Shilla inks Changi deal extending duty free contract to March 2028

By Kristiane Sherry |

The Shilla Duty Free at Changi Airport

Shilla has agreed a four-year contract extension at Singapore Changi Airport effective 2024 to 2028.

The Shilla Duty Free has confirmed it will continue operating its duty free stores at Singapore Changi Airport after winning an extension of its contract to March 2028.

Speaking to TRBusiness in the Top 10 International Operators 2023 report, Younghoon Kim, Executive Vice President Sales HQ at Shilla, said the win bolsters its international expansion plans. 

“A case in point is Singapore Changi Airport, where our duty free operating tenure has been extended by four years effective March 2024 to March 2028,” he said. 

“Moreover, we are considering expanding into new markets such as the Americas and Europe, which could become critical bases for our international operations. 

“Our investment in 3Sixty illustrates this strategic intent, as we plan to explore synergistic business expansions in the American region between both entities.” 

Shilla acquired a 44% shareholding in 3Sixty Duty Free in 2019. TRBusiness understands that under the terms of the deal then, both sides would gain additional rights in 2024.

The resumption of travel among Chinese consumers are also set to drive international expansion for Shilla.

Shilla DF, VP, Younghoon Kim

Younghoon Kim, Executive Vice President Sales HQ at The Shilla Duty Free.

“Through our active engagement of significant customers via our overseas locations in Singapore and Hong Kong, we aim to fortify our dominance in the Chinese market perpetually,” Kim continued.

Key here is investment in Shilla’s digital architecture to better understand this key consumer group, offer tailored experiences, and engage them more effectively.

“Before the pandemic, we shifted to a digitally oriented business structure with the preferences of our Chinese customers and their purchasing habits at the forefront.

“We now intend to progressively refine our customer-centric integrated marketing initiatives to encompass the entire duty free shopping journey. 

“By exploring overseas markets, we are expanding our reach to Chinese consumers.”

‘Triumphant’ Shilla at Incheon

A key launchpad to international expansion ambitions was winning the cosmetics, liquor and tobacco concession, alongside boutiques and fashion, at Incheon International Airport in July 2023.

“Shilla’s triumphant Incheon Airport bid is viewed by the industry as an integral factor in our ability to achieve new milestones.

“Triumphing in the tender has enabled us to solidify our position as a pivotal operator across major Asian hub airports such as Singapore, Hong Kong and Seoul Incheon; retain our status as the most prominent cosmetics operator within the GTR market; and forecast our evolution into a significant domestic player in the liquor and tobacco sector.”

For the full interview, read the TRBusiness Top 10 International Operators issue available as an e-zine, or in print from the press racks at the TFWA World Exhibition & Conference.

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