on downtown prices. That's what'll causea significant increase in sales."

Tuli also sees scope for boosting low conversion rates, but is morecircumspect about how that might be achieved.

"The potential for increasing conversion rates is huge," he says."You only have to look at what Chinese travelers are doing outsideof China. But why is it not happening at the airports? It could bethe prices, it could be the service. There are a whole lot of thingsyou could attribute it to."

Steffen Brandt, Chief Executive of Heinemann Asia Pacific,whose Chinese retail operations include supply contracts for state-owned duty free stores in Shanghai and Dalian, says: "The Chinese... travel a lot, and it helps very much to understand that they arechanging, from being inexperienced in terms of travel, much faster[than some other nationalities], and that they're much faster to real-ize what's really value for money."

One senior travel retail executive who asks not to be named says:"Why are people not spending as much in China as they do outsidethe country? It's all about the [political] stuff that's happeningin China right now. People don't want to show their wealth, where theirmoney has come from - they don't want to be seen spending money."

And another executive who also chooses to remain anonymoussays: "It could have to do with the new anti-corruption laws that stoppeople from buying gifts [for business associates]. All the high-endbrands have been affected."

Where the action’s atWhether low penetration rates in China are down to politics or pric-ing, macroeconomics or maximizing the appeal of the retail propo-sition, there is one thing that travel retailers can agree on: theincreasing importance of the country's second-tier cities to continuedsales growth.

Xian is another second-tier city where a major airport projectopened in 2012—a new Terminal 3 at Xianyang Airport, China'seighth-busiest, which has been struggling to accommodate passengertraffic growth of almost 20% annually.

LS travel retail China opened four new fashion stores at the air-port in December, adding to its souvenir outlet, children's shop andtwo landside convenience stores, and bringing the total number ofits outlets there to eight. The boutiques, carrying Salvatore Ferragamo,Hugo Boss, Coach and Kent & Curwen are the company's first lux-ury fashion outlets in China.

Philippe Fontalba, LS travel retail ASPAC's Luxury, Fashion & Acces-sories Director, says: "The opening of these first fashion stores in China isreally exciting for us. It was a good opportunity for us to integratesome new brands that are strong in China into our portfolio."

It's in airports such as this that Woodhouse says he sees a brightfuture.

"You have to remember that cities like these are cities of 14-15 mil-lion people—they're large cities," he explains. "Kunming is the samesize as Madrid in terms of population, and if you take Yunnan Province,it's got a population slightly bigger than Spain. So the population isthere, the infrastructure is there, the passenger numbers are grow-ing and the propensity for travelers to spend is also growing."

Tuli says: "Ok, they're not as big as Shanghai or Beijing, but a sec-ond-tier city in China means millions of people, and I think it's allhappening. The action will continue to be in [these] big cities.There's more and more wealth, standards of living are going up, peo-ple are wanting more and traveling more, so they're seeing a lot morethan they used to."

"In China, more than 80% of consumers are living in second-tier and third-tier cities," says Naxin. "The latest research done byACNielsen indicates that the pace of development in the retailindustry in second- and third-tier cities in China has surpassed thatof the first-tier cities, and if average sales in second- and third-tiercities catch up with that of the first-tier cities, the size of the mar-ket will triple. This also applies to the duty free industry."

Naxin says Chinese travelers from second- and third-tier citiesare already punching above their weight in terms of tourist spend-ing, implying that they constitute a lucrative and growing marketfor travel retailers.

"The consumption power of second-tier and third-tier cities isclimbing year by year, so [their brand choices are] upgrading con-tinuously," he says. "According to statistics, residents of second- andthird-tier cities superseded consumers from Shanghai, Beijing, Guang-dong and Zhejiang years ago as the consumers making the biggestcontributions to tourism in Hong Kong."


China Duty Free is building on the stunning success of its store in Sanya, Hainan, whichone industry source says may do more business than all its other stores put together



The next wave of growthCDFG is wasting no time in taking advantage of the market that itsees as bringing the next wave of growth in the mainland's travelretail industry.

Naxin says: "CDFG is actively competing for the rights to man-age businesses … with enormous development potential in [airportsin] second- and third-tier cities such as Nanjing, Guilin, Ningbo, Wuxiand Nanning," and that it already has certain understandings in placefor airport projects in Hefei, Yancheng and Shantou.

And airports are not the only locations at which CDFG is redou-bling its efforts to increase its presence. The domestic duty-free island of Hainan, downtown sites, China's burgeoning high-speed railway system and cruise lines are all in the retailer's sights.

On Hainan, following the runaway success of CDFG's first storeoffering duty free to domestic visitors in the city of Sanya, the com-pany's Haitang Bay Shopping Center is currently under construc-tion. When it is completed, in the second half of 2014, it is likely tobe the world's biggest duty free retail complex.

In the downtown duty free channel, CDFG has been makinginroads with municipal governments in Shanghai and Beijing. It nowhas strategic co-operation agreements with the authorities in Shang-hai's Pudong New District and Chaoyang District in Beijing toopen duty free stores allowing tax-free shopping for outboundtourists, although when it will cut the ribbon on these new storeshas yet to be determined.

Woodhouse says the downtown sector is also something ARI iswatching as the market begins to develop.

"The downtown duty free concept is changing rapidly at themoment, and it's something we're keeping our eye on," he says. "Cur-rently, with the exception of Hainan, downtown duty free is restrictedto Chinese nationals who have traveled abroad within the past sixmonths, but it looks as though in some provinces that may changeto allow Chinese nationals who don't hold a local ID card to pur-chase in those stores twice a year. If that happens, we'll start seeingtourism destinations such as Yunnan [of which Kunming is the provin-cial capital] and Sichuan looking more attractive as places to launcha downtown duty-free offer. But the [policy] environment is in flux.We're looking at it and we're open to it, but we don't expect anovernight change in the legislation."

Meanwhile, on the country's bullet-train rail network, CDFG has

the contract to operate 6,000 square meters of retail on the depar-ture floor of Shanghai's Hongqiao Railway Station, representingwhat Naxin calls "a brand new breakthrough for [its] tourism retailbusiness.”

"The express railway system in China is growing rapidly," he says."The Wuhan-Guangzhou express railway, the Beijing-Shanghaiexpress railway and the Beijing-Guangzhou express have all beencompleted in recent years, and the scope for the development of com-mercial projects is huge in the future.

"Our Shanghai Hongqiao Railway Station commercial project isthe first step [in] accumulating experience and training the teamto win [bids for] the operation of larger retail [developments] infuture ... and CDFG will compete for more such opportunities."

And CDFG is making its debut on the high seas. In a partner-ship with Star Cruises' parent company, Genting Hong Kong, theretailer will jointly develop duty free retail aboard the cruise line'srecently revamped liner the SuperStar Gemini. The deal gives CDFGa presence in the ship's 450-square-meter shopping area, where itwill sell products including luxury handbags, wristwatches, sunglasses,perfumes and cosmetics.

Genting Hong Kong President David Chua says: "SuperStarGemini was restyled with a primary focus on Chinese cruise pas-sengers ... [and] our partnership with China Duty Free Group willprovide a comprehensive, one-stop cruise experience that Chinesepassengers will be fond of."

Following two months operating out of Sanya, from where it willcruise the Vietnamese coast, SuperStar Gemini will sail to Shang-hai, where it will be based until October.

CDFG may have a turnover that's smaller than many of thepotential rivals who are now knocking at China's front door, butthe scale of activities such as these and its sheer reach makes it a for-midable force on its home territory. Yet the range of non-Chineseretailers' activities in China, and the ways in which they are tappingthe Chinese market both inside and outside China's borders, is atestament to their skill in sniffing out business opportunities eventhough they face their very own Great Wall of regulation keepingthem off CDFG's turf.

Foreign retailers may thus find themselves outgunned by CDFGin its home market, but they seem not to have lost sight of the fact thatbeing outgunned doesn't necessarily mean being outmaneuvered. c




中国经济在2012年大部分时间似乎呈现不祥之兆，逐月出炉的经济统计数据令人担忧，观察员们担心中国走向所谓的“硬着陆”。

然而，最新的发展趋势让中国观察员们稍有放松，连续数月

的数据表明，中国经济在持续紧缩之后开始扩张。

经济逆风尽管面临着经济阻力，世界第二经济大国的旅游零售商仍竭

力维持稳定的销售增长率。在中国的经济增长再次加快步伐

时，他们准备乘机利用国家对旅游和一流零售似乎难以满足

的需求大展宏图。

日益增长的航空客运量和新航线的开通已成为中国和国际旅

游零售业增长的两大重要原动力。

近年来，中国国内和国际航线的旅客数量几乎呈现两位数的

增长率，中国民用航空局预计年旅客增长率截至2015年将达到11%。

中国免税品集团总裁助理顾纳新说，12月公布的服务业第十二个五年发展计划致力于让中国的旅游业成为国家经济的战

略性行业。

顾纳新说：“就接待入境游客和出境旅游而言，中国截至2012年已成为第三大市场，国内旅游市场正逐步发展成为世界最

大市场。中国公民的境内外旅游在未来几年将快速增长，中

国人预计将成为世界上具有最高购买力的免税品消费者。这

一切……将为中国的免税品行业带来新的发展机遇。”

约翰·伍德豪斯是开创性旅游零售商爱尔兰里安达国际航空公司(ARI)的中国和东南亚业务开发的负责人，他说：“我们目前看到的是，国内交通快速增长，国际增长相对缓慢。国际

交通增长基数较小，而国内交通增长基数较大。”

他认为，中国航空市场约95%为国内市场，这说明此比例与美国相似。

航空竞争趋于白热化此前，中国航空主要是以国内市场为主导，但继中国南方航

空公司在2012年开通飞往欧洲和澳大利亚的新航线后，国外航空公司开始关注中国航空旅游市场的潜力。它们主要关注

中国所谓的“二线”城市，部分原因是由于国外航空公司大多未开辟这些枢纽，而且它们只能在午夜时间抵达诸如北京、

上海与广州之类一线城市的机场。

英国航空公司、卡塔尔等航空公司计划提供飞往成都的服务，

芬兰航空公司将作为首家国外航空公司进入西安。法国航空

公司KLM及美国联合航空公司同样计划进入中国二线城市。中国航空公司也不甘示弱，陆续从这些城市提供国际服务，

中国南方航空公司开通南京与悉尼之间的航线，海南航空公

司开通从大连飞往西雅图的服务。四川航空公司已开通沈阳

与温哥华之间的航班，并计划今年开通从成都飞往墨尔本的

航班。

此次扩张旨在促进机场建设，而后者早已推动此次扩张。在

截至2015年的中国现行五年计划下，政府计划开设72个新机场，升级100多个机场。

2012年一个最大的新项目是长水国际机场，它于去年6月在西南城市昆明修建。该机场号称建有中国第四大机场大楼，占

地大约550,000平方米，去年接待大约两千四百万名乘客，交通吞吐量计划在2020年上升至三千八百万名乘客。

ARI很快意识到新枢纽带来的机遇，在机场大楼开始运行的当天开张其第一批中国商店。正如所有国外旅游零售商一

样，ARI的免税品业务被拒之门外，它提供各种各样的完税产品，比如香水、化妆品、时装配饰、珠宝、电子产品、

手表，在机场占地650多平方米。

伍德豪斯说：“当我们全部装修完毕之后，占地面积将约为750平方米。”

避开长城外国旅游零售商发现，尽管中国法规限制其活动，当地巨头也阻挠其运作，但他们仍有非常大的运营空间。

King Power has numerous operations in China, andcontinues to expand its footprint with opening such

as this store in Chongqing in February


King Power's Sunil Tuli saysthe revenue potential of the

duty-paid channel in China isas great as that of duty free

China's second-tier cities are attractive destinations for travel retailers, but airports suchas Shanghai's Pudong remain very fertile ground for high-end brands such as Swarovski


学习曲线他认为，ARI选择二线城市作为它进入中国市场的首次尝试，将在扩展本地市场空间前致力于“把事情做正确”。他继续道，在中国大陆投资建设是不断积累经验的过程。

他说，“平均消费相当高，但交易数量非常低。开销十分高，特别是完税业务，但随时间的实际渗透率却低于我们的预期

。”

然而，伍德豪斯认为，长水国际机场是ARI的一次大机遇。

“我们正从最低点开始发展市场，”他解释道。“然而，潜力是十分巨大的。”

CDFG同样准备进驻昆明，在机场二楼的国际休息室的免税品商店提供各种国际品牌，包括美容类的香奈儿、碧欧泉、

倩碧、兰芝、欧舒丹、兰蔻、欧莱雅、迪奥；手表与太阳镜

品牌浪琴、天梭、阿玛尼、CK、古驰、波士；手袋与珠宝商标乐斯博、新秀丽及施华洛世奇。

顾纳新说，CDFG在新机场的免税品商店经营顺利，最新的商店开设在在大连和杭州机场，销售进展良好。

CDFG已制订战略来提高兑换率，顾纳新认为，当该零售商的销售快速增长时，它能够提供大量的前沿商品。

他解释道：“CDGF致力于研究中国游客的消费习惯及购买趋势。鉴于此，我们不断地调整商品及品牌结构，根据销售来

引进中国人喜爱的品牌，并通过各种营销手段吸引更多的游

客来我们的商店。CDFG同样致力于提高自己的能力来优化服务程序，并根据消费者的反馈来提高服务质量。此外，

CDFG与酒店、旅游网站、银行、航空公司合作，从这些企业吸引高端消费者，提高每位消费者的交易值。”

CDFG可能已制订免税品渠道的销售增长战略，但外国商家受到完税市场的调控限制较小，因此这对于它们来说仍是一

大机遇。

完税业务的收入潜力香港皇权集团（免税品及旅游零售）的分公司在机场和中国

的国内市场运营零售业，其总经理Sunil Tuli说：“潜力就在这里，每个人都在这里或试图来这里。”

当被问及其收入潜力是否与免税品渠道一样巨大时，Tuli点头说：“哦，是的！这是理所当然的！”

伍德豪斯认为此渠道不仅是进入免税品市场的方式（免税品

市场将来可能在某种情况下对外国商家开放），而且它本身

就是赚大钱的业务。

他解释道：“完税业务本身具有巨大潜力。问题是消费者需要很长时间了解市场环境。首先，他们寻求物有所值，因此最

好的零售商可以在此时提供比商业区更具竞争力的价格承诺。

然而，品牌和零售商需要协商决定他们能提供比商业区价格

更具有竞争力的价格。这就会极大地增加销量。”

Tuli同样看到低转换率的巨大提升潜力，但他对于达到此目的的方式持谨慎态度。

他说：“提高转换率的潜力是巨大的。你只需看看中国游客正在境外做的事情。可是为什么这些事情不会在机场发生呢？

原因可能是价格，也可能是服务。这可能存在很多原因。”

海尼曼亚太公司的首席执行官是斯蒂芬·勃兰特，公司在中国的零售业务包括在上海和大连国有免税品商店的供应合同，

他说：“中国人喜欢旅游，这可以理解为他们正在发生改变，不再对旅游毫无经验，其变化比其他国家的人更快，他们更

快地意识到金钱的真正价值是什么。”

一位要求匿名的资深旅游零售专员问道：“为什么人们在中国的消费远不及在国外的消费？这正是中国现在发生的政治情

况。人们不想炫耀财富及他们的金钱来源，他们不想被别人

看到在花钱。”

另一名选择匿名的专员问道：“这可能与反对为业务伙伴购买礼物的反腐新法有关。所有高端品牌都受到影响。”

新增长点不管在中国的低渗透率究竟是与政治有关还是与价格有关，

是宏观经济有关还是与零售主张吸引力的最大化有关，旅游

零售商一致认为：国家二线城市日益增加的重要性与持续的

销售增长紧密相关。

2012年，一个重要机场项目在二线城市西安开通：咸阳机场是中国第八个最繁忙的机场，新3号机场大楼能容纳年增长率近20%的旅客流量。

拉加代尔中国旅行零售公司于12月在机场开设四个新时尚店，增加纪念品店、儿童店及两个副区便利店，将商店总数增至

八个。精品店销售菲拉格慕、雨果波士、蔻驰与肯迪文，它

们是公司最先在中国推出的奢华时尚店。

菲利普·丰塔尔巴是拉加代尔旅游零售公司ASPAC的奢侈品与时尚饰品总监，他说：“最先在中国推出这些商店让我们真正地激动万分。这对于在中国热卖的新品牌中引入我们的商品

组合是绝好的机会。”

这正是伍德豪斯在机场看到的美好未来。

他解释道：“你必须记住，这些城市的人口为一千四百万至一千五百万，它们是大城市。就人口而言，昆明与马德里具有

相同的规模；云南省的人口多于西班牙。因此，人口在这里，

基础设施在这里，乘客数量正在增加，游客的消费倾向同样

正在增长。”




Tuli说：“是的！中国的二线城市不如上海或北京，但它们意味着上千万的人口，我认为一切都会发生。这一行为还将在

这些大城市中继续。财富越来越多，生活标准日益提高，人

们欲望越多，更爱旅游，因此他们的眼界比以前更广。”

顾纳新说：“在中国，超过80%的消费者居住在二线城市与三线城市。”AC尼尔森公司的最新研究说明，在中国二线与三线城市的零售业发展步伐已超过了一线城市，如果二线城市

与三线城市的平均销售额追上一线城市，市场规模将翻三番

。这同样适用于免税品行业。”

顾纳新认为，来自二线与三线城市的游客在旅游消费上已有

不凡表现，这说明他们将成为旅游零售商高利润、高增长的

市场。

他说：“二线与三线城市的消费力逐年增长，因此他们的品牌选择正持续升级。根据统计，二线与三线城市居民几年以前

已赶超上海、北京、广东和浙江消费者，成为香港旅游业的

最大贡献者。”

在带动大陆旅游零售业下一波增长的同时，CDFG正及时地利用市场。

下一波增长顾纳新说：“CDFG正积极地在具有巨大发展潜力的二线三线城市（诸如南京、桂林、宁波、无锡及南宁）竞争机场务，

”通过在合肥、盐城和汕头的机场项目即可见一斑。

CDFG不仅在机场竭尽全力扩大存在范围。海南国内免税岛、商业区、中国迅速发展的高速铁路系统及巡游线都是CDFG的目标所在。

在海南，CDFG是首家为三亚的国内游客提供免税品的商店，公司的海棠湾购物中心如今正在修建。一旦于2014年下半年完工，它很可能成为世界上最大的免税品零售综合大楼。

在商业区免税品渠道方面，CDFG已与上海和北京市政府一起做出努力。它与上海浦东新区及北京朝阳区的权威机构签

署战略性合作协议来开设免税品商店，允许境外游客进入的

免税品商店，尽管这些新店何时开张，仍未定夺。

伍德豪斯说，ARI同样将商业区视为市场扩展的起点。

他说：“商业区免税概念目前变化很快，这也是我们关注的事情。如今除海南之外，商业区免税在过去的半年里仅限于出

国旅游的中国公民，然而一些省有所改变，允许不持有当地

身份证的中国公民一年在这些商店购买两次商品。如果这样，

我们将可以看到云南省（省会是昆明）和四川省将成为更具

吸引力的地方更为，这些地方将提供商业区免税品。然而，

政策环境不断变化。我们关注它，我们欢迎它，但我们不期

待律法一夜之间就可以改变。”

然而，在国家的高速铁路网络方面，CDFG已在上海虹桥火车站的候车楼承包运营6,000平方米，这正好印证顾纳新的话“旅游零售业的崭新突破”。

“中国的高速铁路系统正发生快速变化，”他说。“武广高铁、京沪高铁、京广高铁近年来已全部竣工，将来商业项目的发

展范围将非常宽广。”

“在积累经验和培训团队方面，我们的上海虹桥火车站商业项目迈出了第一步，有助于将来在更大的铁路开发运营项目中

中标…CDFG将争取更多这样的机会。”

CDFG在公海上首次亮相。在与丽星邮轮母公司，云顶香港有限公司的合作关系中，CDFG将与之在最近翻新的超级双子星号游轮上联合开发免税零售业务。此项合作中，CDFG在游轮上占有450平方米的购物区，会在此购物区销售诸如奢侈手袋、腕表、太阳镜、香水和化妆品之类的商品。

云顶香港有限公司总裁蔡明发说：“超级双子星号重新改变风格，主要对象是中国巡游乘客…我们与中国免税品集团合作，提供中国乘客喜欢的综合性、一站式巡游体验。”

经过在三亚两个月的运营，超级双子星号将从那里巡游越南

海岸，并抵达上海，然后停泊在上海，直到10月。

CDFG的营业额可能小于大多数叩击中国前门的潜在对手，然而其诸如此类的活动及绝对目标使其成为本土一股不可忽

视的力量。尽管他们面临着自身的调控长城，必须避开CDFG的地盘，中国的外国零售商活动范围以及他们打开国内外市

场的方式证明他们善于寻找业务机遇。

外国零售商可能因此发现自己在国内市场被CDFG超过，但他们似乎并未忽视这个事实：被超过并不一定意味着被打败。

The duty-paid channel in second-tier cities such as Kunming is a keygrowth area for retailers like ARI, but John Woodhouse says retailersand brands must team up to undercut prices in downtown stores


Huntingworld_AD_Huntingworld_AD 13-02-15 11:22 AM Page 1


For 17% of Chinesetravelers, shopping ispurely for gift giving

Chinese travelers are the highest spenders per capita in the travelindustry, spending closeto US$7,000 per person

Outbound Chinese travelers

Destined to shopThe number of outbound Chinese travelers is on therise, and they’re drawn by long-haul destinationswith ample opportunities to shop BY MELISSA SILVA

ith China set to be the world’s largest economy by2021, it’s no wonder that Chinese travelers are gain-ing popularity in the travel and tourism industry.Along with the Chinese traveler comes wealth, andaccording to Alexander Glos, CEO of market

research consulting firm i2i Group China, 400 million people in Chinaeach travel over 500km every year, rendering China the largestdomestic tourism market worldwide.

