The Changi Airport Group’s shops generated retail sales of more than S$2bn ($1.50bn) in 2014 from an average of over 120,000 transactions a day, according to Lim Peck Hoon, Executive Vice President Commercial, Changi Airport Group (CAG).

 

This was achieved from a total of 54.1m passengers, corresponding to a marginal 0.7% rise on the 2013 number, reflecting CAG’s cautionary comments to TRBusiness last year that it was expecting slower traffic growth this year.

 

Last year’s retail sales total was also in line with the S$2bn generated in 2013, which is a good performance considering the tailing off of Chinese visitor numbers to Singapore, Malaysia and Indonesia last year.

 

The fact that Changi was also named the ‘World’s Best Airport’ by Skytrax for the third-year running has also been well received by airport management, with its shopping facilities part of that measuring process.

 

As reported, DFS recently opened its $68m duplex store investment at Singapore Changi Airport Terminal 3, while Shilla Duty Free launched 19 cosmetics and perfume stores across Changi’s three terminals in February 2015.

 

Of the 80 that are exclusive to Shilla, 26 are also new to Singapore. Shilla is also set to introduce its T3 duplex store in the third quarter of this year.

 

 

 

CHANGI IS BEING TRANSFORMED

DFS also opened the world’s first Wines and Spirits duplex store at Terminal 3 in March, showcasing the unique Raffles Long Bar experience, as well as Asia’s largest assortment of single malt Scotch in any airport.

 

The Terminal 1 central store has been revamped and reopened, while works on the Terminal 2 duplex store are slated for completion in 2016.

 

Yet another area of retail growth has been the highly successful introduction and roll out of Changi Airport’s online shopping portal, called iShopChangi.com.

 

Speaking to TRBusiness.com as part of a major interview in this month’s May issue of the Travel Retail Business magazine (out this week), Lim Peck Hoon said: “Since the launch of iShopChangi in 2013, sales and website traffic have increased by about 40%.

 

 

6,000 SKUS ACROSS SIX CATEGORIES

“The product range on the portal has also increased several-fold – it now offers 6,000 items across six categories including Beauty; Wines and Spirits; Chocolates and Delicatessen; Fashion; IT and Electronics; and Timepieces.

 

“The first two are the most popular categories, with Estée Lauder, SKII and Lancôme among the top beauty brands; and Johnnie Walker and Martell, the top liquor brands.

 

“With luxury brand Montblanc now onboard iShopChangi with their best selling pens and leather goods, we look forward to increasing our online offers in the luxury category.

 

“Changi Airport’s online shopping portal, iShopChangi, which is available in both English and Chinese, will be extending its collection service to arriving passengers in the coming months.”

 

LEADING EDGE RETAILING

In addition, since Shilla came onboard in October 2014, she says Changi’s Cosmetics and Perfumes concession now boasts the largest collective beauty offering of all duty free shops in Asia, comprising a range of 190 Cosmetics and Perfumes brands.

 

She added: “As part of their innovative store design, Shilla’s Terminal 2 main store boasts a ‘Waterfall’ lighting installation constructed by famous installation artist Sun-Ki Park. Inspired by the ‘Kinetic Rain’ sculpture at the Terminal 1 Departure Hall, Sun-Ki Park has designed a unique 37-metre-wide waterfall shaped crystal installation.

 

“This iconic centerpiece is made up of thousands of shiny crystal droplets hung from the ceiling on clear nylon threads, which adds an artful edge to the store decor. Moving forward, in 2015 we will be welcoming the first Zara Airport Duplex in Terminal 3. Zara is a highly desirable fashion brand that will add to Changi Airport’s retail offerings.

 

 

“The introduction of Zara to Changi Airport will enhance our value proposition to passengers by adding a popular fast fashion concession and help reaffirm our status as a leading airport shopping destination. We will also intensify our marketing efforts with a series of initiatives lined up to commemorate Singapore’s jubilee celebrations this year.”

 

Meanwhile, the CAG has threw down the gauntlet to its competitors with last month’s announcement that it will be offering substantial reductions in its aeronautical charges to airlines, ground handling agents and passengers – to substantially raise its edge against its regional rivals.

 

To read this story, click here: http://www.trbusiness.com/regional-news/asia-pacific/changi-slashes-airline-and-pax-fees-to-gain-on-rivals/75885