ASIA Volume 16 No. 2a

APRIL 2012 • VOL 16, NO 1 New digital edition

China’sEasternpromıse 10

W W W . D U T Y F R E E M A G A Z I N E . C A

Shilla gainsmomentum 14Asianaccent 34

Star inthe east 41

http://www.nuancewatson.com.hk/eng/index.htm

http://www.nuancewatson.com.hk/eng/index.htm

4 ASIA DUTY FREE & TRAVEL RETAILING APRIL 2012

Letter from the Editor

I’d like to welcome you to our first ever digital magazine across all magazines,distributed right to your inboxes. Needless to say, the Asian market is on the upand up, and it only felt right to introduce two new Asia DF & TR digital edi-tions, one prior to the TFAP show and the other in the run-up to the TFWA

WE Cannes show.Compatible with all smartphones, tablets and web browsers, the digital magazine

is presented in a flip format, which has the look and feel of a traditional magazine. How-ever, it offers a lot more. You can use the search engine to find relevant words, topicsand articles effortlessly. Furthermore, embedded video, easily accessed with the touchof a button, enhances the presentation and depth of the magazine’s content. You canshare content with colleagues by emailing, tweeting or posting the digital edition—or by simply sharing a file, and bookmarks enable you to retrieve the most relevantcontent anytime, quickly and easily. Finally, content links to relevant web pages whereyou can learn more about topics of particular interest.

Each edition is sent directly to 3,350 industry subscribers specifically in the Asia-Pacific region, and contains exclusive regional reports, interviews with leading airlinesdoing business in the Asian market and feature articles highlighting the latest trendsin the top duty free categories in Asia, including skincare, confectionery, cosmetics, jew-elry, liquor, tobacco and more.

In this edition, we look at China’s ongoing economic growth, which continues tooutpace most of the world. China Duty Free Group (CDFG) has for a long time beenby far the biggest player in the tightly controlled Chinese market, but things are begin-ning to change for CDFG as the Chinese government shows signs of loosening the rulesfor the nation’s duty free businesses, allowing more retailers into the market andexpanding the opportunities for existing businesses.

A large part of the market-oriented activity in China is concentrated on Hainan,which has quickly become a vital testing ground for the nation’s first domestic mar-ket duty free retail operations. What happens there could set the tone for broader reformand revitalization throughout China.

We’re also taking a close look at India. DDF has clearly broken new ground in Indiantravel retail in recent years, but that didn’t stop it from having a rough go at first as itfought to keep pace with an incredible surge of customer demand. Fortunately for thepioneering retailer, it has now mastered the many idiosyncrasies of doing business inthe market and today is thriving. Indeed, that kind of news is encouraging for every-one in travel retail.

Enjoy our first digital edition and please let us know what you think!

Kind regards,

Hibah [email protected]

Boomingbusiness

Asia Duty 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,

states, regions and territories on the Asian continent

and in the Pacific Rim: Australia, Bangladesh, Bhutan,

Brunei, Cambodia, China, Fiji, French Polynesia, Guam,

Hawaii, Hong Kong, India, Indonesia, Japan, Macao,

Malaysia, Maldive Islands, Myanmar, Nepal, New

Caledonia, New Guinea, New Zealand, Philippines,

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

Taiwan, Thailand, Tonga, Vanuatu and Vietnam.

The views expressed in this magazine do not necessarily

reflect the views and opinions of the publisher or

editor. April digital edition 2012, Vol. 16, No. 1. All rights

reserved. Nothing may be reprinted in whole or in

part without written permission from the publisher.

© 2012 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

www.dutyfreemagazine.ca

PUBLISHER

Aijaz [email protected]

EDITORIAL DEPARTMENT

EDITOR

Hibah [email protected]

ASIA ASSOCIATE EDITOR

P. [email protected]

CONCESSIONS, LIQUOR, & TOBACCO EDITOR

Ryan [email protected]

ART DIRECTOR

Patrick [email protected]

LAYOUT

Jeff [email protected]

CONTRIBUTORS

Andrew BrooksLorna Strickland-Cook

ADVERTISING SALES

ADVERTISING & MARKETING MANAGER

Kim [email protected]

CIRCULATION & SUBSCRIPTION MANAGER

Deepa [email protected]

http://www.remy-cointreau.com/


10APRIL 2012 • VOL 16, NO 1

8 IN BRIEFAigner fast out of the gate at Changi • China Travel Retailevent to change venue due to increased attendee interest• TFWA Asia Pacific offers online preview of products

10 TOP STORY: CHINA REPORT

Eastern promiseChina’s duty-free sector may still be off limits to foreignfirms, but local retailers are ramping up their activities totake advantage of growing demand in arguably theworld’s hottest market - and savvy foreign operators aretaking the long view

14 SHILLA DUTY FREE

Korea moveSeoul-based travel retailer Shilla Duty Free is going fromstrength to strength as it launches an ambitious bid tojoin the top table of global duty-free players

16 DELHI DUTY FREE

Taming a tigerDelhi Duty Free’s stores at Delhi airport’s T3 have been awild success, revealing the pent-up demand for top-notch airport retail in India

18 NUANCE-WATSON (HK)

Don’t look downAs Nuance-Watson (HK) prepares for the results of one ofthe most hard-fought tender races in the history of travelretail, it’s striving for ever higher peaks of performance

20 CHANGI AIRPORT GROUP

Roar energyThe Lion City’s hub operator, Changi Airport Group, isonce again showing the travel-retail trade how it’s done,with a drive for success that’s keener than ever

22 MÄURER AND WIRTZ

Separating the men from the boysAs perfume company Mäurer and Wirtz buys theBaldessarini license from P&G, we find out what thename means to the company and its plans for growth

23 KIEHL’S

Kiehl’s announces “Travel-Tested Solutions”Unisex skin collection offers remediation for physical andpsychological impact of travel

24 BEAUTY BEAT: FRAGRANCES

Beauty boostersA host of alluring scents fill the air as the new seasonapproaches

25 BEAUTY BEAT: SKINCARE & COSMETICS

Beauty regimeCreative cosmetics and revolutionary skincare: travelingconsumers will have plenty of options to choose from thisseason

www.dutyfreemagazine.ca ASIA DUTY FREE & TRAVEL RETAILING 718

26

26 WHITEHOUSE TRAVEL RETAIL

Hello AsiaIt’s been a solidly strong year for Whitehouse Travel Retailas the prolific supplier and distributor prepares for its firstever TFAP Show, bringing jewelry, watches, sunglassesgadgets and plush to the Asia market

28 MISAKI

Watch this space As Misaki prepares for another TFAP exhibition, thecompany gives Asia Duty Free the lowdown on how itsAsia business has fared over the last year and new plansin the pipeline

29 MARS ITR

Room to growFor Mars ITR’s Jack Tabbers, the favorite category inretail can still benefit from more focused execution

30 WORLD OF PATRIA

Bringing the bestWorld of Patria International brings a stable of high-endand well respected brands for its first visit to the TFWAAP exhibition in Singapore

32 PATRÓN

The lure of the EastPatrón courts the massive, and growing, Asian market

34 CAMUS

Asian accentCamus Cognac’s brand recognition in Asia is boosted bythe popularity of the category

41 RAYS TOBACCO

Star in the eastBorn in a tough economy, Ray Tobacco knows how tosurvive—and thrive

42 NEW & NOTABLEBottega Diamond • Chase Marmalade Vodka• Aloha Mix


In BriefInk, the global leader in connecting companies with travelers,and GIS Events, an event’s organizer in the Chinese travel indus-try, announced that due to increased demand for exhibitionspace, The China Travel Retail Event will now be taking placeat the Marriott City Centre in Shanghai on July 23 to 25 2012.The two day China Travel Retail event (CTR) has now beenexpanded to host 20 sponsors, over 200 delegates and aworld class line up of speakers. “We have been completely overwhelmed with the demand

for attendance and exhibition space since announcing theoriginal dates,” said Nick Tan, Managing Director of GIS. “Assuch, we are delighted that we have had to move the event toa fantastic new venue at the Marriott City Centre. This conferenceis the first of its kind in China and we are really excited aboutthe demand for attendance that has shaped our event.”This inaugural CTR conference will bring together decision

makers from airports, airlines, seaports, cruise/ferry companies,and travel retail brands seeking to understand and market tothe rapidly growing Chinese travel retail market. CTR will show-case best practices both domestically inside China at Chineseairports and airlines, at sea, as well as how companies are suc-cessfully selling to Chinese consumers travelling overseas. Jeffrey O’Rourke, Chief Executive of Ink commented, “with

Asia Pacific set to overtake Europe as the largest travel retailmarket in 2012 and Chinese consumers making up the largestpart of the Asian market, We believe that the China Travel Retailevent is a must attend event for travel retailers and conces-sionaires, health and beauty, gifts, confectionery, eyewear,fashion & accessories, tobacco and wine and spirits brandsalike. We believe that with the delegates already signed up aswell as the world class speakers we have on board, CTR willbecome a highly successful event for many years to come.”

TFWA Asia Pacific offersonline preview of productsTFWA has announced the TFWA Product Showcase, a new ser-vice for visitors and journalists who want to preview the prod-ucts to be exhibited at TFWA Asia Pacific & GATE ONE2ONE(Singapore, May 13-17). The TFWA Product Showcase is avail-able on TFWA’s website and features images and informationabout products that will debut or be highlighted at the event. Accessible at www.tfwaproductshowcase.com, the ser-

vice offers news from leading brands. Companies exhibiting at the show can upload the key

product details themselves, as well as photographs and pressreleases, directly to a dedicated section of the website by fol-lowing online instructions.Journalists, buyers and other visitors can search the Show-

case by product category, company or brand and use the infor-mation to plan their visit or for their show preview articles. Thefree service, which is linked to the online Exhibition Directory,went live on Tuesday April 10 and will be updated with newentries during the month leading up to the show.TFWA says it will monitor the site to ensure that only exhibit-

ing brands are featured.Pre-registration for TFWA Asia Pacific & GATE ONE2ONE

exhibition and conference event is now open at www.tfwa.com.

German high fashion house Aigner says that it’s off to a flyingstart at Singapore’s Changi Airport, one of the most importantair hubs in Asian duty free. The company opened a representa-tive 30 square meter Aigner corner at Changi in February, andthe company says that the first month of operations has beenhighly successful.

Aigner has also announced two new listings for March. SilkAir has listed Aigner’s multi-functional wallet while Air Asia hastaken on Aigner’s reversible hat.

Aigner fast out of the gate at Changi

China Travel Retail event has moved to the MarriottCity Centre in Shanghai

China Travel Retail eventto change venue due toincreased attendee interest

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Top Story: China Duty Free


As China’s economicgrowth continues to out-pace that of most of therest of the world, thenation’s travel retailersare among the big win-

ners, with enviable sales increases in amarket where the purchasing power oflocal travelers is growing rapidly.

For years, China Duty Free Group(CDFG) has been far and away the biggest

player in China’s tightly controlled mar-ket, operating 209 duty-free outlets anddwarfing its longtime smaller rival, Sun-rise Duty Free. However, the travel-retailheavyweight is beginning to show signs ofchanging as China’s central governmentbegins to relax the rules that govern thecountry’s duty-free market, allowing moreretailers entry and opportunities to expandexisting businesses.

Much of the action has taken place on the

southern island of Hainan, which has beena focus of the central government’s effortsto develop a resort industry, and which hasserved as a testing ground for the nation’sfirst domestic market duty-free retail.

Almost a year after legislation came intoeffect permitting Chinese nationals to buyup to 5,000 yuan (US$789) of duty-freegoods when traveling domestically from theisland province, the Hainan “experiment” hasbecome a fully-fledged duty-free phenom-

Easternpromıse

China’s duty-free sector may still be off limits to foreign firms, but local retailers areramping up their activities to take advantage of growing demand in arguably the world’shottest market - and savvy foreign operators are taking the long view BY P. CONVERY

China Duty Free is the biggest duty freeretailer in China, operating 209 outlets


enon, following a trail blazed by other domes-tic duty-free hotspots such as South Korea’sJeju island, Okinawa in Japan and theMalaysian holiday island of Langkawi.