China is the third largest aviation market in the world, with 325million people flying to the country this past year. Beijing CapitalAirport is the second busiest airport on a global scale, handling over80 million passengers per year, while the airports in ShanghaiPudong and Hong Chow handle in excess of 100 million people,making them the second busiest municipal airports in the world.

Travel trendsBased in Shanghai, Beijing and Hong Kong, i2i Group China focuseslargely on the patterns and habits of the Chinese world traveler. "TheChinese are learning to travel domestically and more importantly,they’re beginning to travel internationally," says Glos. In 2012about 78 million Chinese traveled, some 20% more than in 2011.

According to Glos, Chinese travelers are the highest spenders percapita in the travel industry, spending close to US$7,000 per person.In addition, Glos says Chinese travelers take longer trips, often for morethan 12 days.

One of the top destinations for Chinese travelers is Hong Kong.In 2012 alone, the city received 16 million Chinese visitors. Macauis also on the list, as it’s the largest gaming destination in the world,bringing in more revenue than gambling hot spot Las Vegas. Thai-land is another top destination, welcoming over two million Chi-nese travelers, the same as Malaysia. Taiwan had just over a millionChinese visitors.

“In Indonesia, the largest international visitors to Bali are Chi-nese,” says Glos. “In 2012, the UAE tracked 225,000 Chinese visitors,which is an increase of over 40% from a year prior.” In terms of long-haul destinations, Australia, France and Germany combined lead theway, having attracted five million Chinese travelers in 2012. The USattracted 1.5 million, an increase of 40% from 2011.

Market sharesThe growing numbers can be broken down into three markets: the groupmarket, the FIT market (independent or individual travelers and cou-ples) and a new market, which is growing rapidly, the MICE market.

“We’re talking about people that are attending meetings, con-ferences and exhibitions,” says Glos in defining the MICE market.

“The group market is the largest outbound segment, which typi-cally includes older travelers over the age of 35.” Glos says thegroup market largely comes out of what can be called “secondtier” cities in China.

“The first tier cities are Beijing, Shanghai and Guangzhou; sec-ond tier cities are interior cities—about 26 cities with over five mil-lion people,” he says. Most importantly, the FIT market is the fastestgrowing outbound sector coming from China presently. “Theseindependent travelers tend to be younger, with an average age of about30,” says Glos. “They are university educated and work for interna-tional companies. They’re usually comfortable with English andtravel for business.”

The newest sector, the MICE market, is comprised of the high-est spenders, spending on average over US$12,000 per person pertrip, and US$145 on average per night on hotels. In addition, theMICE market is traveling longer that the other sectors. “In 2013,over 200,000 MICE tourists will travel largely to Southeast Asia,”says Glos. “This market is starting to grow into North America, Europeand the Middle East.”

International investmentWhether looking specifically at the group market, the FIT marketor the MICE market, the number one activity for all Chinese trav-elers is shopping, which is done predominantly while travelingabroad. Sixty eight percent of Chinese travelers say the primary rea-son they travel abroad is to shop. “Today, the Chinese account foronly 10% of luxury sales in China,” says Glos. “Forecasts predict thatin 2020, 44% of global luxury sales will be conducted in China.”

On average, 25% of tour groups and tourists who travel fromChina to France and Italy are traveling specifically to go shopping, andthe number of female shoppers among these groups is increasing. “The

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AlexanderGlos, CEO,i2i GroupChina

China is the third largest aviationmarket in the world, with 325 millionpeople flying to the country in 2012

average spend per outbound Chinese tourist on shoppingalone is US$1,500 per person,” says Glos. “That equatesto US$40 billion globally.” In France, 27% of premiumproducts are bought by Chinese tourists, while in HongKong, that percentage rises to 30%. Additionally, Chinesetourists purchase 18% of the world's gold supply.

Chinese travelers shop internationally for prestige, eventhough you can easily purchase a brand such as Louis Vuit-ton in Shanghai and Beijing. “It’s much more presti-gious to buy it in Paris, where you can have your picturetaken in front of the store,” says Glos, which explains whythe top shopping destinations for the Chinese travelerinclude London and Paris. The experience of the pur-chase itself is important for this traveler.

Price is also very important, and import duties onproducts into China range anywhere from 50% to




125%, which makes the price differential to purchase abroad com-pelling. If you are planning to buy US$15-$20,000 worth of goods,the differential pays for the cost of the trip.

Price aside, another motivation is selection. “The Chinese per-ceive that there is a far greater amount of choice available overseas,which isn’t always true, but they certainly believe that,” says Glos.

Maintaining rankAccording to Glos, China has over one million millionaires—not interms of assets, but in terms of money in the bank. “These million-aires on average are 15 years younger than millionaires in Europe orNorth America,” he says. The high percentages of Chinese travelers shop-ping abroad will therefore likely not change, not only thanks to thedisposable income of these travelers, but also the reason behind suchlarge scale spending—status.

“What’s driving this crazy shopping for the Chinese? It’s a trophyof success,” says Glos. “China is becoming wealthy very fast and dis-posable income is on the rise. Urbanization, economic growth and dis-posable income in the second and third tier cities are all growing rapidly.”

For 17% of Chinese travelers, shopping is purely for gift giving.In Chinese business and politics, giving gifts as part of a businessrelationship is absolutely critical. This explains why 37% of acces-sories purchased are gifts and why 60% of watch sales in the US arebeing sold to Chinese tourists, which has basically kept the indus-try afloat. Singapore has turned out to be the top destination forbuying luxury watches and jewelry.

“We’re seeing an increased diversity of shopping,” says Glos.“It’s not just premium products; it’s also electronics.” Real estate isalso showing up at an increasing rate, which demonstrates thefinancial clout behind the Chinese consumer’s desire to enjoy aninternational lifestyle.

The shopping patterns of Chinese travelers have rendered themthe world’s biggest tax free shoppers, according to Tax Free fundprovider Global Blue. “Chinese tourists generate the biggest tax freesales globally,” says Glos. “Last year they chalked up more than US$3billion in tax free shopping transactions.”

Paying it forwardAs for the future of Chinese outbound shopping, Glos believesthat it will be driven by domestic conditions and factors insideChina. The country’s economy is continuing to grow at an impres-sive pace, and this growth will escalate in the next three to five years,

which can only translate to more shopping.“Chinese shopping will continue to grow in excess of 20% at least

in next three years,” says Glos. “Some of our research suggests that theChinese economy will have to basically slow to about 1% growthbefore you can see any type of drop in Chinese shopping around theworld, because the shoppers coming out of China just aren’t going tobe affected by a slowdown of a small portion compared to a radicalslowdown in the Chinese economy.”

Although three categories have been defined, it’s not always easyto identify exactly who the Chinese shopper is as many different kindsof people travel out of China today. “It’s the 30-year-old who is look-ing for a certain type of product, it’s the 50-year-old who is look-ing for a completely different offer," says Glos. “It’s entirely possi-ble for them to be buying a high-end bag at Louis Vuitton and thengo to a shopping warehouse in the afternoon and buy socks and under-wear at the cheapest price they can find. It’s a very diverse market.”

There’s an increased seasonality in the market, and a lot of pre-mium brands are claiming that the biggest season for sales hasbecome the first quarter of the year, not the fourth, since ChineseNew Year is celebrated in February. In fact, in February 2012 dur-ing Chinese New Year, the national railways sold 1.1 billion tickets.To put that into perspective, German national railways move thatmany people in five years.

“We’re seeing an increase in October due to national day holidays,which is a large outbound travel period, and of course June, July andAugust—these are the primary outbound travel periods for theChinese,” says Glos. This explains why two years ago in June, LouisVuitton stores in Paris reported three consecutive months of busi-ness thanks to the Chinese buyers visiting their stores.

There are also some companies who have developed products specif-ically for the Chinese market, such as Estée Lauder. The companyis said to be developing an entire range for Chinese consumers.

Looking to future trends, Chinese living abroad seem to bebehaving just like Chinese shoppers coming out of the mainland,a phenomenon that has become evident in several markets. As a casein point, the current number three entry point into the US forChinese visitors is the highway between Vancouver, British Colum-bia and Seattle, Washington—which demonstrates that Chinesenationals who live in Vancouver are driving across the border to shop.

If current trends are anything to go by, the Chinese traveler’s finan-cial clout and love of shopping are going to be even bigger market-makers in the years to come. c


Interlude_MarchTFWAChinaConference2013_A4_Portrait.indd 1 06/02/2013 11:58


2021 年，中国将成为全球最大的经济体，毋庸置疑，中国游客也越来越受到旅游业的欢迎。据市场研究咨询公司爱戴爱集团 (i2i Group China) 的首席执行官 Alexander Glos表示，每年旅行 500 公里以上的中国游客达 4 亿人，且随着中国游客的富裕程度提升，中国已成为全球最大的国内旅游市场。

中国是全球第三大航空市场，去年一年就有 3.25 亿人乘飞机飞往中国。北京首都机场是全球第二繁忙机场，每年的旅客吞吐量达 8000 万人次，而上海浦东机场和虹桥机场的旅客吞吐量为 1 亿人次，是全球第二繁忙的民用机场。

旅游趋势

爱戴爱集团在上海、北京和香港设有办事处，主要关注中国环球旅行游客的模式和习惯。Glos 表示：“中国国内游日益走热，更重要的是，中国游客开始出国旅行。”2012 年，中国游客数量达 7800 万人次，比 2011 年高出约 20%。

据 Glos 表示，中国游客是全球旅游业中人均花费最高的群体，人均花费接近 7,000 美元。另外，Glos 表示，中国游客每次旅行的时间更长，通常超过 12 天。

香港是中国游客的首选旅游胜地之一。仅 2012 年一年，香港就接待了 1600 万中国游客。澳门同样荣登首选榜单，它是世界最大的赌博圣地，赚取的总收入比赌城拉斯维加斯还多。作为另外一个首选之地，泰国接待的中国游客超过 200万人次，与马来西亚接待的中国游客数量相同。2012 年去往台湾旅行的中国大陆游客略高于 100 万人。

Glos 说道：“在前往印度尼西亚巴厘岛旅行的国际游客中，中国人最多。”“2012 年，阿联酋接待的中国游客数量高达225,000 人，比 2011 年多 40% 以上。”在长途旅游胜地中，澳大利亚、法国和德国位于首选榜单的前三甲，2012 年共吸引 500 万中国游客。美国吸引的中国游客数量达 150 万人，比 2011 年增加了 40%。

市场份额

人数日益增长的游客可细分为三大市场：团体市场、FIT 市场（散客或个人游客及夫妻游客）和快速发展的新市场—MICE 市场。

Glos 在定义MICE 市场时表示，“我们指的是参加会议和展览的人群。”“团体市场的出境人数最多，通常为 35 岁以上的年长游客。”Glos 称团体市场的游客大部分来自中国所谓的“二线城市”。

Glos 表示：“一线城市包括北京、上海和广州；二线城市是内陆城市，具体指人口超500万的约26 个城市。”更重要的一点是，FIT 市场是中国目前增长最快的出境旅游市场。他说道：“这些散客通常更年轻，平均年龄为 30 岁左右。”“他们都有大学学历，而且在跨国公司工作。工作和旅行时，他们习惯使用英语交流，出国一般都是公事出差。”

作为最新出现的市场，MICE 市场由高消费人群构成，每人每次旅行的消费额为 12,000 美元以上，每晚酒店住宿费平均为 145 美元。另外，与其他市场相比，MICE 市场的游客旅行距离较长。“2012 年共有20 万多名MICE 游客，他们主要前往东南亚旅行。”Glos 说道，“这一市场目前正在向北美、欧洲和中东扩展。”

国际投资

无论是团体市场、FIT 市场还是MICE 市场，所有中国游客出境游的首要活动都是购物，这在他们的旅行过程中占据了重要地位。68％的中国游客表示，他们出国旅游的主要目的是购物。Glos 说道：“目前，在中国奢侈品销量中，仅有10% 来自于本国消费者。”“预计到 2020 年，中国国内销售的奢侈品数量将占全球总销量的 44%。”

平均而言，前往法国和意大利旅游的中国旅游团和游客中，有 25% 的人专为购物而去，而且这些旅游团中女性购物者的人数也在逐渐增长。“仅购物一项，中国出境游客的人均花费就达到了 1,500 美元。”Glos 说道，“这意味着，中国游客在全球的购物支出总计达 400 亿美元。”在法国，27%的高端产品被中国游客买走，而在香港，这一比例已增至

30%。另外，中国游客所购买的黄金占全球总供应量的18%。

Future trends indicate that Chinese living abroadseem to be behaving just like Chinese shopperscoming out of the mainland, a phenomenon thathas become evident in several markets


购物至上中国出境游客的数量日益增加，亲睐购物便捷的长途旅游胜地


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Sixty eight percent of Chinesetravelers say the primary reasonthey travel abroad is to shop



虽然在北京和上海也能轻易买到路易·威登这样的高端品牌，但中国游客到国外购物是为了体面。Glos 表示：“去巴黎买路易·威登显得更有面子，因为可以在商店前拍照。”这也就是伦敦和巴黎等城市成为中国游客首选的购物天堂的原因。对游客来讲，购物体验本身至关重要。

价格也是一大重要因素，中国进口产品的关税从 50% 到125% 不等，这使得出境购物与国内购物间的差价成为吸引人的又一个优势。如果您计划购买价格为 1.5 万至 2 万美元的产品，那么关税造成的差价正好支付旅行费用。

除价格外，出境购物的另一个动力来自于广泛的选择范围。Glos 说道：“中国人认为，国外购物的选择范围更广，虽然事实并不一定如此，但他们对此深信不疑。”

保持领先

据 Glos 称，按照银行存款，而非资产总额统计，中国有超过 100 万名百万富翁。Glos 说道：“这些百万富翁的平均年龄比欧洲或北美的百万富翁低 15 岁。”因此，中国游客到国外购物的人数比例可能会居高不下，不仅仅由于这些游客的可支配收入较多，而且还源自如此大手笔花费背后的支撑因素— 社会地位。

Glos 说道：“是什么驱动着中国人疯狂购物？购物是成功的象征。”“中国人迅速致富，可支配收入逐渐增多。二线和三线城市的城镇化、经济和可支配收入都增长迅猛。”

对于 17% 的中国游客而言，购物只是为了送礼。在中国的商业和政治环境中，作为维系业务关系的策略之一，送礼至关重要。因此，中国游客购买的配饰 37% 被用作礼品，且美国 60% 的手表由中国游客购买，正是这一现状从根本上维持了美国配饰行业的繁荣。事实证明，新加坡是中国游客购买奢侈品手表和珠宝首饰的首选之地。

Glos 说道：“我们观察到，购物种类正趋向多样化。”“所购商品不仅仅局限于高端产品，电子产品也越来越受欢迎。”购买房地产的中国游客也呈现加速上升态势，这表明了中国消费者对于享受国外生活方式的渴望及其背后的财力支持。

根据免税购物服务提供商环球蓝联 (Global Blue) 的报告，中国游客的购物模式已使之成为是全球最大的免税购物群体。Glos 表示：“中国游客的免税购物额位居全球之首。”“去年，他们的免税购物交易额高达 30 亿美元以上。”

放眼未来

Glos 认为，中国游客出境购物的未来前景将受到中国国内状况和因素的推动。据 Glos 表示，中国经济将以惊人的速度持续发展，并且这一发展还会在未来三到五年内加速，进一步带动海外购物的增加。

“至少在未来三年内，中国游客的购物将以 20% 以上的速度持续增长。”Glos 说道，“我们的一些研究显示，中国经济增速基本上减缓至1%左右，才有可能使中国游客的全球购物量有所下降，因为与中国经济急剧减缓相比，经济增速小幅下降根本不会影响中国的购物者。”

虽然中国购物者被划分为三种类型，但由于如今出国旅行的中国人愈加多样化，要准确定义中国购物者并不容易。“30岁左右的人士寻求某一类型的产品，而50 岁人士的购物目标却完全不同。”Glos 说道，“他们会去路易·威登店买一个

高档皮包，然后下午去仓储超市淘最便宜的袜子和内衣，这是完全有可能的。这是一个非常多样化的市场。”

此市场的季节性越来越明显，许多高档品牌公司都表示，由于中国人在 2 月份庆祝新年，因此热销季节是每年的第一季度，而不是第四季度。事实上，在 2012 年 2 月份中国新年到来期间，中国铁路部门售出了 11 亿张车票。若换个角度来看，这一人数是德国国家铁路部门五年内运送人数的总和。

Glos 说道：“据我们观察，中国 10 月份的国庆节是境外旅游的高峰期，游客人数激增，当然 6 月份、7 月份和 8 月份同样也是中国人境外旅游的主要时期。”正因为如此，两年前的 6 月份，巴黎路易·威登商店报告称，由于大量中国购物者来店消费，其已连续三个月实现销量增长。

此外，也有一些公司（例如雅诗兰黛）专门针对中国市场开发了相关产品。据称，该公司正在针对中国消费者开发全套产品。

展望未来的购物趋势，旅居国外的中国人与中国大陆购物者的行为越来越趋同，而且这一现象在几大市场中愈加明显。在此方面，一个很好的例证是，位于加拿大不列颠哥伦比亚省温哥华和美国华盛顿州西雅图之间的高速公路目前已成为中国游客进入美国的第三大入境路线，这说明许多旅居温哥华的中国籍人士开始驾车跨境购物。

如果说目前的趋势可用作判断未来的可靠指标，那么中国游客的雄厚财力和对购物的热衷将在未来几年内继续推动和扩展市场规模。


Global travel retail excellence

www.worlddutyfreegroup.com

A4_ADVERT_FINAL_VAN.indd 1 20/02/2013 15:07

Asia Pacific Travel Retail Association


action will continue to take place outside China's borders."The Chinese are traveling," he says. "They're buying overseas, and

they're the most important customers for everybody, whether it's indomestic retail or duty free. You go to the Louis Vuitton store on Paris'sChamps Elysees, for example, and half the staff speak Chinese.

"How many Chinese are traveling? Eighty million, 90 million?It's growing and it's not going to stop for a while. No-one canignore the Chinese," he says.

So if for foreign retailers, at least, the Chinese duty-free marketis an international one rather than one located inside China, so toois the role that Aptra plays in it.

"Nobody's asked us to do anything about [access to the marketin China]," Tuli says. "Nobody's said anything about it. If we starttalking to members in China, they won't want anybody [such as Aptra]to step in."

Instead, he explains, Aptra's role is first and foremost to repre-sent the interests of Asia-Pacific's duty-free industry in dialogue withgovernment and supranational agencies, the travel industry and othertravel-retail bodies, including those in China. And one of Aptra'smost important tasks is to rally companies in the industry behindits advocacy activities, such as the self-regulatory code of conductfor liquor retailing that it launched just under a year ago.

Tuli explains that Aptra established its liquor code of conductlast March, as the World Health Organization (WHO) went on theoffensive amid proposals for a ban on duty-free tobacco.

"One of the things that's happening with tobacco is that theWHO has come back and said that it's a health issue, which is whatthey're supposed to be talking about," he says. "But stopping duty-free sales won't improve world health. Nevertheless, they go after this

n recent years, travel retailers across Asia-Pacific, and indeedaround the world, have been struggling with the frustrationof being locked out of China's huge and fast-growing duty-freemarket. As foreign retailers know all too well, that market islegally off-limits to non-Chinese players, and despite the

inroads made into China by foreign firms in the duty-paid chan-nel, and by others operating under supply contracts with Chineseduty-free retailers, what some consider to be the real action remainstantalizingly out of reach.

Well, not quite, says Aptra President Sunil Tuli."Who is the biggest operator of downtown duty-free in the

world," he asks. Easy enough: DFS."Why aren't they in China," comes his next enquiry. Another no-

brainer: domestic regulation.Finally: "Who is their biggest customer, anywhere in the world?"

Clearly, mainland Chinese.And there you have it, in three deftly-put questions: a route-map

for travel retailers unable to operate inside China, but looking totap its enormous potential.

