 |
JAPAN. Japan Airport Terminal Co (JATCo) and electronics retailer Bic Camera have reached a basic agreement on establishing a joint venture comany to tap into the booming consumption tax-free shopping sector.
 |
A statement issued by Bic Camera on 17 December announced that the new company will facilitate duty free sales of home appliances and other possible joint venture businesses at Haneda Airport, other airports in Japan and overseas, and other locations.
JATCo will contribute 51% of capital and Bic Camera 49%, with the paid-in capital to be in the range of JPY100 million (US$825,000) to JPY500 million (US$4.1 million).
Details of the company name and location will be made going forward based on discussions between the two companies, the statement said.
The joint venture will begin operations in spring 2016, and seeks to match Bic Camera’s distribution strengths with JATCo’s travel retail expertise.
It plans to open its first store at Tokyo’s Haneda Airport by summer 2016 (JATCo operates Haneda Airport’s terminal buildings).
“Using the know-how accumulated from both companies’ duty-free businesses and their product procurement capabilities, as well as by consolidating their management resources, the two companies aim to capture more of domestic consumption by inbound visitors, which is set to continue growing, and will work to fulfill a diverse range of customer needs,” the statement read.
“Also, with the aim of differentiation from other airports and increasing the convenience of flight passengers,
on top of the duty free business in domestic airports (such as Haneda Airport), foreign expansion is also being considered, where the focus will be on airport-style stores with select items that mainly sell home appliances.”
With the steady increase in duty-free stores operating in urban areas, and in view of the 2020 Tokyo Olympics and Paralympics, JATCo is already pursuing plans to open the first airport-style duty free stores in urban areas of Japan.
As reported, JATCo’s joint venture with Isetan Mitsukoshi and Narita Airport is set to open a duty free store on the eighth floor of the Ginza Mitsukoshi store in the first quarter of 2016.
 |
The story as reported by national newspaperThe Japan Times |