CDFG, which was the sole duty-free oper-ator on the island at the time the policywent into effect, has witnessed an extraor-dinary shopping boom at its duty free-storein the Hainanese city of Sanya. On the daythe new policy came into force, crowds hadgathered outside CDFG’s Sanya store evenbefore it opened its doors, and by Decem-ber, the store was welcoming more than14,000 customers and processing over 5,000transactions every day.

CDFG Marketing Director Gu Naxinsays the retailer’s emphasis has been on pro-viding top-notch service. “Our focus is toupgrade the quality of service and bring moreconvenience to customers,” he says. “We[operate on] the principle of ‘service comesfirst at the Sanya duty-free shop, and wehave upgraded the shopping environment.We are also detail-oriented. Our staff areproperly trained to answer queries and callsfrom customers.”

And he says CDFG has been a keenobserver of the development of the offshoreduty-free hubs in South Korea and Japan,regarding them not as competitors but asexamples to follow.

“We communicate all the time with Jejuisland duty free,” says Gu. “We learn a lotfrom them.”

CDFG has wasted no time in building onthe opportunities presented by China’s bur-geoning duty-free market. During last Christ-mas and New Year, the Sanya duty-free shopand more than 20 other stores offered arange of free gifts, discounts and promotions,with 30% off the prices of a number of

high-end, international brands, includingCoach, Gucci, Bally, and Emporio Armani.Other brands such as Sisley, Fossil, Kiehl’sand La Mer set up promotion counters forthe festive season.

The retailer launches promotional cam-paigns at its Sanya duty-free store on a reg-ular basis in order to boost brand recog-nition, says Gu. Some of the most success-ful of the past year include Clinique’s“Happy Day” campaign, which gave cus-tomers an opportunity to have their pho-tograph taken at counters draped in orange,the brand’s signature color, and shoppersbuying five or more Clinique items receivedan accessories box.

CDFG also launched a very popular luckydraw in more than 20 stores in 2011, the topprize being a seven-day holiday in France for10 lucky customers.

“We had a special treat for them to go toEurope, and customers were very happy,” saysGu. “We had very good feedback, so we’relikely to repeat the campaign this year, withthe prize of a trip to the London Olympics.”

And to celebrate the first anniversary ofdomestic duty-free, CDFG held a promotionthat offered discounts and gifts-with-pur-chase at the Sanya Duty Free Store in April.

Like some other travel retailers, CDFG ismoving away from a brand-specific promo-tional strategy and towards promotions aimedat boosting sales across entire categories.

“We’re now more likely to promote ourbrands all together instead of doing it oneby one,” says Gu. “We negotiate with our sup-pliers before initiating these promotions,and we have also upgraded our logistics,commodity clearance, warehousing man-agement, distribution, and replenishment inorder to support them.”

The results of all this activity are plain tosee in CDFG’s accounts. For 2011, the retailerannounced a 40% surge in its net profit, to2.3 billion yuan (US$363 million), on rev-enue that was up by more than one-third,to 12 billion yuan (US$1.9 billion).

Now, CDFG is taking its next step onHainan, building what it says will be theworld’s biggest duty-free complex at HaitangBay, in Sanya. The complex will offer 350,000square meter of space, including 150,000square meters dedicated to commercial ser-vices, featuring a massive retail complex, aluxury brand exhibition area, a designerhotel and a large food and beverage area.

“It will be the biggest duty-free [complex]in the world after its completion,” says Gu.“We believe that it will have a positive effecton driving forward the [development] ofHainan as an international destination andon the consumption of luxury goods byChinese residents.”

Phase one of the project is due to openin 2014.

And domestic duty free doesn’t end withHainan. Authorities in the city of Tianjin,keen to emulate the island province’s success,are planning a duty-free shopping zone onnearby Dongjiang island. Dongjiang is justa 45-minute car journey from downtownTianjin and less than two hours from Bei-jing, and setting up a duty-free zone thereis likely to make it a big draw for the region’sresidents, who will no longer need to travelto Hainan or Hong Kong, or internationally,to shop duty free.

Gu says that the Dongjiang project is stillunder discussion, and that CDFG is notcurrently involved. But the retailer is pursuingother opportunities for expansion. It oper-ates and supplies duty-free shops in Taiwan,

Top Story: China Duty Free


on Kinmen island, and in Taichung, and ithas high hopes for its bids for concessionsat Hong Kong International Airport.

“We’re trying to expand, and Hong KongInternational Airport is our first step,” saysGu. “In Hong Kong, we’re competing withworldwide duty-free companies. We havemany things to learn compared to thesecompanies.”

If CDFG wins concessions at Hong KongInternational Airport, Gu says, “it will putus on the map with other well-known inter-national duty-free operators.”

For the near future, however, CDFG willmaintain its focus on its Sanya duty-free storeand the upcoming Haitang Bay complex.

“We have to focus on domestic duty free,as Hainan opens up a window for Chineseconsumers to buy luxury goods inside China,so they don’t have to buy overseas,” Gu says.

As CDFG goes from strength tostrength, China’s central government is keennot to see too much valuable foreign exchangeflow out of the country, and is encouragingChinese travelers to spend their travel-retailbudgets at home. This may well mean morecompetition in Chinese travel retail in future,although for now foreign retailers remainfirmly locked out of the duty-free market andoperate instead in duty-paid and as suppli-ers to local partners.

It is a timely policy development, asthe World Luxury Association forecasts thatthe size of China’s luxury goods market willovertake Japan’s this year.

This consumption boom has promptedChina’s central government to allow moreretailers into the country’s duty-free market.Last December, for instance, a new domes-tic duty-free store opened at Haikou MeilanInternational Airport, on Hainan island.

The 2,200 square meter store was openedby Hainan Provincial Duty Free Co. Ltd(HNDF), with international duty-free giantDFS acting as its exclusive supplier and pro-viding a range of management services. Andin an echo of CDFG’s runaway success inSanya, it was jam-packed with travelers lessthan an hour after the doors swung open.Although it’s smaller than CDFG’s Sanyastore, HNDF’s airport outlet has the advan-tage that customers can take their purchaseswith them immediately rather than havingto collect them at the airport.

HNDF - the fifth firm to be granted aduty-free license in China after CDFG, Sun-rise Duty Free, Shenzhen Duty Free andZhuhai Duty Free - has ambitious plans forfurther duty-free operations on Hainan,including downtown stores, although eachnew opening will require approval fromChina’s central government.

Even though foreign firms remain barredfrom operating their own duty-free stores,as such, Dufry is one non-Chinese retailer thathas made some progress in breaking intoChinese travel retail. Dufry operates 20 duty-paid stores in the domestic areas of Shang-hai’s Hongqiao Airport and Beijing CapitalInternational Airport , under a seven-year

concession agreement, and the company wasrecently granted concessions for duty-paidperfumes, cosmetics, fashion and accessoriesstores at Chengdu International Airport.

But Dufry, like other foreign retailers, isbiding its time when it comes to any open-ing of the duty-free market to non-Chi-nese players.

“We are looking into any opportunityin China that fits our strategic directionand appears to be commercially viable,” saysRene Riedi, Dufry’s Chief Operating Offi-cer for Eurasia. “At the moment we’re focusedon duty paid, but we would also be happyto look at duty free once the market opens.”

Despite the limitations imposed on for-eign retailers, Riedi remains upbeat on theoutlook for the market.

“There is indeed an increased focus onChina, and we expect that we will continueto see more competition in the travel-retailspace,” he says. “We are quite confident thatthe travel-retail market in China will in thelong run deliver good returns to us.”

And Dufry hasn’t been idle, waiting forchange to come. Instead, it has been prepar-ing itself to compete in an increasinglycrowded market.

“We have been active in growing [our]floor space, on the one hand, and estab-lishing relationships with decision-makers,on the other hand,” Riedi says. “We think wehave gained a good understanding of themarket particularities and we are well pre-pared for future market challenges.”

Dufry China has been actively growingfloor space in its existing stores


Sunrise Duty Free, the second retailer tobe granted a duty-free license, and whichoperates duty-free shops at Shanghai Pudong,Shanghai Hongqiao and Beijing CapitalInternational airports, has also benefitedfrom China’s economic boom. It’s seen whatone of its most senior executives describesas a “healthy” increase in revenue over thepast decade.

“We’re pleased with the fact that the Chi-nese are buying more,” says the executive, whoasked not to be named. “The revenue cer-tainly depends on what the economic out-look and conditions are, but we’re opti-mistic about China’s travel-retail market.”

“We want to expand, but cautiously,” hesays. “We do not expand for expansion’ssake, though. It’s our intention to run whatwe have well, rather than giving more andmore, because sometimes [in such circum-stances] you tend to pay less attention to yourcore business,” he says.

“We’ll work on what we have, increasingthe number of brands, including interna-tional luxury brands,” he says. “We alwayshave worked closely with our brands onadvertising campaigns, promotions andproduct launches.”

The executive points out that Sunrisetargets a broader market than Chinese trav-elers alone.

“The Japanese and Koreans are also buy-ing a lot, so we focus on Asian customers ingeneral,” he says.

That focus does not, however, include

the burgeoning action on Hainan.“We could have gone to Hainan if we

wanted to,” he says, “but we choose not to,due to the fact that it’s quite far away and dif-ficult for us to control properly. Also, Hainan

is in a development stage, so we don’t knowwhere it’s going to go.”

But he’s positive about the market over-all, and about prospects for other travelretailers.

“Zhuhai Duty Free is huge, ShenzhenDuty Free is huge, CDFG is even bigger,” hesays. “We are little brothers, but being lit-tle we can do fine. There’s a lot out there.Every competitor has advantages that oth-

ers don’t have, such as local knowledge andso forth. From that standpoint, we can runour business our own way and we can keepit flexible.”

“The growth of the business is positive

for everyone,” the executive says. “And Ithink that growth will take care of itself andthe participants in the market.”

As China’s economy continues to grow,albeit at a slightly slower pace, and as the gov-ernment steers it from an export-drivenfocus to a model based more on domesticconsumption, travel retailers look set tocash in - so long as they pinpoint their posi-tion in this huge and exciting market. c

“We are looking intoany opportunity in Chinathat fits our strategicdirection and appears tobe commercially viable. At the moment we’refocused on duty paid, but we would also behappy to look at duty freeonce the market opens.”

Rene Riedi, Dufry’s Chief Operating Officer for Eurasia

Shilla Duty Free


South Korean travel retailer ShillaDuty Free had a remarkable yearin 2011, building on its portfolioof the world’s most coveted brands

and launching ambitious expansion plans.Perhaps Shilla’s biggest single accom-

plishment last year was its victory over itslarger rival, Lotte Duty Free, in a two-horserace for a partnership with luxury fashionhouse Louis Vuitton. In September, Shillaopened the world’s first Louis Vuitton storein an airport - at Seoul ‘s Incheon - causingquite an upset at Lotte.

Opening the 550 square meter store wasa coup for Shilla, but it came at a cost, as otherhigh-end brands reacted angrily to the pref-erential treatment Shilla extended to LouisVuitton in order to clinch the deal. The awardof the best retail space in the airport to LouisVuitton and a rental of 6-7% - as opposedto the 20% paid by other brands - proved toomuch for Gucci to stomach, prompting it toclose the stores it operated with Shilla andteam up with Lotte. Chanel also refused torenew its contract with Shilla, and pulledout of the airport in mid-September.

Shilla is reluctant to reveal how much rev-enue its Louis Vuitton store - the largest of itskind worldwide - is bringing in, due to com-mercial sensitivities, but it is estimated thatit could generate as much as US$65 millionsales annually, thanks largely to growingnumbers of high-spending Chinese travelers.

Shilla’s sales to Chinese travelers have

become increasingly important in recentyears, says Shilla Vice President Jason Cha.

“Sales to Chinese have been rising sincethe second quarter of 2010, turning the tablesbetween sales receipts from Chinese andJapanese travelers for the first time,” he says.“Sales to Chinese travelers rose 23% in 2011.”

The Chinese are now the biggest customergroup in Shilla’s duty-free stores, accountingfor around 42% of the retailer’s sales.