Tuli says that if travel retail's big international players were seton inking supply deals and making other such arrangements withtheir Chinese counterparts, they would already have established astrong presence in those areas.

The fact that the spread of such arrangements remains limitedto a few particularly lucrative hot-spots (such as DFS's supply con-tract with the Hainan Provincial Duty Free Co, for instance, and Dufry'sduty-paid ventures at Shanghai Hongqiao and Chengdu Shuangliuinternational airports) suggests that until Beijing's barriers to mar-ket entry are lifted, or at least eased, the real Chinese duty-free

I

Strength in numbers

The Asia-Pacific Travel Retail Association, co-organizer of this week's "China's Century"conference, has a keen focus on the Chinese travel-retail market. But as Aptra PresidentSunil Tuli tells Asia Duty Free, the China growth story must be seen in the context of devel-opments across an industry in which the key stakeholders must speak with one voice

Sunil Tuli argues that themainland Chinese market ishighly accessible to foreigntravel retailers - mainlyoutside China


YR_elixir_duty_free_210x297.indd 1 12/02/13 18:42

Asia Pacific Travel Retail Association


little business of ours, by saying that there's irresponsible sales of cig-arettes to minors, and that it promotes smuggling and tax evasion.

"But all that kind of stuff is just silly, because we do none of thosethings. Regardless of anything that anybody may say, we're proba-bly the most regulated industry in the world when it comes to thesale of tobacco - or of anything, for that matter. Every customer thatgoes through a duty-free shop is sold a product only when heshows his passport and boarding pass. Does that happen in every7-11 downtown?"

Tuli says duty-free tobacco is not yet an issue when it comes toChina, and hopes that remains the case, but observes that despitethe fact the industry has so far managed to hold the line against aglobal duty-free tobacco ban, the threat may have receded onlytemporarily.

"You never know," he says, "it could come back again."It's just that kind of danger to the industry's revenues that Aptra

has sought to pre-empt with the code of conduct for liquor.Tuli explains: "If we have something like that happen when it comes

to alcohol, say, in five years we have the 'Taliban' coming in and say

we're doing it all wrong, we have this code of conduct so we can say,'Look, this is what we do: we're selling [alcohol] responsibly, we'renot selling it to minors, we're not selling it to people who are drunk,and we're not selling it to people who are mentally disturbed.

"With all these sorts of things, [our members'] staff are very awareof what to do, even when they're doing sampling, they're makingsure that they're doing it correctly. If you look at the code of con-duct, it's a big document. The main point of it is to make sure thateverybody's doing things correctly, so that there are no fingerspointed at us as an industry."

He says that Aptra has helped keep the genie in the bottle whenit comes to a possible ban on duty-free liquor.

"It's not as if the WHO wasn't looking at alcohol - it was," heexplains. "But we, as an association, were involved in the WHO pullingalcohol off its agenda. We wrote to all the governments and urgedall the [travel-retail] operators and members to talk to govern-ments and tell them that it's an important part of the revenues, apartfrom anything else - and not just our revenues, but also [govern-ments'] revenues - and that people are employed and airports arefunded thanks to this to a certain extent. It helps everybody."

Tuli is pleased that there has been no talk of China tighteninginbound duty-free alcohol allowances, and says that in addition toglobal challenges, Aptra also keeps national regulation on its radar.He emphasizes the fact that national laws can have international con-sequences for duty-free retailers, citing Malaysian legislation mak-ing the possession of cigarette packets without graphic, government-approved anti-smoking images a criminal offence.

"If you're flying out of Hong Kong and you buy a carton of cig-arettes that has no such pictures on it, and you take it to Malaysia,and someone walks into your hotel room and sees this pack and says,'Where are those pictures?', unintentionally you have committed acriminal act," he explains. "All because you didn't know about [thelaw] and bought a pack without those pictures."

Aptra has written to Malaysia's Ministry of Health to request refine-ments to the legislation so inbound passengers with duty-freetobacco purchased elsewhere do not get snagged by the law.

But Tuli says that Aptra's fight against tighter regulation of itsmembers trade is an uphill battle, and concedes that victories arefar from guaranteed.

"In Australia, there's [an inbound duty-free] limit of 50 cigarettes.Fifty cigarettes is two-and-a-half packets. How do you sell two-and-a-half packets to someone at the airport in Hong Kong or Singa-pore, or anywhere else," he asks. "Hong Kong has a limit of 19 cig-arettes. They're just making it more and more difficult. With restric-tions on the number of cigarettes coming in, the problem is for theretailers outside [that jurisdiction].

"The whole purpose of this association is to keep everyone in travelretail aware that these are issues that could come up in the future- and that's why Aptra needs more members from China," Tuli says,adding that the association is now also welcoming new membersfrom outside Asia-Pacific, in order to help give firms with a stakein the regional market more of a voice in it.

"[Retailers, suppliers, airports, airlines and agents] need to be partof the association - not just to help themselves, but for the sake ofthe industry generally - to be aware of what could happen, awareof what's being done in other countries and to be prepared."

As the spending power of China's travelers grows and the dynam-ics of the regional travel retail-market inevitably change, the needfor a unified voice on the issues that will shape the industry has surelynever been greater. c

More major players sign up to Aptra Aptra announced that it is forging ahead with its campaign andresearch activities while celebrating the recruitment of additionalhigh profile companies as association members.

Lotte Duty Free, Moët Hennessy Asia Pacific Pte. Ltd andParamount Farms have confirmed that they wish to join the Asso-ciation with immediate effect.

These three recent additions to the membership of Aptra addfurther weight to the authority of the association which alreadycounts more than 90 major suppliers, retailers, landlords andassociations from across the Asia Pacific region among itsmembers.

Aptra will continue its advocacy and research programwhich is intended to support and protect the duty free and travelretail industry in the region. As announced in late 2012, the asso-ciation is working on a pioneering training program for retail staffon the principles of responsible retailing.

Aptra President, Sunil Tuli says: “These new arrivals amongAptra’s members is further endorsement of the association’swork and our commitment to ensuring the industry continuesto trade unhindered by misguided regulations.”


TRAVEL RETAIL DEPARTMENT: [email protected]

AsiaDF&TR_LaPerla_LPSS13-03_March_2013.indd 1 21/01/13 09.14

DFS Group


as the professionalism of the incumbent operators, who helpedensure an efficient handover.

He adds: "We are now focusing on a renovation program that willbe completed by mid-year, and which will further enhance the cus-tomer experience at HKIA.

DFS began operating the airport's liquor & tobacco concession onNovember 18, and took over the operation of the general merchan-dise contract and perfumes & cosmetics retail on November 28 andDecember 12, respectively. And since its move into HKIA, the retailerhas wasted no time in bringing in its own enhancements to the air-port's retail business.

Among its first initiatives there has been the introduction of anew point-of-sale system, slashing transaction times. DFS is nowcomplementing that system with handheld sales technology tofacilitate smoother processing of transactions throughout its oper-ations at the airport.

The retailer's airport strategy is informed by a keen sense of the evo-lution of the commercial and lifestyle role of airports in recent years,a development that some in the industry are only just waking up to.

Vuchot says: "Airports today are no longer just ubiquitous solu-tions for travel. They are increasingly destinations within themselves.Travelers are spending more and more time in airports, and their expec-tations for being entertained and surprised is increasing. Quality, tai-lored retail experiences complement the broader ambition of airportsto enhance the passenger experience."

rom its birthplace in Hong Kong, DFS came full-circlein 2012, sweeping the board in the race for the threecore-category concessions at the city's bustling interna-tional airport.

It was a heady moment for the global travel retailer,as it saw stiff competition from a field packed with a string

of candidates in a bidding process that has been described as one ofthe most competitive the industry has ever seen. DFS's triple-win ofthe liquor & tobacco, perfumes & cosmetics and airside general mer-chandise concessions at Hong Kong International Airport (HKIA) waswithout doubt its crowning moment of 2012.

Following a nail-biting delay to the tender announcement, thatwin also came at a hectic time, with just a few months before the end-of-year peak holiday season.

"DFS integrated the three categories that it won at Hong Kong Inter-national Airport during the last quarter of 2012," says BenjaminVuchot, DFS Group's Regional President for Asia North. "This sawthe addition of 38 stores and over 1,000 new hires, all within a shortfour-and-a-half-month lead time. Although it was a monumentalfeat, the mission galvanized the group around this strategic and chal-lenging objective, and it was incredible to see the enormous supportthat was received from right across [DFS's] business units.

"Moving in went very well, and in fact exceeded our expectationsas to how efficiently it [would take] place," Vuchot explains. "This wasdue to the extraordinary efforts and commitment of the teams, as well

FRoots maneuverDFS's return to its Hong Kong origins puts it in pole position to tap a huge and fast-growing market of mainland Chinese travelers

DFS’s Benjamin Vuchot saysChinese travelers are demandinghigher quality retail when they takeholidays, providing scope for travelretailers to open up new markets



“Quality retail facili-ties are high on thewish list of Chinesetravelers when choos-ing a destination forleisure travel, and this is likely to fueldemand for expansionand possibly open upnew markets for travelretail in the future.”

Benjamin Vuchot, Regional President for Asia North, DFS Group

He says that quality is a "must-have" when it comes to appealingto one of DFS's biggest passenger segments in Hong Kong, GreaterChina and around the world.

"Quality retail facilities are high on the wish list of Chinese trav-elers when choosing a destination for leisure travel, and this is likelyto fuel demand for expansion and possibly open up new markets fortravel retail in the future," he explains. "It is fair to say that the Chi-nese traveler is a key driver of our business today and, in line withexpected increased volumes of tourists emanating from China, thismarket is destined to continue its importance in [our] market mix."

And Chinese travelers are a market segment DFS has trained itssights on more keenly than ever recently. Just over six months ago,

the retailer opened a lavish new downtown complex in the teemingHong Kong shopping district of Causeway Bay. T Galleria, as it is known,is DFS's first downtown complex on Hong Kong Island, adding totwo others in the tourist Mecca of Tsim Sha Tsui.

DFS has also been busy in the neighboring former Portuguese enclaveof Macau.

"2012 was an extraordinary year for DFS Group in Macau," Vuchotsays. "We added an additional 40,000 square feet [more than 3,700 squaremeters] of luxury retail space. This expansion saw the introductionof brands such as Tory Burch and Balenciaga as well as Le Salon - aproprietary luxury watch boutique targeting lovers of timepieces."

But as it sharpens its focus on the China market, DFS's businessstrategy is all about balance, and ensuring that it has all the bases cov-ered in the fast-changing world of travel retail.

"DFS Group has managed to balance its business model betweenthat of the airport and the luxury downtown Galleria experience,"Vuchot explains. "This complementary strategy serves the groupwell, with a distinct focus on providing solutions for world travelers."

As DFS returns triumphant to its Hong Kong roots, it has proventhe staying power of its business strategy, and positioned itself envi-ably to tap the vast potential of the Chinese travel market on itsdoorstep. c

DFS's business model isbased on a balance betweenairport retail and downtownstores, such as its latest city-center opening, the T Galleria,in the bustling Hong Kongdistrict of Causeway Bay


Hong Kong International Airport


evaluate the social and environmental impact of the planned three-runway system, which the spokesperson says goes above andbeyond the prevailing EIA requirements.

In other news, the renovation of the south side of the cateringarea on Level 8 of Terminal 1, which began last year, has been com-pleted. A Hong Kong-style café, Tsui Wah Restaurant and The PeakLookout restaurant opened in November 2012 and offer a wide rangeof international cuisine. The renovation work on the north side isstill underway and Jade Garden, a Cantonese restaurant that serves anarray of indigenous Cantonese dishes, is set to open soon.

Green achieversIn line with the environmental initiatives associated with the run-way expansion, AAHK and its business partners operating on theairport island have also been conducting a carbon audit of airportfacilities since 2008. AAHK has also applied for the Airport CarbonAccreditation Program, which independently assesses and recognizesthe efforts of airports to manage and reduce carbon emissions,and is the only institutionally endorsed carbon management cer-tification standard for airports. “HKIA aims to achieve the ‘opti-mization’ level—the second-highest level of accreditation of the pro-gram and the highest one currently being pursued by airports inAsia-Pacific,” the spokesperson says.

In addition, AAHK launched the HKIA Environmental Respon-sible Retail Recognition Scheme to recognize tenants of HKIA thattake practical steps to reduce the use of energy, minimize waste andseparate recyclables. Winners exemplified best green practices in retailand catering operations, such as replacing in-store lighting withenergy-efficient LED lights; altering settings for lighting and air-con-ditioning systems based on operating hours; producing shoppingbags with recycled plastic materials; and using reusable containersand wrapping nets for delivering goods.

“Last but not least, we have recently completed the enhancementof the wastewater treatment plant at HKIA,” says the spokesperson.“The grey water treatment capacity has increased to 330 square metersper day, which is equivalent to recycling the daily water usage of 7,000four-member families in Hong Kong.”

With several environmental initiatives planned and service-enhancement renovations in the works, it comes as no surprise thatHKIA was named the “World's Best Airport" at the annual TTG TravelAwards and “Best Airport in China” at the Business Traveller ChinaAwards, in recognition of service excellence and operational effi-ciency. It looks as if the airport will continue to excel in both areasthroughout 2013. c

or Hong Kong International Airport (HKIA), 2012 servedas a perfect launch pad for 2013. In 2012, annual passen-ger traffic increased by 4.7% to a robust 56.5 million,setting the stage for a successful 2013.

According to a spokesperson for the airport, the latesttraffic figures, released in December 2012, showed passenger traf-fic to and from Southeast Asia and Mainland China outperformedother regions, a trend that may continue this year. Cathay PacificAirways and Dragonair, which are home-based airlines, are still themain contributors to this traffic.

DFS Group Limited is the major duty free operator at HKIA, run-ning the duty free liquor and tobacco, perfumes and cosmetics, and gen-eral merchandise concessions. Renowned duty free operators Nuance-Watson (HK) Limited and Sky Connection Limited also have storesin other categories in the airport.

Regarding duty free incentives, HKIA often launches various jointpromotions and offers with its retailers, including duty free oper-ators. “For example, HKIA previously launched a well-receivedshopping and dining offer that customers can receive an HKIAcash coupon of HK$100 [US$13] and HK$300 [US$39] when theyspend HK$1,800 [US$232] and HK$3,800 [US$490] or aboverespectively,” says the spokesperson.

Airport Authority Hong Kong (AAHK) recently announcedunaudited interim financial results for the six months ending Sep-tember 30, 2012, which revealed that revenue and profit attributableto equity shareholders rose 8% and 13.1% respectively over thesame period a year prior to HK$6,395 million (US$825 million) andHK$2,751 million (US$355 million). “It is worth noting that the retaillicenses and advertising revenue saw a 9.8% increase over the sameperiod in 2011,” says the spokesperson.

Grand expansionsTo meet the airport’s long-term growth demand, HKIA decided in2012 to expand into a three-runway system and AAHK has embarkedon a three-phase process of planning, approval and implementa-tion for the project following the government’s in-principle approval.

“AAHK has started to conduct a statutory Environmental ImpactAssessment (EIA), and is firmly committed to carrying out the EIAprocess in a highly prudent, transparent and professional manner,” saysthe spokesperson. “AAHK will explore all possible ways to avoid,minimize, mitigate and compensate for the potential environmentalimpacts that may arise from developing into a three-runway system.”

In addition to these efforts, the company will also include a carbon audit and identify the most appropriate methodology to

F

Clearedfor takeoff

Riding strong passenger numbers and with an array of environmental initiatives inthe works, Hong Kong International Airport is heading for another successful year

AAHK plans to expand HKIA into a three-runway systemand has embarked on a three-phase process of planning,approval and implementation for the project (Photocourtesy of Hong Kong International Airport)


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Ever Rich

boutiques. The fifth floor is regarded as the “Prime VIP” floor, andcan only be accessed by making a reservation.

The plaza also features a diverse range of other duty free prod-ucts, from alcohol and tobacco to food and confectionery and elec-tronic products. “Customers are able to buy everything they needand want in one stop,” says the spokesperson.

The green outdoor environment and indoor space, featuring abutterfly wing style, help to make the plaza a welcoming place fortourists to visit while in Taipei. “With Taiwan Travel Quality Assur-ance Association certification, we’re dedicated to providing thebest service we possibly can,” the spokesperson says.

Grand gesturesWith the opening of the plaza behind it, Ever Rich has switched itsattention to its next major upcoming project—its Kinmen shop-ping mall and hotel. Located in the heart of Kinmen at the lakefrontof Taihu with ready transportation to the airport and harbors, EverRich Shopping Mall and Hotel gives visitors shopping, luxuryaccommodations, fine dining and entertainment in one spot.

Kinmen, which is pronounced “Jinmen” and means “GoldenGate,” is an outlying island located near China. Known for itsbeauty, culture and heritage, Kinmen is an ideal site for the shop-ping mall and hotel. Kinmen is about 10 kilometers from Xiamen,and has a total area of 151.6 square kilometers covering 12 islands.

Kinmen and Xiamen share the same cultural background and sim-ilar languages, which has created a unique bond and has made themone of the major transportation links between Taiwan and China.“After the establishment of ‘Mini Three Links,’ which include direct

ver Rich Corporation is one of the world’s leading dutyfree retailers, offering travelers a wide range of luxurybrands and emphasizing quality of service. Over the years,the company has successfully maintained long-termbusiness relationships with numerous suppliers, allow-

ing it to offer a wide range of products in fashion, cosmetics, fra-grance, jewelry, accessories and timepieces.

Double dutyIn February, Ever Rich celebrated the grand opening of its DutyFree Plaza in downtown Taipei and the company’s 18th Anniver-sary Celebration Ball, both on the same day. Ever Rich’s Duty FreePlaza is the only officially sanctioned Taipei downtown duty freepre-order shop. It features a broad array of brands and stand-alone luxury boutiques.

“With professional service and a spacious shopping environment,the duty free plaza is expected to be another tourism icon in Taipei,”says a spokesperson for Ever Rich. With ample space available, thenew store allows most fashion brands to establish boutique shops,offering customers greater selection. “We would like to provideforeign visitors a better duty free shopping environment andenhance the tourism industry in Taiwan,” says the spokesperson.

The six-storey plaza has a total floor space of 3,344 square metersand offers over 500 brands. The second and third floors—referredto as “Fashion Square” and “Luxury Boutiques” respectively—offermore than 120 fashion brands, along with a number of luxuryboutiques and high-end watch brands. The fourth floor, or the“Beauty Life” floor, offers an array of beauty, fragrance and cosmetic

E

Ever Rich’s duty free plaza is the only officially sanctionedTaipei downtown duty free pre-order shop, featuring anarray of brands and standalone luxury boutiques

Already boasting a strong presence in travel retail, Ever Rich is making its presence felt with major new projects



post, transportation and trade, Kinmen and Xiamen formed a liv-ing circle,” says the spokesperson. Citizens from Xiamen visiting Kin-men do not require a visa when the trip lasts less than 72 hours.

With its military presence, traditional Minnan culture and aunique ecosystem, Kinmen has developed many distinct cultural activ-ities. Its location led to its selection for the establishment of an Aca-demic Research Center which hosts meetings between China andTaiwan.

Kinmen and Xiamen are located in the center of the West CoastEconomic Zone, which covers Jiangxi province, Zhejiang province,Fujian province and Guangdong province, and embraces a total pop-ulation of over 50 million. “The connection of Kinmen and Xia-men by the Kinmen-Xiamen Bridge in the future will make this regionMainland China’s ‘backyard garden,’” says the spokesperson.

With the increasing number of visitors from Taiwan and Xiamen,the tourism market is expanding at a rapid pace. According to the2011 annual report on visitor expenditure conducted by the TourismBureau, the average expenditure of each visitor from China isUS$270.30 per day, with US$159.90 of that spent on shopping.

“The government has supported the tourism industry by imple-menting a special tax policy and strengthening the infrastructureof Kinmen,” says the spokesperson. “It is planned and positionedas an international tourism and leisure island.”

Kinmen is closely linked to the flourishing economic zones ofthe southeast China coast. The government has established Taiwan’sOffshore Islands Development Act, which gives it special tax advan-tages. “With the support of ‘The Twelve Kinmen Public Construc-tion Projects’ by the local government, multinational corporationsare being attracted to invest here to take a further step towards suc-cess,” the spokesperson says.

The site area of the shopping mall will cover a total of 22,108 squaremeters. The total floor area will be 89,871 square meters on six lev-els. The first two levels will be dedicated to luxury boutiques, while

the third level will feature cosmetics, fragrances, accessories and time-pieces. The fourth will offer Taiwanese specialties as well as liquor,tobacco and jewelry. The fifth floor will serve as a supermarket andKingfond Duty Free Shop, while the sixth floor will house the cin-ema and food court.

