Heinemann Asia Pacific: TR’s inflection point calls for a reaffirmed value & experience proposition

By Faye Bartle |

Image Credit: Heinemann Asia Pacific
Heinemann Asia Pacific

In line with Gebr. Heinemann’s previously announced leadership transition, Johannes Sammann will assume the role of Vice President People & Culture at the company’s Hamburg headquarters from 1 September 2026, and Rajshree Dugar will be taking over leadership of the regional headquarters in Singapore on the same date.

TRBusiness caught up with Johannes Sammann, CEO Heinemann Asia Pacific, and Rajshree Dugar, CFO of the regional headquarters in Singapore, to talk about the first step in the company’s India journey, transformative initiatives in Sydney, and breaking down barriers to pave the way for growth.

As reported, the Asia Pacific region delivered a 9% share of €4.7 billion consolidated group turnover in 2025, with renegotiated contracts with airports leading to a ‘significant improvement in results and reinforced the growth perspective with airport partners’.

“We are seeing good traction as a result of our revenue-driving initiatives and cost savings measures that we put in place from last year on, with very positive growth rates in 2025,” said Dugar.

“For 2026, we anticipate a mixed picture. On the one hand, the long-term effects of the crisis in the Middle East are not yet clear, and we are closely monitoring the potential impact on passenger volumes and consumer sentiment. On the other hand, we have a new location starting operations this year at Noida International Airport, which we are very excited about. As the business gradually ramps up and the airport phases in more and more flights, this is a very positive development in the expansion of our Asia Pacific footprint and just the first step in our India journey.

“Our expanding distribution channels are also a strong revenue growth driver for us, as brands and independent operators in the region seek to take advantage of our scale, travel retail expertise, and robust supply chain network and capabilities.”

Read on for our in-depth Q&A with the duo…

Gebr. Heinemann has been reorganising and consolidating its business in APAC since 2024 – can you bring us up to date on where you are at with this now, including what have been the key adjustments and evolutions to your operations that have made an impact?

Johannes Sammann: As Rajshree mentioned, we are seeing the positive impact of our reorganisation on our annual results, so we are clearly on the right track. We need to sustain this forward momentum, driven by more scrupulous spending, and standardised data collection and analysis to maximise return on investment. This positive trajectory has also given us more leeway to start investing into the business again, for instance with our redevelopment initiatives in Sydney. There couldn’t be a stronger signal to the market about our commitment to Australia and to the travel retail channel.

Image Credit: Heinemann Asia Pacific
Heinemann Asia Pacific

Heinemann Asia Pacific’s Sydney Airport Tax & Duty Free store.

Is spend per Chinese passenger still about half of what it used to be? What’s the outlook now?

Rajshree Dugar: Spend per passenger for Chinese nationals remains soft compared to pre-pandemic, and we don’t expect it to bounce back any time soon, perhaps ever. We recognise this new reality, and as such we are focusing our efforts on stabilising the further softening of the Chinese passenger and growing new passenger groups, particularly those based in the locations where we operate. For example, the Australians in Sydney and Gold Coast, Indian travellers in Noida. We are also looking closely at emerging traveller demographics, assessing how we can better serve Vietnamese, Korean, Indonesian, and other high-growth nationalities across our business.

Is the MAG model giving way to something more flexible – what would be a more fruitful way to structure partnerships, in your opinion, and why is this needed?

Rajshree Dugar: We are certainly seeing more receptiveness from airports to the realities of strict MAGs and how they constrain innovation and investment in the retail experience. Our position has always been that commercially sustainable business models need to be able to accommodate fluctuations in passenger volume and composition, whether temporary shocks or structural evolutions. This is the only way that we can have the confidence to enter into long-term contracts, with an offer that can be fit for purpose no matter how the passenger base changes. At the end of the day, the question of how we can curate a compelling passenger experience needs to be at the centre of all airport/retailer discussions, and the resulting contractual agreements need to reflect that.

How has your distribution business in the APAC region expanded over the past 12 months?

Johannes Sammann: Distribution is one of our growth pillars in the region, and one that we are keen to expand. Over the past years, we have signed a number of new distribution contracts, including our first in Vietnam with SASCO, supplying their Beauty locations in Tan Son Nhat International Airport. Vietnam is a key focus market for us over the next few years as aviation demand there, fuelled by strong economic growth and a rising middle class, takes off. We are very excited to see how this partnership develops.

