Dufry has in recent quarters substantially expanded its footprint in Asia and has now added further concessions in South Korea and China. Including these latest contract wins, Dufry will have a presence in 14 locations in Eurasia and Asia and the new projects will contribute a combined turnover around CHF 250 million per annum.
Dufry considers Eurasia and Asia as one of the regions for strategic development for the Group based on its strategy of growth in Emerging Markets and tourist destinations. With its existing business in the region plus the contracts won since the beginning of this year, Dufry has built a sizeable business which may give rise to economies of scale for further projects.
All new projects combined are expected to contribute around CHF 250 million of turnover and including Dufry’s existing business, operations in Eurasia and Asia will contribute with more than 10% to Dufry’s turnover, with a strong focus on Greater China and South East Asia. The increased local presence will also allow showcasing Dufry’s expertise to airport operators and suppliers alike in the region.
In addition to the projects already disclosed in Kazakhstan, Bali, Sri Lanka, and Taiwan, Dufry has signed new projects in South Korea and China. In South Korea, Dufry will operate duty free shops at Busan International Airport. In China, Dufry was awarded duty paid luxury shops concessions at Beijing Capital Airport and the Company will also joins forces with Shenzhen Duty Free at Shenzhen Bao An International Airport.
On October 22, 2013, Dufry Thomas Julie Korea Co. Ltd (DTJ) – a partnership between Dufry and the South Korean firm Thomas Julie & Co. DTJ – won a bid to operate a duty free shop at the Busan Gimhae International Airport for 5 years. DTJ will be the duty free retailer at Busan Airport in most core categories such as wine & spirits, confectionery, fashion & accessories, watches & jewelry, tobacco, electronics and souvenirs.
A special attention will be on the introduction of an attractive mix of Korean products, showcasing the best of Korea’s heritage and culture to all departing passengers, bringing the operation a perfect sense of place. The shop is expected to start operations in the first quarter 2014 with 434 sqm and expanded in 2015 as part of the airport’s upgrading program the retail space. Thomas Julie & Co is a Korean company engaged in the supply of Korean products to duty free companies within Korea.
Busan Airport handled 4 million international passengers in 2012, representing a 20% growth over 2011, driven largely by the tourism traffic from China. Among the main destinations from the airport are Japan and China, and in a lesser extent neighboring countries as the Philippines, Thailand, Hong Kong and Vietnam. Located Southeast in the Korean peninsula, Busan is the second largest city in South Korea after Seoul.
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