The hotel will feature furnished accommodations incorporat-ing state-of-the-art technology and offering panoramic views of Taihu.It will also house space for meetings and events with associated facil-ities and services. Catering to visitor curiosity, the hotel will offera full range of services and activities for exploring Kinmen, such asday excursions to the nearby islands, personal shopping, holistic activ-ities and culinary outings.

Giving backWhile it has a full roster of major projects underway, Ever Rich alsobelieves in giving back to the community, and actively devotes timeto social welfare and local community concerns. “We believe that‘as we take from the society, we must contribute to the society,’” saysthe spokesperson.

In Kinmen, Ever Rich hosts and engages in several cultural fes-tivals and is a big supporter of minority groups, which the spokesper-son says helps the company bond with the citizens. Last year EverRich participated in the Taiwan Hot-Air Balloon Festival in Taitung,the Kinmen City God Reception Parade, the Ever Rich Children Pub-lic Welfare Art Festival and the Penghu Music Festival and many othercultural activities and community events.

“The new Ever Rich Kinmen project will enhance the develop-ment of the tourism industry in Kinmen, improve quality of serviceand make Kinmen an international tourism and leisure island,” saysthe spokesperson. The spokesperson believes that the improvementsnow underway constitute an act of giving, both to the citizens of Kin-men and to the region’s future, and will also reinforce Ever Rich’s ownrole as an important contributor to the travel industry. c

The fourth floor of the plaza, or the “Beauty Life” floor,offers an array of beauty and cosmetic boutiques


Chinese buying power


the airport is a major hub and high-spend-ing Chinese travelers happen to be passingby the stores. The operator has done its duediligence and has made a concerted effort totailor a significant portion of its offerings tothis important group of consumers.

“We have changed our product mix toreflect the taste of Chinese travelers,” Tahirexplains. “A greater emphasis has been placedon traditional designs from Jaeger LeCoul-tre, IWC and other brands that the Chineseare interested in. We carry the top ten cig-arette brands from China as well as the top-consumed Baijiu.”

In addition to the above products, themost popular brands among Chinese con-sumers at Dubai Duty Free are high-end skincare brands such as Estée Lauder AdvancedNight Repair, La Prairie and Lancôme.

The targeted approach doesn't stop atproducts. From January 15 of this year DubaiDuty Free featured Chinese New Year-themedstands with Chinese staff and popular prod-ucts across Concourses A, B and C. Productsshowcased include Kweichow Moutai, Hen-nessy Cognac, Chungwa cigarettes and highlysought after perfumes, skincare and elec-tronics brands.

Notably, Tahir tells us that while it's anoperator's job to make sure Chinese travelersare targeted, this doesn't mean that purelyChinese brands should be featured. Just aseveryone in the industry is adjusting to thiswelcome trend, she says the Chinese themselvesare evolving in their taste as they travel more.

“The Chinese are going through a changeof mindset shopping at international desti-nations,” she explains. “The internationalChinese passengers value quality and gen-uine products much more than the expec-tation to carry a large number of Chinesebrands in the portfolio.”

Canadian hospitality“Vancouver International Airport is knownto be the gateway to Asia,” says Freda Che-ung, CEO of World Duty Free Group(WDFG) Canada. “Over the last few yearsthe Vancouver Airport Authority has workedstrategically to attract more flights destinedto China, including Vancouver-Guangzhouoperated by Southern China and Vancouver-Shengyang-Chengdu operated by SichuanAirline. These new routes have generatedadditional Chinese travelers at our stores.”

Echoing Dubai Duty Free's experiences,

ver the past decade we haveseen an increase in Chinesetravelers passing throughour stores,” says Dubai DutyFree's Saba Tahir, Vice Pres-

ident of Purchasing. “This is largely due toDubai International Airport being a majorhub for passengers traveling to differentregions in the world. As Chinese passengertraffic has grown over the years we continueto see an established pattern of growth in Chi-nese travelers at Dubai Duty Free outlets.”

Most operators the world over are takingnote of the huge increases in Chinese travel-ers and adjusting their product mixes accord-ingly, and it's clear to many that airport storesignoring this important travel trend are miss-ing out. Those late to the party are forgiven,though, as Tahir tells us that a cursory perusalof passenger numbers at Dubai Internationalmay not initially raise any flags—Chinesetravelers make up only 4% of the travelingpopulation in the airport.

However, the important figure to note is thatChinese are responsible for 12% of the salesat Dubai Duty Free. The operator ended 2012with total sales standing at US$1.6 billion,meaning that the Chinese spent roughlyUS$192 million there last year. Indeed, a fig-ure like that should have everyone in the indus-try—suppliers and operators alike—lookingat who they're targeting when it comes to in-store promotion and product innovation.

“This is a reflection of a significant aver-age spend,” says Tahir. “This is mainly due tothe fact that Chinese passengers are interestedin luxury products and often buy in volumein P&C, Cigarettes and Liquor due to theprice savings versus the Chinese domesticmarket.”

Of course, Dubai Duty Free hasn't rackedup sales of US$192 million simply because

“OA force to be reckoned withThe boom in Chinese travelers means that operators worldwide who aren't targeting these high-spending shoppers are likely losing out BY RYAN WHITE

Dubai Duty Free's Terminal 3 promotionalarea celebrating Chinese New Year

Chinese represent only 4% of travelers through Dubai Internationalbut are responsible for 12% of sales at Dubai Duty Free's stores


Cheung tells us that of all the nationalitiespassing through Vancouver Airport, theChinese rank number one in terms of aver-age spend. Important for other operators tonote given the general increase in Asiantravelers is that Chinese average spend isabout 80% higher than other Asian nation-alities at WDFG's stores in Vancouver.

WDFG has brought in new brands suchas Kiehl’s and Sisley in beauty, as well aspremium cognac and whisky in liquor, tocater to the Chinese. Furthermore, healthproducts such as ginseng, vitamins and driedfruits have all been introduced and haveproven to be very popular. On the luxuryfront, higher price point items such aswatches in the range of US$30,000 to $40,000and leather goods in the range of US$5,000to $10,000 are also very popular with Chi-nese shopping at WDFG's Vancouver stores.

In addition to bringing in new product,WDFG has also run a number of promotions,including offering free bonus gifts, discountvouchers, lucky draws and scratch and wintickets to engage its Chinese customers.

“There is a Chinese saying,” says Cheung.“'It is better to walk 10,000 miles than toread 10,000 books.' Given the Chinese’s firmbelief in the educational value of traveling andthe continued economic growth in China, webelieve that the growing number of travelingChinese will be a long-term change.

“This trend has a trigger effect on travelretail, especially on key hub airports inNorth America such as Vancouver, San Fran-cisco and Los Angeles on the West Coast, and

Toronto and New York on the East,” shecontinues. “There is much more discussionand focus within the travel retail industryregarding how to best cater to the high-spending Chinese travelers in order toimprove the customer’s in-store experienceand drive revenue growth.”

The extra mileWhen it comes to catering specifically toChinese clientele and their penchant forhigh-end merchandise, it's difficult to thinkof an airport store that does it better thanLe Clos Finest Wines & Luxury Spirits. Headof Le Clos Ben Odgers tells us that identi-fying the potential importance of Chinesecustomers to the business was key.

“We were one of the first travel retailbusinesses to recognize the importance of thediscerning Chinese customer, recruitingindustry qualified, Mandarin speaking staffin-store, as communication is the key tobuilding relationships,” he explains. “This wasrewarded, as news spread within our cus-tomer base.”

All of Le Clos' customers can expect a firstclass experience in store, and the company'sluxury proposition particularly resonateswith Chinese customers. Odgers tells us thataverage spend per customer is significantlyhigher than at many other stores because ofLe Clos' largely Chinese customer base.

Word of mouth is important but it canonly go so far in growing a business. Le Closmakes a point of literally reaching out to its150 VIP clients from China through regu-

lar outreach programs. In a move that goeswell beyond adjusting the product mix andrunning targeted promotions, trained LeClos staff regularly travel to China to visittheir patrons in their home cities and hostlavish dinners, with wine tastings of coursebeing a big part of each event.

With regard to what its clientele are buy-ing, Odgers tells us that Le Clos continuesto see Bordeaux as the key category for bothrevenue and volume. However, upon spot-ting the trend earlier than most, Le Clos isdeveloping its Burgundy and Rhone port-folios to service the new-found interest fromthe East in blue chip examples. Additionally,Le Clos will soon be introducing one of theworld’s oldest Moutai based on customerfeedback.

On the promotional front, to help cele-brate this Chinese New Year, Le Clos is offer-ing up to 30% off a selection of wines drawnfrom perhaps the world’s most famous andrevered estate—Chateau Lafite. “With vin-tages stretching back to the mythical 1982and 1979 Magnums direct from their cellars,this is a truly unique offering,” says Odgers.

In terms of the future for Chinese travel-ing abroad, Odgers believes that they willremain a force to be reckoned with in termsof buying power: “International travel is highlyvalued and meets the aspirations of manywealthy Chinese people, who also naturallyappreciate the opportunity to experience finewines and luxury spirits. This combinationmeans that this customer group is set toremain very important in the future.” c

WDFG identified a number skincare brands that are popular withChinese travelers and has been seeing strong success in this category

In a move that goes well beyond adjusting the product mix and running targeted promotions, trainedLe Clos staff regularly travel to China to visit their patrons in their home cities and host lavish dinners

Some of the high-end winesavailable to taste at one of Le

Clos' recent VIP dinners in China

The Glenlivet Generations 70 Year OldWhisky at WDFG Vancouver-Guangzhou


Airline News

Cathay Pacific maintains service focus


Cathay Pacific started 2013 off well, fol-lowing a successful year in 2012. Last yearsaw a 5% increase in passenger numberswhen compared to the year prior. In addi-tion, the airline recently added new routesto India (Hyderabad) and increased the fre-quency of some of its existing routes.

As for the airline’s inflight sales, CathayPacific has noticed an increase in sales onmost of its routes, but three in particular—Taipei, Singapore and Seoul. “We have seena double digit growth in percentage in Q4 of2012 versus the same time in 2011,”

says Assistant Manager InflightSales Business Development,Billy Cheung.

Contributing to the salesincrease might have somethingto do with Cathay Pacific con-ducting customer focus groupswith frequent flyers once every

quarter to better understand how productsare received onboard. “We conduct customerfocus groups on a quarterly basis andinflight surveys specifically on inflight salesonce every two years,” says Cheung. Thelast survey was conducted in 2011.

To enhance its inflight service, CathayPacific launched a home delivery servicewithin Hong Kong for passengers in 2010.Last July, the airline expanded its deliverylocations to five other Asian countries—Mainland China, Taiwan, Japan, South Koreaand Singapore.

Cathay Pacific routinely lists its inflight“best picks,” which are offered online. Itsmost recent selection includes SK-II FacialTreatment Essence (250ml), Lifetrons Switzer-land High Performance Ultimate Chargerand LeSportsac's We Love Hong KongAccessories Set.

Aside from inflight, Cathay Pacific has also

been active with environmentalinitiatives. In 2012, the airlinelaunched its “Fly Greener” ini-tiative and added shawls from“Good Citizen MovementWorkshop,” a not-for-profitorganization based in HongKong that assists newfemale immigrants toHong Kong, to itsinflight offerings.

In other devel-opment news,Cathay Pacifichas added its Dis-cover the Shop catalog toits IFE (inflight entertainment sys-tem) in 2012 on selected flights. “Theresponse has been very positive amongstpassengers who have browsed through thecatalog,” says Cheung.

Cathay Pacific’s mostrecent “best picks”online include SK-IIFacial TreatmentEssence, LifetronsSwitzerland HighPerformanceUltimate Charger,and LeSportsac’sWe Love Hong Kongaccessories set

Flights to and from every regionexcept China were more than 82%full, resulting in an overall load factor of82.4% on JAL’s international routes

To kick off 2013, Japan Airlines Group (JAL) already has success-ful results to report. The airline carried a total of 404,681 passen-gers on its international flights and 1,499,986 passengers domes-tically during the New Year vacation period in Japan betweenDecember 21, 2012 and January 6, 2013.

Passenger count on JAL’s international routes went up 4.1% ver-sus the same period last year, against a 3.2% increase in the num-ber of available seats. Flights to and from every region, with the excep-tion of China, were more than 82% full, resulting in an overall load

factor of 82.4% on JAL’s international routes.The number of passengers on domestic flights rose 5.8% while

seat capacity was 1% lower compared to the same period in2012. Overall domestic load factor improved 4 percentage pointsfrom last year to 67.7%. By region, there was notable increase intravel to Chugoku, Shikoku and Kyushu.

During this period, the JAL Group operated 19 additional inter-national flights to Alaska, Honolulu and Palau, as well as 28 extraflights on various domestic routes.

JAL Group sees passenger numbers surge in 2013



ANA Group, Japan's largest airlinegroup, recently celebrated the 60thanniversary of its founding in 1952. Tocelebrate the milestone, ANA held acontest to design a new aircraft liv-ery. Some 7,042 applications enteredinto the competition from 36 countries.A short list of nine entries was pub-lished in October 2012, with pas-sengers and employees invited tovote for the winning entry, which wasunveiled in December. Speciallypainted onto one of ANA’s fleet of767-300 aircraft operating on domes-tic routes, the design marked itsdebut in the skies in February.

To further mark the occasion, ANAalso announced the redesign of uni-forms for flight crew and ground staff.The new uniforms are scheduled tobe introduced in Spring 2014.

ANA has publicly thanked its pas-sengers, business partners andemployees for their support over thepast six decades, and announcedplans to maintain customer loyaltyand ensure that more passengersfrom around the world fly with theairline for the next six decades andbeyond.

ANA celebrates60th anniversarywith new liverydesign

Qantas has announced that it will deploy a 767aircraft with new interiors and individual inflightentertainment on all weekday flights betweenBrisbane and Perth starting at the end ofMarch, and deploy its A330 service betweenSydney and Perth more than a month earlierthan the originally scheduled May launch.

“One of Qantas’ key strengths in the domes-tic market is our widebody aircraft, which arevery popular with our customers,” said Domes-tic Chief Executive Officer Lyell Strambi. “Wewill now have widebody aircraft on all week-day flights between the Eastern states andWestern Australia.”

Qantas says passengers have liked thenew interiors and inflight entertainment on the767 and the A330 aircraft will have morespace and comfort and individual inflight enter-tainment for all passengers.

“We are also the only domestic airline thatoffers a meal and checked-in baggage to

every passenger as part of their fare, no mat-ter what time they are flying or which class theyare in,” says Strambi.

Qantas is refurbishing 16 767s with new inte-riors and individual inflight entertainment. Sixaircraft have completed the upgrade in Bris-bane and are now operational. Qantas’ 767 fleetwill have updated cabin interiors, leather seatsin Business Class and IFE streamed direct toiPads in every seat in Business and Economy.

In November, Qantas announced that A330aircraft would be used on all midweek Sydney-Perth and Melbourne-Perth flights from May.This date is being brought forward for theSydney-Perth service. Plans continue to deployA330s on all weekday Melbourne-Perth flightsstarting in May.

Additionally, Qantas is currently expandingthe Qantas Club at Perth Airport and invest-ing in new infrastructure within the terminal asthe airline expands its terminal space.

Qantas linking east-west domestic routes with widebodies

Following a strategic review of its operations and future growth plans,AirAsia is looking to India for the next phase of its international expan-sion. AirAsia’s Group CEO Tony Fernandes said India offers the great-est potential for growth.

“India is an exciting market and I have been overwhelmed withthe developments in the country recently in terms of promoting airtravel,” he said. “We will continue to explore opportunities there,but I believe this market offers the most growth potential in termsof travel.”

AirAsia already operates subsidiary carriers in Southeast Asianaviation markets outside its native Malaysia, including Indonesia,

Thailand the Philippines. Last year it made its first foray outsideSoutheast Asia, launching AirAsia Japan in partnership with ANA.A move into the Indian market would fit into its plans to target mar-kets with large domestic populations.

The group has placed orders for 475 Airbus A320 aircraft, 114of which have been delivered. Fernandes said that India and Chinawill play a huge part in AirAsia’s future growth.

“Asean, including China and India … has over 3.2 billion [peo-ple], which is eight times [more] than Europe,” he said. “We seethe potential of these markets; hence I am confident our huge air-craft orders will easily meet our capacity needs in the future.”

IFE Services has announced that it will continue to supply Singapore Airlines with Japan-ese movies. Under the terms of the contract extension, IFE Services will provide latestrelease Japanese movies to the airline on a monthly basis. The movies will include a com-bination of popular genres such as comedy, drama, action, thriller and art-house.

Playing on Singapore Airlines’ award-winning audio video on-demand (AVOD) inflightentertainment system KrisWorld, the movies will be available to all customers in First,Business and Economy classes.

IFE Services has enjoyed a long-standing relationship with Singapore Airlines, beingthe airline’s incumbent supplier of AVOD technical management services across the fleet.

Singapore Airlines renews contract with IFE Services

AirAsia looks to India for future growth



In BriefShanghai to offer tax-free shopping for touristsShanghai is set to follow in the footsteps of China’sresort island of Hainan, becoming the second site on the Chi-nese mainland to allow duty-free shopping for foreign tourists.

Recent guidelines that set out a clear path for Shanghai to becomean international trade center were approved by the Standing Com-mittee of the People’s Congress of Shanghai Municipality onDecember 26. They allow Shanghai’s municipal government toexplore the establishment of a tax-free shopping policy for depart-ing visitors, in coordination with national-level administrations andto scout locations in which to set up duty-free shops.

The tax-free policy for departing travelers was first pilotedin Hainan province two years ago, allowing foreign visitors to claimtax refunds if they spend more than a designated sum on cer-tain items.

State-owned travel-retail heavyweight China Duty Free Groupwill open the first duty-free store in the city, which is expectedto be in the Pudong district, as a supporting facility for Shang-hai Disneyland, which is due to open in 2014.

“Introducing a departure tax-free policy in Shanghai willdevelop a sound shopping atmosphere that is of vital importancein turning the city into an international trade center,” said Shang-hai’s Vice Mayor Zhao Wen.

According to some industry-watchers, however, a departuretax-free policy for foreign visitors to the city is far from sufficientto tap demand for tax-free shopping, as the most significant sourceof demand remains in the domestic consumer market.

Details of the departure tax-free policy will be finalized at alater date.

The Nuance Group is celebrating the launch of its new branding andcorporate identity.

Unveiling the new look, Roberto Graziani, the President & CEO of TheNuance Group, commented: “Our new corporate identity captures thevery essence of what we are, what we stand for and how we want tobe seen. To be a truly global brand, we need one voice, one look anda consistent way of doing things with, clearly, the necessary local adap-tation. We want to be a global brand with a local touch. And we wantto be at the heart of every journey, creating excitement for our customersand long-lasting partnerships with our stakeholders.”

The Nuance vision is “To lead through partnership and retail excel-lence.” Together with its partners, the company is “delivering excitingretail environments to travelers around the globe. In an ever-changingworld, Nuance is developing its business, building strong, lasting part-nerships and creating innovative, industry leading retail experiences,” saidthe company in a statement.

“To be at the heart of every journey is the defining thought at the verycore of the Nuance operations,” the statement continued. “The com-pany creates a sense of excitement and anticipation for passengers whenthey travel throughout the airport. Nuance stores are destinations thatcustomers look out for and return to. Nuance wants to be an indispensablepart of the customer’s journey—the essential stop they have to make.”

The new Nuance logo is formed from a dynamic ribbon shaping aglobe, at the centre of which is the initial “N” of the company’s originallogo. The ribbon represents a retail journey, which, in forming a sphere,depicts the global nature of Nuance’s retail business.

“As a truly global company, Nuance retains a local touch whereverit operates,” the company said. “Under the corporate global umbrella,unique colors have been assigned for each region, demonstrating theimportance of local adaptations: blue for Americas, gold for Asia, okrafor Australia and green for EMEA.”

Trade association the Associated Chambers of Commerceand Industry of India (Assocham) has written to the Indiangovernment to request an increase in the limit oninbound duty-free liquor allowances.

Assocham wants the duty-free liquor allowance raisedto 4 liters per passenger from the current limit of two liters.

In a letter to Finance Minister P. Chidambaram, theindustry body said a doubling of the allowance wouldboost India’s duty-free trade in international arrivals,and that the increased limit would add about 3 billionrupees (US$55.8 million) to the government’s coffers.

India currently allows travelers to purchase 2 litersof liquor at international airports, half the allowance inDubai and the European Union, two-thirds that of Sin-gapore’s 3-liter limit, and less than half the 4.5-literallowance in Sri Lanka.

Data from the Centre for Asia Pacific Aviation (CAPA)suggests that liquor purchases account for almost 65%of all retail sales at airports, compared with just 17%globally.

In the duty-free channel, liquor is expected to remainthe largest single category for at least the next decade,even though its share of total duty-free sales is forecastto decline to 43% from 63% over the next 10 years.

Including revenue from duty-paid liquor, Indian airportscould see liquor sales reach a value of more thanUS$800 million annually by 2021.