Image Credit: Victoria’s Secret
Victoria's Secret

Victoria’s Secret in Sydney Airport Terminal 2.

How are your Noida International Airport plans progressing and what insights can you share about the ways in which Indian travellers prefer to shop and spend?

Rajshree Dugar: The official inauguration of Noida International Airport by Prime Minister Modi in March was a highly anticipated milestone and brings us a huge step closer to commencement of flight operations at the airport. We are looking forward to the green light from the airport, with our teams hard at work on final preparations.

From our global retail footprint, where Indian travellers are increasingly making their presence felt at our stores, we already have a lot of learnings around customer service expectations, emerging product categories and brands, and we are looking forward to operationalising these in Noida once our first stores open.

From an overview perspective, how is Gebr. Heinemann prioritising growth across Asia Pacific, and which markets are central to that strategy today?

Rajshree Dugar: Our flagship capital investments for this year and next will focus on Sydney Airport and Noida International Airport.

In Sydney, we are driving a series of transformative initiatives in close collaboration with the airport designed to meet the expectations of today’s traveller rather than those of 2019. We are reimagining our Beauty portfolio to resonate with a younger Australian audience, highlighted by the arrival of Aesop, debuting in Sydney Airport duty-free with us. Alongside this, we are enhancing the layout of our arrival stores, refreshing the departures Wines and Spirits zone, expanding our Hermès boutique, and preparing further exciting developments to be unveiled soon. These advancements are the result of open, constructive joint dialogue with Sydney Airport, ensuring we stay up to date with the changing needs of our passenger base.

Meanwhile, following the inauguration of Noida International Airport in March, our teams are preparing diligently for the commencement of operations once final security clearances are secured. Noida marks our long-anticipated entry into the Indian market, in partnership with the Bommidala Group, and we are eager to showcase our capabilities to the airport’s very first passengers.

What are the key drivers of growth in the region right now?

Johannes Sammann: Again, distribution is a channel that has delivered strong growth for us in the region over the past couple of years, and it’s an area where we are able to sharply differentiate ourselves from our competitors. The two pillars of the Heinemann business model – retail and distribution – are mutually reinforcing, with our retail experience and footprint giving us credibility and expertise that we would not have as just a distributor, while distribution lends us the scale and market insights to support our more capital-intensive retail operations.

Image Credit: Suntory Global Spirits
Suntory Global Spirits

First-ever permanent House of Suntory shop-in-shop in Oceania, located within the main Heinemann store in Sydney Airport Departures.

What are the biggest operational challenges in APAC today?

Rajshree Dugar: Cost inflation is certainly a major factor we are monitoring closely, and its impact on propensity to spend in our stores. With higher fuel prices and interest rates that not only weigh on air fares but also day-to-day expenses, we have to work even harder for share-of-wallet with travellers. Our value proposition must be crystal clear for consumers, so that they are maximising every opportunity to shop with us.

How do geopolitical or regulatory differences impact your regional strategy?

Johannes Sammann: Geopolitical dynamics naturally have a significant impact on our business, as we have seen over recent years with conflicts in Europe and the Middle East disrupting air travel and the free movement of goods. They have also been extremely unpredictable, which only underscores the importance of taking into consideration the possibility of geopolitical shocks during tender and contract discussions, before these crises arise.

Are there structural barriers to growth that still need to be addressed in the region?

Rajshree Dugar: Contractual models continue to be a perennial sticking point in our business, and it is challenging to address other commercial topics for the long term without tackling the root issues. For instance, we all recognise the need to introduce newer, fresher brands and product categories popular with Gen Z and millennial travellers, but travel retail margin requirements, which are in place to sustain the high and inflexible rental costs, often mean that many emerging brands are excluded from our shops. The channel is at an inflection point, challenged from all sides by uncertain macroeconomics, a complex regulatory environment, and stiff competition from e-commerce, calls for reassertion of our value and experience proposition to the travellers.

What is your outlook for APAC travel retail over the next few years?

Rajshree Dugar: Positive. This is a region of enormous growth potential, and a young population that grows more enthusiastic about travel by the year. The call to action for our industry is to meet their expectations about the retail experience and raise the bar for them to make airport shopping an essential part of their holidays.

TRBusiness May 2026 issue

A version of this feature first appeared in the May 2026 issue of TRBusiness magazine. 

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