Shilla awarded Macau International Airport North Side duty free concession

By Andrew Pentol |

Top Macau Airport

This time, Shilla participated in the tender for the North Side concession at Macau International Airport without Sky Connection.

The Shilla Duty Free (Shilla) has been awarded the concession to operate the north side duty free services at Macau International Airport (MIA).

This latest development follows news that parent company Hotel Shilla is to acquire US-based company 3Sixty Duty Free for $121m.

As reported, Macau International Airport Company (CAM) issued a request for proposals in May 2019. The five-year contact, which runs from 7 November 2019 to 6 November 2024, covers a variety of shops and kiosks totalling approximately 1,122sq m at the North Departure Level Airside of the Passenger Terminal Building. This is equal to half the airport’s duty free space.

ALL CATEGORIES COVERED

The concession encompasses all duty free categories and aggregate revenue is expected to reach $600m in the next five years.

Shilla, has operated a duty free store at Macau International Airport since 2014 after incorporating a joint-venture with Hong Kong-based duty free retailer Sky Connection (Sky Connection 60%, Hotel Shilla 40%). Crucially, however, Shilla participated in the tender without Sky Connection in this instance.

The two major duty free sections at the airport (North Side and South Side) cover 2,252sq. Combined revenue amounted to $160m in 2018. The South Side Area (1,130sq m) has been operated jointly by King Power and CDFG since last year.

ConcessionMacau_RFP

MIA handles eight million passengers annually with capacity set to jump to 10 million by 2021 on completion of the South Side expansion. With 80% of consumers Chinese, Shilla plans to promote the global presence of Korean small and medium-sized brands by configuring its merchandise portfolios to focus on K-beauty products as well as leading global brands.

Regarding Shilla’s beauty business in general a spokesperson told TRBusiness: “We have been sharpening our edge on beauty as customers have been recognising us as a beauty powerhouse. We are launching exclusive products and collaborating with new media.

Macau_kioskandstorerfp

Shilla will renovate and operate a series of shops and kiosks located at the North Departure Level, Airside of the MIA Passenger Terminal Building. Source: CAM

“In addition to launching our Shilla Superstars exclusive kit to celebrate our five-year anniversary at Changi Airport, we have recently collaborated with famous local Singaporean influencer Mongchin Yeoh, who has more than 230,000 Instagram followers, to make her Youtube video.”

Commenting on the Macau tender win, a Shilla Spokesperson added: “Our 30 years of experience and operational prowess as a global duty-free retailer have been recognised again. We have built a momentum to further beef up our global competitiveness, operating duty-free shops at Macau International Airport in addition to the top three international airports in Asia including Incheon, Singapore, and Hong Kong.”

Shilla currently operates at five overseas locations including Singapore Changi, where it has extended its contract until 2022, Hong Kong International Airport, where it celebrated the first anniversary of its Beauty & You concept earlier this year and MIA. It also has downtown duty free operations in Phuket, Thailand and Tokyo, Japan.

Ingyu Han, President Travel Retail Business, Hotel Shilla said: “Macau is one of the best-known tourist attractions and one of the leading duty-free markets. We have been able to further strengthen our duty-free retail presence globally by winning the duty-free concession at Macau International Airport. We will keep diversifying our overseas business portfolio to bolster our global competitiveness.”

Shilla Duty Free ranks third in the TRBusiness 2019 Top 10 Operators list with sales of $5.30bn last year.

 

 

 

 

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