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Nuance-Watson Singapore has proved a strong and successful incumbent of Changi’s perfume & cosmetics concession but is certain to face intense competition from regional and international rivals |
SINGAPORE. Changi Airport Group is set to issue tenders for two of its blue-chip retail concessions: Liquor & Tobacco and Perfumes & Cosmetics.
The forthcoming tenders, which will be launched formally on 28 March, are expected to be among the most hotly contested in global travel retail this year, and are certain to attract heavyweight international fields.
The incumbents are DFS Group (Liquor & Tobacco) and Nuance-Watson Singapore (Perfumes & Cosmetics) in each of Changi’s terminals.
Full details of the opportunities are available by clicking on the advertisement on the Home Page of TheMoodieReport.com today. Our accompanying news story has been held until today at the express wish of Changi Airport Group.
In a break with previous tradition – and a move sure to be welcomed by potential bidders – Changi Airport Group is offering six-year contracts in each case. Previously its core category concessions carried a tenure of three years with two-year extension options.
Both concessions cover terminals 1, 2 and 3 plus the planned T4 at Changi Airport.
Of the tender opportunities, Changi Airport Group said the concessions “represent key touch points of Changi Airport’s retail environment. This is an exciting opportunity for companies to submit competitive proposals and showcase their expertise in offering innovative concepts that will deliver a superior and unparalleled shopping experience to passengers.”
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The acclaimed DFS Liquor & Tobacco operation represents one of Asia’s blue-chip duty free contracts. As with Nuance-Watson, the retailer will face several strong rivals in its effort to retain a long-held concession |
The Liquor & Tobacco contract runs from 9 April 2014 to 8 April 2020, while the Perfumes & Cosmetics contract runs from 1 October 2014 to 30 September 2020. DFS and Nuance-Watson (Singapore) had each extended their contracts to meet the beginning of the new concessions.
The bid deadline for both tenders is 27 June. On 3 April there are compulsory site visits at Changi Airport for companies interested in taking part.
Changi Airport Group Senior Vice President, Airside Concessions Ivy Wong told The Moodie Report: “Duty Free Liquor and Tobacco (L&T), and Perfumes and Cosmetics (P&C) are very important concession categories to Changi Airport, and we are excited about the opportunity to inject innovation and dynamism to these core categories. As the retail anchors of Changi Airport’s transit malls and our top two product categories in terms of sales, it is imperative that our L&T and P&C concessions embody the hallmark of the ‘Changi Experience’ and lead the breakthrough in our journey to deliver a superior shopping experience to passengers.
“Through these two tender exercises, CAG is seeking exciting, bold and innovative concepts for both concessions that will allow us to elevate the travel retail experience at Changi Airport to a whole new level. While we expect tenderers to submit competitive proposals, they should also showcase their expertise in offering outstanding concepts that are innovative and refreshing, thereby creating exciting and unforgettable retail experiences that position Changi as the airport with the world’s best in class L&T and P&C offerings.”
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The bids will cover terminals 1, 2 and 3 (the latter pictured) plus the new T4 |
Back in 2007, the last core category tenders for these concessions proved to be titanic contests.
In Liquor & Tobacco, the tender culminated in bids from six of the industry’s most powerful players – DFS Group, Hotel Lotte, Sky Connection, Nuance-Watson (Singapore), Aelia and Aldeasa (now World Duty Free Group). Click here for bid details from that tender and our story announcing DFS’s victory.
In Perfumes & Cosmetics, Nuance-Watson (Singapore) placed a commanding bid to retain the business, against competition from Aelia, Aldeasa, DFS and Lotte. Click here for our story on that tender and the full list of bids from 2007.
Given the level of interest already shown in these two major concessions, it’s likely that both incumbents will have a fight on their hands to re-capture these lucrative contracts for a further six years.
*Coming soon: a major interview with Changi Airport Group management about the forthcoming tenders and the airport company’s expectations of potential bidders.
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Changi Airport Group has invested heavily in upgrading its terminals, most recently T1 |
NOTE TO AIRPORT OPERATORS: The Moodie Report is the industry’s most popular channel for launching commercial offers and other airport bids. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@TheMoodieReport.com.
We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.
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