Travel Retail and Duty Free Business Intelligence    Thursday 24 July 2014

FASHION, LEATHER AND ACCESSORIES

LS travel retail China unveils 13 fashion stores at Shenzhen Airport

Published: 20/03/14

Source: ©The Moodie Report

By Melody Ng in Shenzhen, China

CHINA. LS travel retail China, a division of the Lagardčre Services group, today marked the official launch of 13 luxury fashion boutiques at Shenzhen Bao’an International Airport’s new terminal.

At three times the size of the previous Terminals A and B combined, the new terminal – which opened on 28 November 2013 – can now handle 45 million passengers a year, up from 17 million. About 26,000sq m of floor space has been dedicated to commercial operations, including 238 outlets from retail and food & beverage to entertainment facilities and financial services.

Spanning a total of 1,700sq m, LS travel retail’s 13 standalone boutiques – ranging from 60sq m to 150sq m – include Bally, Hugo Boss, Cerruti 1881, Coach, Dunhill, Emporio Armani, Ermenegildo Zegna, Furla, Montblanc, Salvatore Ferragamo, Shanghai Tang, Tommy Hilfiger and Versace.

View the LS travel retail Shenzhen Airport opening video on YouTube

About 70 guests attended the grand opening, including senior management from Lagardčre Services, LS travel retail and Shenzhen Airport Group, as well as key brand representatives. Also in attendance were delegates from Shanghai Hongqiao Airport, Xi’an Airport and Hong Kong International Airport. The Moodie Report was on hand to witness the landmark opening.

Speaking at the ceremony, Lagardčre Services Chairman and CEO Dag Rasmussen described the new terminal as “one of the most breath-taking airport environments – in terms of size, of architectural design, of flow” that he had ever seen.

“I am very pleased that LS travel retail is able to contribute to this environment,” he said. “I believe we have created an innovative and exciting fashion experience for the travellers within this luxury fashion precinct, one that matches remarkably well with the overall airport environment.”

Rasmussen underlined the company’s ambition for Asia: strong growth based on providing the best possible answer to the ever more demanding needs of the passengers.

“Luxury has arrived”: LS travel retail and Shenzhen Airport Group are set to unveil 13 standalone luxury brand boutiques in the airport’s new terminal
“China is the fuel of the engine for travel retail, especially for the luxury fashion category,” underlines Lagardčre Services Chairman and CEO Dag Rasmussen
LS travel retail China General Manager Eudes Fabre: “We will strive to redefine the operational excellence that you’ve seen to date in travel retail in China”
Shenzhen Airport Group General Manager Zhang Gong Ping heralds a new stage of development for Shenzhen Bao’an International Airport
“It is no secret that China is a major component to this growth; as such, we will continue to deliver the most exciting retail precincts such as here in Shenzhen and pursue our effort in answering to the needs of the Chinese travellers.

“China is the fuel of the engine for travel retail, especially for the luxury fashion category – both in terms of customers who fly across the world, and in terms of the fantastic development created by the new air transport infrastructure within the country. This infrastructure is supported by heavy, long-term strategic investment and by the capability to design state-of-the-art retail experiences for the passengers, as shown here.

“This is why we are happy to have been present in China for more than seven years – in airports and railway stations. We are now proud to have reached a new level in our development, with luxury fashion. The success in Asia has definitely strengthened our overall global luxury fashion portfolio and we aim to continue this success with strong partnerships such as this [with Shenzhen Airport Group].”

Located in the departure transit area, the 13 duty paid stores line up both sides of the 10m-wide central walkway leading from check-in and security to the departure gates. The resulting funnel effect means that 95% of domestic passengers (comprising 94% of the total traffic) will pass by the stores, which is excellent exposure for the brands, according to LS travel retail China General Manager Eudes Fabre.

(L-R) LS travel retail China General Manager Eudes Fabre, LS travel retail ASPAC Director Luxury Fashion Philippe Fontalba, LS travel retail ASPAC COO Emmanuel de Place, Lagardčre Services Chairman & CEO Dag Rasmussen, Shenzhen Airport Group General Manager Zhang Gong Ping, Shenzhen Airport Co. Ltd Deputy General Manager Zhang Huai, and Shenzhen Airport Co. Ltd Deputy General Manager Sun Zheng Ling
The VIPs give a celebratory toast to round up the official opening ceremony
“[The space] is very strong in terms of traffic and configuration, and that is one of the reasons I strongly believe we will be very successful here,” Fabre told The Moodie Report. The luxury brands will be the first stores that passengers will see, thanks to Shenzhen Airport’s carefully designed layout. This area was planned from the start to be a premium showcase for the airport, he added.

