HONG KONG. Airport Authority Hong Kong says its new per-passenger based retail contracts (The Moodie Report 23 February) are the result of a continuous effort to refine concessionaires’ terms and conditions to cater to market demand.
General manager, retail and advertising Eva Tsang told The Moodie Report: “We’ve adopted a variable minimum guarantee scheme which is entirely pegged with passenger numbers. As the airport authority, we are responsible for the flow and the retailers for creating as much value as they can out of the flow with our full support. So if less people pass through the airport, we get less and on the other hand, if more people pass through the airport, we get more.”
This new model started last August when a number of new contracts took effect. As reported, it is now being adopted for all the retail and catering contracts which were recently tendered. “It will be extended to all other new retail and catering tenders as well as re-tendered contracts,” Tsang said.
The revised model was applauded by the airport’s leading retailer, Nuance-Watson (HK) managing director Alessandra Piovesana, who told The Moodie Report: “The Authority has brought in a rental formula which combines a fixed provisional MGR and a portion of variable rent linked to passenger volume.
“Hans Bakker [AA commercial director] has brought in a more progressive thinking on various aspects of travel retail at HKIA, passengers’ consideration is one of them, but there is also a major portfolio of innovative stores and concepts which were granted the green light during the re-tendering of the new East Hall. It definitely takes a marketing mind and a zest of audacity to bring in this new shopping and Food & Beverage landscape.”
Highlights of the expanded East hall include:
* Increase of catering outlets from two to 12
* Increase of luxury fashion brand boutiques from 8 to 25
* Two dedicated audio-visual shops
* Enlarged shops for the duty free liquor and tobacco, perfumes and cosmetics and
general merchandise
* A wide range of specialty shops with famous brand names “to suit passengers of different
nationalities and with different budgets”.
Tsang added: “A lot of them are also powerful local brands to complement the top international brands we have” as follows:
* Chinese herbal medicine (Eu Yang Sang)
* Chinese gold jewellery (Chow Sang Sang and Chow Tai Fook)
* Toys (Disney)
* Lingerie (Private Shop)
* Casual wear (Giordano)
* Chinese bakery (Wing Wah and Kee Wah)
* Convenience (Watson’s)
* Health equipment (Osim)
* Souvenirs (Amazing Grace)
* Ties & Scarves (Tie Rack)
* Confectionery (Peninsula and Aji-ichiban)
* Bookshops (W H Smith)
All these stores are already trading except Lancel which will open around 1 March.
The grand opening ceremony will be held on 3 March.
