Moving on in Japan
Exhibition, Analysis
While the devastating earthquake and tsunami in Japan continues to have a severe impact, the message from the country’s airports, retailers and brands in Singapore was that businesses must regroup and continue to develop.
Japan’s historic importance to the global duty free business cannot be overstated. During the boom times of the late 1980s and early 1990s, high-spending Japanese passengers contributed strongly to the growth of duty free and travel retail sales around the world. And while times may have changed, it remains a crucial market; during his conference presentation Petit Bâteau chairman Christian Blanckaert, a former Hermès International vice president, described it as "the market of reference” for luxury goods in Asia.
On March 11 2011 the country was shook by a massive earthquake. Followed immediately by a powerful tsunami, the disaster claimed over 15,000 lives, with 10,000 more still missing as of the beginning of May. Close to 250,000 buildings were destroyed, including many factories, utterly disrupting economic activity in the country. In the following weeks, tourism into Japan dropped by 75% compared with the same period in 2010, primarily due to fears – later proved unfounded - over the fallout from damage to the Fukushima nuclear reactor.
At a dedicated workshop session on Japan during TFWA Asia Pacific & GATE ONE2ONE, the effects of the disaster were discussed in detail. Duty Free Shops Association of Japan chairman Akito Abukawa thanked the industry for its support from all over the world, and said that while the country remained devastated by the huge loss of life, reconstruction was gathering pace. But economic recovery will take time, and Japan Tourism Marketing president Masato Takamatsu explained that progress would be slow in part because of the trend among Japanese people to restrain their spending, especially on luxuries including international travel, out of sympathy for the disaster victims in the northeastern Japan.
Despite the devastation, there was strong evidence of a desire to return to normality at the event, which served as a platform for the Japanese industry to state is resilience. This was shown by the strong number of Japanese visitors to the exhibition – the country remained in the top ten countries of origin for visitors – as well as the positive messages they brought to the event.
At a dedicated workshop session on Japan during TFWA Asia Pacific & GATE ONE2ONE, the effects of the disaster were discussed in detail. Duty Free Shops Association of Japan chairman Akito Abukawa thanked the industry for its support from all over the world, and said that while the country remained devastated by the huge loss of life, reconstruction was gathering pace. But economic recovery will take time, and Japan Tourism Marketing president Masato Takamatsu explained that progress would be slow in part because of the trend among Japanese people to restrain their spending, especially on luxuries including international travel, out of sympathy for the disaster victims in the northeastern Japan.
Despite the devastation, there was strong evidence of a desire to return to normality at the event, which served as a platform for the Japanese industry to state is resilience. This was shown by the strong number of Japanese visitors to the exhibition – the country remained in the top ten countries of origin for visitors – as well as the positive messages they brought to the event.
Narita International Airport Corporation senior executive vice president Harubumi Kobori talked conference delegates through the ongoing expansion work at Narita and Tokyo Haneda airports. At Narita, a new passenger terminal is planned to accommodate projected capacity growth, from 220,000 take-offs and landings in 2009 to 300,000 by the end of 2014. And planned expansions at Haneda airport, which re-opened for international traffic in 2010, will grow capacity to a total of 90,000 international take-offs and landings by the end of 2013. These ambitious plans – and the fact that they remain in place - encapsulate the optimism Japanese airports have for the long-term future of their market.
Two new exhibitors from Japan participated in the event in 2011. Both Ishiya Co and Hiyoko Inc are well-established confectionery brands in Japan which had not as yet considered business expansion overseas. Hiyoko Inc president Atsuko Ishizaka explained that the time was right for Hiyoko to look at exporting its products, although the company is still adjusting to the consequences of the recent natural disasters.
Ms Ishizaka said: "The tsunami had a big impact on our business as well, but things are returning to normal slowly. We have a strong domestic business, but, given Japan’s declining population and market trend, we are exploring business development abroad. This event offers us a great opportunity to test-market our products and develop business networks in Asia-Pacific. The duty free channel is a good market to begin this exploration.”
The message from the companies visiting TFWA Asia Pacific & GATE ONE2ONE from Japan is clear. The country cannot forget the human tragedy of the disasters in March 2011, but it will recover. And, with determination, it will continue to reinforce its important standing in the global duty free and travel retail industry.
Two new exhibitors from Japan participated in the event in 2011. Both Ishiya Co and Hiyoko Inc are well-established confectionery brands in Japan which had not as yet considered business expansion overseas. Hiyoko Inc president Atsuko Ishizaka explained that the time was right for Hiyoko to look at exporting its products, although the company is still adjusting to the consequences of the recent natural disasters.
Ms Ishizaka said: "The tsunami had a big impact on our business as well, but things are returning to normal slowly. We have a strong domestic business, but, given Japan’s declining population and market trend, we are exploring business development abroad. This event offers us a great opportunity to test-market our products and develop business networks in Asia-Pacific. The duty free channel is a good market to begin this exploration.”
The message from the companies visiting TFWA Asia Pacific & GATE ONE2ONE from Japan is clear. The country cannot forget the human tragedy of the disasters in March 2011, but it will recover. And, with determination, it will continue to reinforce its important standing in the global duty free and travel retail industry.
In The Exhibition...
The President’s perspective: a very successful event
Exhibition, Interview
TFWA president Erik Juul-Mortensen reflects on a busy and energised week of business in Singapore.
Creating partnership opportunities at ONE2ONE meetings
Exhibition, Testimonials
The pre-scheduled private meeting service offered exhibitors and airport service concessionaires a chance to meet face-to-face with some of Asia Pacific’s key airport groups.
Energy and innovation lift exhibitor and visitor spirits
Exhibition, Testimonials
Exhibitors and visitors talk about their participation in the event and their assessment of the mood of the industry
Moving on in Japan
Exhibition, Analysis
While the devastating earthquake and tsunami in Japan continues to have a severe impact, the message from the country’s airports, retailers and brands in Singapore was that businesses must regroup and continue to develop.
New exhibitors put innovation on display
Exhibition, Testimonials
A total of 58 new and returning exhibitors brought a dash of excitement and energy to the exhibition in 2011. Below some of the new companies reflect on their experiences.
The President’s perspective: a very successful event
Exhibition, Interview
TFWA president Erik Juul-Mortensen reflects on a busy and energised week of business in Singapore.New exhibitors put innovation on display
Exhibition, Testimonials
A total of 58 new and returning exhibitors brought a dash of excitement and energy to the exhibition in 2011. Below some of the new companies reflect on their experiences.Photo Credits: Jacques Gavard