CAPA estimates that on-airport duty-free sales inIndia in 2010-11 were worth around US$215 million - lessthan 1% of total global sales of US$23 billion, despitethe fact that India accounts for around 3% of the world’sairport passenger traffic.

The Nuance Group unveils newbranding and corporate identity

Indian business bodycalls for higher duty-freeliquor allowance


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Beauty Beat: Fragrances


Fragrancefrenzy

Clinique Happy in Bloom Company: Estée LauderDescription: A fresh, frosty floralscent that opens up with notes ofyellow plum, a cocktail of frozenfruit, and watery green notes for acrisp introduction. Notes ofmuguet, white freesia and amimosa accord from the originalHappy lend a tactile nuance ofpetals. Transparent amber andwhite wood provide depth with anatural feminine softness

Flowers, fruit andfoliage set the tone

L’Eau d’Issey AbsolueCompany: Beauté PrestigeInternationalDescription: Master PerfumerOlivier Cresp (Firmenich) chosenight-blooming jasmine, a flowerwith an intense fragrance. Lotusflower and freesia accord makeup the top notes. Crespenhances these notes with atouch of tuberose. In the heartof the fragrance, Provencehoney absolute plays theleading role and bourbonvanilla absolute and woodaccord conclude the juiceNina L’Eau

by Nina RicciCompany: PuigDescription: Afresh, fruity floralfragrance createdby Olivier Cresp,master perfumerfor Nina. Thejuice is enclosedin a soft pinkfrosted glassapple with silverleaves

Peach Blossom by Tommy HilfigerCompany: Estée LauderDescription: A “lush floriental”scent opens with Italianbergamot set off against abackground of white peachand tart and cassis. A floralheart unfolds in the middlewith purple iris and mimosawrapped around a light veil ofvanilla. The dry-down consistsof musk, tonka bean, andexotic smoked coconut

The Game by DavidoffCompany: Coty Prestige Description: The aromaticwoody juice is composedby Symrise’s BernardEllena in partnership withthe Davidoff creativeteam. It opens on a ginfizz accord, building to aheart of iris, atop ablackwood base

Valentina Acqua Floreale by ValentinoCompany: PuigDescription: Inspired by thefragrances of a summer garden,this unique floral scent startswith the freshness of bergamotcombined with notes of neroli,followed by a blend of mimosa,jasmine, orange blossom, andtuberose. Accords of amberand patchouli complete thebouquet

Halloween Man Beware of Yourself by J. Del PozoCompany: Perfumes & DiseñoDescription: The masculineoriental scent that the companydescribes as second skin openswith apple martini, violet leaves,grand vert basil and mandarin;followed by the heart thatcomprises aphrodisiac ginger,cinnamon, lavender andTunisian orange blossom.Bottom notes include leather,musks, grey amber and vanilla



Skin Perfecting BB CreamCompany: ArtdecoDescription: Thismoisturizing beauty balmconsists of SPF 15 and aslight tint. Artdeco offersthe cream in shade No. 3,a light beige, and No. 6, a slightly darker color.This 8-in-1 product is a multi-active, lightskincare product “thatconjures a perfect, radiant complexion whilemoisturizing the skin”

Rénergie Multi-Lift Reviva-Plasma by LancômeCompany: L’Oréal GroupDescription: Described as a“revolutionary” product, Reviva-Plasma combines Multi-Tensiontechnology and the Multi VitalComplex. The company saysthe formula garners immediateresults in improving the qualityand vitality of skin

Beauty Beat: Skincare & Cosmetics

Refinedtones

Stronger colors,better skincarebased on scientificsupport

Double SerumCompany: ClarinsDescription: An anti-ageing serum thatreactivates the five vitalfunctions on which theskin’s youth and beautydepend. In a surveyconducted by Clarins of127 women, 90% agreedthat Double Serum ismore effective than theirregular serum

Hydra Lip BoosterCompany: ArtdecoDescription: New colornuances translucent babyrose No. 37 and translucentwood rose No. 39 impart atrace of color to the lips.Blue Seakale, a seaweedextract, stimulates collagensynthesis. Hyaluronic FillingSpheres and Marine FillingSpheres make the lipsappear smoother.Collageneer, a combinationof active ingredients madefrom sunflower oil andextract of lupine seed,promotes elasticity

Chubby Stick Intense MoisturizingLip Colour Balm by CliniqueCompany: Estée LauderDescription: Packaged inplayful crayon-like barrelsfeaturing a new fullercoverage formula withmore intense colorresults. The lip balm willbe available at Cliniquecounters in Asia Pacific

Génifique Eye Light-Pearl by LancômeCompany: L’Oréal GroupDescription: For the firsttime Lancôme has createda serum combining thescience of Génifique with ahigh-performance pearl-shaped applicator to makeeyes appear more open.The serum revolutionizeseye contour care andtransforms eyes in sevendays, says Lancôme

Smoky Trendy PaletteCompany: CollistarDescription: The palette holdsthree strong powder colors—fuchsia, violet and black—forthose who prefer contrasts.The powders can be usedwet or dry, building them withthe applicators provided, andtheir hold is enhanced by thebrand new eye primerincluded in the set

Absolue SublimeRegenerating Oleo-Serum by LancômeCompany: L’Oréal GroupDescription: The serum with nine patents is a blend of oils and texture of serum.The result is a non-greasyglowing finish. It’s soothingfragrance comprises top notesof cardamom, mandarin andbergamot with the Lancômerose heart. Base notes includecedar, musk and iris

Forever Light Creator by Yves Saint LaurentCompany: L’Oréal GroupDescription: A breakthroughdiscovery in glycobiology for anunprecedented skin quality withthree benefits including uniformity,translucency and radiance

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escapism, which is essentially the philosophy of the brand. “Vile-brequin is a beautiful escape,” says Herlory. “Going into our worldis like going on holidays, and airports are our natural territory.”

Artistic Director Zaza de Brito has incorporated the storyline ofCaptain Cook, who discovered the Society Islands Archipelago in1769, into the designs. The collection pays homage to the cultureand traditions of the islands through the emblems of French Poly-nesia, such as the gecko, the little lizard often seen in Polynesian tat-toos; the lagoon-inhabiting stingray; the Ma’o Mauri, or black tipshark; tiaré flowers and others.

The new collection will feature an array of color, from blue toshades of emerald and sapphire, to shades evoking the sky andlagoon. Hibiscus-inspired orange tones alongside black and whitehave also been used to produce the effect of photographic souvenirs.

The company is also planning to develop a new accessory linethis year, including a beach bag line specifically for the duty free mar-ket as well as a flip flop line. The accessory line may include someproducts exclusive to travel retail. “I understand that travel retail isvery special and we have to think about travel retail in a differentway than we think for domestic retail,” says Herlory.

Herlory feels it is imperative that the history and story of the brandis reflected in the new line. “When you see Vilebrequin, when yousee the bathing suits, it’s an immediate escape,” he says. “You imme-diately jump into holidays, into the beaches and the sun, and that’sexactly what I want to bring to the airports. You’re a businessman,you’re traveling, you’re with your suitcase and suddenly, there’ssomething like fresh air and you jump into holidays. I want the con-sumers to think about the holidays.”

In keeping with the theme of escape, Vilebrequin’s productshave a travel-friendly nature, as most are easy to carry while trav-eling. “Even the jacket for example—it goes from a jacket to some-thing you can carry, which is exactly what I want,” says Herlory. “Thesame goes for the trunks, which you can put in your pocket.”

In other news, Vilebrequin will be developing new fur-niture and fixture concepts for its stores to further develop

the company’s presence in travelretail. The new furniture willfeature “a strong style, easyto use for clients and flex-ible for the operator.”

With all of the novel-ties Vilebrequin has in theworks, Herlory says onething continues to stay thesame—the company’s val-ues and quality. “Today thevalues are still the same: ele-gance, fantasy, quality andcomfort.” c


Vilebrequin

A beautifulescapeSwimwear leader Vilebrequin maintains its four-decadefocus on quality and design

uxury swimwear company Vilebrequin has been creat-ing quality swim apparel for long enough to under-stand what the consumer is looking for. With a historythat exceeds 40 years, the company has a strong tradi-tion of setting trends in the category.

Vilebrequin was born in St. Tropez in 1971 when the brandinvented a new style of bathing suit that offered French elegance mixedwith the freedom of the island town’s 1970s spirit. Beginning withmen’s swimsuits, which would become the brand’s lifeline, Vilebrequinsoon integrated a father-son storyline into the designs that hasstayed with the company for years.

“Through the years we have been improving the quality and thecomfort of our products, acquiring a unique know-how in luxurybathing suits,” says CEO Roland Herlory.

The company was recently bought by an American company calledGIII, the main licensee for Calvin Klein, Tommy Hilfiger, ColeHaan and Kenneth Cole. Following this acquisition, Vilebrequin hasits sights set on the American market. “We have big ambitions forthe American market—the US and Canada at the same time, andLatin America,” says Herlory.

In addition to expansion into the Americas, Herlory says the com-pany wants to focus on Asia. “We have a strong business already inthe Middle East—we are in Dubai, AbuDhabi, Kuwait, and we are opening inSaudi Arabia,” he says. “It’s a very strongbusiness there; we have many Arabcustomers.”

The brand’s Spring/Summer 2013collection will express a sense of

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Roland HerloryCEO, Vilebrequin

Vilebrequin’s new collectionpays homage to the cultureand traditions of the islandsthrough the emblems ofFrench Polynesia, such asthe gecko, black tip sharkand tiaré flowers


Ferragamo Parfums

Besides China, Korea is an importantfocus for Bertinelli. “Duty free is reallyimportant there. We are satisfied with LotteDuty Free and Shilla Duty Free, who arereally focused on their business. We growconstantly every year in Korea.” The suc-cess of the Signorina launch in Korea was sooutstanding that DFS extended an invitationto Ferragamo Parfums to open more doorsaround the world, including Abu Dhabi andin markets in the Americas.

China, where Ferragamo Parfums is cur-rently enjoying double-digit annual growth,is already close to Japan in terms of vol-ume. Recent landmarks include an impor-tant investment in TV placement targetingthe domestic market in China; around 150million viewers saw the Attimo commercialin Beijing, Shanghai and surrounding areas.

Ferragamo Parfums releases special minia-ture sets for travel retail every three months,to help increase market presence and brandawareness. “Personally, I strongly believethat travel retail in Asia is a vehicle to sell andincrease our brand image,” he says. In Sep-tember 2011, the company hired a RegionalTravel Retail Manager in Hong Kong, whois fully dedicated to travel retail in Asia. In2013 the company is planning to furtherstrengthen its presence in the area by expand-ing its travel retail team in Singapore.Bertinelli also works with travel retail dis-tributor Jonathan Holland to help the brand’sperception and volume.

Asian consumers are especially drawn

to Ferragamo because of the brand’s Italianprovenance, Bertinelli says. “We’re proudthat everything is made in Italy—the glass,the cap, the packaging is all made in Italy. Wehave to match the high quality of the fash-ion side.”

Ferragamo Parfums is only 11 years old,having been built up from scratch byBertinelli himself. “Every year we try togrow in terms of products and distribu-tion. Today we’re present in the key areas inAsia in around 90% of the places we targetto be present in.” There’s still room to growin terms of shelf space and products, and alsothanks to new clients like the Chinese con-sumers, who weren’t even on the radar fiveyears ago.

“The Chinese learn fast, it’s amazing,”Bertinelli says. “We take three to five yearsto change our attitudes but they’re so muchfaster. They’re quick in changing habits.They love big size fragrances and prefer100ml.They don’t want something made especiallyfor them, they want to buy internationalfragrances. They love fresher fragrances.Compared to other Asian countries, Chineseare more open to different olfactive families.”

The potential Bertinelli sees is simply stag-gering. He says that currently about 1% ofChinese are using fragrances, while in Europethe figure is around 70%. “Can you imag-ine the gap?” he says. “The greatest growthis coming from China, 100%. The US ishuge for us but next year China will be com-peting with the US.” c

he responsiveness of the Asianfragrance consumer is somethingthat took Luciano Bertinelli, CEOof Ferragamo Parfums, a bit bysurprise at first—but he’s not

objecting. Following the Asian placementof a TV spot for Attimo, a floral/green woodyperfume, the consumer’s response was almostinstant, Bertinelli says.

“The Asian market reacted immediatelyto the TV spot and instantly went to purchasethe product. We did not expect this result.”Asthis went to press Bertinelli was planning tofollow up on this success with a placementin the China market for, the new femininefragrance, Signorina, described as “florien-tal and fruity”.

As other companies are discovering, Asiahas incredible potential, and FerragamoParfums has responded with strategic devel-opment plans. In Japan the Salvatore Fer-ragamo name is already well established,having built up a network of some 78 bou-tiques over the past 25 years. However thispresence is heavily weighted to SalvatoreFerragamo’s fashion side; the fragrancebrand is still a relative newcomer to Asia, hav-ing targeted China, Korea and Japan inten-sively over the last seven to eight years.

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Rising in the east

LucianoBertinelli,CEO ofFerragamoParfums

Ferragamo’sCheeky miniaturecollection will beavailable May

The feminine Luxury collection willhit duty free shelves end of April

Ferragamo Parfums looks to Asia for market acceleration



Limited Brands


eading specialty retailer of lingerie andbeauty products Victoria’s Secret Beauty& Accessories has been active in expandingits duty free and travel retail presence overthe past couple of years, with worldwide air-

port store openings. The brand has also been devel-oping its partnerships with leading operators in majormarkets, laying the foundation for continued expan-sion in future.

Victoria's Secret focuses on modern fashion-inspiredcollections and premium fragrances and cosmetics,headlined by big-name supermodels and trendsettingrunway shows. A business of Limited Brands, its net-work of more than 1,000 Victoria's Secret Lingerieand Beauty stores, supported by the brand catalogueand the brand website at www.VictoriasSecret.com,enables customers to access and shop the brand fromanywhere at any time.

Recent airport store openings include LondonStansted, a fifth Australian airport location in Sydney,a second store at Amsterdam Schiphol, and other air-port openings in Copenhagen, Seoul, Milan, Las Vegas,Athens and Tel Aviv. The duty free and duty paidbranded stores carry Victoria’s Secret’s best-sellingbeauty products as well as an accessories collection thatis exclusive to the Beauty & Accessories concept stores.They also carry a wide range of Victoria’s Secretbranded cosmetic cases, small leather goods such aswallets and passport covers, and business accessories

and luggage in an assortment of colors.The brand has been reinforcing its market

momentum with a number of recent new launches.Notable among these has been the release of the Vic-toria Underglass Two-in-One EW Tote, which has beenmade available in trademark Victoria’s Secret prints,including pink graffiti and oversized leopard. The newVS scarf collection is available in a variety of boldprints and colors, in both silk and viscose. And a newSupermodel Nylon EW Satchel is available inblack, large leopard and pink graffiti.

The Victoria’s Secret Travel & Business col-lection includes a VS Jet Set iPad Cover aswell as the iPhone Case, and the highly brand-conscious Victoria’s Secret sunglasses collec-tion is available in an assortment of shapes andcolorways. All sunglasses provide 100% UVprotection and come with a branded hard case.

The new VS Jet Set Foldable Tote packsflat inside a suitcase for short trips and sothat travelers can accommodate additionalvacation purchases on longer voyages. Thenew passport covers assortment is avail-able in a wide range of colors and prints,and the covers are designed to comple-ment the VS Jet Set collection. Finally, thenew VS Jet Set Soft Spinner carry-on is madein a durable nylon leopard print and features 360°wheels. c

LBeauty blitzVictoria’s Secret sets the pace with new locations, new products

Stylishpassportcovers areoffered in awide range ofcolors andprints

VS’s chic scarf collection is available in silkand viscose

VS’s Supermodel Nylon EastWest Satchel available in black,leopard and pink graffiti

VS Jet Set SoftSpinner is made ofdurable nylon

All VS’sfashionablesunglasses

provide 100% UV protection


to touch your heartFrédérique Const ant and Nicole Faria share one passion: Supporting the International Children’s Heart Foundation. We will donate the cost of a life-saving heart scan for each Frédérique Const ant Double Heart Beat watch sold.

Contact . + 41 22 860 0440 www.frederique-const ant.com

Made by hand

Asia-2012-October-v11 9/30/12 3:43 PM Page 61

Hunting World


Collection also features PVC, a fabric that resembles leather. “Otherthan leather, the only other fabric Chinese consumers will acceptis PVC,” says Kimura. “That’s why we use it. PVC looks like leather,but it can be offered at a more affordable price.”

Aside from this latest collection, Kimura says Hunting World’sClassic Collection “Battue” has always been the brand’s bestseller.“The philosophy of this brand is adventure and conservation,” saysKimura. “All of the designs in the collection feature vegetable-tanned leather, which eliminates the use of chemicals and is betterfor the environment,” he says.

In addition, the self-proclaimed nature-loving brand donates US$1per bag purchased from the Classic Collection to the Borneo Con-servation Trust (BCT), which helps prevent environmental degra-dation of Borneo Island, the native habitat of Bornean pygmy ele-phants. Donations are used to purchase land with the objective ofrecovering natural corridors for the animals to migrate freely, as cur-rently the land is being increasingly occupied by oil palm planta-tions. Hunting World has been supporting BCT since 2008.

Presently Hunting World doesn’t have any major developmentsin the pipeline, mainly because the brand is preparing for an impor-tant event in 2015. “We’re deliberately not doing anything right nowbecause 2015 is our 50th anniversary, so we’re busy preparing,” saysKimura. However; in terms of news, he shares that Hunting World’sbelts and wallets will be listed on Air China, Hainan Airlines andChina Southern Airlines beginning in April.

With Japan already established as the brand’s main consumer base,Hunting World will continue to develop its duty free presence inseveral Southeast Asia countries. In addition, the brand mightbegin developing its presence in the European domestic market asa means of entering the duty free market in the Middle East. “Wehaven’t opened a boutique in Europe yet, but we are distributingthrough high-end multi-brand stores in Italy,” says Kimura. “In doingthis, we may gain the interest of retailers, which will help us buildthe brand domestically, after which we can enter duty free in theMiddle East.”

With its 50th anniversary ahead and plans to enter new markets,Hunting World has a lot to look forward to in the years to come. c

uxury lifestyle brand Hunting World was established in1965 by Robert M. Lee, the first Westerner ever to exploreareas of the Chinese Pamir Mountains. A frequent trav-eler, Lee enjoyed taking lengthy excursions to Africa andWestern China. During his travels Lee realized the need

for a bag that had the capacity to hold everything required whentraveling and the ability to withstand extreme temperatures.

After a chance meeting with the manufacturer of tarps used bythe French Army during one of his excursions, Lee discovered thatadding an inner foam layer to the nylon-based fabric, which was coatedextensively with polyurethane or “PU,” rendered it waterproof andheat resistant. It was this fabric that became known as “Battue” andthe foundation for the brand.

Since then, Huntingworld set out to produce a male-oriented rangeof products ideal for travel and adventure. This year the brandplans to increase the number of products for women to further boostits consumer base. “In Japan, 90% of luxury consumers are ladies,so it’s difficult to keep up the business with only products for men,”says Global Business Development Director, Yusuke Kimura.

A result of its largely Japanese consumer base, Huntingworld’s mainbusiness in duty free comes from Asia as well as the US, where thebrand was established. “Even though 90% of sales come from Japan-ese customers, the market in Japan is shrinking, so we decided to expandour duty free business to China and Southeast Asia,” explains Kimura.

In China Hunting World focuses more on the male consumer, since40% of luxury consumers in China are male. To cater to this specificconsumer, Hunting World introduced its Sportabout Collection,which features designs inspired by traveling, sports and adventure.

“The main difference from our merchandise in the past is thatthis collection is really focused on our Chinese customers,” saysKimura. As a result, designs from the collection include sim card hold-ers, as Chinese consumers change sim cards when traveling from HongKong and Taiwan. Kimura also notes that a number of the designsfeature a large number of credit card slots, which he says is some-thing Chinese consumers look for when purchasing bags.

Geared towards male consumers in their 20s and 30s—the agegroup in China with the most disposable income—the Sportabout

LSuccess with a conscienceHunting World positions its bags with both consumer and environment in mind as it develops its presence in travel retail

Hunting World store located in Terminal2, Pudong Airport in Shanghai


LeSportsac

ith its 40th anniversary less than a year away,LeSportsac has good reason to start the celebra-tions early. First launched back in 1974, the self-proclaimed quintessential American-lifestyle brandof casual nylon bags, known for its lightweight

fabric and variety of colors and prints, entered the travel retailmarket 15 years ago and has over the years maintained a strong pres-ence thanks to key partnerships with airlines and airports.

"Japan Airlines is our best performing airline," says Sales Direc-tor Masaru Watanabe. "We have a long history with them." LeSport-sac also recently teamed up with Cathay Pacific, adding to thebrand’s airline partners, which includes Korean Airlines, Eva Air-lines and China Airlines, among others.

