Top Travel Retailers Report (continued)
The Shilla Duty Free
2021 Sales (million)
€3,966
2021 Rank
3
The Shilla Duty Free posted revenue of KRW5,666 billion in 2021, which translates as €3,966 million at 31 December exchange rates*. This was marginally less than 2020 in Korean Won terms, with the business buoyed by daigou income and online sales.
Like its great rival Lotte Duty Free, Shilla faces challenges in its home market, including a reliance on the reseller sector, the exit of some leading luxury brands from downtown duty free and the wider uncertainty over the timing of Chinese travellers’ return.
Shilla has big ambitions overseas, with its network of perfumes & cosmetics concessions including Hong Kong International and Changi airports. At the latter, the retailer is building back with significant store investments and reinvigorating its promotional calendar as travel returns to Singapore. Recently it launched its first ever Fragrance Festival at the location with multiple brand partners.
Key location: The Shilla Duty Free in downtown Seoul
Among other key developments in the past year, parent company Hotel Shilla signed a far-reaching strategic cooperation agreement with Hainan Tourism Investment Duty Free Co (HTDF) – giving the Korean company entry to the Hainan offshore duty free channel. The agreement encompasses product development and sourcing, brand incubation, human resources and staff training. The companies will jointly develop Hainan and overseas duty free markets, they said.
Shilla is also seeking to leverage its 44% stake in 3Sixty Duty Free to widen its influence in overseas markets.
*Note: The figures include the HDC-Shilla duty free joint venture consolidated at 100%. As with Lotte Duty Free and other Korean players the figures presented here include Korean domestic brand sales, which do not feature in the numbers disclosed according to IFRS accounting standards, and which appear on the DART platform where Korean companies report annual performance.
A new look for Shilla in perfumes & cosmetics at Changi Airport T2 arrivals (opening in August)
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The Moodie Davitt eZine Issue 313 | 28 July 2022
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