Shilla has responded to this demographictrend by hiring Chinese-speaking sales staff,and it is looking to hire more.

“Arranging Chinese-speaking staff to helpChinese tourists to shop conveniently issomething we consider very important,” saysCha. “Our Chinese-speaking staff at ourmain downtown store in Seoul wear special“panda” badges so they’re easily recognizable,and we have Chinese-speaking sales staff atour Korean cosmetics zone to help Chinesevisitors chose products. Also, about 30% ofour sales representatives at our Louis Vuit-ton store at Incheon are Chinese speakers.”

The retailer has also organized eventsand promotions targeting Chinese travelers,including a card game event during LunarNew Year, with winners using coupons theywon to make purchases in its stores. Shillasays it plans similar events in the future,especially during the peak travel season andaround Chinese national holidays.

In March, Shilla started using social mediato drive sales to Chinese travelers, with a mar-

keting campaign on Sina Weibo - the Chi-nese equivalent of Twitter - offering shop-ping information and promotions.

“We are working on establishing a rela-tionship with Sina Weibo [for a presence on]their homepage,” says Cha.

Among the best-selling products to theChinese, Shilla says, are cosmetics from SouthKorean brands such as Misha, The Face Shopand Innisfree, as well as high-end internationalbrands including Estée Lauder, Sulhwasoo andDior. And it says its Louis Vuitton venture hasbeen a hit among Chinese travelers.

As its customers’ tastes have becomemore diversified, Shilla’s brand portfoliohas continued to grow. In March, Shillapartnered with another famous brand –women’s apparel label Tory Burch – to openan outlet alongside the cosmetics zone at itsmain Seoul store.

Shilla’s success at home is something itwould very much like to replicate abroad,as rival Lotte is already attempting withtwo foreign store openings to date. But Chais modest, saying the retailer still has someway to go before it becomes a global playerin travel retail.

“We are currently in the trial and learn-ing process with regard to going global,” hesays. “But if an opportunity comes our way,

we will do our best to submit either a con-cession proposal or joint-venture equivalentwith a local partner.”

Shilla may be on a learning curve whenit comes to moving beyond its home mar-ket, but the signs so far are certainly encour-aging. The retailer has submitted bids for theairside general merchandise concession atHong Kong International Airport, and forthe duty-free concession at Los AngelesInternational Airport - a contract for manyyears held by DFS.

If Shilla is successful in securing those con-cessions, the stage will be set for even big-ger things than this ambitious retailer hasachieved so far. c

KoreamoveSeoul-based travel retailer Shilla Duty Free

is going from strength to strength as itlaunches an ambitious bid to join the top

table of global duty-free playersBY P. CONVERY

Shilla opened the world’s first Louis Vuitton store inIncheon International Airport

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Delhi Duty Free


When Delhi DutyFree opened itsdoors at IndiraGandhi Interna-

tional Airport’s Terminal 3 a lit-tle over 18 months ago, it strug-gled initially to keep up withroaring demand for an offer thatbroke new ground in Indiantravel retail. Now, in 2012, theretailer - a joint venture betweenAer Rianta International, In-Flight DutyFree Services and Delhi International Air-port Ltd. (Dial) - has mastered the manyidiosyncrasies of doing business in a marketthat’s full of both possibility and potentialpitfalls. And it’s thriving.

“We’ve had double-digit sales growthover the past year,” says DDF’s Chief Exec-utive Steve O’Connor. “We’re doing well,and we’re up on passenger figures.”

“More than 50% of our sales are fromarrivals,” he says. “It’s a big chunk of our busi-ness. It’s generally the same [across airports]in India, because duties are so high down-town, and because people don’t trust theproduct downtown - they’re not sure if it’scopied or if it’s counterfeit.

O’Connor says the less-than-spotless rep-utation of many retailers in India’s domes-tic market has helped Delhi Duty Free to setitself apart as a trusted brand, and thatworking closely with suppliers has helped toenhance its reputation - particularly in itsstrong arrivals business, in which most cus-tomers are Indians.

“It’s about having consistency of prod-uct, and new launches have helped supportthat [by demonstrating] to people that it’sgenuine,” he says.

Delhi Duty Free has been quick to buildon that trust, encouraging its customers toexperiment with new products and brands,

and to trade up. O’Connor says the fact thatdomestic market duties are so high in Indiahas facilitated this.

“If US$15 or $20 can take you up to thenext level that links in well with [percep-tions of] status here and the prestige of abrand. We work with the support of brandsand our suppliers and put on promotions thatencourage them to move up. Once customershave tried it, they’ve got a taste for it. But peo-ple won’t definitely move up [with liquor] ifthey’re buying a bottle downtown, becausethe duty’s just so much - an extra US$30 or$40. For that money you might be able to gettwo bottles of what you normally buy.”

Liquor - especially whisky - is a big partof Delhi Duty Free’s business, and it hasfocused on training its staff to explain thedifferences between different bottles and toencourage customers to trade up. The retailereven has plans to send staff to distilleries inScotland in the coming year, to deepen theirknowledge of the product.

“We have 144 varieties of Scotch,” O’Con-nor says. “It’s a fantastic range, particu-larly in departures, because people havetime to explore.”

He says that’s where Delhi Duty Free’s“Shop N Collect” scheme comes into itsown, encouraging travelers to purchase bot-tles they might otherwise be reluctant tobuy due to concerns about LAGs regula-

tions at other airports and theneed to carry their purchasesaround for their entire trip.

“It’s like being guaranteed asale in arrivals. And what we’vefound is that when we have a spe-cific promotion coming to an end,people don’t want to lose the ben-efit of the promotion, so peoplebuy going out and collect theproduct in arrivals on their return.”

Shop N Collect has been operating for justover seven months, and the retailer has plansto follow it with other initiatives to drive sales,including loyalty cards, new outlets, morebroadly focused promotions and the exten-sion of its product range into other categories.

“We’re looking at mobile units to oper-ate at the gates and talking to Dial about otheropportunities,” says O’Connor. “We’re alsolooking at opening another shop at the endof our existing retail area.”

He says Delhi Duty Free has an agreementwith Dial on destination merchandise, andthat the retailer is especially focused on tea.

“Tea is really big business for us here,and at the moment it’s still fairly basic,” hesays. “But we see huge potential for the cat-egory. We’re talking to suppliers at themoment, and we need to come up withsomething different from just stocking iton the shelves in packets. I want containersof loose tea, from which you can get thearoma, for people to sample it and have teatastings and bring a bit of theatre into thecategory. Tea will be an element of people’sgifting, and we know we can generate a lotmore revenue from it.”

Delhi Duty Free’s success in the shorttime since it opened has been impressive, andas it prepares to diversify into categoriessuch as tea, it’s hard to escape the notion thatsomething positive is brewing. c

Delhi Duty Free’s stores at Delhi airport’s T3 have been a wild success, revealing thepent-up demand for top-notch airport retail in India BY P. CONVERY

TAMING A TIGERDelhi Duty Free in Indira GandhiInternational Airport’s Terminal 3

More than 50% of Delhi Duty Free’s sales are from arrivals

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The past few years have demon-strated how volatile business canbe in travel retail, yet the team atNuance Watson (HK) have sol-

diered on at Asia’s busiest international airhub, in Hong Kong, to turn their businessinto a remarkable success story.

And even as Nuance awaits the outcomeof Airport Authority Hong Kong’s core-cat-egory tenders - one of the most hotly con-tested duty-free bidding contests in theindustry’s history - the retailer is certainlynot sitting on its hands. Faced with the pos-sible loss of key concessions, some retailersmight be expected to let their business devel-opment slow. Not Nuance.

The retailer’s Asia Regional ManagingDirector, Alessandra Piovesana, says: “Hav-ing undergone all the ups and downs withinthe travel retail business at Hong Kong Inter-national Airport [HKIA] over the past 13years, we have learned to remain confident andoptimistic towards our business, with thesame belief, passion and commitment to win.

“Over the years, even amid runninglicenses, we have constantly invested inupgrading and revitalizing passengers’ enjoy-ment of HKIA’s shopping experience viaactivities such as store fit-outs and facilityupgrades, staff training, market research,customer relationship management tools,logistics infrastructure and point of salesystem enhancements.

“Our energy and commitment to growand extend the life span of our airport busi-ness at every opportunity is well demon-

strated through our active participations in68 tenders with 35 wins since beginningoperation at HKIA in 1998.”

In mid-2011, Nuance invested heavily inupgrading its Temptation Duty Free beautystores, dramatically improving the presen-tation of its offer, and has since launched anumber of debuts and firsts, including theunveiling of Agnès b.’s new beauty line, newadditions Aura by Swarovski, Coach, JillStuart, Cosme Decorte and Hello Kitty, andthe first Bottega Veneta fragrance. Among itsother brand debuts are fashion labels TommyHilfiger and Escada, and Italian leather lug-gage brand Piquadro.

“All of these have generated very posi-tive sales results and, even more impor-tantly, good customer responses,” saysPiovesana. “Our primary objective for thesekinds of firsts and exclusive launches is tosatisfy customers’ rapidly changing wantsand needs, which in turn will help toenhance HKIA’s reputation for providingnew choices that constantly exceed cus-tomers’ expectations. All these successfullaunches have built up a proven track recordof our category insights and remarkablesales and marketing capabilities, which hasfurther strengthened our brand partnershipsto secure more top brands’ premierelaunches in future.”

Nuance has not, however, assumed it willemerge victorious in the airport’s tender,the results of which are due any day now, andhas opted to hold off from extending itscustomer loyalty scheme.

“Due to the tender uncertainty, we didnot further expand our customer loyaltyprogram in 2011, as we feel we bear theresponsibility for protecting the interestsand managing the expectations of our cus-tomers,” Piovesana says, adding that theprograms as they stand make a “substantial”contribution to sales.

Further uncertainty has come with theimpact of the eurozone’s debt crisis, butPiovesana says HKIA has neverthelessachieved passenger traffic growth.

“Passenger volume at HKIA set newrecord in 2011,” she says. “For the year, HKIAwelcomed 53.9 million passengers, amongwhich passenger traffic to and from the Chi-nese mainland, Southeast Asia and SouthKorea performed particularly well, withgrowth of 19%, 10% and 15% respectively,compared to 2010. These customers alsobelong to the higher spending group withinthe airport mall. European and Americantraffic growth remained slow and theirspending is still relatively weak as a result oftheir weak economic conditions.

“But we expect a gradual slowdown inboth passenger traffic and spending growthin 2012, partly cushioned by the relativestrength of the Chinese and Southeast Asianeconomies compared with those in Europeand the US.”

Whatever the coming months bring, it’shard to see how Nuance could be betterprepared for the future in an industry char-acterized by a constantly changing operat-ing environment. c

Don’tlookdown As Nuance-Watson (HK) prepares for the results of one of the

most hard-fought tender races in the history of travel retail, it’sstriving for ever higher peaks of performance BY P. CONVERY

Nuance-Watson (HK)

Nuance-Watson (HK) iscommitted to offering itsconsumers top notch service

http://www.nougatlondon.co.uk/


Roar energyThe Lion City’s hub operator, ChangiAirport Group, is once again showingthe travel-retail trade how it’s done, with a drive for success that’s keenerthan ever BY P. CONVERY

Changi Airport Group

Changi Airport Group (CAG),the operator of Singapore’seponymous hub airport, neverdisappoints with its seemingly

endless energy, and it’s redoubling its effortsto build on its success with an ambitiousprogram of expansion and development.

The airport operator is currentlyputting the finishing touches to a revamp ofTerminal 3, focusing on the landside areasof the terminal’s Basement Level 3.

“The last phase of the revamp of Termi-nal 3’s public areas, which focuses on Level3 of the terminal, will be completed in thecoming months,” says CAG Executive VicePresident of Commercial Lim Peck Hoon.”There will be a total of seven restaurants andtwo retail anchor tenants located in this area.”

That follows an upgrade to T3’s BasementLevel 2, which added more than 20 newshops and which was completed late lastyear, bringing the number of retail brandsto almost 30 and the count of F&B outletsto more than 10.

“The upgrading of T1 is also near com-pletion, with the finishing enhancementsbeing done,” says Lim. “Final completion isexpected to be by the end of the secondquarter this year.

