Asian Duty Free & Travel Retail Industry Still Booming
SINGAPORE, June 7, 2013 /PRNewswire/ — “Preliminary forecast global sales for 2012 are just over $49 billion – close to the magic $50 billion which was discussed not all that many years ago as a possible figure to reach, but still a little away from the projected $64 billion by 2015. The 2012 result is a 7.5% increase on 2011 and, yet again, it’s the Asia Pacific region that is the powerhouse of this growth,” stated Erik Juul-Mortensen, President TFWA.
Mr Juul-Mortensen was speaking at the opening plenary of the TFWA Asia Pacific Conference & Exhibition on Monday 13th May in the Marina Bay Sands Expo & Convention Center in Singapore.
Asia is largest and fastest growing region for global duty free and travel retail
Quoting figures produced by independent industry analyst Generation Research AB, he said that sales in Asia Pacific reached $18.6billion, 37.7% of the total, up 16.3% on 2011 – over double the global growth rate. Africa grew 13.7% from a low base, Middle East up 10.5% and Americas up 4.7%. Europe, for 60 years the dominant region for the industry but currently plagued by economic troubles, remained flat.
The buoyancy of the Asia Pacific market created the perfect backdrop for the annual industry TFWA Asia Pacific Conference & Exhibition. A record number of major international brand companies – 253 – representing thousands of brands were present on the exhibition floor, occupying 8,200 square metres of stand space, more than ever before in the 18-year history of the event. 74 of these exhibitors were new to the show, or returning after a short absence, illustrating the extent to which the industry in the region is burgeoning.
Fragrances & cosmetics led the breakdown at 23% followed by wine & spirits at 17%, fashion & accessories 16%, jewellery & watches 14% and confectionery & fine food 13%. Tobacco accounted for 7% of stands, gifts & toys 4%, electronics 2%.
Prestigious luxury brands abound at TFWA Asia Pacific Conference & Exhibition
The exhibitors included the owners of many of the most prestigious luxury brands in the world and, with their smaller neighbours, they shared one ambition: to expand their business in China, India, Taiwan, Vietnam and the other fast developing countries in Asia in addition to the established duty free & travel retail markets such as Singapore, Malaysia, Japan and Australia.
Buyers, landlords, distributors and agents from airports, airlines, marine and downtown duty free & travel retail outlets across Asia and the Pacific region crowded through the doors and by 5pm on Thursday 16th May a total of 2,452 people had visited the exhibition, up 13% on 2012.
Conference addresses challenge of Striving for Perfection
Setting the scene for the event was the high-level Conference on the theme of ‘Striving for Perfection’ on Monday 13th with keynote speakers Dr Mahathir bin Mohamad, Former Prime Minister of Malaysia, Gilbert Ghostine, President Asia Pacific, Diageo, Dr Fan Gang, Director, China National Economic Research Institute and Chairman, China Reform Foundation, Sunil Tuli, President, Asia Pacific Travel Retail Association and the State of the Industry address by Mr Juul-Mortensen.
The closing plenary, entitled ‘New Consumers, New Challenges’, offered two powerful perspectives based on recent research presented by Garry Stasiulevicuis, Counter Intelligence Retail Managing Director and Anson Bailey, KPMG Principal Business Development.
Four topical workshops on various aspects of ‘Striving for Perfection’ took place between the plenary sessions, each led by a panel of experts. The subjects this year were ‘Perfect Journey’ on retail facilities and communication; ‘Perfect Pitch’ on how an integrated, partnership-based approach to engaging the customer between different stakeholders can enhance the retail proposition; ‘e-Perfect’ on the rich marketing opportunities that the latest digital and social media represent; ‘Perfection Personified’ on optimising the human interaction with travelling consumers.
The record-breaking TFWA Asia Pacific Conference & Exhibition is the regional version of the global TFWA World Exhibition which took place in France in October. It too smashed records with 6,074 visitors, 4% more than in 2011, and 462 exhibiting companies present.
First TFWA APTRA Industry Conference on China deemed a success
2013 is already a landmark year for the Association. In March, TFWA, in partnership with the Asia Pacific Travel Retail Association, staged the inaugural Industry Conference on China, ‘China’s Century’, in Beijing. This first conference organised by industry associations attracted 372 industry delegates and was applauded for the excellent line-up of speakers and the quality of the content. It is likely that the event will be repeated in 2015.
Middle East event breaks records
The Middle East Duty Free Association held its 11th conference in Dubai in November, organised by TFWA, which was also a record-breaking event with over 500 delegates. The association took the opportunity to rename itself the Middle East & Africa Duty Free Association- MEADFA – to embrace Africa, a region which has huge undeveloped potential.
A busy year ahead
The next major event in the global duty free & travel retail industry calendar is the 29th TFWA World Exhibition in the Palais des Festivals in Cannes, France, from 20th to 25th October. With thousands of innovative products on display from the world’s most prestigious and forward-thinking brand companies, this is bound to be a red-letter event for every stakeholder in this thriving industry.
TFWA, under the motto ‘by the trade, for the trade’, has always supported efforts to develop and protect the duty free & travel retail industry. In this regard it is now instigating a Travel Retail World Council whose mission is to represent, protect and help build the global duty free and travel retail industry through support to all regional industry associations.
For more information about the exhibition, conference, research and other activities of TFWA please consult www.tfwa.com.
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TFWA Press Office