Capturing Spending by Foreign Visitors to Japan and Expanding the Tax-Free Business

「The duty-free pre-order website is also being expanded to include products not previously handled, such as Chanel fragrances and cosmetics. We will work to improve customer convenience and increase revenue further.」

「The duty-free pre-order website is also being expanded to include products not previously handled, such as Chanel fragrances and cosmetics. We will work to improve customer convenience and increase revenue further.」

「Against this backdrop, we are expanding and renovating the Hermes and Chanel boutiques in Terminal 3 to strengthen their ability to attract customers. We also relocated the collection counter for products reserved through our duty-free advance reservation website from the general duty-free store and newly established TIAT PRE ORDER PICK UP.」

「We will continue to renovate stores in duty-free areas and implement measures to reduce congestion, including RFID and layout changes, while promoting initiatives to increase average spending per passenger. In addition, to respond to changes in consumption trends, we will strengthen one-to-one marketing and work to identify customer needs through HANEDA Points, introduced in the official Haneda Airport app, and other initiatives.」

「In the e-commerce business, we launched Haneda Airport Duty-Free Reservation Station within the WeChat app, allowing Chinese users to reserve duty-free products from our stores online. We also launched the HANEDA TAX FREE Locker service for Chinese travellers, enabling convenient hands-free sightseeing without carrying products purchased during their trip and fully digitising the consumption-tax duty-free procedures, without staff involvement. Through these initiatives, we are working to improve convenience for inbound travellers by making use of the airport.」

「We will continue to renovate stores in duty-free areas and implement measures to increase the purchase conversion rate. In the international area of Terminal 2, where the duty-free store area is relatively small compared with Terminal 3, we will expand the products available for advance-reservation sales and at the virtual boutique. We will also promote the introduction of RFID and warehouse automation to reduce congestion at the general duty-free store and improve the efficiency of store and warehouse operations.」

「We also opened JAPAN MASTERY COLLECTION in the departure area of Terminal 3, aspiring to create a luxury brand rooted in regional revitalisation. We will brand the value of materials, technologies and sensibilities from across Japan and showcase made-in-Japan products, including original products, to the world from Haneda.」

「In terms of operations, we have been repositioning duty-free stores in anticipation of the post-pandemic recovery in international passenger demand, including opening Japan's first airport Louis Vuitton store in Terminal 3 last November. During the current fiscal year, we opened 4 new stores in the lobby area.」

「To respond to the rapid recovery in international passenger demand, we have been successively extending the operating hours of duty-free stores and other outlets, and renovated stores in the Terminal 3 lobby area, opening 4 new stores from April onward.」

「International retail sales exceeded the previous year due to the increase in international passenger numbers at Haneda, Narita and other airports. At Haneda in particular, strong sales at brand stores opened in the second half resulted in a substantial increase in average purchase values at duty-free stores.」

「In terms of operations, in response to the recovery in international travel demand, we reviewed duty-free store operating hours and opened a total of 3 stores in Terminal 3, including Louis Vuitton and Dior, both making their first appearance in Japan as airport duty-free stores.」

「For duty-free products, in addition to the existing advance reservation service, with collection at TIAT DUTY FREE CENTRAL, we will provide services allowing customers to spend time at the airport comfortably and without having to rush, including by launching a reservation collection service at a gate dedicated to business jets.」

「In terms of operations, the sharp decline in passenger numbers in February and March resulting from the impact of COVID-19 caused substantial declines in facility usage fee revenue in the facility management and operations business, and in product sales and other revenue in the merchandise and food-service businesses. In response to the decline in airport users, we will further promote e-commerce using IT, consider sales promotion measures in anticipation of a decline in inbound visitor numbers due to the postponement of the Tokyo 2020 Olympic and Paralympic Games, and respond appropriately to trends in the recovery of Chinese passenger numbers, our main customer group at the airport, and changes in their purchasing preferences.」

「Sales across the duty-free store business remain above the sales recorded for the cumulative third quarter of the fiscal year before last, and the upward trend is continuing, although the growth rate has begun to slow. Going forward, we will work to further increase sales by maximising the benefits of growth in inbound demand, particularly from Chinese visitors, and the revenue gains from store renovations.」

「To respond to changes in the spending trends of Chinese visitors to Japan, we renovated the JAPAN DUTY FREE Main Store at Narita Airport in August. In October, we also opened a new section at the airport-style downtown duty-free store Japan Duty Free GINZA in collaboration with the Shiseido Group, further strengthening the product range, particularly products for which demand among inbound visitors remains solid.」

「At duty-free stores and other outlets, as we continue to anticipate an increase in inbound passenger numbers, we have diversified in-store payment methods, including by introducing various mobile payment services, including UnionPay QR code payment, the first such service at a Japanese airport, and」

「The general duty-free store in the departure area, which had been undergoing renovation since July, held its grand opening on 28 March this year. The store has strengthened its product range and convenience, particularly in cosmetics, by introducing numerous new brands, including Japanese brands popular with inbound visitors, and sales have remained strong.」

「In addition to reviewing the product mix through renovations of the general duty-free store at Haneda Airport's international terminal, we are promoting e-commerce initiatives using IT. Through a comprehensive operating model combining physical stores and e-commerce, we will continue to respond swiftly and flexibly to changes in the business environment and further strengthen the duty-free business overall.」

「We will respond swiftly and flexibly to changes in the future business environment and further strengthen the overall duty-free business.」

「In particular, across the duty-free business, we will respond swiftly and flexibly to changes in the future business environment and further strengthen it as one of our core business areas.」

「Going forward, across the duty-free business, we will work to reliably capture domestic spending opportunities from inbound visitors, which is expected to increase over the medium to long term, and further strengthen the business as one of our core business areas.」

「Japan Duty Free GINZA performed steadily as a result of efforts to attract customers through various measures. We will continue to implement the necessary measures to reliably capture domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「Japan Duty Free GINZA performed steadily as a result of efforts to attract customers through various measures. We will continue to work to secure revenue by capturing domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「Japan Duty Free GINZA performed steadily as a result of efforts to attract customers through various measures. We will continue to work to secure revenue by capturing opportunities arising from domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「Although sales in the merchandise business are below the previous year due to the end of the buying-spree trend, we will continue to implement the necessary measures to reliably capture domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「Although sales in the merchandise business are below the same period of the previous year due to the end of the buying-spree trend, we will continue to work to secure revenue by capturing opportunities arising from domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「The slowdown in so-called "buying sprees" has continued since the second half of last year, and operating revenue remained substantially below target during the six months ended the second quarter. Nevertheless, we will work to secure revenue by capturing opportunities arising from domestic spending by inbound visitors, which is expected to increase over the medium to long term.」

「As a first step in developing new markets, on 27 January this year we opened the airport-style downtown duty-free store Japan Duty Free GINZA on the eighth floor of Mitsukoshi Ginza, and on 27 April we opened Air BIC CAMERA in the Haneda Airport International Passenger Terminal Building, offering items popular with foreign travellers, particularly consumer electronics.」

「The key immediate operational challenge is addressing the downtown duty-free store business, but we will implement the necessary measures to reliably capture domestic spending by inbound visitors, which is expected to increase over the medium to long term.」