HONG KONG. Richemont Luxury Asia Pacific was at TFWA World to showcase products tailored to travel retail and the Red store concept for Dunhill launched in the UK over two years ago, which is now taking Asia by storm.
A project to revamp Dunhill’s 1,000sq ft (93sq m) Hong Kong airport store to the new Red signature will be completed in December and over time all the brand’s 24 locations with DFS will be redesigned.
Similarly in Guam’s downtown Tumon Sands Plaza, in Bangkok airport, in Seoul Incheon (with Lotte), in the new Fukuoka airport terminal in Japan and in Singapore Changi airport’s new terminal 2 area, the brand will reopen in new locations.
Travel retail business once accounted for between 15% to 20% of global sales for the Dunhill brand and the company has got its sights clearly on matching that figure again.
In particular, Dunhill is focusing on its new D-8 line of leathergoods and luggage, the first in a series of launches, including a new pen next year, which will target travellers. The company has already had big successes with Sidecar, a collection of business bags and small leathergoods launched in April 2003, with more traveller-focussed pricing that has paved the way for D-8.
D-8 also breaks new ground for Dunhill, creating a new signature pattern with a play on the D logo used to enhance visibility, popular in Asia and similar to the LV monogramme and devices used by other brands. D8 bags range in price from US$140 in travel retail to US$400 for larger pieces.
The new Dunhill eyewear collection will launch in Asia Pacific in December under licence to Airess.
“Dunhill is predominantly a male franchise, but 30% of visitors to Dunhill shops are female,” Richemont Luxury Asia Pacific general manager travel retail Pri Liyanage told The Moodie Report.
“We recognise there is a lot of gifting, especially in Asia and the new products cater more to travel retail.”
The initiatives are part of the group’s re-focussing on the travel retail market under new ceo Simon Critchell, with a greater spread of price points, a factor which had declined under the prevailing policy some four years ago.
“In the last five years we moved away from travel retail but we are back big time,” said Richemont Luxury Asia Pacific managing director Tim King. “We are working to get stronger visibility with the Red store which is the focus for all new projects.”
In total Dunhill has 43 existing shops in Asia and a further 16 in Japan, with many of these in travel retail. A major expansion is in place for the Korean domestic market, where the number of stores will increase from two to seven by March 2004. With Lotte Duty Free, Dunhill will soon open the first travel retail Red store in South Korea at Lotte World, with Lotte Cheju and Lotte Pusan following suit next year. Another new domestic market store recently opened in Hong Kong’s Ocean Terminal and a further new 800sq ft (74sq m) Dunhill Red store is planned for Kuala Lumpur airport.
Meanwhile, Dunhill remains the leading luxury brand in mainland China, which it sees as important for the long term.
“We are making sure travel retail reflects the new image of Dunhill,” commented King. “And we are back to some aggressive business with DFS. I am confident that we now have the right product for the travel retail consumer, with more opening price points, the mix of logo and non-logo products, and our new leather developments.”
Travel retail enquiries to Dunhill general manager DFS and travel retail Emmanuelle Mace-Driskill at email: emmanuelle.mace@alfreddunhill.com.hk or Pri Liyanage at email: pri.liyanage@alfreddunhill.com.hk
