Shilla Duty Free, an affiliate of Samsung Group, secured the rights to run perfume and cosmetics stores at Changi Airport in Singapore from October this year to September 2020

January 12, 2014 Leave a comment

2014-01-08 17:07

Shilla to run shops at Changi Airport

This is an artist’s impression of a perfume and cosmetics store to be operated by Shilla Duty Free at Changi Airport in Singapore from October to September 2020

By Yi Whan-woo
Shilla Duty Free, an affiliate of Samsung Group, secured the rights to run perfume and cosmetics stores at Changi Airport in Singapore, the company announced Wednesday.The stores will operate from October this year to September 2020.
It will set up 19 outlets inside the airport’s three terminals and additional stores at the fourth terminal, which is due to be completed in 2017.
The duty free shop operator forecasted its sales would rise by 4 trillion won ($3.75 billion) over the next six years, with an estimated sale of 600 million won in 2015.
“This is a significant achievement because we’ll have a chance to promote Korea’s perfume and cosmetics products at one of Asia’s major airports, which is visited by a lot of hallyu fans,” a company spokesman said. “At the same time, we anticipate we’ll be able to grow as the world’s third largest market player based on the contract.”
The company said it beat a number of reputable global competitors to win the contract. They included Nuance-Watson of Singapore that ran beauty product stores for years at Changi Airport. Others were DFS Venture Singapore, Lotte Duty Free, LS travel retail, King Power Group Hong Kong and World Duty Free Group, the firm said.
In 2012, sale of perfume & cosmetics products was estimated at almost $310 million at the Changi Airport, according to The Moodie Report, a U.K-based business information provider.
“Beauty products are key-selling items at the airport along with tobacco as well as liquor,” the spokesman said.
The company will manage the 20 stores with a combined size of 6,600 square meters. And it is the first time the company has won the right to run such a huge space since its entry into overseas markets, the firm added.
In August 2012, it obtained the right to operate its first overseas store at the Changi Airport for three years starting in December of that year.
The company also secured rights to run two watch stores at Singapore’s Gateway and perfume and cosmetics stores at Malaysia’s Kuala Lumpur Airport in 2013.

Filed under Macro Trends

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