12 Carrousel du Louvre - BW Confidential

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CONFIDENTIAL
TFWA Asia Pacific
n n n Seen & heard in show
Pupa revealed it has just entered
Thailand with two counters at the
Paragon department stores in Bangkok.
It plans to be in six malls in the country
by the end of the year. The brand,
which has been cautious about
entering China, revealed that it is
now evaluating the market in a
more serious way.
French skincare brand Condensé
has opened an office in Hong Kong
to develop its Asian business and
to oversee its upcoming launch in
China. The brand will also launch
a website from its Hong Kong office.
German company Mäurer & Wirtz put
the focus on the men’s fashion brand
Baldessarini, whose license it took over
at the end of last year. The license was
previously held by P&G. The company
plans to launch a new fragrance for
Baldessarini in the fall. Mäurer & Wirtz
recently restructured its business into
three divisions: Beauty (for masstige
products) Prestige (for selective brands)
and 4711 (for the company’s 4711
cologne franchise). The company
plans to expand its prestige division and
will likely add more selective brands in
the near future.
French company VAG showcased
its new fragrance for fashion brand
Leonard. The fragrance, simply
called Leonard, is described as a new
signature scent and according to VAG
manager Anthony Gambirasio “marks
a change of mood for the brand”.
The floral oriental was created by
Delphine Lebeau and Benoist Lapouza
of Fragrance Resources. The fragrance
will roll out in September and comes
in 30ml, 50ml and 100ml. n n n
China Revisited: heard at TFWA’s China workshop
Travel retailer China Duty Free Group (CDFG) vp Charles Chen
outlined that:
• Its duty-free store in Sanya on Hainan island, China, which was completed
in 2010 reported sales of just under $250m in one year.
• The number of young consumers is increasing and that purchases by 18-30
year olds accounted for 40% of total sales at the Sanya store.
• Some 67% of growth in luxury-goods sales was attributed to new customers
mainly in second- and third-tier cities, and that brand awareness among
these consumers is now equal to that of consumers in first-tier cities.
• Brands should increase inventory of their best-sellers, provide more after-
sales services and staff training.
(CDFG has more than 190 outlets in China, Hong Kong and Taiwan and reported sales of
$660m in 2011, an increase of 43.6% over 2010)
Counter Intelligence Retail md Garry Stasiulevicuis on the
Chinese traveler:
• Some 72 new airports will be built in China by 2015
• Chinese travelers draw up a shopping list prior to travelling and will save up
to shop before travelling
• Request purchasing is key behavior among the Chinese
• Some 40% of Chinese travelers enter duty-free stores
• Some 30% of those entering a duty-free store make a purchase, but 30%
say they will never make a purchase
• One third of Chinese shoppers go to duty-free stores to browse or kill time,
25% look for a bargain, and 20% go to buy a specific item
• Chinese travelers’ average spend is $170, versus a global average of $100
• Chinese business travelers’ average duty-free spend is $155, those on organized
leisure trips spend $210 and solo leisure travelers spend $180
• In beauty, business travelers spend an average of $210, those on organized
trips spend $245 and those traveling for leisure, but not in groups spend $225
• In the beauty category, 30% plan to buy a specific beauty item
• In beauty, the conversion rate is 40%
• Some 55% of shoppers who buy beauty say they purchase for a gift and
40% buy to stock up their beauty supplies
• In beauty, of those who planned to buy but did not make a purchase, 50%
say it was because items were too expensive and 50% were not inspired
CAPA coo Derek Sadubin revealed that:
• The development of high-speed rail in China will force airlines to expand
into other markets either domestically in the country or in South East Asia.
Sadubin described high-speed rail in China as a “retail free zone”, and
said there is an opportunity to develop sales in rail stations.
• Middle East carriers routes to China are growing rapidly.
• Much of the growth in China will be driven by expansion of low-cost carriers
(LCCs)
www.bwconfidential.com - June 14-27, 2012 #56 - Page 14