“The number of concessions at T1, acrossboth the landside and airside areas, hasincreased by about 25%, and total conces-sion space has gone up by more than 10%.There are [now] over 70 retail shops andmore than 30 F&B outlets in the terminal.”

And if all that revamping weren’t enough,CAG is demolishing its Budget Terminal tomake way for a new Terminal 4, geared toquick aircraft turnaround and with capac-ity for almost four times the 2011 passen-

ger traffic at the terminal it is replacing.“The Budget Terminal will be closed on

September 25, 2012,” says Lim. “The new ter-minal ... will have capacity for 16 million pas-sengers per annum [and] will have a widechoice of retail and F&B offerings, as well aspassenger amenities that will better servethe needs of travelers.”

Construction of T4 will begin in 2013 andCAG expects it to be completed by 2017.

If CAG seems to have targeted low-costcarriers (LCCs) with the quick-turnaround,no-aerobridges T4, it’s certainly not on awhim. LCCs have become a major part ofChangi’s traffic in recent years, and thatgrowth show no signs of slowing.

“The traffic volumes of LCCs have showngrowth of about 35% over the past fiveyears,” says Lim. “Today, LCCs contribute a25% share of Changi’s total passenger vol-ume, compared to about 8% in 2006. In2011, LCCs carried 26% more passengerscompared to 2010.”

She adds that traffic on full-service car-riers also showed healthy growth of around6% in 2011, from a much larger base thanthat of LCC traffic.

In aggregate, Lim says, traffic at Changigrew 10.7% year on year in 2011, to 46.5 mil-lion passenger movements.

Notable among those passengers were theincreasingly commercially important Chinese

mainlanders, who contributed about 20% tototal concession sales at Changi in 2011, rep-resenting impressive growth of 40% year on year.

Lim says they’re among the top five cus-tomer groups at the airport, and that theirfavored product categories are liquor & tobacco,perfumes & cosmetics and luxury & watches.

No doubt with this key passenger segmentin mind, CAG has in the past 12 monthsopened airside stores such as Gassan Watches& Jewellery, wine and cigar concept Vine &Leaf and upscale Chinese lifestyle brandShanghai Tang, among many others.

Later this year it plans to open an airsidewine bar named La Cave, and the airport’sfirst fully-fledged electronics store, Elec-

tronics Hub@T3, landside, in May.And to coax shoppers into making pur-

chases at the airport’s large lineup of retail-ers, CAG will be running its hugely suc-cessful “Be a Changi Millionaire” promotionfor a third time this year, alongside its GSTabsorption program, its Changi Rewardsloyalty scheme and a host of other promo-tions throughout the year.

With all this activity on the agenda, it’shard to see how Lim and her colleagues findthe time to answer questions from journal-ists. The fact that they do is yet more testi-mony to the commitment and drive of theteam that make Changi Airport one of travelretail’s most respected success stories. c

“The upgrading of T1 is also nearcompletion, with the finishingenhancements being done.”Lim Peck Hoon, Executive Vice President of

Commercial, Changi Airport Group

http://lateltin.com/

Mäurer and Wirtz


Last year Mäurer and Wirtz (M&W)decided to overhaul its business anddevelop three divisions. Creating thistriumvirate has brought with it the

opportunity to acquire the Baldessarini licencefrom P&G. At the time of going to press, M&Wwas days away from taking over the operationsof the brand.

Dr Hermann Wirtz, M&W Managing Partnersays “the key change (for the company) has beenthe introduction of three restructured corporateunits. The segment BEAUTY stands for our ownclassic fragrances, as well as our popular licensedproducts from the world of fashion. The PRESTIGEunit looks after our premium fragrances in the selec-tive segment. For the products from Cologne’sGlockengasse such as 4711 Original Eau de Cologneand the ACQUA COLONIA range, we have set upthe 4711 unit.”

“This step was necessary in order to adapt thecompany to the diverse needs of the market,” hesays. “The new structure shows very clearly thatwe are completely at home both in the bridge andthe premium segment, and that we can offerour partners customized solutions for both mar-kets. It is a move that sees us laying the founda-tion stone for continued success.”

Fabian Krone, M&W Managing Director revealsthat over “the next few years we will be aiming to drive for-ward the company’s increasing internationalization. We aim tocontinue to strengthen our existing successful partnerships andgain new partners, especially in the prestige segment.

“We have gained Windsor as a license partner and will belaunching a ladies and men’s perfume for the brand in 2013. Wealso see great potential for our own brands, which include Tosca,Nonchalance and Tabac Original. And naturally 4711 and ACQUACOLONIA both on the domestic and international markets. Weare currently working on promoting line extensions and sub-brands,” he says.

The Baldessarini fragrance line is ten years young and the com-pany says it is committed to managing and developing the unmis-

takable profile of this premium brand.The brand, which is aimed at the dis-

cerning man, was originallylaunched by Hugo Boss back in2002 and has reached out pastGermany to attract a world-wide fan base.

A new lease of lifeGiving the brand “fresh impe-tus,” the company will be retain-ing established brand elementssuch as the tagline: “separatesthe men from the boys.”

This self-assured statementanchors and positions the brandclearly for its target audience:“men of character, men whostand firm in their masculinity,”says the company. This clear,unmistakable position hashelped to secure the success ofthe brand, even in the pastdecade of metro sexuality, as afragrance brand that does notbelieve in fleeting trends butremains faithful to its strongmasculine ideal.

M&W will continue towork with Charles Schu-mann as the brand ambas-sador. The stylish, new,monochrome key visual ofthe first fragrance Baldes -

sarini Classic will feature boththe claim and Charles Schumann, pre-

senting them in a classic setting. As the licensor and the man the brand is named after, Werner

Baldessarini welcomed the acquisition of the license by M&W. Hereveals: “Baldessarini is a fragrance line that is very close to my heart,and I am delighted that the brand will in future be managed and devel-oped by such a highly experienced and competent partner. It is a goodfeeling to know that the brand I once established is in such good hands.”

Fabian Krone concludes: “We see potential for internationalgrowth in all three corporate units. However, the focus is quiteclearly on the PRESTIGE unit where we plan to expand globally andgain new international partners in the luxury segment.” Baldessariniwill test the mettle of M&W’s expectations and plans. c

SEPARATINGthe men from the boysAs perfume company Mäurer andWirtz buys the Baldessarini licensefrom P&G, we find out what thename means to the company and its plans for growth BY LORNA STRICKLAND-COOK

For the first time, New York skinand hair care products makerKiehl’s is offering a collection ofFAA-compliant, travel-tested for-

mulas titled “Travel-Tested Solutions.” Thisunisex collection is designed to infuse skinwith essential moisture and nutrients dur-ing harsh travel and post-travel conditions.

Kiehl’s Travel-Tested Solutions is availableexclusively at Kiehl’s airport shops, down-town duty-free shops and onboard withAsiana Airlines, Air China, Air Hainan,China Southern and China Eastern airlinesfrom May of this year.

Seasoned and infrequent travelers noticethe direct effects travel can have on skinincluding dehydration and skin sensitivity.These stresses start during travel and canaffect skin for days afterward. “Preventinghydration loss during a flight is only half ofthe battle,” says Cammie Canella, Kiehl’s

Vice President Education and CustomerRelations. “Just as jet lag must be tended tofor days following travel, travelers shouldactively nurture aggravated skin two to fourdays post-travel to restore their skin’s nat-ural balance.”

Extended exposure to confined envi-ronments such as trains and planes oftenleaves passengers feeling psychological andphysiological effects on their skin. Travelersface conditions that include low humidity,low air pressure and recycled air, whichcause severely parched skin. The typical rel-ative humidity in aircraft cabins for flightsover an hour is below 10% for most of thejourney—as dry as desert air—often drop-ping to less than 5% on longer flights.

To combat these effects, Travel-TestedSolutions employs soothing and anti-micro-bial properties to help defend skin imme-diately against these adverse environmental

conditions. The collec-tion also contains cactusflower extract, which is

known to deliver 24/7 hydration, and Tibetanginseng, a mountain plant that increasesskin-cell respiration at high altitudes. Incombination with the blend of essential oils(lavender, geranium and rosemary), theproducts help to protect against dehydration.Kiehl’s says that all four products in the col-lection have been tested in-flight by pilotsand crew members of Air China, Air Hainan,China Eastern and China Southern.

The In-Flight Refreshing Facial Mist isdesigned to restore complexions irritatedby severe in-flight cabin conditions. Themist is formulated with cactus flower, Tibetanginseng and a blend of lavender, geraniumand rosemary. The 24/7 Activated Moistur-izer hydrates skin and helps shield it fromextreme in-flight skin dryness and dullness.

The First Class Purifying Hand Treatmentis designed to help protect hands from impu-rities commonly encountered during travel.The Eucalyptus Lip Relief Class has been for-mulated with eucalyptus, along with cactusflower and Tibetan ginseng.

Each product is available for individ-ual purchase or they can all

be bought together as a travel set, which includes acomplimentarylimited edition luggage tag. c


Unisex skin collection offers remediation for physical and psychological impact of travelBY HIBAH NOOR

Kiehl’s

KIEHL’S ANNOUNCES “Travel-Tested Solutions”

Beauty Beat: Fragrances

BeautyboostersA host of alluring scentsfill the air as the newseason approaches


True ReflectionCompany: Five Star FragranceCompanyDescription: An oriental fragrancethat opens with a burst ofsparkling Italian bergamot, plumand peach. The floral heartblends night bloominggardenia, chocolate orchidand lotus flower for a uniquemix, while the earthy finishof textured woods,patchouli and skin musk

rounds out the scent

L’eau De ChloéCompany: Coty PrestigeDescription: The iconic Chloé bottle houses distilledrose water with citrus and hints of patchouli. Theflacon features a soft green ribbon finished with asilver metal cap

Sheer Beauty by Calvin Klein Company: Coty PrestigeDescription: The fruity floral Sheer Beautyfollows up on the statement made byCalvin Klein’s Beauty. This edition features

the signature Beauty flacon with ablush-colored gradient and aclear cap is set on top

Boisd’OrientCompany:Jean-CharlesBrosseauDescription: Thecitrus beginningis a fresh cocktail of lemon and mandarinaccompanied by spearmint and juniperberries. Mediterranean fig with orientalcinnamon and juicy raspberries makes upthe middle notes. The dry down consists ofcedarwood, sandalwood and white muskwith a hint of cistus and praline Booth: 1708

L’Eau d’Issey pourHomme Sport byIssey MiyakeCompany: BeautéPrestige InternationalDescription: Withbergamot and grapefruit,L’Eau d’Issey pourHomme Sport evokesthe freshness of theopen air and highaltitudes. The heartemanates a spicy note of nutmeg, and thefragrance derives thesmoky notes of vetiverroots and the woodyessence of cedar

Ombre PlatineCompany: Jean-Charles BrosseauDescription: A floral oriental, fruity andpowdery composition ishereby added to Jean-Charles Brosseau’sportfolio. Fragrance notesinclude lily, tuberose,sandalwood and pinkpepper combinedwith bergamot,coconut andvanilla

Success by TrumpCompany: Five Star Fragrance CompanyDescription: Inspired by Donald Trump’sown success in real estate, business,publishing and television, his fragrance isdescribed as an empowering scent.Created in collaboration with Yann Vasnierfrom Givaudan and developer JenniferMullarkey, this fragrance was carefullycrafted with a unique blend of notes

Marc Jacobs Daisy Petite Flowers On The GoCompany: Coty PrestigeDescription: Marc Jacobs offers Daisy and DaisyEau So Fresh in a unique new limited editionpackage. The whimsical packaging mimics theoriginal daisy bottle. These portable posies sportretro-chic petals


BeautyregimeCreative cosmetics andrevolutionary skincare:traveling consumers willhave plenty of options tochoose from this season

Beauty Beat: Skincare & Cosmetics

Revitalift Repair 10 Night CreamCompany: L’Oréal ParisDescription: After the success of Revitalift Repair 10 Day cream, L’OréalParis completes the range with a night cream, the first integral skincarethat fights 10 signs of aging and UV damage during sleep