As for airports, Watanabe says the brand is divided territory by ter-ritory. "In Asia, airport-wise, we have more than 100 point of sale (POS)locations, we have POS’ in Japan, Korea and China to name a few."

Although LeSportsac is based in the US, the brand's largestregion is currently Asia. "Roughly speaking, including local mar-kets, 40% of our sales come from the US and 50% comes from Asia,"says Watanabe. "We are an American brand based in New Yorkwith shops on Madison Avenue and in Soho, so we are very strongin the US, but in time we really developed our Asia business, andnow we are very strong in Asia."

LeSportsac’s Spring 2013 Collection adds two new techniques to thebrand’s already existing—and successful—Classic collection: “Print Block-ing” and “The Jamboree.” The Print Blocking technique involves alter-nating the “Pop Hearts,” “Sweet Time” and “Swan Song” patterns onLeSportsac’s classic bags. The Jamboree technique involves a moresubtle approach to the same trend by exhibiting different flowerpatterns on the same print. A “Flirty Flower” pattern, whichis covered in sequins, is also used.

In terms of new patterns, the Spring 2013 collection willdebut LeSportsac’s new “Windowpane” print, offered inblack and taupe. Continuing the brand’s use of a “debossed-on-patent” technique, where patent nylon fabric is dec-orated with an indented design, the new collectionalso launches bright “Raspberry” andcasual “Driftwood” colors. Also new inthe pattern department are “Mademoi-selle” and “Trapeze,” the latter featuringflower cut-outs.

The new collection introduces tennew lifestyle bags, including the iPadCrossbody bag, which is easy to wearover the shoulder; the Abbey Week-ender; the Crossbody Wallet for eveningwear; the “2 Strap Pixie”; the “Boom-box Bag”; and lastly, the “Shore Bag” forvacation getaways.

Watanabe says the Classiccollection is the brand'sbestselling product group,because it offers basics whichcan be custom designed bythe consumer. "Every monthwe develop seven to eightprints and our customers canselect the design and the stylecombination," says Watanabe."We have a catalog that the cus-tomer can select the design from—pick the style, pick the print.”

The catalog features small pouches,travel cosmetic pouches, shoulder bags,handbags, tote bags, and backpacks."This kind of collection is good for travel retail—it covers all consumers’needs," says Watanabe. "We concentrate heavily on this collection asmost of our sales come from here—more than 70%. Almost 80% comefrom the Classics." Since the Classic collection is already well knownand very popular, LeSportsac uses the industry's exhibitions as a plat-form for displaying something new and different.

Also doing well for the brand is the Disney It’s a Small World col-lection by LeSportsac, which was released in Fall 2012 and payshomage to the Disney theme park of the same name. "The collec-tion is available onboard and it's doing very well," says Watanabe.

Disney artist Mary Blair created collages using various mediaforms to capture her interpretation of Holland, artistically

depicted in the collection that consists of a total of 12 styles,including totes, weekenders, book bags and tech items. Thecollection includes five "seasonal deliveries," each inspiredby a different country. Each delivery will have a signaturetote and colorful print that echoes the architectural works

of the Disney theme park.As for airport advertising, LeSportsac has a

distributor for each airport. "Sometimes we pro-pose—or they propose—an opportunity tohave an advertisement," says Watanabe. "We dis-cuss promotions with each distributor." Regard-ing airport news, the brand recently opened a30-square-meter pop-up shop in Taipei’sTaoyuan International Airport.

With 2014 and the brand's 40th anniversaryon the horizon, Watanabe says LeSportsac isplanning something very special in travel retail,but preferred not to reveal exactly what itinvolves just yet. c

W

Beyond the bag

With almost 40 years behind it, LeSportsac is on top of its game when it comes to the bag and luggage category

The “AbbeyCarry-On”featuring one ofthe brand’s newtechniques—“Jamboree”

The “Everygirl Tote” fromthe Disney It’s a SmallWorld by LeSportsaccollection, featuring the“Well Wishes” print

The “Scarf Tote,”featuring the “Scarvesprint” from LeSportsac’sClassics Collection



Aigner


New againeather lifestyle brand Aigner is well positioned in travel retailmarkets, having had an unusually longstanding presencein the channel. “We’ve been here for 30 years,” says CEOSibylle Schön. “For that time period it was very unusual.I have a lot of customers, especially in Asia, who have

been with us for 28 years.” Originally founded in Munich in 1965, Aigner quickly gained trac-

tion in leather wear, and made its first forays into travel retail in its hometurf of Germany, as well as in Asia. “We have a healthy business in dutyfree,” Schön says. “We’ve increased 15%. We do a healthy airline busi-ness as well—we’re covered on almost every airline worldwide.”

Aigner does a lot of work in Asia and the Middle East. Sales in Dubaiare doing extremely well. “The Middle East is important and will becomemore and more important,” Schön says. She describes Aigner asextremely well known in this market. “We’re a luxury and high qual-ity brand. One point that’s very important is that we’re a German brandand we are authentic. We do a lot of made in Italy. There’s a cer-tain trust in our name and product and this reputation lastswith people.”

Bestsellers include the Icon bag line. Schön also singles out thesuccessful Piccolina collection for its “nylon leather” construction.“You can’t make a bag so light with just leather,” she says. “Travel-ers don’t have a lot of time, they just pick it up—grab and go.” AtUS$100-$250 the pricing provides a good entry point for the travelretail consumer.

Aigner’s Spring/Summer 2013 collection takes its design cues fromthe French royal court of the 18th century, with “baroque elements inter-preted in a modern way.” Aigner Chief Designer Christian Beck hasalso incorporated the vibrant graffiti and street art found in global cap-itals of fashion, merging modern ideas with floral patterns and orna-mental feminine details. The collection incorporates top-qualityleather and workmanship along with leading edge design.

According to the press release announcing the collection, “the newmodels for the summer convey individuality and sophistication.Throughout the collection Aigner draws inspiration for metaldetailing from the equestrian world, according to its brand sym-bol, the horseshoe, which is a symbol of good luck. The expressionof form is clear and significant.” Edges have been emphasized, whilecomplementing softer styles. Short-handle bags are one of thecollection’s main notes. In addition to the “Marie” bag, namedfor Marie Antoinette, the “Daphne” shoppertakes its name from one of the current icons offashion and culture, Daphne Guinness.

Aigner remains a closely held family busi-ness. “We belong to a family in Munich—thecompany is on the stock exchange, but 95%is held by a single stockholder,” Schön says.The company follows a philosophy thatSchön describes as similar to other family-owned luxury brands. “We fulfill a nichedemand.” c

L

Aigner’s Spring/Summer 2013collection takes itsdesign cues fromthe French royalcourt of the 18thcentury

Bestsellers includethe Piccolina

collection which isknown for its “nylonleather” construction

Sibylle Schön,CEO, Aigner

Building on its history in travel retail, Aigner’s new releases merge traditional and modern


Since 1887, Chocolat Frey has been creating tempting chocolate dreams and pralines to the highest standards. The No. 1 chocolate manufacturer in Switzerland follows a recipe for success based on tradition, innovation and a passion for perfection. Real premium chocolate, 100% Swiss-made!

Finest Swiss Praline Creations


G enerosity may be its own reward, but confectioner AnthonBerg has proved that it can bring some definite marketpayback as well. The brand’s “Generosity” campaign, which

encourages confectionery consumers to buy for gifting, has garneredworldwide attention with a unique initiative in Copenhagen Den-mark, where a pop-up store selling Anthon Berg chocolates acceptedonly acts of generosity as payment.

“We’ve done consumer testing in Asia and the concept has testedextremely positive,” says Travel Retail Director Tomas Bruun. “Thebrand opens up to a brand new way of doing promotions, and we

have the whole setup ready to go andare ready to strike when our customersgive us the opportunity.”

Asia represents a great opportunity,Bruun says, especially in the context of

Asian contendersPaton’s pushes for a bigger presence

Anthon Berg presses ‘play’ in Asia

Leading confectioners vie for more of the Asian market BY HIBAH NOOR

ustralian confectioner Paton’s is riding the momentumof a series of recent and new launches in Asian travelretail. In addition to Paton’s Salted Macadamia Roy-als, Paton’s Salted Almond Royals and Paton’s CointreauRoyals, the brand is also launching the newly revamped

Suncoast Gold roasted and flavored premium macadamia range, espe-cially the 75g range in Abalone and Wasabi flavors.

It’s all part of a concerted effort to expand the Paton’s footprintin the attractive Asian market, says Stuart Redman, Head of Mar-keting and Innovation. “Paton’s sees China as a continually devel-oping marketplace, with many opportunities to help grow our cus-tomers’ travel retail business using both confectionery and snack-ing products.” China also remains a key market for the premiumquality Paton’s Australian Macadamia product range.

The new Paton’s Cointreau Royals features none other thanFrench liqueur brand Cointreau, one of the most famous liqueurbrands in the world. The new product was released into the globaltravel retail channel in August. The confections consist of Paton’stoffee-coated whole macadamia nuts dipped in milk chocolate fla-vored with Cointreau. They are offered in a premium 170g gift box.

The Cointreau Royals launch followed the successful debut inMay 2012 of Paton’s Salted Milk Macadamia Royals and Paton’s SaltedMilk Almond Royals, also offered in a 170g form factor. The brand’sRoyals collection also has two new formats: a large 330g Paton’sMacadamia Royals in Milk Chocolate containing 30 pieces for pre-mium gifting and a two-piece flow-wrapped 22g Macadamia Roy-als in milk or dark chocolate.

A

Redman says global travel retail has become increasingly com-petitive as major chocolate brands seek to make up for depresseddomestic markets in Europe and North America. “With signifi-cant pricing promotional activity and new offers, especially fortravel retail, the traditional ‘souvenir’ gift is under more pressurethan before,” he says.

Salted Royals sees a sprinkle of saltadded to the toffee in which the nut isencased before it is dipped in chocolate

Paton’s Macadamia Royals in

Cointreau-flavored milk chocolate

The “shaken andstirred” line extensionof the ChocolateCocktails is now inliquid form and featuresa new cocktail, “TheKicking Mojito”

Anthon Berg’s brand universestore at Copenhagen Airport

Confectionery News


Lateltin CRESTA Inserat_210x297 Asia DF Magazin TFWA China Conference Datum 14.02.13 Version_01.02

EnjoytheChocolateSide

ofLife

www.Lateltin.com

Confectionery News


softening markets elsewhere. Anthon Berg’s strategy is to grow theregion as a whole. Elements of the strategy include plans to developthe domestic side, taking advantage of the price positioning and travelexclusives that differentiate the travel retail offering.

Upcoming for Anthon Berg are two new travel retail products.One is a “shaken and stirred” extension to the Chocolate Cocktailschocolate bottled liqueur line called “The Kicking Mojito.” This newentrant, which features a liquid rather than creamy filling, is accom-panied by the Strawberry Daiquiri, the Margarita and the Cos-mopolitan, all of which are now in liquid form. All are launched

in three sizes, tailored to formal gifting, intimate gifting, self-indul-gence and hostess/host gifting purchases.

Anthon Berg is also extending its Sweet Moments line with“Sweet Moments Milk Chocolate.” The launch reflects the resultsof market research that shows consumers retain a strong preferencefor milk chocolate, with vanilla the favorite accompanying flavor.

Quickness of response is probably Anthon Berg’s strongest suit.“In travel retail as well as domestically, we’re ready to ‘press play’whenever and wherever the opportunity is present,” Bruun says.

The Asian presenceof Butlers Choco-lates continues to

grow, says Sales DirectorKarl Marnane. “We haveonly really moved into theAsian market since 2010and we have seen excellent growth during this time,” he notes. “We’recurrently listed in 12 airports around Asia, where we are finding thatthere is an increasing demand for high quality premium chocolateand confectionery. As such our listings are growing steadily.”

New product development is the core growth strategy for But-lers in all of the markets it serves, and the company has a numberof new products underway for travel retail. For Asia, this includes aspecial box celebrating Chinese New Year along with other pre-mium gift and sharing packs. Marnane singles out the redevelop-ment of Butlers Chocolates with the Jameson Whiskey range, whichincludes milk chocolate whiskey truffles, a new 100g dark chocolate

bar and a 300g dark chocolate whiskey truffles sharing pack. New product development centers on the sharing segment, Mar-

nane says. Building on the success of its travel retail confectioneryrange, the brand has just introduced a set of six deluxe sharing packs,each featuring twist wrap chocolates. The varieties are milk choco-late honeycomb crisp, milk chocolate caramels and hazelnut pra-lines, milk chocolate salt caramels, dark chocolate mint fondants,milk chocolate mango truffles and white mixed berry chocolates.“This launch will be supported by HPP in certain locations,” Mar-nane says. “In addition, we’re looking forward to introducing ourextended Jameson Whiskey range to the Asian market.”

B elgian chocolatier Godiva plans to continue the rollout ofits travel retail store concept worldwide, says CS Lam, TravelRetail Regional Director Asia Pacific. Lam, who is speaking

at the TFWA Conference in Beijing in March, describes the new designdirection as “a contemporary interpretation of the brand, marry-ing European luxury with the rich Belgian heritage of Godiva.”

Godiva already has nine new branded boutiques in Asia and willopen a Godiva Café later in the year. The brand’s travel retail busi-ness in Asia has shown double digit year-over-year growth, Lam says,noting in particular the performance turned in by Korea, Hong Kongand Thailand in 2012. “Together with our rapid domestic developmentin the region, especially in China, Godiva continues to reinforce itsleadership position in premium confectionery through productinnovation, new shop/fixture design and innovative trade market-ing programs,” Lam says.

Lam notes that while retail buying trends vary from region toregion, one notable trend has been the strong move toward prod-uct segmentation. “Retailers don't just buy confectionery asa single product category,” Lam says. “They split theproduct into segments such as premium, informal gift-ing, children's, snacking and sharing, etc. The allocationspace in the shop depends on the individual product

segment and its success, for example sales revenue per square foot.”Lam says the new “Chocolats Exotiques” and new core truffle range

are standout travel retail exclusives. Godiva strives to stay ahead ofthe curve with new collections and limited exclusive offerings suchas seasonal collections centered on celebrations such as Valentine’sDay, Mother’s Day and Christmas. In Asia, Godiva is also focusingon Chinese New Year.

This year Godiva has a number of new initiatives in the works,and Lam says the new Chocolats Exotiques collection, created byChef Chocolatier Patrick Peeters, reflects the trend of pairing foodwith selected fruits and Asian spices. “The result is a unique tasteand texture that you will only find on the dessert plate of a top restau-rant,” Lam says. Also, the Truffes Collection will be revisited witha modern twist, featuring new-design gift boxes that reflect thecollection’s luxury positioning. c

Butlers accentsinnovation

Godiva garners Asian growth

Butler’s new deluxe sharing pack, featuring twist wrap chocolates in an array of flavors

Godiva’s new Chocolats Exotiquescollection featuring double layeredchocolates that combine a fruity ganache with a crunchy texture


Catering to Asian travelers


Just like every Camus' cellar master in thepast, the current cellar master selected five

crus—Grande Champagne, Petite Cham-pagne, Bons Bois, Fins Bois and the famousBorderies—and delicately combined theminto eight blends aged in French oak bar-rels to produce a subtle union and attainthe perfect degree of 40.8% vol.

The most remarkable feature of Fam-ily Legacy, says the company, is the way it“methodically, patiently and subtly adheresto the ancestral rules of perfect blend-ing—a legacy of past expertise recordedin the cellar master’s 'cahier de coupe' forposterity since the 19th century.

“Since time immemorial we have followed the recommendationsof Edmond and Gaston Camus, which suggest aging in fine-grained,pale-colored barrels to attain the required degree of perfection,” saysthe company.

Family Legacy is describedas an amber cognac withsparkling hints of gold, witha velvety, complex aroma oftangerine, violet and oak fad-ing into smooth labdanum(Mediterranean flower), notesreminiscent of haute coutureperfume.

Rich and generous onthe palate, it builds onhints of crème brûlée

sia Pacific is our fastest growing market,” saysPatrón spokesperon Greg Cohen. And whiletequila hasn't traditionally been seen as a pop-ular spirit to market to Asians, Patrón isbreaking stereotypes, largely as a result of

some new releases and a reputation for producing ultra-pre-mium, sophisticated spirits.

Patrón's most recent innovation is a chocolate and coffeeliqueur called Patrón XO Cafe Dark Cocoa. The product is aline extension of the highly popular Patrón XO Cafe. Bothare noted for their uniquely dry—as opposed tosweet—taste, due in large part to the high qualityPatrón Silver tequila used in their production.

Patrón XO Cafe Dark Cocoa goes one stepfurther than its predecessor by introducingan extraordinary chocolate flavor to thelight essence of coffee that has alreadyproven popular with consumers aroundthe world. This combination of high-end tequila, coffee and chocolate fla-vors makes the variant accessible to vir-tually anyone while still providingsomething distinctly new for dis-cerning palates.

“Our duty free business in Asia Pacificwas up significantly in 2012, led by 104%growth from Patrón XO Cafe,” says Cohen, and although PatrónXO Cafe Dark Cocoa is still relatively new on the market, the com-pany is expecting a similarly strong performance.

Of course, Patrón is much more than a one-trick pony andCohen tells us that there is a lot of potential for the company's entireportfolio of ultra-premium spirits in Asia. For example, despite Asiaoften being considered a brown spirits market, cocktail culture hasbeen steadily gaining pace in major metropolitan areas and Patrón-owned Ultimat Vodka saw sales increase a hefty 63.4% last year. Fur-thermore, Cohen says that Patrón's tequila lineup continues to dowell in the region, largely as a result of the focus on quality and tra-dition associated with its production.

“People in Asia are increasingly recognizing that a high-end tequilalike Patrón is an ultra-premium, sophisticated luxury spirit,” he says.

And speaking of luxury spirits, Camus has a reputation for pro-ducing some of the world's best-loved cognacs. Family Legacy, thelatest addition to the Camus family, is a fitting marker of what thiscognac brand has become since its inception in 1863.

Cyril Camus, President of Camus, tends to agree that a combina-tion of tradition and innovation is the best way to reach consumers:“A great cognac is born of a father, a grandfather and a great-grand-father who were able to pass on an ancient culture of the art of dis-tillation and aging whilst adding a touch of the contemporary,” he says.

“A

Tradition meets innovation

Patrón Silver, thespirit that starteda revolution in theway the industryviews tequila

The combination of high-end tequila, coffeeand chocolate flavorsmakes Patrón XO CafeDark Cocoa accessible tovirtually anyone while stillproviding somethingdistinctly new fordiscerning palates

Important for Asiangifting sensibilities,Camus' Family Legacyis contained within a refined decanteradorned with a crystalstopper and nestled in a soft touch case

From new variants of tried and true favorites to spiritsthat haven't traditionally been popular in Asia, suppliersare pulling out all the stops to catch travelers' eyes



to create wonderful length from dried fruit notes and a lin-gering, balanced finish. Important for Asian gifting sensibilities,the cognac is contained within a refined decanter adornedwith a Crystal stopper. Nestled in a soft touch case with con-temporary styling, Family Legacy is fits perfectly with Camus'mantra of offering consumers “the finer things in life.”

Something completely new As mentioned, cocktail culture is growing in many parts of Asiaand Canadian gin Ungava sees a lot of possibilities in the region'stravel retail market. “Ungava gin has a unique look and taste, whichis ideal for duty free, whether it is a gift for a loved one or a self-purchase,” says Richard Bush, Marketing Manager for Ungava.

A clear indication that distributor Camus believes Ungava is per-fectly suited to the region is the fact that the brand was introducedlast year at the TFWA AP exhibition in Singapore. Indeed, while it'ssomething completely new on the scene, the familiar theme oftradition is still very much a part of Ungava's story.

With total respect for the environment andInuit traditions, the rare plants and berriesthat impart Ungava gin’s unique bou-quet are picked and selected by hand.Using only 100% natural ingre-dients, the gin is infused withNordic Juniper, Wild RoseHips, Cloudberry, Crowberry,Arctic Blend and Labrador Tea,ensuring that Ungava Canadianpremium gin has both a distinc-tive color and a fresh, floral andspicy flavor.

To peak the interest of con-sumers even more, Ungava hasdeveloped a very special editionthat also pays tribute to Inuittradition. In selected airports

travelers will soon be able to find Ungava nestled in a lim-ited edition faux fur bag.

“We were so excited when we walked along the Croisettein Cannes back in October, because all of the winter col-lections from the big designers seem to feature faux fur,”

explains Bush. “We've already started to ship these tosome of our customers. It will be available in the com-

ing weeks in Singapore Changi, Panama, Uruguayand in the US at International Shoppes Terminal1 store at JFK, among others.”

Only 5,000 units are available, making thistruly a collector's edition. The bottles come witha neck hanger leaflet which tells all about Ungava—its unique botanicals, where they come from andhow to serve the gin. Notably, the leaflet also fea-tures a number of cocktail recipes so that travel-ers can dazzle friends with high-end drink creationswhen they arrive home.

