Taiwanese Travel Retailer Tasa Meng and Malaysian retailer DR Group could collaborate on staff development, e-commerce and product sourcing at Kuala Lumpur International Airport.

Taiwanese Travel retailer Tasa Meng and Malaysian operator DR Group are exploring the possibility of a ‘friendly’ strategic business collaboration at Kuala Lumpur International Airport (KLIA).

Both parties begun discussing mutual points of cooperation on staff development, e-commerce and product sourcing last year.

In 2018, Tasa Meng secured a 12-year contract (plus three-year extension option) to continue operating at Taoyuan International Airport Terminal 2 (Area D), overcoming the likes of Lotte Duty Free, Shilla Duty Free, Dufry Group, Lagardère Travel Retail and DFS Group.

PUBLIC PRIVATE PARTNERSHIP MODEL

Airport tenders in Taiwan are somewhat unique in that they adopt a Public Private Partnership (PPP) duty free operator licence model. Tasa Meng, therefore, is partly responsible for the upkeep and maintenance of common facilities at Taiwanese airports.

Gary Chau, General Manager, Tasa Meng said: “This friendly cooperation is in line with the New South Bound policy promulgated by the Taiwanese government. We believe  both parties can benefit from sharing knowledge and experience in their respective jurisdiction. That said, our business focus still remains in Taiwan.”

DR Group, specialises in perfumes and cosmetics (colours and fragrances), and confectionery (chocolate sales and supplies) and believes a strategic business alliance could be synergistic for specific niche products.

A DR Group statement said: “The PPP concession model could be a game-changer for local duty free retailers as they usually have a vested long-term interest to retain and sustain the business in their home territory, unlike international players.

A Tasa Meng tobacco, liquor and chocolate store at Taoyuan Airport Terminal 2.

“Collective Corporate Social Responsibility (CSR) between the airport authority and retailer through the PPP concession model ensures the main focus for both parties is the safety and comfort of air travellers.”

DR Group is no stranger to CSR initiatives in that it runs a private Chocolate Museum at its Malaysia headquarters. The 11,000sq ft facility contributes to the community with a strong focus on education, experiential and enjoyable shopping, all with an emphasis on cocoa and chocolates.

As part of its annual CSR programme, the retailer recently hosted Malaysian Prime Minister, Tun Dr Mahathir Mohamad, for a breaking-of-fast and charity event with the local community of Langkawi.

Dr Afendi Dahlan, Business Development Director, DR Group said: “As the industry landscape becomes more challenging, Tasa Meng’s experience in Taiwan shows how smaller local duty free players can remain relevant and competitive through unique value propositions like PPP.

“This obviously requires acceptance on the part of the airport authority. After all, free trade should be fair trade.”

Established in 1985, DR Group has core business in airport and non-airport retail and operates more than 40 retail outlets around Malaysia.

DR Group recently held a breaking-of-fast and charity event in the presence of Malaysian Prime Minister Tun Dr Mahathir Mohamad as part of its annual CSR programme.