Revitalift Repair 10 Instant SerumCompany: L’Oréal ParisDescription: This breakthrough serum is concentratedwith anti-aging actives that start fighting 10 signs ofaging within an hour of application. The formula leavesthe skin firmer, toned and supple, preparing it for theapplication of the Revitalift Repair 10 Day or Night cream

Dr. Andrew Weil for Origins Mega-Bright Skintone correcting serumCompany: Estée LauderDescription: A formula that EstéeLauder says is clinically proven toinstantly brighten skin and improveclarity and radiance, fighting thecauses of skin discoloration whilecombating the existing visiblesigns (dark spots, uneven skintone) and preventing their futuredevelopment

Daywear Anti-Oxidant BeautyBenefit Creme SPF 35 Company: Estée LauderDescription: EstéeLauder says this is “awhole new approach toachieving beautiful skin.”Powered with anadvanced complex ofskin-essential anti-oxidants, Estée Lauder’snew Beauty BenefitCreme “does it all” in onestep for even, healthy-looking skin

Eyecing Fatigue-Fighting Eye Creamby Freeze 24/7Company: TPR Holdings LLCDescription: Based on new technology,Eyecing heals, nourishes, revitalizes, detoxifiesand moisturizes skin cells to restore a fresh,youthful appearance. This treatment battles thesigns of weariness with specially formulatedHydroptix-171 Youth Boosting Complex, aproprietary, time-released polymer that worksto revitalize skin and reduce the appearance offine lines, puffiness, bags and dark circlesaround the eye area. Hydroptix-171 YouthBoosting Complex features Peptide 171, usedhere for the first time ever in skincare

Expert Color Palette TravelRetail ExclusiveCompany: Estée LauderDescription: This makeup palette is filledwith strong shades. Pure Color LongLasting Lipstick, Kissable LipShine, PureColor EyeShadow and Estee LauderSignature Silky Powder Blush are allavailable in one portable palette,complete with Magnascopic MaximumVolume Mascara

Pronto Heat Protect Spray by Oscar BlandiCompany: TPR Holdings LLCDescription: Offering 450-degree heat protection and safeguardinghair from all hot tools, this dry-spray formula is enriched with keratinproteins to nourish, strengthen and protect. It provides instant style-refreshing benefits, enabling hair style to be easily and effortlesslyreshaped

Whitehouse Travel Retail


Over the past few months a host ofnew launches have emerged fromthe Whitehouse Travel Retail sta-ble. While the distributor’s focus

has mainly been Europe-based, this yearafter further investment and a new seniorstaff announcement, it is time for White-house to look to Asia for growth.

And at this year’s TFAP show the indus-try can expect to see some of the new launchesthe distributor has been wowing the indus-try with. Some of the key developments thatwill be on show at the Whitehouse TFAPstand will include new collections from the

distributor’s own-brand Adorn, easy but use-ful travel gadgets from Gadget Republic anda host of designer sunglasses including thosefrom well-known racing brand McLaren.

McLaren is the latest big name to entertravel retail through the expertise of WhitehouseTravel Retail and its sunglasses division. The For-mula 1 brand’s sunglasses range is suitable forthose with or without a passion for racing. Itis the first time the famous F1-affiliated brandhas launched eyewear into the industry and thedistributor has high hopes that F1 fans andlovers of good eyewear will pick up on thebrand as it begins its travel retail roll out.

A variety of super sleek, lightweight anddesign led McLaren sunglasses will be avail-able for both men and women. The designsresonate with the same sleek lines that theMcLaren cars boast.

Whitehouse Managing Partner Geoff

Hutley reveals that the distributor has thelicense for worldwide travel retail sales. “Ourstrategy is to approach the key F1 hubs suchas Shanghai, Singapore and Sao Paulo ofcourse. The name McLaren has a great his-tory behind it and is a really strong brandthat transverses outside just the F1 fan base.”

Whitehouse has chosen nine skus to pre-mier in travel retail, ranging from US$120-$170 to make the brand widely accessible inthe travel retail and duty free arena.

The company has extensive experience ineyewear distribution in travel retail andMcLaren joins other prestigious brands cur-rently distributed by Whitehouse Travel Retail.

But it is the newly-introduced sports watchbrand KROC that Whitehouse is very proudof. After the successful launch of KROC watchesin Cannes last year, the brand has picked upits first listings with TUIfly, Condor and Sene-gal Airways to name but a few; with more air-lines due to sign up this exciting brand.

The low-priced sports ION watch brand hasalso now launched its extended two year war-ranty. Every travel retail customer who purchasesa KROC watch has the added knowledge thattheir watch is protected against faults for a fulltwo years, a competition busting rarity for afashion watch in travel-retail.

The extended two year warranty is fur-ther reinforcing KROC’s position withintravel retail in addition to demonstrat-ing Whitehouse Travel Retail’s deter-mination to promote KROC as notonly a stylish value for money time-piece but also one which providesexceptional customer support.

Whitehouse Travel Retail SalesManager Tim Jobber says: “TheKROC brand offers a modernrange that exudes style. Havingconfirmed a great number ofretailers since Cannes, we arenow even more confident that

the two year warranty will win us more heartsin travel retail. It is a rarity to find a fashionwatch in the industry offering this length ofguarantee period.”

The range of KROC watches includes abuckled negative ion model, a snap onstrap with removable Citizen movementdials and the multi wrap-around snake mod-els in various colorways.

As if the distributor needed any furtherreinforcement of its ability to deliver resultsfor well-known brands, it was chosen todistribute Olympics 2012 mascots and toysin UK travel retail; A prestigious win in thecompetitive industry.

With Whitehouse’s successful growing port-folio, the company recently announced theappointment of Tim Jobber to the role of SalesManager. With over 20 years in the industrymainly in the military arena, Jobber’s experienceof household name watch brands, includingSeiko and Casio put him in good stead to pro-mote the brands in the Whitehouse portfolio.

With its track record of delivering resultsfor a range of brands to a range of travel-retailcustomers, it is no surprise we can expectWhitehouse’s first TFAP show to be a goodone as it brings brands old and new to thiscompetitive region. c

HelloAsiaIt’s been a solidly strong year for Whitehouse Travel Retail asthe prolific supplier and distributor prepares for its first everTFAP Show, bringing jewelry, watches, sunglasses gadgetsand plush to the Asia market BY LORNA STRICKLAND-COOK

Butterflies are an on-trend theme this summer

Kroc’s two yearguaranteemakes it a

winner in travelretail

Adorn’s latestcollection is a

must for Asiantravel retail

Success in ITR comes in many colours.

As one of the leading confectionery players in ITR, you’ll find Mars’ brands at almost every travel location across the world. Focusing on the key purchase motivations our stunning product portfolio, containing the nr. 1 and nr. 2 brands M&M’s and Snickers, is backed by creative merchandising driving the purchase decision. Our combination of insight, category vision and global strength enables us to optimize the effectiveness of our unmatched portfolio of global favourites. Finally, we continue to develop exciting new concepts.For example, we now have all Wrigley products fully integrated into our ITR program, creating even more opportunities to drive your business.

http://www.mars-itr.com/

Misaki


Acompany like Misaki is nostranger to a spot of branddiversification. It’s a bravecompany that does one thing,and one thing only, forever.

With a history of supplying elegant jewelryin travel retail, it’s no surprise that thebrand has veered ever so slightly awayfrom this territory and entered the fiercelycompetitive timepieces market.

But as it turns out, the decision has ledto far greater things. As Paola Grazia, Mis-aki’s Director of Marketing and Commu-nication reveals, the development of thewatch range has led to the development ofa new retail presence.

“We’re broadening our distribution andentering specialized retail watch stores with,for example, three new Misaki watch coun-ters in Singapore in the last month. Thisgives us a new horizon with the high poten-tial of growth for our watch categorythroughout Asia, notably in the near futurein Hong Kong, India and Korea,” she says.

Thanks partly to the development of thewatches range, which sees new collectionsintroduced twice a year in both the men’s andwomen’s categories, one of Misaki’s bestperforming markets in travel retail is China.Grazia makes special mention of SanyaDowntown Duty Free, where “sales haveoutperformed Shanghai’s sell-out,” she says.

The brand has also enjoyed very promis-ing results in Korean duty free over the lastsix months, where its success in the jewelrycategory has given Misaki the platform topursue its development in the country’stravel retail segment further.

All about the inflightBut it’s the inflight channel where Misaki hasreally gained ground over the years. In fact,Misaki’s original business was all aboutinflight when it started 25 years ago. AsGrazia says, “our inflight presence is alreadymature and well implemented worldwide,”founded on 25 years’ experience in thisspace-competitive retail channel. Can therebe any airlines left for Misaki to gain new list-ings with? In Asia the answer is yes, as itrecently scooped up listings with KingfisherAirlines and Air Asia—“one of the fastestgrowing airlines in the area,” Grazia says.

The brand has been able to secure andrenew listings over the years with all themain airlines in the Asia Pacific market.“Misaki is therefore a leader in its field, andthe upcoming challenges will be to maintainour position and be on board the few air-lines that are not yet part of our portfolio,”Grazia says.

It can be tougher to become a winner ininflight than it can be on the ground. Brandpresence is harder to build when you’re forced

to rely on the testing combination of cabincrew and a brochure to sell your product.

Investment on the ground is essential asMisaki prepares to roll out additional visi-bility tools for the brand in key locations inthe region, using consistent POS materialsand visuals such as light boxes to enhancebrand awareness and create a stronger image.

But Misaki doesn’t just rely on the strengthof the brand to achieve sales success. Graziareveals that what “definitely” works best arestaff incentive programs as well as strong mer-chandising and training.

Attracting a younger audienceIt’s good to hear that Misaki has overcomeone of the age-old problems when sellingpearls: attracting a younger crowd. It’s nevereasy to do, but recent trends show that pearlshave good sales potential with young buyersas well as with older generations. “Wearingpearls is now a real fashion statement,” saysGrazia, “and Misaki is right on track with acollection that proposes both timeless itemsand modern pieces that suit all age groups.”

With a new generation of pearl-wearingwomen purchasing Misaki’s jewels, and thedevelopment of the timepieces side, thebrand shows a promising ability to rein-vent itself at a time when the world econ-omy is still on the slide. c

Watchthis space As Misaki prepares for another TFAP exhibition, the company gives Asia Duty Free the lowdown on how its Asia business has fared over the last year and new plans in the pipeline BY LORNA STRICKLAND-COOK

Roomto grow

Company News: Mars

he confectionery category has onehuge, obvious advantage: mostpeople in most parts of the worldhave a sweet tooth, at least to somedegree. That advantage is some-

thing that Mars ITR can work with in build-ing the foundations of success in the Asianduty free market, where prospects for suc-cess are reinforced by a healthy dose ofknow-how, according to Jack Tabbers, Gen-eral Manager, Mars ITR.“The category in Asia is progressing very

well,” Tabbers says. “It’s absolutely a fast-growing business, mainly driven by the factthat the Asians understand how to sell con-fectionery at an airport. They’ve learnedquickly from the European executions andthey really are taking it to the next level.”Tabbers points to Singapore’s Changi

International Airport as an example, withthe positioning driven by the understandingthat driving the impulse buy is key to success.“A lot of European retailers are more and

more putting chocolate as a grocery executionin their store,” Tabbers says. “I don’t thinkthat’s the way of the future. It doesn’t reallyattract consumers. You only buy chocolatefor a few simple reasons—for yourself if you’rehungry or when you’re on a trip with your fam-ily, to keep your kids quiet or as a gift.”The entrepreneurial Asian mindset means

that retailers here forge very direct relation-ships with airport authorities, with lessemphasis on price considerations above allelse. “If you walk into a European airport, it’sall about price, price, price,” Tabbers says.“Duty free in Europe hardly exists due to the

disappearing of all the boundaries. Ifyou go to Asia, price is not that rele-vant because the availability on thedomestic market is less as well.” ForTabbers, price is well down the list asa purchase driver in confectionery,with the category’s firm position as afavorite and its high brand recognitionaround the world motivating buyers, alongwith the massive impulse factor.There’s still a lot of work that can be done

to build confectionery’s presence and sales per-formance, Tabbers believes. He says the cat-egory is still focused too strongly on value andis still too oriented towards buyers who aremaking pre-planned purchases. One strategyto build on the category’s inherent strengths,he says, is to leverage the high degree of brandloyalty among buyers by presenting the con-fectionery offer through two or three “hero”brands that can create a vivid sense of engage-ment and in-store theater.Mars has developed a series of merchan-

dising programs that can be tailored to theunique needs and challenges of different loca-tions. These range from a core presentationfor smaller locations to a large-scale tailoredstore-in-store platform for major airports.Tabbers and his team have already worked withsome of the more innovative retail partnersat airports to reinforce the shopping experi-ence and increase footfall, conversion andbasket size. One notable example is the recentlaunch of the M&M’s store-in-store at JFK

