12 Carrousel du Louvre - BW Confidential

Show review
CONFIDENTIAL
TFWA Asia Pacific
Asia rising
BW Confidential reports on what was
seen and heard at the TFWA Asia Pacific
show held in Singapore from May 13-17
Exhibitors were almost unanimous in saying that this year’s TFWA Asia Pacific show
was a quality event. Organizer TFWA was also satisfied with the results and claimed
the 2012 edition broke records in terms of exhibition space, exhibitor and visitor numbers.
This year’s show saw the TFWA expand exhibition space beyond the main floor to a
mezzanine level just below it housing 17 companies. A total of 236 exhibitors attended
(up from 212 in 2011), and 58 (or 25%) were from the beauty industry. Visitor numbers
increased 2% to 2,164.
The numbers reflect the dynamism in Asia Pacific. Travel-retail sales in the region last
year overtook those in Europe at $15.9bn, with a growth rate of 24.7% (sales in Europe
came in at $15.57bn in 2011). Beauty sales in Asia Pacific were up 22.8% last year to
$4.72bn. According to Airports Council International (ACI), Asia Pacific will have the largest
share of global travelers by 2019 at 2.5 billion, or 33% of total passengers.
In addition to macro-economic growth, TFWA president Erik Juul-Mortensen outlined
in his address at the event’s opening conference that investment in airport infrastructure
would be key to future expansion in the region. He stated that in India the government
will invest $30bn in airport infrastructure in the next 10 years and that Vietnam was planning
new airport capacity for 250 million passengers.
The main driver however, remains the Chinese traveler. Some $3bn of tax-free purcha-
ses are now made by the Chinese. But despite the potential, Juul-Mortensen
noted that China and the Chinese traveler is a complex market.
“China needs to be treated as a collection of separate countries and the
industry needs to be clever to know what the Chinese want.” A similar
message applies to the Asia region as a whole: “The range of purchasing
patterns [in Asia] is more diverse than in Europe or the Americas […]
consumer behavior is the most difficult dynamic to understand and the
industry will need to work hard to convert consumers,”he stated.
While China was a major talking point, some exhibitors expressed
concern over a slight softness in the economy and the growing cost of
doing business in the market. There was also much frustration over the
difficult and ever-changing process of registering products in the market,
which continues to delay launches and result in a limited assortment in
China for many brands. And although China may still get the most attention,
there was a lot of excitement and interest about other markets in the
region, notably Indonesia, Vietnam and Cambodia. Myanmar, which is
now beginning to open up, was also highlighted as a market for the future.
As for India, it seemed more companies were beginning to consider
this market more seriously again—the country whose potential has been
talked about for years had taken a backseat recently at some of the major
brands, which were disappointed by the real growth to be had there and
preferred to focus on more immediate results in places like China. n n n
TFWA Asia Pacific snapshot
• Took place: May 13-17, Singapore
• No exhibitors: 236
• Beauty exhibitors: 58
• New or returning exhibitors: 62
• Visitors: 2,164, +2% vs 2011;
80% of visitors from Asia Pacific
Asia Pacific in figures
• Travel retail Asia Pacific sales 2011:
$15.9bn, +24.7% vs 2010 (global travel-
retail sales 2011: $46bn, +17.9% vs 2010)
• Beauty travel retail Asia Pacific sales
2011: $4.72bn, +22.8% vs 2010
• 60 million Chinese travelled abroad in 2011
• Chinese travelers purchased $3bn of
tax-free goods in 2011
• Asia Pacific will have the largest share of
global travelers by 2019 at 2.5 billion, or
33% of total passengers
Source: Generation, TFWA, ACI
www.bwconfidential.com - June 14-27, 2012 #56 - Page 13