Officially inaugurated last week (26 July), the shop extends the South Korean travel retailer’s burgeoning airport presence in the country following openings at Da Nang Airport in 2017 and Cam Ranh International Airport in Nha Trang in 2018, bringing the total number of stores Lotte Duty Free operates to 21 across eight countries including South Korea.
The Hanoi Airport Lotte store lists more than 90 brands including perfumes & cosmetics, liquor & tobacco and foodstuffs and runs under a 10-year licence until 2028.
Among the exclusives to the airport are Hue and Innisfree, joining global labels such as Tom Ford and Bobbi Brown.
Lotte Duty Free has made no secret of its far-reaching ambitions for international expansion, with a stated target of KRW1tn/$844.5m in overseas revenue by 2020.
For Hanoi Airport specifically, it is aiming for sales of approximately KRW200bn/$168.9m in the next decade. As reported, Lotte Duty Free is forecasting KRW700bn in sales from its Nha Trang shops by 2028.
Lotte Duty Free was understood to have been eyeing the opening of a further downtown store in Da Nang in 2018, although the company now states this will take place within the coming year. It has also previously identified Ho Chi Minh City as another location.
In addition to Vietnam, Lotte Duty Free operates overseas duty free shops in Tokyo’s Ginza district, at Kansai and Guam Airports, plus downtown stores in Jakarta, Indonesia and Bangkok in Thailand.
A grand opening ceremony of the Hanoi shop was attended by key officials from Lotte and the country’s tourism board.
Kap Lee, CEO, Lotte Duty Free said: “We will make a virtuous cycle […] in which Vietnam’s tourism industry and Lotte Duty Free will develop together through expansion of various investments.”
Quoting national tourism figures, Lotte Duty Free says foreign visitors to Hanoi jumped 16% last year to 5.7m.
The Hanoi tourism department is aiming to attract more than seven million foreign tourists this year as it accelerates infrastructure development.
Last year, Chinese departing travellers showed the healthiest growth (+20%), followed by those from Korea (+12%) and France (+10%).
Lotte says it will respond to outbound demand by implementing a business model tailored to the demographics of Hanoi Airport travellers.
Terminal 2, where the shop is based, can accommodate up to 15m inbound and outbound passengers.
Asia & Pacific,
Asia & Pacific,