International Airport, in cooperation withDFA and the New York Port Authority. Mars ITR recently launched two branded

store-in-stores at Changi’s Terminals 1 and3, with discussions now underway for athird store in Terminal 2 that will be largerthan either of the others. The Changi venueshave been very successful since their launchesin October 2011 (T1) and January 2012(T3), and Mars is looking at using Changias a pilot for further rollouts in other majorAsia hubs in Kuala Lumpur, Thailand, Koreaand China. “Any airport where passengersexceed 45 million is a potential target for us.”The discussions that led to the new Changi

stores came about as a result of what Tabbersbelieves is an inherent entrepreneurialism inthe Asian market, a trait that augurs well forfuture innovation and success. “I held a pre-sentation in Cannes last year which was allabout driving conversion and how the nextphase of what we’d like to do is create new storeconcepts. After that Changi Airport came tous and wanted to develop stores with us.”“They’re willing to take risks—they just

do it.” �

TFor Mars ITR’s Jack Tabbers, the favorite category in retail canstill benefit from more focusedexecution BY HIBAH NOOR

Mars ITR recently launchedtwo branded store-in-storesat Changi’s Terminals 1 and 3


World of Patria

First time exhibitor World of PatriaInternational (WOPI) is intro-ducing its portfolio of pre-mium and super-premium

spirits and wines, as well as food andelectronic products, to the AsiaPacific market at this year’s TFWAAP exhibition (stand A26).

Singapore sees the introductionof the FirstCape range of wines tothe Asian and Australasian markets.FirstCape offers a range of white,red and rose wines plus a recentlyintroduced lighter alcohol Café Col-lection which aims to become a 5million-case brand in the UK. First-Cape is now setting its ambitions on theFar East following the decision to sponsorthe Lions Tour in Hong Kong and Australianext year.

“We’re extremely pleased to be support-ing FirstCape on its mission to secure dis-tribution within Asia Pacific and Australiaand the opportunities for high profile acti-vations throughout airports in the region areamazing,” says WOPI Director Andy Butcher.“While the brand is positioned more at theentry price level, it has a huge following in

the UK and growing business in Europe,and its new lighter alcohol Café Collectionis proving extremely popular.”

Also new in WOPI’s wine portfoliois the super-premium Lindhorst range of

wines, comprising six 2007 vin-tage red wines, includingthe signature Shiraz-dominated blend“Statement” and afresh 2011 Sauvi-gnon Blanc. Otherwines being high-lighted on the stand

include the popular Blos-som Hill selection; Follador

premium Prosecco selection, whichincludes a special gift tube for travel retail;and Champagne Penet Chardonnet avail-able as a Cuvee Diane ClaireGrand Cru andGrand ReserveGrand Cru, bothpresented in a giftbox.

Key to theWOPI portfoliois its range ofniche, quirky andinnovative pre-mium and super-premium spirits withbrands including The Last Drop, which isavailable worldwide. In Singapore the com-pany will be giving one lucky visitor thechance to win a bottle of The Last Drop1960 Blended Scotch Whisky, with a sug-gested retail price of US$2,700, through asimple business card draw.

New to the portfolio are unique productsfrom the British based Chase Distillery,

including award winning five timesdistilled Chase English Potato Vodka;Chase Marmalade Vodka; andWilliam’s Chase Gin.

Tempting tastes Outside its core offer of spirits andwines, WOPI continues to expandits portfolio with additional prod-

ucts which it believes have real potential fortravel retail. New in Singapore is a range ofsmoked Scottish salmon which introducessome unique flavor combinations. St. Jamesis a traditional smokehouse located in theRoyal Burgh of Annan, Scotland. There areeight varieties available, including garlic &cracked pepper; Hendricks gin & tonic; pas-trami; whiskey & wild honey; zested lemon& cracked pepper; and zested orange &cracked pepper. Original and gravadlax arealso offered.

“This is a top quality range—a tradi-tional product yet again offering somethinga little different,” continues Butcher. “Foodproducts are a growing offer in travel retailand we’re sure this range has excellent poten-tial within the category.”

Juice-saving gadgetsAlso available from the company are

an Iphone 4 Charger and Case, aswell as a Solar Powerstore fromPowerpack Sales. The power-pack back-up charging caseincorporates a powerful back-up battery built into its shell,significantly increasing the avail-able usage time of the phone.

The cases are the thinnest profileavailable today and are extremely

lightweight. The solar powerstore is a pocket sized,

lightweight device designed to store energyfor up to one month using the latest Li-ionenergy cell. Once fully charged using theUSB cable (included), the solar powerstorecharges depleted mobile phones, iPods,MP3/4 players, PSPs, cameras and sat navs.

Says WOPI Managing Director RobNichols: “This is our first time at TFWA AsiaPacific and we’re really confident that ourportfolio is perfect for the Asian market, par-ticularly given our wealth of really unusualand innovative premium and super pre-mium spirits brands. This is a fantasticopportunity for World of Patria Interna-tional and we’re determined to make themost of the opportunities that this eventprovides.” c

New to theWOPI portfolioare uniqueproducts fromthe Britishbased ChaseDistillery,including awardwinning ChaseMarmaladeVodka

Outside itscore offer ofspirits andwines, WOPIcontinues toexpand itsportfolio withproducts likeSt. JamesScottishSmokedSalmon


In SingaporeWOPI will begiving onelucky visitorthe chanceto win abottle of TheLast Drop1960BlendedScotchWhisky

World of Patria International brings a stable of high-end and well respected brands forits first visit to the TFWA AP exhibition in Singapore BY RYAN WHITE

Bringing the best

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“Patrón Spirits International’spresence in the Asia-Pacificduty free and travel retailchannel continues to grow,”

says Vince Santos, Patrón’s Vice Presidentfor Asia/Pacific, who is based in the Philip-pines. “As of now we’re currently in 14major airports in the region. We aren’t yetin Hong Kong duty free, or Narita or air-ports in China, [but] those are all top pri-orities, to encourage those duty free oper-ators and buyers to consider the significantprofit potential of an ultra-premium lux-ury white spirit like Patrón.”

Patrón is doing well in Asia, Santos says,and the market is clearly growing quiterapidly, especially for high-end luxury prod-ucts like Patrón. The company is showingstrong growth on both the domestic andduty free sides, and its top seller in Asia, aswell as its fastest growing brand in the region,has been the Patrón XO Café coffee liqueur,which recently got its launch into the Chi-nese domestic market. The product hasbecome Patrón’s top SKU in many air-ports, including those in Singapore,Taiwan, Malaysia and Thailand.

“The taste profile of Patrón XOCafé is so unique that once peo-ple try it, they’re very inclined topurchase,” Santos says. Patrón XOCafé is a coffee liqueur, butbecause it’s tequila-based, ithas a dry taste, not thesweet taste of most othercoffee liqueurs. Santosadds that Patrón’saged marks—PatrónReposado andPatrón Añejo tequi-las—are also quitepopular in the region,as Asian consumershave historicallybeen partial to agedbrown spirits.

Patrón’s globaltravel retail sales increased 49% in 2011, out-pacing its total international business, whichwas up 45% for the year. The Asia market wasa major factor in driving that impressive pace.

“We’ve more than doubledour total business in the region,”says Santos. “It has been veryinteresting to watch the rela-tionship between our domesticand duty free presence—asdomestic penetration grows, thatvery much drives duty free. Peoplewill try our products at a bar orrestaurant, and then go to duty freeto look for them.” Patrón’s duty freeside is also supported by innovativegift with purchase programs thatPatrón develops in collaborationwith travel retail operators.

Travel retail focusAt the 2012 IAADFS show in Orlandoin March, Patrón introduced a newtravel retail exclusive—a limited-edition collectable tin containingPatrón tequilas and Patrón XOCafé bottles. Designed for gifting,the tin is embossed with the same

design, colors and graphicsfound on the current Patrón carton,and features a removable lid thatwhen closed looks exactly like thePatrón box. The tin is availableacross the Patrón portfolio

(Patrón Silver, Patrón Reposadoand Patrón Añejo) and for Patrón

XO Café.“We’ve long recognized

that duty free is a uniqueretail channel, and thosewho shop in duty freestores are looking fordistinctive luxurygoods, gift ideas anditems immediately use-ful while traveling,” saidJohn McDonnell, ChiefOperating Officer atPatrón Spirits Interna-

tional, as the newtin was unveiled.

“In addition to providing a key com-mercial channel with an exclusive offering,we also hope to gain new consumers whohave yet to try our high-quality ultra-pre-

mium spirits, while providing loyal Patrónconsumers with something new, better andspecial,” added Jason Nussbaum, PatrónSpirits Director of International Marketing.

Other news includes the recent listing ofsome Patrón brands at Seoul-Incheon,including Patrón Reposado tequila and GranPatrón Burdeos tequila, Patrón XO Cafeand the ultra-premium Pyrat rum.

Patrón has exhibited at the TFAP eventin Singapore for several years now. This yearthe company will highlight new GWP offers,other new promotional programs and thelimited edition tin, which hadn’t hit shelvesat press time.

Santos says that while Patrón is growingvery quickly across the globe, it’s still avery small company, which enables it toreact and make decisions quickly. To posi-tion itself to make the most of the oppor-tunities presented by the growing Asianmarket, Patrón recently hired a new AreaManager for North Asia, Thomas Cheng.Cheng joined up in January and is based outof Taiwan. c

Patrón

Thelureof theEastPatrón courts the massive, and growing, Asianmarket BY ANDREW BROOKS

Patrón display at

Kuala Lumpur International

Airport

Patrón’s XO Café coffee liqueur is the brand’stop performer in Asia

EXCEPTIONAL QUALITY AWARD-WINNING BRANDS

It’s all in the mixworldofpatria.com +44 (0)1892 890202

For a chance to win a bottle of The Last Drop 1960 Blended Scotch Whisky worth $2,700 (Suggested RSP)

Visit us at Booth A26 at the TFWA Asia Pacific Show

http://www.worldofpatria.com/

Camus


‘‘In the Asia market, Camus isbasically in every key airport inthe region,” says Anne Blois,Commercial Director, Pacific

for Camus Cognac. “We’re strong in HongKong, Kuala Lumpur, Singapore, Seoul,Bangkok—we’re doing very well in Asia.”The brand is also onboard with manyAsian airlines, mostly in China, Korea, Tai-wan and Hong Kong.

China is definitely the locomotive, Bloissays. Hong Kong, which benefits from the vol-ume of Chinese passengers, is where Camusis particularly well established, while theduty free market throughout China is alsoa mainstay. In duty free, Camus works withall of the major operators, including DFS,Skyco, CDFG, King Power, Lotte and more.

“Asia is very buoyant,” Blois says. “It’smainly driven by Chinese travelers in dutyfree. Russian and Korean passengers arestrong too, but the backbone is the Chinesepassengers, who are traveling more andmore internationally.” Camus’ travel retailbusiness has benefited, especially the high-end and limited edition products.

Things did take a downturn after the2008-2009 recession, but Camus has sinceturned that trend on its head, tripling its busi-ness in the last three years. Double digitgrowth is predicted for the Asian travel retailmarket next year, Blois says, with Chinesetravelers again doing yeoman service. Theaverage basket for the Chinese passenger is

very, very high com-pared with the Amer-ican or Europeanpassenger.