Although rum is another spirit that has tradi-tionally been niche in Asia, Brugal 1888 is attractingvery favorable reviews in the region following itslaunch in the summer. In fact, the premium rum wasawarded a Gold Medal in the inaugural Cathay PacificHong Kong International Wine & Spirit Competi-tion just months after its launch in Asian markets.

“Brugal 1888 is being accepted readily in Asian mar-kets and it is proving to be a key to open new doors,”says Irene Serrano, Brugal's International Brand Man-ager. “This award is the recognition of its high qual-

ity and it will help to increase awareness of Brugalwithin the industry.”

The award-winning Brugal 1888 rum was unveiled in Hong Kongand Macau in June by Jassil Villanueva, Master Blender and a mem-ber of the fifth generation of the Brugal family. From July until Sep-tember, Brugal was then featured in a highly successful tasting pro-motion at the Tasa Meng departures shop in Terminal 2 at TaiwanTaoyuan International Airport. Importantly, the initiative was intendedto introduce consumers who might normally choose fine cognac or

malt whisky to the refined taste of Brugal 1888.“The launch of Brugal in Taiwan duty free has beenvery successful,” says Claren Wong, Regional Mar-

keting Manager for Brugal brandowner TheEdrington Group. “The tasting activity

encouraged people to try Brugal 1888.”While Wong notes the obstacles

that a rum brand faces when enter-ing the Asian market, it's clearthat The Edrington Group believes

the region is rife with consumerswho are ready to try something new:“The challenge we face in Asia is thatthe majority of Asian consumersdrink whisky or cognac,” Wong says.“The rum category is still in its infancyin Asia so education is required tohelp consumers to understand thecategory. We will continue the invest-ment in brand activation with edu-

cation and tasting activity to supportthe brand growth.” c

In selected airports travelers will soon beable to find Ungava gin nestled in a

limited edition faux fur bag.

Brugal 1888 rum is attracting very favorablereviews in Asia following its launch in the summer

From July to September, Brugalwas featured in a highly successful

tasting promotion at the Tasa Mengdepartures shop in Terminal 2 at

Taiwan Taoyuan International Airport


Diageo GTME


Positionedfor�growthBY RYAN WHITE

Diageo focuses on innovation across Asia Pacific dutyfree to ensure Johnnie Walker maintains its leadingposition as the Scotch of choice for Asian travelers

Sir Alexander Walker,John Walker & SonsOdyssey marked the

80th anniversary of one of Sir Alexander’smost remarkable innovations—a whiskydecanter that could move to match themotion of the sea. Today, this extraordinarydecanter and unique blend have been re-envi-sioned as John Walker & Sons Odyssey.

Steve White, Marketing & InnovationDirector of Diageo’s Global Travel and Mid-dle East business, said: “This exciting newinnovation demonstrates our commitmentto meeting the unique needs and evolvingtastes of the luxury consumer in travel retailin China and beyond.”

This exquisite Blended Scotch Whiskyhas already won plaudits within the indus-try, both for its packaging as well as for theexceptional quality of the triple malt. The lux-urious decanter and nautically inspired pack-aging was awarded the highly regarded Prixdu Jury from Formes de Luxe at the MonacoLuxe Pack, beating all forms of luxury designin any category. John Walker & Sons Odysseywas also recognized in July with a gold medalat the prestigious International Wine and

Spirits Competition (IWSC). This honorplaces John Walker & Sons Odyssey in thecompany of some of the finest and mostestablished whiskies in the world—an amaz-ing achievement for such a new spirit.

“John Walker & Sons Odyssey is a true cel-ebration of life’s great journeys. In additionto paying tribute to Sir Alexander, it also hon-ors the game changers who have inspired ageneration, setting new standards and becom-ing role models within their communities andcreating positive change in the world aroundthem,” White added.

To launch this exclusive product, JohnWalker & Sons hosted a series of iconicevents aboard the luxury yacht, John Walker& Sons Voyager, which journeyed acrossAsia and the Middle East, immersing consumers and customers in the brand’sworld of quality craftsmanship, heritageand modern innovation.

In October, Asia travel retail customerswere treated to an ultimate on board luxuryevent in the dramatic setting of Hong Kongharbor. The highlight of the event includeda tasting of the award winning triple malt.

“John Walker & Sons Voyager is designed

iageo, the maker of JohnnieWalker, the world’s leadingblended Scotch whisky, has animpressive history of bringingexciting new products to market.

From Baileys Original Irish Cream to themore recently launched Johnnie Walker Dou-ble Black, innovation forms a crucial part ofDiageo’s growth strategy.

Innovation catches the imagination ofconsumers and ensures that brands are wellpositioned for continued growth, says thecompany. Just like its flagship Johnnie Walkerbrand, Diageo embodies a pioneering and pro-gressive spirit, constantly evolving to meet thechanging needs of shoppers in travel retail.

Targeting Chinese travelersIn September last year Diageo launched aspectacular new, award-winning blend specif-ically designed to meet the needs of theemerging Chinese luxury traveler. Inspiredby the vision and entrepreneurial spirit of

D

The release of John Walker & Sons Odysseymarks the 80th anniversary of one of SirAlexander Walker’s most remarkableinnovations—a whisky decanter that couldmove to match the motion of the sea

The Gold Route is thesecond release in theJohnnie WalkerExplorers' ClubCollection and will belaunched this year



to be the ultimate luxury experi-ence for premium spirit connoisseurs inthis region, if not the world,” says White. “Wetook the opportunity of its visit to Hong Kongto create a unique event for our Asia TravelRetail customers and demonstrate our com-mitment to working with them to furtherpremiumize the travel retail channel in Asia.”

Focusing on premiumizationDiageo’s sharp focus on premiumizationsaw the launch in May last year of the suc-cessful Johnnie Walker Blue Label The CasksEdition, a bold limited edition release ofthe company’s iconic blend. Crafted fromsome of Diageo’s rarest casks—each notedfor their intensity and depth of flavor—thisspecial edition, bottled at 55.8% ABV, hasintensified wood flavors and is a tribute tothe perfect harmony of the oak casks usedin the blending of Johnnie Walker BlueLabel. The product was launched as a dutyfree exclusive, offering differentiation for

shoppers in the global travel environment.Building on these successes, at TFWA

World Exhibition in Cannes last October, Dia-geo revealed their largest ever investment inthe travel retail channel with the launch ofthe Johnnie Walker Explorers’ Club Collec-tion, which brings to life the brand’s unpar-alleled links with exploration and travel.

This major new global branding and mar-keting initiative is exclusive to the travelretail channel. The concept is based on thespirit of the “Travellers’ Room,” establishedby Alexander Walker in the City of Londonin the 1890s. This was located close to the ship-ping houses and docks from which its agentsjourneyed the world and gathered to exchangestories from their travels, offering inspirationto the company’s master blenders.

The first whisky in the collection is John-nie Walker Explorers’ Club Collection – TheSpice Road, an evocative expression of thespices, colors and fruits that the Johnnie

Walker agents would have discovered in thethriving markets on their routes around Asia.It is now available in duty free stores globallyat a recommended retail selling price of US$43.

Master Blender of Johnnie Walker JimBeveridge commented: “We specially selectedwhiskies to create a bold blend of intrigu-ing complexity inspired by the richness ofthis part of the world. There is a spicy zesti-ness on the nose balanced by fresh citrus. Thesmooth, rich and honeyed flavors on thepalate, warmed by cloves, ginger and vanillasweetness, give way to a smoldering finishof the Johnnie Walker smoke signature.”

The packaging around the iconic squarebottle—a shape originally designed to reducebreakages during shipping—has taken sim-

ilar cues, with a rich color palette andembossed pattern reminiscent of dec-orative Asian paneling. Two morevariants will launch over the next sixmonths.

The Johnnie Walker Explorers’Club will see the Johnnie Walker andJohn Walker & Sons Blended ScotchWhiskies displayed in new high-vis-ibility globe-shaped wall bays in travelretail outlets as well as experientialpop-up clubs in selected leading air-ports and will be supported by strik-ing advertising and activations.

The new initiative will fully dif-ferentiate the Johnnie Walker travelretail offering from its domestic offer-ing by bringing to life the brand’sunparalleled links with explorationand travel, which saw it journey from

a small shop in Scotland in 1820 to thefour corners of the world.

Johnnie Walker Explorers’ Club Collec-tion demonstrates Diageo’s key strategicfocus on differentiation to deliver truly dif-ferent offerings which capture the imagi-nation of travelers and make travel retailone of the most exciting retail environmentsfor consumers.

Says White: “The creation of the JohnnieWalker Explorers’ Club Collection and itsunique collection of exclusive blends signi-fies our commitment to our highly valuedtravel retail customers.

“Building on our travel heritage and spiritof adventure, we have created three variantsin our first Johnnie Walker Explorers’ ClubCollection,” he continues. “The Trade RoutesSeries – The Spice Road, soon to be followedin 2013 with The Gold Route and The RoyalRoute—is a celebration of global travel andof travelers past and present and will only beavailable through travel retail.” c

Johnnie Walker BlueLabel The CasksEdition is crafted fromsome of Diageo’s rarestcasks—each noted fortheir intensity anddepth of flavor

Steve White, Diageo’sMarketing & InnovationDirector, explains JohnnieWalker Explorers’ ClubCollection at the launch in Cannes last year

The Spice Road is an evocative expressionof the spices, colors and fruits that the

Johnnie Walker agents would havediscovered on their routes around Asia


Gulf Beverages


The brands tocompeteIt’s clear that whisky fans whopurchase in travel retail arelooking for something apartfrom the norm and Whyte &Mackay certainly delivers. Per-haps the most talked aboutnews of late from The Dal-more is the release of The Con-stellation Collection, whichconsists of 21 individual expres-sions that have spent their livesfinessing in the finest casksfrom around the world beforebeing bottled at natural caskstrength and at natural color.

Prices range from £20,000(US$31,300) for a bottle of

the Vintage 1964 to £2,000 (US$3,100) for a bottle of Vin-tage 1992. The entire collection will sell for £158,000 (US$247,000).Given the RSPs, it’s clear that high-end retailers in India and the Gulfwill be the focus for this particular collection.

For the more budget-conscious whisky drinker, Ashford pointsout that Whyte & Mackay recently launched Mackinlay's "The Jour-ney," a recreation of the century-old Mackinlay's blended scotch cre-ated for Ernest Shackleton's epic adventure of 1907.

Following the huge success of its original recreation, Whyte &Mackay has launched this follow up. The move was prompted bya request from the Antarctic Heritage Trust, the charity, whichfound the whisky, to find ways to raise much needed funds for theconservation of the expedition bases on the Antarctic.

The latest release of Jura is perfect for those looking for somethingpriced in between The Journey and The Dalmore Vintage 1992.Called the Standing Stone, or “Camas an Staca” in Gaelic, the new expres-sion takes its name from the largest of Jura's eight standing stones.

Meticulously detailed, the bottle is in-filled with copper wax witha matching metal plaque. Jura Camas an Staca is available at a RSPof £350 (US$560) per 70cl.

“Were very happy to be working with Whyte & Mackay,” con-cludes Ashford. “They’ve got such great brands, and it’s always niceto have this type of critical mass when entering markets such as India.It helps the operators, the brands and Gulf Beverages." c

ulf Beverages has announced thatit has entered into a strategic part-nership with Whyte & Mackayto distribute its brands across theGulf and India.

“It’s really a logistical partnership,” explainsLeon Ashford, Director of Business Devel-opment. “Whyte & Mackay’s brands arealready present at major travel retailers inthe Gulf and India, so it will be a question ofmanaging existing relationships as well asexpanding the footprint of the brands inthese regions.”

Brands involved in the deal include Whyte & Mackay Special, Jura,The Dalmore, Mackinlay’s Shakleton, as well as a vodka brandowned by Whyte & Mackay. Of course, Gulf Beverages has carvedout a reputation for being a premiere distributor able to success-fully navigate the notoriously complicated Indian market, but weasked Ashford to explain the benefits that Gulf Beverages can pro-vide to a brandowner like Whyte & Mackay.

“As we’ll be taking over the logistics, this opens up a new worldof possibilities for the brands,” he explains. “For the operators it meansshorter lead times and smaller, more frequent supplies so thatthere’s less working capital tied up.”

For specialized brands like The Dalmore or Jura—currently thefastest growing single malts in the duty free industry—it’s clear howthe above could be advantageous. For a brand like Whyte & Mackaywhisky, though, there are also clear benefits. Ashford tells us thatpromotional flexibility is a big selling point. Gulf Beverages will bereleasing an India arrivals pack of Whyte & Mackay Special that con-sists of two 75 cl bottles plus a 50 cl GWP.

“We’ve also got some twin packs prepared for the Gulf as well,”Ashford tells us. “Our model allows a brandowner such as Whyte& Mackay to run promotions straight across the Gulf and India, lend-ing consistency to the brand image through a coordinated approachacross an expansive section of the travel retail landscape.”

GGulf Beverages and Whyte & Mackay enter into strategic distribution partnership

The powerofpartnership

The Dalmore12 Year Old

A Whyte & MackaySpecial pack thatconsists of twobottles of the popularwhisky plus a 35 clflask; promotionalflexibility is one of GulfBeverages key drawsfor supplier partners

Jura’s 30 YearOld “Camas an

Staca” (StandingStone) whisky


Villiger Mini Inserat A4 4c 10.09.2012 02.01

THEMINIS

Berry Brothers & Rudd


promotions play well in Asia, where gift-giv-ing is an important element of local cultures.

But with a unique product like The Glen-rothes, Roberts has found that there’s nosubstitute for tastings, so Berry Brothers &Rudd focuses in this area. Although tast-ings are definitely more labor-intensive thanthe more standard kinds of promotions,they’re excellent at winning customer loy-alty, and represent an unparalleled oppor-tunity to communicate what makes TheGlenrothes unique directly to the customer.

The Chinese market, while still very new,has already demonstrated a strong preferencefor ultra-premium products, and the vintageapproach used in making The Glenrothesmakes it unique. New vintages are releasedat the decision of the Malt Master, who hasfull discretion to release a vintage when hejudges it’s at its absolute peak of perfection,not according to a conventional schedule ofmulti-year intervals. Berry Brothers & Ruddhas introduced 17 Vintages of The Glen-rothes in total, with 11 of them now sold out.Other brands do also release vintages, but not,Roberts says, to the same degree.

During The Glenrothes’ first years inAsian markets, tastings have been hugelysuccessful. “It was important to get ‘liquidson lips’ because we hadn’t really done any-thing in travel retail before,” Roberts says.With The Glenrothes, conversion throughtastings is very high. “You can actually edu-cate people and really communicate the dif-ference between your brand and others,”Roberts says. “People are willing to buy at fullvalue when they’ve tasted the product andhave come to believe in the brand.”

The single malt category is a large and wellestablished one in Taiwan and Japan, it’sgrowing in Southeast Asian markets and it’scompletely new in Mainland China. Hong

Kong and Singapore have picked up in recentyears, Roberts adds.

Berry Brothers & Rudd is involved innew product development now, but Robertssaid it was too early to offer more details. Inthe meantime, he says, they will continue todevelop exclusive offerings for both the dutyfree and domestic channels. The companyhas offices in Japan, Singapore and HongKong, where Roberts is based—an officethat houses a company devoted primarily tofine wine distribution.

“The heritage, provenance and traditionof Berry Brothers & Rudd really resonatewith the consumer here in Asia,” Robertssays. “There’s a real aspirational side to BerryBrothers & Rudd—something people liketo be associated with. This is a positive forus in the Asian context. It really works verystrongly for us in this part of the world.” c

he Asian markets present a num-ber of different challenges forBerry Brothers & Rudd Spirits interms of market sophistication,but the one thing that ties the

region together is the amazing potential formarket growth over the longer term.

“In Asia travel retail we’ve experiencedsolid growth over the past two years,” saysRegional Sales Director for Asia JohnnyRoberts. “We’re beginning in Singapore andHong Kong, and Mainland China is veryearly for us yet. In Mainland China the levelof sophistication just isn’t there yet to appre-ciate craft spirits, but the market is definitelya very exciting prospect for us for the future.”

Indeed, Roberts describes the last threeyears as a “steep learning curve”—and thatincludes the customer learning that willneed to continue so that Berry Brothers &Rudd can really hit its stride. With its pri-mary and best-known fine spirit being theSpeyside Single Malt Scotch Whisky TheGlenrothes, telling the story is key.

“If you’re a well known brand name youcan put your brand on the bottle and sell itpretty well anywhere,” Roberts says. “But ifyou’re a boutique spirits company like us youneed to explain the product so people under-stand the quality of what’s in the bottle. Forus it’s the quality of the liquid—and ourheritage, being family owned for over 300years, our history as suppliers to the BritishRoyal Family. These things enable the Asiacustomer to understand us better and haveconfidence in the liquids we supply.”

Communicating the story and buildingthat trust takes different forms for BerryBrothers & Rudd. Roberts points to the brandintroduction that is displayed in English andChinese on wall bays in outlets in China.The brand also finds that “miniature” GWP

T

LearningcurveBBR approaches Asian markets at different stages of development BY HIBAH NOOR

Regional SalesDirector for AsiaJohnny Robertssamples a vintage

Heritage counts:this has been theLondon home ofBerry Brothers &Rudd since 1698

The Malt Master determines whenThe Glenrothes vintages are ready forrelease; pictured here is former MaltMaster John Ramsay, now retired


experienceTHE WORLD'S FINEST WINES AND SPIRITS DESTINATION

Experience the new Le Clos flagship store in Terminal 3, Concourse A at Dubai International. The uniquely designed store features a decommissioned whisky still, interactive experiences, tasting area and personalised bottle engraving. Our highly knowledgeable team who speak over 20 languages will guide you through the Le Clos range, which includes rare and sought after wines from stunning vintages to iconic New World wines and spirits steeped in tradition. Whether you’re a connoisseur or enthusiast, discovering Le Clos will be the perfect start to your journey.

BUY BEFORE YOU FLY. COLLECT ON ARRIVAL.

Find the new flagship Le Clos located near gate A1 and the originalstore adjacent to gate B8 in Terminal 3, Dubai International.

Also available in Emirates First Class Lounges.

Le Clos is open 24 hours a day Tel. +971 4 220 3633 • Email [email protected] • Web www.leclos.net

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LeClos Experience ad.pdf 1 2/14/13 9:45 AM


Liquor News Lucky eighthGlenfiddich CrystalStag in place atSeoul IncheonThe eighth Glenfiddich Crystal Stag Gondola wasunveiled at Seoul Incheon airport with Lotte by pre-mium spirits brand William Grant & Sons (WGS).Launched late last year, the Crystal Stag contin-ues the £1 million (US$1.57 million) investment byWilliam Grant & Sons in Glenfiddich, bringing tolife the pioneering spirit of the brand.

“It’s very apt that this is the eighth GlenfiddichCrystal Stag Gondola—as the number is seen asparticularly lucky in Asia and closely associatedwith wealth,” says WGS Director of Travel RetailAsia Pacific Scott Hamilton. “We certainly look for-ward to seeing increased sales growth for thebrand following the installation, as we have inother parts of the world where the Glenfiddich Crys-tal Stag has been placed.”

The installation has been carried out in con-junction with William Grant’s local agent Sam-sung and Lotte. “It’s been an absolute pleasureworking with Samsung and Lotte as our partnersto see the Stag in such a dominant position withinthe airport,” continues Hamilton. “It is clearlyattracting the immediate attention of consumersas they move through the travel retail environment.”

“As interest in single malt whisky is growingamong Korean customers, I’m delighted to havethe Crystal stag gondola placed with such excel-lent visibility in IIA Lotte DFS,” adds Byung RokChoi, Managing Director Incheon Airport Shop. “Iexpect much more growth in Glenfiddich sales asa result of this stunning crystal gondola promo-tion in the future.”

Asia Duty Free recently had the opportunity to speak withMatthew Hodges, Marketing and Business Development Direc-tor for Rémy Cointreau GTR. He tells us that as usual, Rémy Coin-treau is constantly innovating and exhibited a number of newlaunches at the industry’s most recent exhibition, TFWA WE.

A limited edition Rémy Martin bottle with a pop culture themethat will appeal to the younger Cognac drinker made its debutat TFWA WE, and the most recent upmarket treatment of Coin-treau, called Mabille, was showcased at the show as well. Addi-tionally, Russian Standard continued making waves in duty freewith a new design for Russian Standard Gold. Finally, cham-pagne fans found the Piper Heidsieck range on Rémy Coin-treau’s stand as well.

Of course, another great way to make sure that con-sumers are keeping an eye on your brand is to have a brandambassador like Dita von Teese. In support of Cointreau, von

Teese made appearances in various parts of Asia in autumnof 2012 as a means of putting the brand in the spotlight. Shehas also worked with Cointreau to design an elegant and sophis-ticated fashion item which is soon to create a real stir amongthe brand’s female consumers, says Hodges.