Speaking in fluent English and Mandarin, Fabre said at the opening: “From the beginning the ambition of the airport was very clear, and the investment – in terms of financial and in terms of time, effort and architecture – has really paid off. From the start the airport has really been pushing us to exceed ourselves and also to exceed whatever has been done to date in the domestic Chinese market. We will strive to redefine the operational excellence that you’ve seen to date in travel retail in China. We really believe this is a new beginning in fashion retail in travel locations in the country.”

Continuing on the theme of operational excellence, Shenzhen Airport Group General Manager Zhang Gong Ping highlighted the successful overnight relocation of the airport’s operations from the old terminals, which closed on 27 November 2013 – a day before the new airport opened for operations. This “zero-error relocation” preceded the milestone achieved on 5 December, when the passenger numbers surpassed 30 million for the first time.

Today marks a new stage of development for Shenzhen Airport, Zhang underlined, with the elevation of its commercial image and the laying of a solid foundation for brand building of the terminal. “Our brand awareness has been highly increased through cooperation with a leading travel retailer such as Lagardčre Services and introducing world-class brands into our airport,” he said.

The luxury fashion stores line up both sides of the 10m-wide central walkway leading from check-in and security to the departure gates, resulting in high exposure for the brands
The 13 standalone boutiques include Bally, Hugo Boss, Cerruti 1881, Coach, Dunhill, Emporio Armani, Ermenegildo Zegna, Furla, Montblanc, Salvatore Ferragamo, and Shanghai Tang
Guests take a tour of the boutiques following the official opening
A string quintet entertained passengers with lilting tunes
Explaining the choice of LS travel retail as partner, Shenzhen Airport Co. Ltd Deputy General Manager Sun Zheng Ling gave emphasis to the company’s high level of professionalism. The airport had spoken to several companies and evaluated a number of options before entrusting LS travel retail with its most valuable concession.

“Shenzhen is a lucrative market with great potential especially for luxury fashion in travel retail,” Sun said. “Our established relationship with LS travel retail has developed a unique trust and they have since been delivering a world-class travel retail experience and exceptional retail services into Shenzhen Bao’an International Airport.”

The opening of the Shenzhen Airport stores represents another boost in LS travel retail’s luxury credentials in the Asia Pacific region. Since 2010, LS travel retail ASPAC has expanded its luxury fashion portfolio to a total strength of 27 stores, beginning with its first multi-branded luxury fashion boutique, ‘The Fashion Gallery’, which carries 17 different brands within the boutique. This was followed by several standalone luxury fashion branded stores such as Coach, Hugo Boss, Longchamp, Salvatore Ferragamo in Singapore and at locations across China.

Shenzhen Bao'an International Airport's new terminal, at three times the size of the previous Terminals A and B combined, can now handle 45 million passengers a year
LS travel retail ASPAC Chief Operating Officer Emmanuel de Place commented: “We have successfully brought a dynamic mix of the world’s leading luxury fashion brands into a world-class travel retail shopping experience at Shenzhen Bao’an International Airport. We are very proud of our strong growth in luxury fashion across the region and particularly here in China with such modern and forward-thinking airports as Shenzhen.

“With more than 20 years’ presence in the Asia Pacific region we are now operating more than 260 stores in nine countries. We offer tailored solutions for each airport through our strong expertise in understanding the expectations of landlords and travellers. With our strong credentials in luxury fashion, this segment of the business is clearly a very promising development track for LS travel retail in Asia and especially in China,” he added.

Fabre concluded: “We are extremely pleased with this new opportunity to operate at Shenzhen Bao’an International Airport. Our fashion concept perfectly complements the amazing architectural design of the terminal. In collaboration with our brand partners and Shenzhen Airport, our vision is not only to enhance the brands we have on offer at this airport but also to offer new innovative travel retail concepts where consumers can truly experience our consistent world-class service standards in Shenzhen Airport. These openings signify our wealth of expertise and knowledge in high-end luxury retailing but also our ambition and ability for growth in China.”

The Shenzhen Airport opening and LS travel retail’s wider plans in China and Asia Pacific will be featured in next week’s e-Zine and the May 2014 issue of The Moodie Report Print Edition.