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| Whether it be the most dazzling Christmas installations in the airport world, a cultural showpiece or an exuberant celebration of Chinese New Year, Hong Kong feels like an airport with a heartbeat, a crossroads of humanity, culture, technology and aviation. |
HONG KONG. The bid deadline for the two core category tenders at Hong Kong International Airport is just two weeks away and The Moodie Davitt Report understands a hugely powerful field of Hong Kong and Mainland Chinese, Korean and other international operators are poised to bid on one or both of the concessions on offer. A third tender, for confectionery, will be issued in March or April (see below for details), Airport Authority Hong Kong confirmed.
The incumbent for all the contracts (though they are structured differently*) is DFS Group. Bids close at 2.30 p.m. on 2 February with licence awards expected in March or April.
The tenders are being assessed on a 60% Business Plan, 40% Financial Offer weighting.
As revealed exclusively by The Moodie Davitt Report on 8 September and in more detail on 31 October, Airport Authority Hong Kong has revamped the tender mix to reflect changing market conditions and consumer spending patterns.
TENDER STRUCTURE REFLECTS CHANGED MARKET AND CONSUMER CONDITIONS
As reported, the core liquor & tobacco and perfumes & cosmetics concessions are being continued but with important refinements. To spice up the traditional liquor & tobacco offering, AAHK included related accessories, such as wineglasses and decanters, as well as upmarket gourmet items, for example fine teas and coffees.
To make the perfumes & cosmetics offer more attractive, the Authority conceptualised a beauty and accessories “one-stop shopping destination”. That involves combining perfumes & cosmetics with fashion accessories – the latter including sunglasses, fashion watches, costume jewellery, small leathergoods, handbags and other small accessories.
Those categories are currently sold through the airside general merchandise concession, which (as reported) has been scrapped in favour of a combination of the two revised concessions, stand-alone specialist retail contracts, and the new, as yet unreleased confectionery contract.
The airport company said in October: “Under the two concessions, new product categories and activities will be introduced. The increase in total floor area will also further enhance flexibility, experimentation, product uniqueness and excitement to passengers.”
CONFECTIONERY COMING SOON
Airport Authority Hong Kong told The Moodie Davitt Report that the confectionery tender will be issued in March or April due to the the work pressures associated with the liquor & tobacco and beauty & accessories evaluations.
We’ll present an updated of the likely bidding line-ups after the first two tenders close.
[This is how the bidding line-up looked last time around in 2012. Expect all the major Hong Kong and Mainland Chinese retailers to bid again, plus the Korean duo of Lotte and Shilla, as well as some other international players.]
NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. 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@MoodieDavittReport.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.Similarly The Moodie Davitt Report is the only international business intelligence service and industry media to cover all airport consumer services, revenue generating and otherwise.
We embrace all airport non-aeronautical revenues, including property, passenger lounges, car parking, hotels, hospital and other medical facilities, the Internet, advertising and related revenue streams.Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.All such stories are consolidated in our popular Tender News section (see home page dropdown menu) that has been running since 2003.