“Asia is a very important market for Cognacand Rémy Martin has an excellent reputationthere,” Hodges says. “Sales are phenomenal,especially of those expressions at the topend, including Centaure de Diamant, thetravel retail exclusive Premier Cru collec-tion and of course Louis XIII, the pinnacleof the collection.”

Sales of high-end Rémy Martin expressions areexcellent in Asia, says Business Development

Director for Remy Cointreau GTR Matthew Hodges

Launched late last year, the Incheon Crystal Stag continues the £1 million(US$1.57 million) investment by William Grant & Sons in Glenfiddich

Rémy Cointreau continues to pique theinterest of consumers in Asia duty free



California-based Prowood Wine & Spirits’ (PWS) offer-ing is steeped in the mystique and luxury of premiumspirits. The brands are led by the aromatic and spicybut delicate Arman Cognac from France and an Armen-ian brandy called Kilikia, made from finest grapesgrown in the Ararat Region.

PWS is billing Arman Cognac, available in boththe XO and VSOP expressions, as the jewel in

its portfolio, with the “Signature of a royalman.” The company says Arman Extra Old

Cognac is a blend of a hundred rare andselected eaux-de-vie from the premier

growing areas of France kept in oak barrels for 20 to50 years to achieve perfection.

Kilikia brandy, on the other hand, is available in theXO expression and is named after the Armenian king-dom called Kilikia or “Little Armenia.” This Brandy isaged for 10 years. After tastings, experts described itas strong yet delicate, at the same time leaving adefinite hint of toasted wood and a touch of cinnamon.

“Since we established PWS in 2003, we have con-tinued to expand the portfolio by responding to the con-sumer's desire for quality and exceptionally smoothspirits,” says PWS owner and President Henrik Sargsyan.“And that is why we observe the market situationwith attention, to do our best to provide quality spir-its with excellent taste and one of a kind packaging.”

Prowood offers two exquisite spirits from France and Armenia

The home of Avondale’s Samsara—the wine is made from Shiraz grapesfrom organically grown vines that range from 10 to 15 years of age

Bacardi mixes fresh new look and taste for RTS cocktailsBacardi Global Travel Retail has introduceda fresh new look and taste for its collectionof Bacardí Ready To Serve Classic Cocktails,currently being rolled out across globaltravel retail.

“Since their launch two years ago, Bac-ardí Ready To Serve Classic Cocktails havepioneered an entirely new category in globaltravel retail,” says Pedro Santos, MarketingManager for Bacardí rum. “Bacardí is thenumber one brand in the category and weare building on this success by maximizingconvenience and value and continuing toinvest in delivering a quality cocktail fortravelers whenever and wherever theyplease.”

Presented in a new-look bottle whichreinforces the authenticity of Bacardí rum andthe cocktails it creates, the natural flavors

and ingredients used to create each of theReady To Serve Classic Cocktails—the Bac-ardí Mojito, Bacardí Piña Colada and Bac-ardí Strawberry Daiquirí—are now of aneven higher quality, giving them a tastecloser than ever to the original hand-madecocktails.

As the world’s favorite rum and the world’smost awarded spirit, Bacardí has estab-lished a reputation for constantly innovat-ing and building on its already exceptionallevels of quality. Bacardí continues to rev-olutionize the category just as it did in 1862with the creation of the world’s first pre-mium, light-bodied rum. Bacardí rum wenton to inspire early cocktail pioneers to cre-ate a new genre of cocktail recipes, includ-ing the Original Bacardí Daiquirí and theAuthentic Bacardí Mojito.

Just like the hand-made cocktails, eachof the Bacardí Ready To Serve Classic Cock-tails has Bacardí Superior rum at its heart.The natural flavors and ingredients thenadded to each recipe include carefully mea-sured quantities of real lime juice and canesugar to create the Bacardí Mojito, limes andnatural strawberry flavor to create the Bac-ardí Strawberry Daiquirí and real coconutwater to create the fresh, creamy taste of theBacardí Piña Colada.

“As well as delivering a quality cocktailwith maximum convenience and value, theClassic Cocktails range has a new lookwhich will drive footfall,” says Pedro San-tos. “When the entire range is showcasedon a prominent gondola, which highlights itsconvenience benefits, it can act as a realmagnet for holiday travelers.”

PWS is billing Arman Cognac as the jewel in itsportfolio—Arman Extra Old Cognac is a blend of a

hundred rare and selected eaux-de-vie from thepremier growing areas of France

Diverse Flavours has announced that Korean Air has listed the Avon-dale Samsara 2006 as part of its in-flight duty free sales program inthe Skyshop.

Anthony Budd, Managing Director of Diverse Flavours, com-mented: “We are very pleased to continue to supply great South Africanwines to Korean Air. The Avondale Samsara is a tremendous winethat has been awarded 90 Robert Parker points by Wine Advocatemagazine. Last year the Winery was also awarded the sought afterAmorim Environmental Award at the prestigious Drinks Business

Green Awards held in London. So it is a great fit with Korean Air’spremium wine portfolio.”

Samsara is made from Shiraz grapes from organically grownvines that range from 10 to 15 years of age. They provide low yieldsof four to eight tins of healthy, balanced fruit.

Samsara’s character is described as offering notes of soft wood,white pepper, wild berries and fynbos upon nosing. In the mouth, Sam-sara is full, rounded and undeniably grape-tasting with hints of mul-berry and plum, clove and cinnamon.

Korean Air lists Diverse Flavours’ Avondale Samsara in its Skyshop



Liquor News

Inniskillin welcomessubzero temperatures forIcewine harvest 2012After months of watching the weather, Inniskillin Wines recentlyannounced that the annual Icewine harvest went into full swingin Niagara-on-the-Lake in January. Inniskillin, renowned as theglobal leader in Icewine, waited patiently on stand-by for theperfect weather conditions to pick the 2012 harvest of grapes,which will be pressed in the extreme cold to extract their cov-eted nectar.

Fluctuating temperatures kept the team closely watchingthe weather predictions. Inniskillin’s vineyard manager GeraldKlose and winemaker Bruce Nicholson anxiously watchedthe weather and subsequent drop in temperature. The natu-rally frozen grapes of Cabernet Franc and Riesling were har-vested first from the Woerthle Vineyard.

Following that, the Vidal grapes were harvested from theBrae Burn Vineyard, home winery at the Inniskillin Winery.“Nicholson looks for the critical balance between the naturalsugars and the natural acidities. He is anxious to try the firstfreshly pressed juice for an indication of what is to come forthis vintage,” said Inniskillin in a release to the media.

Inniskillin plans to expand the Sparkling Icewine portfolio withthis 2012 vintage by creating a limited release Cabernet FrancSparkling Icewine. Currently Nicholson produces a Vidal SparklingIcewine which has been highly awarded and much sought after.According to Inniskillin, Nicholson is relieved to get started onthis new vintage after a highly successful year of prestigious awardsdominated by his Icewines.

Inniskillin plans to expand the Sparkling Icewine portfolio with this 2012 vintage by creating a limited release Cabernet Franc Sparkling Icewine

Operator DFZ has openeda new retail store showcas-ing two of Pernod Ricard’smost prestigious brands—Martell and Chivas Regal—in the arrivals area of KualaLumpur International Airport.

“We are proud to extendour retail presence in KLIA,one of our key markets inAsia, and have the opportunity to showcase and share exclusive Martelland Chivas Regal experiences with travelers,” says Sandrine Tesniere, SeniorBrand Manager, Pernod Ricard Asia Duty Free. “Both are iconic andprestigious brands in our portfolio and we are using the new space to stagespectacular displays and product exclusivities underlining their ultra-pre-mium credentials and standing within travel retail.”

In the new retail space, Martell Cognac unveiled for the first time inAsia Duty Free its Martell Trunk, a spectacular masterpiece designed byFrench luxury brand Pinel & Pinel. It is a collector’s item featuring theentire range of Martell Cognacs capturing the essence of Martell, its his-tory and its heritage.

The trunk also contains 28 montres (small 20 cl cylindrical flacons)—or seven examples of four remarkable, unique blends. Each one is a tai-lored composition that reproduces an aromatic picture of one of the fourcognac terroirs: Borderies, Grande Champagne, Petite Champagne andFins Bois.

Alongside the Martell Trunk the brand will also present its limited edi-tions, such as Millesime 1968, which is only available in selected travelretail markets worldwide. The Martell Trunk will be presented in the newretail space for three months, after which travelers will be offered a newsensory experience in the form of a unique cognac discovery.

In terms of Chivas Regal, this is the first time the brand has openeda large retail space using its new stylish and modern visual identity. Itfeatures vibrant 3D merchandising units in a bar-style format whichplays on depth and contrasting perspectives to bring to life the brand’spersonality and style.

The retail space will celebrate the launch of The Chivas Brothers’ Blend,a permanent addition to the portfolio and the first product launch for thebrand since Chivas Regal 25 Year Old in 2007. This travel retail exclu-sive whisky pays a contemporary tribute to the brand’s rich history, Jamesand John Chivas, and their legendary blending skills. A thoroughlymodern whisky that is ultra smooth and perfect for sharing, this unique12 year old blend uses a carefully selected range of malt whiskies, includ-ing high proportions of Strathislaand Longmorn malts, to recreatethe extra smooth taste that madeChivas Regal’s whiskies famous.The complete Chivas Regal rangewill also be available in store.

Martell andChivas Regallaunch luxurywalkthroughboutique at KLIA

In the new retail space, MartellCognac unveiled for the first time in

Asia Duty Free its Martell Trunk, aspectacular masterpiece designed

by French luxury brand Pinel & Pinel

The Chivas Brothers’ Blend space features vibrant3D merchandising units in a bar-style format whichplays on depth and contrasting perspectives


www.davidoff.com

Smoking seriously harms you and others around you

«YEAR OF THE SNAKE»Limited Edition 2013

dav_yos13_cigars_210x297mm_englisch 18.02.13 12:49 Seite 1

British American Tobacco Global Travel Retail Asia Pacific


wood,” he says.The concentration for Nurman and British

American Tobacco GTRAP is to maintain agiven brand's identity while at the same timemaking sure new ideas are regularly beingbrought to the table. The above offering is agood example of this. By giving consumersa new way to think about the Dunhill brand,British American Tobacco is effectively enhanc-ing the smoking experience.

We asked Nurman how much of a con-centration China is for British AmericanTobacco Global Travel Retail Asia Pacific, andhe told us that while having a presence intravel retail within the country’s airports isimportant, it's the well heeled Chinese trav-eler that is the real focus. “These days the Chi-nese are flying more and more, always look-ing for new premium and limited editionproducts,” he explains. “As such, it's impor-tant for us to have a strong presence through-out Asia Pacific at the airports where the Chi-nese are traveling.”

Steeped in traditionAs mentioned, British American Tobacco iscurrently planning the launch of State Express555 Platinum, and the brand in general cer-tainly possesses its share of history. In 1896Sir Albert Levy undertook a journey to theUSA in pursuit of the finest tobaccos. Hetraveled from New York to Buffalo on thefastest train in the world at the time, theEmpire State Express. It moved at 112.5 mph,

an impressive clip in those days.Inspired by this train journey, Sir Levy

registered the trademark brand State Express555. He envisaged it as an authentic Virginiablend that sold on a reputation of the high-est quality. In fact, Sir Levy insisted that thebrand continued to be made by hand untilearly 1930, long after most cigarettes hadswitched to machine manufacturing.

With the new range of State Express 555premium tobacco blends, British AmericanTobacco now seeks to draw inspiration fromLevy's legacy of quality and authenticity.“We have taken great effort to choose the bestVirginia tobacco and minutely detail all theelements of the mix to make it worthy of thebrand's heritage,” Nurman explains.

Nurman concluded by telling Asia DutyFree that British American Tobacco GTRAPis present in all duty free channels in theregion and sees opportunities for 2013: “Wesee a growth market for travel retail provenby the increasing number of travelers throughmajor airports and their increasing spend-ing power,” he said. “In travel retail envi-ronments, Asian adult consumers pay spe-cial attention to products which are of lim-ited edition, exclusive for travel retail and suit-able for gifting purposes. British Ameri-can Tobacco continues to work hand inhand with our customers to leverage onthose unique qualities. c

ritish American Tobacco GlobalTravel Retail Asia Pacific (BritishAmerican Tobacco GTRAP) hasannounced that it plans to show-case two super-premium prod-

uct offerings in Asia Pacific this year, Dun-hill Gran Cru and State Express 555 Platinum.

Dunhill Gran Cru Special Reserve UgandaTaste contains 61% Virginia, Burley anddelicate Maryland tobaccos acquired fromthe Nile Valley in Uganda during 2010,which proved to be a special year for thetobacco leaves. This harvest was reservedand carefully laid down, allowing layer uponlayer of tobacco to mingle and mature, bal-ancing and perfecting the flavor.

Justinus Nurman, Head of Global TravelRetail Asia Pacific at British AmericanTobacco GTRAP, tells us that after 18 monthsof aging, the leaves were complimented withthe finest Maryland and Oriental tobaccos.“The resulting sensation has a deeper, toastedexperience with hints of spice and cedar

B

“We see a growth market fortravel retail proven by theincreasing number of travelersthrough major airports and theirincreasing spending power.”

Justinus Nurman, Head of Global Travel Retail Asia Pacific at British American Tobacco GTRAP

Limited editions are a great way of capturing adultsmokers’ imaginations in travel retail; pictured is thelimited Lucky Strike Luggage Edition

Dunhill Gran Cru SpecialReserve Uganda Tastecontains 61% Virginia, Burley andMaryland tobaccos acquired from theNile Valley in Uganda during 2010, whichproved to be a special year for the tobacco leaves

With the new range of State Express 555 premiumtobacco blends, British American Tobacco seeks todraw inspiration from Sir Albert Levy's legacy of qualityand authenticity

New products, new opportunitiesBritish American Tobacco Global Travel Retail Asia Pacific plans new launches to cater to adultsmokers in Asia travel retail BY RYAN WHITE


Prowood_Layout 1 12-08-27 11:06 AM Page 1

Selección Petit Robustosfrom Habanos is presented in

an elegant travel retail case

Tobacco News

Habanos recently announced that it has intro-duced Selección Petit Robustos, presentedin an elegant travel retail case—of which just5,000 have been produced—that will surelybecome a valuable and special gift appreci-ated by Habanos enthusiasts. The limitededition will be available at selected duty freeand travel retail points of sales in the next cou-ple of weeks, the company says.

The beautiful case contains 10 Petit Robus-tos (50 ring gauge x 102mm in the length), a vitolawidely accepted by Cuban cigar lovers. This

selection includes five of the most prestigiousHabanos brands: Cohiba, Montecristo, Romeoy Julieta, Partagás and H. Upmann.

The possibility of enjoying each brand's par-ticular blend in a comparable format makesthis Petit Robustos Selection an attractivechoice for those who want to enjoy a wide sam-ple of the Habanos most prestigious flavorsin just 20 minutes,” says the company. “Allthese Habanos have been made with fillerand binder leaves from the Vuelta Abajo (D.O.P)zone in Pinar del Rio, Cuba.”

Imperial Tobacco has launched a newlimited edition for Chinese New Year2013: Davidoff Snake Edition. The David-off Snake Edition was launched into air-port shops in the Middle East, India,Asia, Indochina, selected airport shopsin the Americas and Europe, as well asselected ship chandelling operators fromDecember 12 through the peak travel-ing season of Chinese New Year 2013.

Containing cigarettes of renownedquality from the Davidoff Premium LineClassic, Gold and Supreme variants,both packs and cartons are intricatelyembossed with snake skin textures.To enhance visibility and relevance ofthe edition, the brushed steel bands ofthe brand are replaced with gold hot foil.Curve designs on the cartons andpacks also form an infinity pattern whenjointly merchandised on shelves bring-ing the “Snake” concept alive.

“Chinese travelers continue to lookfor their brands in unique packagingdesigns within travel retail and evenmore so during this period of high gift-ing propensity,” says Nigel Ng, BrandMarketing Davidoff – Global Duty Free.“Not only is this edition highly relevantto our Chinese shoppers, travelers ofother nationalities are also offered aunique purchase opportunity, allowingthe brand to form part of their travelexperiences.”

Imperial Tobaccocelebrates a richtradition

2013 is represented in the Chinese calendar by the signof the snake. To mark the occasion, Davidoff has

created the new "Year of the Snake" edition ofcigars with three fine limited edition accessories.

In the Chinese calendar, the sixth of thetwelve Chinese signs of the zodiac is charac-terized as wise and graceful. The Snake is thequintessential symbol for intelligence and pro-fundity. Integrating these characteristics into anaroma represents a challenge for the DavidoffMaster Blender: namely, to combine particularly old

tobaccos to successfully create three layers of flavor—from floral nuances reminiscent of honey, to caramel andfinally to peppery notes of wood or nut, whilst also pro-

viding a captivating quality. Highly aromatic, withlight-medium strength and Cuban thick-ness, the cigar develops a charmingcreaminess due to the Ecuadorianbinder. Notably, the release is limited toonly 4,500 pieces.

This sought-after releasefrom Davidoff islimited to only4,500 pieces

Davidoff releases Year of the Snake edition


Habanos launches SelecciónPetit Robustos for travel retail



vanilla and Djarum cherry are enjoyed by consumers in some Euro-pean countries. In addition, Djarum invented an advanced cloveprocessing technology known as Superfine Clove.

At home, Djarum Super is recognized as being among the mostpremium priced filtered kretek. Djarum Super is currently thebrand most preferred by young kretek consumers in Indonesia. InEurope, Djarum Black and Djarum Special are the two most pop-ular kretek brands.

A kretek legacyAs the most recognized kretek brand to come out of Kudus, Djarumactively donates to the preservation and cultivation of the kretekmuseum located in the brand's hometown.

Environment has also been a main concern of Djarum. One of itssuccesses was mountain Muria reforestation in Kudus, Central Java.Once a barren land, Mountain Muria now has 30,000 trees. Otherachievements include a plantation of 80,000 mango trees in Kudus.

Since 1984, Djarum has granted scholarships to 5,000 students.Recipients from provinces throughout Indonesia are provided withfunding to attend either private or public institutions in Indonesia.

Since 1968, Djarum has become an active member of the sportscommunity and funded the making of Indonesia’s future bad-minton world champions. PB Djarum, the Djarum badmintonclub in Kudus, is recognized as one of the strongest and mostrespected clubs in the country. Djarum’s successes have been con-sistent, the most significant occurring at the 1992 BarcelonaOlympics—the winners of the gold, silver and bronze medals in themen’s singles were trained by PB Djarum as youths. c

he clove cigarette, commonly calledkretek, was developed in the late 19thcentury in the city of Kudus, CentralJava. It was here that a man named H.Jamahri rubbed on his chest an ointment

made of clove oil that provided temporary relieffrom recurring chest pains. Soothed by its warmyet refreshing sensation, Jamahri proceeded toblend a pinch of clove cuttings with tobacco so hecould also feel the clove work in his chest whensmoking the blend. And as legend has it, Jamahri’schest pains disappeared and word of the mixturequickly spread throughout Kudus.

Named kretek after the crackling sound of thecloves, Jamahri's mixture grew to be the backboneof his hometown’s economy and put Kudus on themap as the capital of kretek.

Fostering the tradition of kretek making, Oei WieGwan established Djarum’s first workshop in 1951in Kudus. With only 70 pairs of skillful hands and just enough hand-rolling equipment, Oei oversaw the selection and blending of clovesand tobacco. To ensure consistent quality, it was not uncommon tofind Oei on the shop floor personally supervising each worker.

After Oei’s passing in 1963, his sons Bambang and Budi Hartonotook over the company.

Gaining devoteesAfter the introduction of machine-rolling technology in 1970,Djarum’s growth catapulted. Today, Djarum is made of 86,000employees and the factory in Kudus has a production capacity of60 billion sticks per annum.

In Indonesia, kretek dominates the cigarette market at 92%; theremaining is made of white cigarettes. Kretek also has a significantcontribution to cigarette sales in neighboring countries, such asMalaysia and Brunei Darussalam.

Today, the Djarum blend of kretek is available in South East Asia,Japan, Europe, North, Central and South America, the Middle East,South Africa and Australia.

Winning blendsDjarum pioneered the production of low-tar, low-nicotine kretekwith its Djarum Lights brand, which was especially created for theNorth American market. Djarum also pioneered the art of kretekcigarillos with its Djarum Cigarillos brand. Presently available infive continents, Djarum was the first to internationally marketbrown and black paper kretek as well as produce vanilla- andcherry-flavored kretek blends. Today, Djarum menthol, Djarum

T

Djarumgives smokinga creative edgeOver 60 years in the making, the companysits at the forefront of the industry withinnovations in cigarette making

Djarum

Djarum was also the first toproduce vanilla- and cherry-flavored kretek blends

Djarum was the firstto internationallymarket brown andblack paper kretek



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