Solid rangeThe Rarissimes col-lection, launched afew years ago, con-tinues to be a stand-out seller for Camus.Every vintage in theseries comes in awooden box bearingthe trademark designof the whole series,and the bottles areindividually num-bered. Travel retailprices range fromUS$300 to $1,000.

Camus has alsoenjoyed the fruits ofa strong partnership with Chinese state-owned Baiju producer Kweichow Moutai. Anexclusive travel retail batch and blend wasdeveloped for Camus, which it distributesworldwide in travel retail.

“Moutai is the luxury brand of the Baijuwhite spirits—the ‘Lafitte’ of Baiju,” Blois says.Chinese consumers know Moutai well andseek it out for gifting or consumption. ForCamus, the task is not so much the raw sell-ing, but how to position and display the

brand properly to gain true interna-tional recognition.

In addition, every year Camuslaunches a Cuvée crystal decanterin a limited run. This does espe-cially well in Asian duty free, Bloissays, with the most recent editionpriced at US$3,500 per bottle.

Another star is the Extrabrand, which has beenpart of the portfoliofor a decade, pricedat US$360.

Recent launchesinclude the newCamus Cuvee 2.105,in a crystal baccarat

decanter. The release

features 1,220 indi-vidually numberedbottles, priced atUS$4500 each.Another notablenew arrival is theCamus 1940 vintageCrystal BaccaratDecanter, with only220 bottles released,also individuallynumbered andpriced at US$4800.

Limited editionswork especially wellin the Asian market.Cognac is very ori-ented to gifting,Blois says, and lim-ited editions fit thisbill perfectly, thoughthey’re also favoredas acquisition buys.

The way the travel retail market workstends to limit discretion when it comes topromotions, Blois says. Nonetheless, fromtime to time Camus will do GWP travelbags, as well as collectibles and use-orienteditems. But promotion for Camus is reallymore a matter of careful positioning, andgaining the maximum space.

“The other type of ‘promotion’ we do isreally more merchandising, where the air-port or operator will allow us to display andgive us more space to do it,” Blois says. “It’snot necessarily a promo for the consumer,but it gives us more visibility in the shop. Wework very closely with operators to increasethe sales rotation.” In some cases Camuswill hire extra promoters to advise cus-tomers.

In packaging, it’s important to strike theright tone, Blois says—contemporary andluxurious, but not too ostentatious. It canbe tempting to ‘chase’ customer preferences,such as the strong reds and golds that appealto Asian customers, but the brand must pre-serve its identity.

“We try to be subtle,” Blois says. “In termsof positioning, we compare ourselves withHermès—if we were a fashion brand wewould be Hermès.” c

Camus Cognac’s brand recognition in Asia is boosted by the popularity of the categoryBY ANDREW BROOKS

ASIANACCENT

The Camus Borderies XO Cognac

The recentlylaunched limited

run CamusCuvee 2.105, in a crystalbaccaratdecanter

http://www.clworldbrands.com/


Continuing its passion for traditional production methods, Tequi-lera Corralejo is introducing a special commemorative edition pre-mium tequila at this year’s TFWA Asia Pacific & GATE ONE2ONEexhibition (stand A15): 99,000 Hours.99,000 Hours is aged in single Kentucky oak barrels (no big-

ger than 200 liters) for 18 months and double distilled in thetraditional Corralejo Charente method using copper and columnstills. This premium tequila is presented in a rounded carafe-style bottle and is designed for drinking neat on the rocks orin cocktails. Also new at the show is Vodka Boker, an unusual Mexican

corn vodka presented in a highly attractive and unusual deepblue bottle that has a twisted effect. Initially launched to travelretail markets in India, Central America, Mexico and Canada, VodkaBoker is described as versatile and smooth as any of its inter-national rivals, but with the added bonus of a direct link with cen-turies of history and culture. Tequilera Corralejo continues to build distribution in travel retail

for its range of top quality Mexican tequilas produced by tradi-tional methods using 100% pure Blue Weber Agave, includingBlanco, Reposado, Añejo, Gran Corralejo and Triple Destilado.Not surprisingly, the company’s key markets are in the Ameri-cas with solid distribution across all Mexican border stores andinternational/local airports through Aldeasa, Dufry and regional

operators, as well as Caribbean duty free ports, Central Amer-ica airports plus border stores in Brazil-Paraguay with MannahDuty Free, Montevideo Uruguay and Argentina.However, the company is steadily expanding outside the

Americas and now reports significant duty free business inIndia, the Maldives and Sri Lanka, plus in Spain through Aldeasaand via Russian border stores. The Middle East and Asia Pacificare next on the hit list and the company is keen to make newcontacts at this year’s Singapore show.“We are very keen to work with retailers to promote Tequil-

era Corralejo,” says Raffaele Berardi, Managing Director of hold-ing company Fraternity Spirits World Inc. “We are very active increating consumer engagement with the brand. For example,currently throughout India we are running our first CorralejoTeqnicians Mixology Challenge 2012 with the finals taking placeat The Park, New Delhi on April 9, where Miss Mexico will alsobe in attendance. The winner wins a trip to the distillery in Mex-ico and the winning recipe will feature in the Corralejo Teqnic Book.”Tying in with this the company has been running a promo-

tion at Delhi Duty Free Arrivals with Aer Rianta featuring giantbottles of Tequila Reposado, offering passengers the chance towin a trip to Mexico and a date with Miss Mexico. The companyreports that a Corralejo display at Bangalore airport with Nuancehas also worked extremely well.

Liquor news

TEQUILERA CORRALEJObrings 99,000 Hours to Singapore, along with a modern vodka with ancient roots

Tequilera Corralejo has been running a promotion at Delhi Duty Free Arrivals offeringpassengers the chance to win a trip to Mexico and a date with Miss Mexico

Cointreau celebrates French elegance witha fashionable limited edition bottle designedby French haute couture fashion designerAlexis Mabille. In the new limited editionMabille revisits the bottle of the iconicFrench liqueur with a special sleeve decoratedwith his signature bow tie, his favoriteemblem and a timeless symbol of sophisti-cation and edginess, in lustrous gold.

Cointreau Mabille will be launched exclu-sively by Remy Cointreau GTR with Aelia inParis in May before the product becomesavailable globally. There are promotionalevents planned in Brazil, USA, Italy, Greece,and all across Asia.

Cointreau was founded over 160 years agoin Angers, in the Loire Valley of France, andhas become the most renowned and dis-

tinguished orange liqueur in the world. Itsiconic square bottle with rounded shouldersand amber color is synonymous with her-itage and quality.

The perfect balance between sweet andbitter orange peel sourced from variouslocations around the world, Cointreau hassubtle characteristics and a unique quality.The liqueur’s essential oils create a soft edgeand turn cloudy upon contact with ice.

At the heart of almost every cocktail,Cointreau is versatile and timeless, playinga key role in some of the most populardrinks of all time, including the Margarita,Cosmopolitan, Sidecar and White Lady.Cointreau can also be enjoyed neat, on icewith a twist of fresh lime, or mixed withtonic, lemonade, soda water or fruit juice.

Following their successful partnership at last year’s show, DFS Group invited Pernod Ricard TravelRetail to be part of the prestigious wine, spirits and champagne event Master of Spirits II. Held inThe Gallery of the Grand Hyatt Singapore on March 31, the event drew VIPs from the global drinksindustry to view an outstanding and exclusive showcase of luxury duty free products.John O’Sullivan, Marketing Director, Pernod Ricard Asia Duty Free, comments: “Master of Spirits

is an extraordinary event and we are proud to participate in it once again. Not only does it demon-strate the strength of our relationship with DFS Group, it provides the perfect arena in which to enhanceour relationships with VIP customers. This unique environment gives buyers an opportunity to under-stand and appreciate the exceptional quality of our most premium expressions.”Guests had the rare chance to converse with, as well as attend master classes with, the

world’s premier wine and spirit makers from such brands as ABSOLUT, Royal Salute, Per-rier-Jouët, Martell, Ballantine’s and Aberlour.Pernod Ricard Travel Retail also exhibited some of the world’s most illustrious whiskies:

Royal Salute 62 Gun Salute (special numbered bottles) with personalized engraving on thedecanter; the second Royal Salute Hundred Cask Selection bottled into 222 bottles and engravedwith the buyer’s name; the eighth bottle of the exclusive Ballantine’s 40; and the Aberlour Exclu-sive Archive Collection.The No. 8 ABSOLUT Crystal Pinstripe Black Bottle was also showcased at the event. It is an

ultra-limited edition of just 10 bottles. Furthermore, champagne connoisseurs were able to learnmore about the exceptional Perrier-Jouët Bi-Centenaire and Perrier-Jouët Belle Epoque 1999 withFiligree Vase, and cognac enthusiasts experienced Martell’s iconic L’OR de Jean Martell 1715 Lim-ited Edition (bottles no. 18, 38 and 98).


Royal Salute 62 Gun Salute(special numbered bottles), withpersonalized engraving availableon the decanter, was exhibitedat this year’s Master of Spirits II

Pernod Ricard showcases exclusiveproducts at Master of Spirits II

Cointreau Mabille will be launched exclusively by Remy Cointreau GTR with Aelia in Paris in May before a globalrollout with promotional events planned in Brazil, USA, Italy, Greece, and all across Asia

Cointreau Mabille to be launched in travel retail

Liquor News

March 28 saw the unveiling of the latest Glenfiddich Crystal Stag Gon-dola at Sydney Airport through The Nuance Group Australia. The firstin Australia, the Glenfiddich Crystal Stag Gondola has a high profileposition in the main mega walkthrough store and forms part of a sig-nificant brand presence with a Glenfiddich 50 Year Old Plinth,branded tasting table and freestanding units, enabling promoters tooffer tastings and brand information.The Stag was presented to The Nuance Group Australia team by

Glenfiddich Global Brand Ambassador Ian Millar following a day of staff

training to ensure complete product knowledge and understanding.The placement is supported by advertising and imagery throughoutthe departure zone, including the Customs window and nearby pillar.Sydney was a natural choice as the first Australian location for the

Crystal Stag thanks to the strong partnership between William Grant& Sons and The Nuance Group Australia, says William Grant & SonsRegional Manager Asia Pacific Scott Hamilton: “We have an extremelygood relationship with The Nuance Group Australia and are verypleased to be unveiling the latest Glenfiddich Crystal Stag Gondola

here in Sydney. It’s part of an ongoing cam-paign of high profile activations for WilliamGrant & Sons brands here at Sydney andMelbourne airports which we have developedin very close cooperation with Nuance Australia.”Adds Derek Larsen, CEO of The Nuance

Group Australia: “William Grant & Sons isundoubtedly one of the most proactive andinnovative liquor suppliers that we work withand we’re delighted to be featuring the Glen-fiddich Crystal Stag Gondola which is sup-ported by such creative merchandising for thebrand. We’ve had a very successful year sofar with WGS brands here and at MelbourneAirport and are confident that the CrystalStag will generate equally fantastic customerengagement and response.”


The latest Crystal Stag Gondola was presented to The NuanceGroup Australia by Glenfiddich Global Brand Ambassador IanMillar (pictured) following a day of staff training

From February, StolichnayaPremium vodka and elit by

Stolichnaya (pictured)have been distributed in

India by Aspri SpiritsPrivate Ltd.

SPI Group recently celebrated the re-launch of Stolich-naya Premium vodka and the ultra-luxury elit by Stolich-naya in Mumbai and Delhi. The brand celebrated a newdistribution agreement with Aspri Spirits Private Ltd.by throwing a star-studded party with local celebritiesincluding Indian film and theatre actor Boman Irani,film actor Jimmy Shergil and acclaimed Bollywood chore-ographer Terrence Lewis. SPI Group partnered withIndia’s leading import, marketing and distribution com-pany Aspri Spirits from the start of February 2012 to dis-tribute Stolichnaya Premium vodka in India.

Val Mendeleev, CEO of SPI Group, commented: “Weare delighted to be bringing Stolichnaya Premium vodkaand elit by Stolichnaya into India alongside Aspri Spir-its. We have already seen a great response to both Stoliand elit and are looking forward to expanding the breadthof awareness throughout the country with Aspri’s strongdistribution network.”

