Red-letter day as Shanghai Hongqiao unveils Luxury Brand Boulevard

CHINA. Shanghai Hongqiao International Airport (HQIA) has boosted its luxury credentials with the addition of six new boutiques to its Terminal 2 stores, collectively known as the Luxury Brand Boulevard.

Located in the departure transit area, the Luxury Brand Boulevard was unveiled today (27 January) in a ceremony attended by senior management of Shanghai Airport Group and Airport Authority Hong Kong (AAHK), key government officials, local media and The Moodie Report.

Shanghai Hongqiao International Airport Co. Deputy General Manager Yuan Shunzhou (left) and Shanghai Airport Group Vice President and Shanghai Hawker Pacific Aviation Ground Services, Ltd Chairman Jing Yiming (right) underline the significance of the Luxury Brand Boulevard to Hongqiao Airport’s commercial aspirations
The opening ceremony was officiated by VIPs including Shanghai Airport Group Vice President and Shanghai Hawker Pacific Aviation Ground Services, Ltd Chairman Jing Yiming (second from left), Shanghai Hong Kong Airport Management Co., Limited Director Eva Tsang (third from left) and Shanghai Airport Authority Chairman Wu Nianzu (fourth from left)
Senior senior management of Shanghai Airport Group and Airport Authority Hong Kong (AAHK), as well as key government officials take the stage for a photo opportunity

Covering 1,300sq m of space, the new stores include Bally, Shanghai Tang (both operated by Huai Hai); Salvatore Ferragamo, Hermès (both operated by Dufry); Burberry and Cerruti 1881 (operated by the brand companies themselves). Following 18 months of development Bally, Shanghai Tang and Cerruti 1881 started operations in December 2012, offering the latest collections and exclusives. The remaining three brands – Salvatore Ferragamo, Hermès and Burberry – will open in mid-2013.

In a bid to utilise excess space and maximise commercial revenues, Shanghai Hong Kong Airport Management Co Limited – the Shanghai Airport Group and AAHK joint venture that manages HQIA’s retail business – transformed four empty areas below the main departures floor into retail space for the six luxury stores. The result is an intriguing and unusual retail format – double-story boutiques with staircases leading customers from the departures level to the bottom floor overlooking arrivals.

Two boutiques will share a space – Bally with Cerruti 1881, Shanghai Tang with Ferragamo, and Hermès with Burberry. The glass walls will allow customers to look into the neighbouring boutique, while the staircases enable them to traverse between the two at the bottom floor – another unusual feature.

The six boutiques form a row along the departure gates, facing ten other luxury brands, including Emporio Armani, Bvlgari, Ermenegildo Zegna, Hugo Boss, Montblanc, Dunhill, Coach and Tommy Hilfiger. With the opening of the Luxury Brand Boulevard, HQIA has become one of China’s domestic airports to feature the most luxury brands, the airport operator said.

The Cerruti 1881, Bally, Shanghai Tang and Ferragamo (still under renovation) boutiques line up along the departure gates facing existing luxury boutiques such as Dunhill to form the Luxury Brand Boulevard
The top floor of the Bally boutique is on the level of departures (top, middle) while the bottom floor (above) overlooks the arrivals area
The new boutiques adopt a double-storey retail layout featuring a staircase
The Shanghai Tang boutique on the Luxury Brand Boulevard in Terminal 2 is said to be the brand’s biggest travel retail store globally

HQIA lies 13km from the city centre, and is the closer of the major airports to Shanghai’s downtown area. It has two terminals: Terminal 1 operates international flights to Korea, Japan, Taiwan, Hong Kong, and Macau and limited domestic flights, while Terminal 2 operates domestic services.

Since the opening of Terminal 2 in March 2010, HQIA has been on a mission to be recognised as “the airport with the best shopping experience in China”, developing a consumer-oriented and commercial-driven retail strategy anchored by chain brands, a downtown pricing structure, quality assurance and value for money. Commercial space has expanded by +13% to 13,800m while the number of shops have increased by +35% to 94 since the terminal’s inception.

Shanghai Hong Kong Airport Management Co Limited, established in October 2009, manages the HQIA Retail Department which is responsible for all aspect of the retail business for both terminals including leasing, marketing and promotions, operations and business development. Its current General Manager is Ms Theresa Tam from AAHK, who took over from Cammy Wong after the latter’s two-year secondment to Shanghai.

NOTE: A full report on Shanghai Hongqiao International Airport’s commercial aspirations will be featured in the next edition of The Moodie Report China. All the key stories on China’s travel retail industry – and on international travel retailers selling to Chinese travellers – are covered in The Moodie Report China, published in bi-lingual, e-Zine format every two months. To receive your free first-year subscription, please e-mail Sinead.Moodie@TheMoodieReport.com

The six new boutiques join Shanghai Hongqiao International Airport’s portfolio of luxury brands Emporio Armani, Ermenegildo Zegna, Hugo Boss and Montblanc
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