SOUTH KOREA. Lotte Duty Free confirmed today that Chanel is no longer part of its Incheon International Airport duty free offer, echoing the great French beauty brand’s departure at the end of August from The Shilla Duty Free’s stores at Incheon.
The Moodie Report revealed in August that Chanel would be absent from Shilla’s Incheon stores when the retailer’s new concession began on 1 September. At that time Lotte Duty Free said the matter was still under discussion but today confirmed that talks had been unsuccessful.
Chanel also pulled out of its Incheon fashion boutique in May, where it had worked with Korea Tourism Organization which failed to retain any business in the new concession structure. Disappointingly for Incheon International Airport Corporation – and its travelling public – that means a total absence of one of the world’s great brands from an airport consistently rated the world’s best.
As reported, Chanel had been in a protracted dispute with Shilla and Lotte over space demands at Incheon.
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Business Korea’s headline sums up the situation nicely |
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Chanel is still part of the beauty mix with Lotte in downtown Seoul but not at Incheon with either Lotte or Shilla (immediately below) |
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Chanel, long piqued as a company by the blockbuster 550sq presence of Louis Vuitton at Incheon since September 2011, had demanded a huge increase in its 30sq m space in both retailers’ main beauty stores under their newly won contracts, which began on 1 September.
As reported, that demand prompted a furious response from at least one of Chanel’s major rivals (and concern from others), and Chanel’s Incheon exit was a subject of constant conjecture over the past few months. At the request of the parties, The Moodie Report held off the story in July due to commercial sensitivities.
Bum-Ho Kim, who heads Incheon International Airport Corp’s commercial team, expressed his regret at Chanel’s absence in an interview with The Moodie Report earlier this month (look out for full interview coming soon).
Chanel though, in both fashion and beauty, remains very much part of Lotte’s and Shilla’s various downtown duty free offers.
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How The Moodie Report first reported Chanel’s concerns back in 2011 |
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Chanel beauty enjoys a strong presence with The Shilla Duty Free in Seoul downtown |