Aspri Spirits Private Ltd. is one of the leading dis-tributors of premium wines, spirits and beer in India andwas established in 2004. With head offices based in Mum-bai and branches in Delhi, Bangalore and Hyderabad, Aspri

Spirits will be working with SPI Group to build the brandin India across the domestic and duty-free markets.

In other SPI Group news, the company recentlyappointed Nigel Bath as Asia Pacific Regional Director.In his new role Nigel will be responsible for the pan-regionalcommercial development of the SPI Group portfolio,with a strong focus on Stolichnaya Premium vodka andelit by Stolichnaya.

Robert Cullins, Global Commercial Director of SPIGroup, comments on the new addition: “Nigel’s previousAsia Pacific experience—coupled with deep expertise withinthe beverage industry—will be instrumental in developingStolichnaya Premium vodka and elit by Stolichnaya withinkey markets and further building its regional and global suc-cess. I am very pleased to be welcoming Nigel to the group.”

Nigel joins SPI Group from Del Monte Asia, where hewas Managing Director of the region. Previous to DelMonte, Nigel spent over two decades in Asia Pacific,where he held increasingly senior roles with Diageo,Pernod Ricard/Seagram and Coca Cola. Originally fromthe UK, Nigel will be based in the new SPI regional head-quarters in Singapore.

Glenfiddich takes centre stage in Australia with Nuance

SPI Group celebrates re-launch of Stolichnaya in Delhi and Mumbai

http://www.hinecognac.com/


The first Romeo y JulietaReserva closes the XIVHabanos Festival

Ana López, Marketing Director of Habanos, presents Romeo y JulietaChurchills Reserva 2008 at the close of the XIV Habanos Festival

During the Gala Evening at the XIV HabanosFestival, two new Habanos were launched andsampled by attendees: the Romeo y JulietaChurchills Reserva 2008—the first reserve ofthe brand—and Romeo y Julieta PetitChurchills, a new vitola that will delightconnoisseurs with its characteristic aromaticand balanced flavor, suitable for any occasion.

Romeo y Julieta Churchills Reserva2008 demands the most stringent selectioncriteria in creating the reserve, Habanossays. From the long, careful process ofaging the best tobacco from Vuelta Abajo*(D.O.P.) for at least 3 years to the tastingcommittee comprised of more than 50experts who have supervised the selectedblend to guarantee a unique flavor that isharmonious, balanced and aromatic.

The Reserva of Romeo y Julieta is aunique product with an extremely lim-ited production run of only 5,000 num-bered cases, each containing 20 units.

The new Romeo y Julieta Petit Churchillsvitola completes the current Romeo y Juli-eta offering by adding a format that hasbeen highly favored in recent years byHabanos enthusiasts. The cigar can besmoked in twenty minutes.

Ahead of the dinner and the newHabanos tastings, the traditional Auction ofHumidors took place. This year it raisedUS$963,506. The six humidors auctionedfeature artisan-crafted designs of the mostprestigious Habanos brands (Cohiba, Mon-tecristo, Romeo y Julieta, Partagás, Hoyo deMonterrey and H. Upmann). Over the past12 years the auction has raised almost US$10million, all of which has been donated to theCuban Public Health System. Other eventsduring the festival included the XIHabanosommelier International Contest,the 2011 Habano Awards and the interna-tional contest “Habanos in images.”

Tobacconews

Attendees to this year’s show can learn more about new J. Cortès Wood Tip cigarillos(pictured) and Neos Mini Menthol Filter at Booth F10.

J. Cortesannounces newreleases for TFWAAP exhibitionJ.Cortès Cigars has announced the launchof two new products that will be launchedat this year’s TFWA AP & GATE ONE2ONEexhibition: Neos Mini Menthol Filter and J.Cortès Wood Tip cigarillos. Neos Mini Menthol Filter cigarillos,

packed in a bespoke tin, are made from aperfectly balanced tobacco blend andcarry a premium Ecuadorian light shadewrapper. The fresh menthol flavor turnsthese filter cigarillos into a very accessibleand pleasant smoke, says J. Cortes. J. Cortès has also created a new con-

cept involving wooden tip cigarillos, availablein three different tastes: natural, vanilla andginger. These rich and tasteful cigarilloscome with a quality Java Besuki wrapper andare packaged in an innovative and exclusivebox that holds eight smokes and featuresan easy-to-use magnetic closure system. Attendees to this year’s show can learn

more about these products, as well as therest of the J. Cortes portfolio, at Booth F10.

IMPERIAL TOBACCO TO REVEAL “DAVIDOFF’S GREATEST IDEA” IN SINGAPOREEvery great invention, every memorable song, everytear-jerking film, every stunning piece of artwork—starts with a great idea. At this year’s TFWA AsiaPacific & GATE ONE2ONE exhibition, Imperial Tobaccowill be revealing its latest and greatest idea forpremium brand Davidoff (stand J1).

The aim, says Imperial Tobacco, is to target awider audience for Davidoff using an inspirationaland artistic approach. The company notes that alldetails will be revealed in Singapore where Impe-

rial Tobacco will be presenting the new concept andcelebrating with a special launch party.

“This is the most important launch from David-off for many years and we are incredibly excited aboutit as we believe it will open up the brand to a com-pletely new audience of smokers,” says JenniferThanscheidt. “The initial launch announcement willtake place in Singapore and we will further push thisinspirational concept with another major presenta-tion at TFWA World Exhibition in October.” Imperial Tobacco calls “Davidoff’s Greatest Idea” the

most important launch from the brand for many years

“It was unfortunate timing, definitely,”Pfister says. “We started out right when themarket was at its lowest point. But we wereyoung and new and we didn’t feel the reces-

Ray Tobacco is based in HongKong and only started in 2008,making it a genuine newcomer.The bulk of Ray’s business is still

domestic, says Chris Pfister, the recentlyappointed Export Director. Duty freestrong points right now are in Malaysia,Laos, Thailand, Cambodia, Indonesia andVietnam, but expansion plans are afoot.

The fact that the company started up in2008 gives Pfister an interesting perspec-tive on the 2008-2009 recession that spikedthe plans of so many other companies intravel retail. Starting out during a recessionis never part of any businessperson’s plans,but as Pfister points out, it had some advan-tages in Ray’s case.

sion as much as older players in the market.While they were losing business, we were get-ting our first listings. So we were growingwhen others were struggling.”

Now that the recession is more or lessbehind us, the growth prospects for Ray areinviting to say the least. The Asian portfo-lio is concentrated in airport and bordershops, with inflight not yet on the scope.Growth across all markets is good, Pfister says.The company is young enough that growthpotential is still strong in the markets whereRay is already present.

The company is continuing to makeinroads in the Middle East, where it took itsfirst steps outside of Asia and where it hasalready turned in positive results. In Egypt,Ray is present in airport and border stores,as well as in the high street, with its fullrange of products. Ray has also listed withborder shops in Lebanon, Iran, Iraq, Turkeyand most recently Libya. More Middle East-ern markets are in the offing.

Ray Tobacco’s main products in duty free—and generally—are the Walton Royal Blend andRay American Blend cigarette brands. Newproducts are under development, Pfister says.Interestingly, two years ago Ray also ventured

into the whisky market

under the Waltonimprint, with a new blend produced at oneof Scotland’s largest distilleries.

“It looks a bit like Johnnie Walker,” Pfis-ter says. “The taste is also similar. The dif-ferentiator for us is the combination of high

quality with avery attractive price point.” With a newbrand, and especially a new brand in a newcategory, Pfister says, you have to convincethe customer first, and the low selling priceis the way to go.

“People who try it are surprised by thequality of the product,” Pfister says. “We’reworking with low margins so we can sell ata good price and build sales. So far the strat-egy is working very well for us.”

Echoing the experiences of so many oth-ers, Pfister finds that Asian customers are veryinterested in high-end items, but he notes thatRay’s price-active approach also reflects thereality that even here there are customers whocan’t afford top-line purchases, and manyoperators in Asia are very much on the look-out for better pricing.

“There are always customers who can’tafford the big-ticket items and go for thecheaper ones,” Pfister says. “It’s a good oppor-tunity—not everywhere of course, but in cer-tain markets.”

Ray followed up on the success of itsblended whisky last year when it introduceda new beer product, also under the Waltonlabel. So far it’s been launched in Asia, theMiddle East and Africa. The latter is a verybeer-friendly market, and prospects are alsogood for South America, another regionknown to favor a good brew.

Ray is an active participant in thetrade show circuit, and Pfister waspleased with the quality of new con-tacts he made at the latest IAADFSevent. The trade show agenda for Rayalways involves showcasing the fullportfolio, instead of selecting a few“stars” from the lineup.

For the future, Ray remains focusedon growing organically in Asia andits “newer” markets. Ray tends to work

with smaller, locally oriented operators,where close cooperation and the intimateunderstanding of local markets pay big div-idends. “They do a good job,” Pfister says.“If we work closely with them it works outwell for us.” c

STARIN THE

EASTBorn in a tough economy,Ray Tobacco knows how to survive—and thrive BY ANDREW BROOKS

Walton is Ray’s other main cigarette brand, whichRay has taken into whiskyand beer products

The Ray American Blendcigarette brand continues tobe Ray Tobacco’s flag carrier


Ray Tobacco

New& Notable


Aloha MixCompany: Hawaiian HostDescription: Aloha Mix includes an assortment ofindividually wrapped macadamia offeringsincluding Hawaiian Host Signature ChocolateMacadamias, hand-selected macadamias coveredin Hawaiian Host’s secret milk chocolate recipeand MacNut Crunch, a combination of dicedmacadamias, crisp rice and milk chocolateTFAP Booth Number: P13

Chupa ChupsBinocularCompany: Perfetti VanMelle Global Travel RetailDescription: This pair of workingbinoculars includes a ChupaChups lollipop. “An ideal gift tokeep children amused whilsttravelling and on holiday”TFAP Booth Number: N3

Lip Smackers Company: Scorpio DistributorsDescription: Popular lip balms in multipacksfor the travel retail market. Each balm hasits own distinctive scent and flavor,including Coca Cola, Sprite, Fanta andother recognized namesTFAP Booth Number: K28

SouvenirCompany: GodivaChocolatierDescription: An assortment ofGodiva chocolate pieces in agold rigid box covered with asleeve of differentdestinations, providing asouvenir of favoritedestinations. The boxcontains 15 Godivachocolates and is availablewith 16 different destinationsleeves TFAP Booth Number: H2

ACCESSORIES:

CONFECTIONERY:Bottega DiamondCompany: Distilleria BottegaDescription: The Diamond bottle isdecorated with crystal diamonds thatreproduce the Bottega logo. This dry,velvety sparkling wine is characterizedby a thin and persistent perlage, as wellas fruit scents of black cherryTFAP Booth Number: TBD

LIQUOR:

CandyCompany: FurlaDescription: This distinctive PVC Bostonbag combines modern technology andinnovation. Candy mixes plain, strongfluorescent colors, metallic andrubber/gherpard (black/whitespots) combinationsTFAP Booth Number: E19

Chase Marmalade Vodka Company: World of Patria InternationalDescription: Chase Marmalade Vodkamarinates Seville oranges with vodka in acopper still for 24 hours. The vodka is thendistilled a fourth time with the vapors passingthrough orange peel to give off the oils andcolor. This vodka has a bittersweet palate witha slightly syrupy mouth feel, rich orange zestand bitter marmalade notes. “An instant anddelicious breakfast Martini” TFAP Booth Number: A26

The Balvenie Tun 1401Company: William Grant & SonsDescription: This expression includesrare liquid from a number of casksselected by the industry’s longest-serving Malt Master David Stewartand married in Tun 1401 at TheBalvenie distilleryTFAP Booth Number: K21

Follador Prosecco SelectionCompany: World of Patria InternationalDescription: The Follador wine-making family is known forcombining traditional vineyard cultivation with modernproduction techniques. Follador’s Superior Line of winesincludes 4 DOCGs in the “Torri di Credazzo”Cuvée, Cartizze, Brut and Extra-Dry categoriesTFAP Booth Number: A26

PERFECT TASTE. ALWAYS

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ASIA Volume 16 No. 2a

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