BW Confidential - Issue #2 - May/June 2010 - (Page 54)

Travel retail Asia The region roars Asia is having a better time of the economic slump than any other region except the Middle East and confidence is still strong in the year of the tiger by Kevin Rozario fter the mauling the travel-retail business had in 2009, hearing trading environments described as “great” and “very resilient”, and 2010 predicted growth rates as high as 22%, may sound fanciful. But these are the numbers and assessments coming from top players in Asia. Travel retail in Asia has rebounded well partly because the giant Chinese market continued to be an engine of growth for the region, and its nationals kept traveling. The Chinese have become influential when it comes to spending at some big airports and there seems to be no let up in their travel plans, or their desire for top beauty brands. Indian nationals too, are a growing spending force that is set to bring further benefits in the years to come. A But despite all that, the market is not as rosy as it seems. In the first place, high growth this year is almost inevitable given the poor or negative rates seen in 2009. Comparisons with 2007 or 2008 might be a better measure of how the region is really faring. Secondly, Asia is a fragmented market, and while the big hubs that have a strong Chinese transfer market might benefit, others such as Manila or Jakarta may not be so lucky. Turning a corner On the whole though, operators feel that the travel-retail market for beauty in Asia, which at $2.11bn of an $11.4bn global market (in 2008), has turned a corner. In 2009, one of Asia’s biggest airport beauty retailers, Nuance-Watson (Singapore), managed “solid single-digit growth” despite negative passenger traffic at Changi airport. King Power Group HK, which runs duty-free beauty operations at Macau International, Shanghai Pudong International and Chongqing Jianbei International airports, group managing director Antares Cheng is looking at growth of around 15-22%. “Beauty will see strong growth in 2010 with mainland Chinese passengers the most active and fastest-growing customer market,” he tells BW Confidential. Hong Kong International airport handles a large throughput of Chinese passengers through Cathay Pacific, Dragonair and big Chinese carriers, such as China Southern and China Eastern. Here, retail operator 54 May-June 2010 - N°2 - BW Confidential credit: stock.xchng

Table of Contents for the Digital Edition of BW Confidential - Issue #2 - May/June 2010

Couverture
Comments
Contents
Update
- Brand and retail news recap
Take note
- Market facts, figures and trends
Launches
The latest fragrance, skincare and make-up launches
Best of BW
- Market highlights
Interview
- Clarins Fragrance Group president Joël Palix
Insight : skincare
- Category overview
- Industry viewpoint
- Trends
Wellness
- Training in spas
- Spa case studies
Market watch : Asia
- Regional analysis
- Japan
- China
- South Korea
Focus : Fragrance creation
- Fragrance regulations
- Perfumer roundtable
Radar
- Six up-and-coming beauty brands
Travel retail
- Asia regional roundup
- Interview with Korea duty-free
Last word
- Morning Star equity analyst Erin Swanson on beauty’s threats and opportunities

BW Confidential - Issue #2 - May/June 2010