Shilla DF reports 16% second quarter growth; Daigou sales surge expected

By Andrew Pentol |

Shilla-stores

The Shilla duty free has reported second quarter consolidated revenue growth of 16%.

The Shilla Duty Free (Shilla) has reported second quarter 2019 revenue of KRW1.2tn ($1.01bn) an increase of 16% from KRW1,05bn during the previous corresponding period in 2018.

Operating profit in Q2 rose 9% to KRW69.8bn from KRW64bn in Q2 2018. Revenue from its downtown stores (Seoul, Jeju, Shilla I Park, Phuket, Tokyo) and airport outlets (Incheon, Jeju, Gimpo, Changi, Macau) increased by 23% to KRW756.1bn and 6% (KRW470.4bn) year-on-year respectively.

Total Hotel Shilla Q2 revenue increased 15% to KRW1.35tn from KRW1.17tn in Q2 2018.

Looking ahead to the third quarter, solid Daigou (shuttle trader) sales growth is anticipated, while a surge in overall demand is also expected from next month onwards due to the Chinese mid-Autumn festivals.

DAIGOU TRADE UNAFFECTED

In February, TRBusiness reported that China’s new e-commerce law, which was implemented the previous month (1 January) to regulate online merchandising and provide consumers with increased protection was having no real adverse effects on South Korean duty free and travel retail revenues. The general consensus was that the Daigou trade remained as strong as ever.

In order to gain a better understanding of Daigou end-consumers and their behaviour, expectations and perceptions of the industry, Swiss research agency and TRBusiness data partner M1nd-set has launch a new research project.

M1nd-set plans to interview 1,000 Chinese consumers who shop through Daigou traders and is looking for brands, retailers and other stakeholders who would be interested in signing up to the initiative.

Shilla Q2 2019

Shilla Duty Free reported second quarter 2019 revenue of KRW1.2tn ($1.01bn) an increase of 16% from KRW1,05bn during the previous corresponding period in 2018.

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