 |
In the past, there was only one duty free shop in the area. It now features a new “˜Avenue’, which includes a duty free shop, four speciality stores, a café-restaurant, an exchange bureau and two new business lounges |
FINLAND. Barely six months after the expansion of the Helsinki-Vantaa international terminal, the airport is starting to reap the rewards of its investment.
Helsinki-Vantaa Airport Duty Free and Retail Manager Olli Rousi told The Moodie Report that spend per head for airside retailing has grown +4% for the six-month period since the expanded terminal opened for business last September.
The international terminal, serving long-haul and non-Schengen flights, was enlarged by 6,000sq m, including a shopping area of 700sq m.
Turnover for retail in the expanded area has grown +120%, though Rousi said that there may have been some shift of sales from the Schengen to the non-Schengen international area. Overall, the increase in sales for airside retailing was +12%.
In the past, there was only one duty free shop in the area. It now features a new “˜Avenue’, which includes a duty free shop, four speciality stores, a café-restaurant, an exchange bureau and two new business lounges.
The Helsinki Airport Duty Free shop operated by the airport authority takes up about 450sq m of the retail space, and covers wines and spirits, tobacco, confectionery and fragrances and cosmetics.
The four speciality shops include Stockmann – a prominent Scandinavian shopping chain brand featuring a range of Finnish and international brand apparel. Aseman Kello sells Finnish jewellery and international brand watches; Capi-Lux features digital products such as CDs, cameras, radios, wrist computers and mobile phones; while Reader’s caters for customers wanting to buy paperbacks, newspapers and magazines.
Long-haul boom drives passenger growth
The Civil Aviation Administration Finland (CAA) had launched the enlargement project following strong increases in passenger traffic. In 2004, a record 10.7 million passengers used the airport, a growth of over +10.5% from 2003.
Following the renovation, the airport now has an annual capacity of 15 million passengers rather than the 12 million previously. The growth has come primarily from long-haul international sectors.
Some 301,151 passengers flew long-haul international routes from January to April this year, an increase of +22.7% over the same period in 2004.
 |
Following the renovation, the airport now has an annual capacity of 15 million passengers rather than the 12 million previously. The growth has come primarily from long-haul international sectors |
In particular, traffic for China during the January to April period rose +28.3% year-on-year to 77,589. Traffic to Japan rose +23.2% to 43,971, and 67,441 passengers flew to Thailand, an increase of +21.9%.
As a result the CAA said: “Asian passengers in particular have been considered in designing the premises and planning the services.” Chinese and Japanese-speaking staff were hired and signposting in the two languages was added.
The airport authority added that the airport is becoming increasingly popular as a “transfer airport in traffic between Europe and Asia”. That is largely due to a strategy adopted by Finnair after the September 11, 2001 terrorist attacks. The airline decided that it had to diversify its markets to cover not just North America, but also the huge Asian population.
Since then, Finnair has been expanding its Asian traffic rapidly. The company said that Asian traffic had “more than doubled” between 2002 and 2004 and flights to the region now contribute a quarter of scheduled flights revenue.
Between January and April, some 213,500 passengers travelled with Finnair on Asian routes. This is an increase of +16.9% over the same period last year.
The airline plans to further “increase the number of Asian flights over the long term and will open new destinations in the region”. “The next goal is to increase the number of flights to the present Asian destinations,” said Finnair.
Non-stop flights between Helsinki and Hong Kong were launched by Finnair on 31 May. At the same time, the carrier increased flights to Singapore via Bangkok from three times a week to a daily frequency. In September, Finnair will begin flying to Guangzhou. It already flies to Beijing and Shanghai.
If Finnair can succeed in its plans to make Helsinki the interchange for flights between Asia and Europe, the potential increase in Asian customers, especially the Chinese and Japanese, to Helsinki-Vantaa airport is tremendous.
Rousi said that the airport authority is still “learning” how to refine its product selection for the Asian customer, and statistics are currently being compiled for the six-month period. But he noted that cosmetics and fragrances appear to be the most popular items for Asian travellers. Souvenirs and gifts come next.
Chinese customers also tend to go for the same items as one another when they start buying. “They are very curious customers. If one of them buys a product, we’re likely to end up selling 20 to other members of the same group,” he said.
While the airport is looking at making the most of this new market, Rousi noted that it is important to remember that Finnish travellers still make up a large part of the customer base.
Travel retail in Nordic countries was significantly hit by the abolition of intra-European Union duty free in 1999. The enlargement of the EU in 2005 further shrank the number of nationalities that could buy duty free.
Even with the growth in Asian customers, Rousi said the airport is far from making up for what it had lost. To maintain its appeal to the Finns and Europeans, the airport is carrying out a rebranding exercise.
While The Avenue was created in the international zone, the Schengen shopping area has been named Boulevard and the domestic area Galleria. Promotions are being stepped up and at the moment, customers stand to win tickets to the World Athletic Championships through a lucky draw.
A shop run by the airport authority in the Schengen area is also being renovated. Works are expected to be completed before international athletes and audiences come to town for the World Championships in August.
To cater for the athletes meet, a small shop selling World Championships items will open in a central area in July.
Rousi said: “It is a tough game. We just need to constantly improve ourselves and make changes when necessary.”
MORE STORIES ON HELSINKI-VANTAA AIRPORT
Finnish airport traffic up +6% in January – 2 March 2004
Finnish air traffic ends year on strong note – 13 January 2004
