14 October 2014
The Moodie Report was among guests at a ceremony that also welcomed brand partners and local media, as well as representatives from Heinemann and Malaysia Airports.
Also known as the brand emporium (abbreviated to be), be Duty Free is the travel retailer’s largest multi-category retail concession in Asia Pacific to date.
Managed by Heinemann Duty Free Malaysia – a wholly-owned subsidiary of Heinemann Asia Pacific – the store marks the travel retailer’s first foray into Malaysian travel retail and the beginning of a long-term partnership with Malaysia Airports.
The opening ceremony took place today at the store, located on the International Departure Level of klia2 just before the SkyBridge leading to Satellite Building. About 100 guests were invited to the celebration.
The store, which operates 24 hours a day and seven days a week, carries over 200 brands and 4,000 products across fragrances & cosmetics, skincare, fashion & travel accessories, toys, confectionery, local delicacies and souvenirs categories.
More importantly, the retail concept was designed specifically with klia2’s E.L.I.T.E (Experiential. Liberating. Innovative. Thrilling. Ever-changing) retail branding in mind, delivering different shopping experiences within the store.
“We embraced klia2’s brand principles of E.L.I.T.E and went all out to create a truly fun and engaging retail environment, with many new discoveries every time,” said Heinemann Asia Pacific Chief Executive Officer Max Heinemann.
Left: Heinemann Asia Pacific CEO Max Heinemann: “To fulfil [the E.L.I.T.E. brand principles], we knew it would not be enough to simply offer duty free; we had to create a concept to be duty free”; Right: Malaysia Airports Senior General Manager Commercial Services Division Faizah Khairuddin: “be Duty Free is a living example of [the E.L.I.T.E.] brand pillars in every way”
“To fulfil each of the five letters, we knew it would not be enough to simply offer duty free; we had to create a concept to be duty free,” he declared.
“Something personal, with a personal touch and excitement. Something that speaks to everyone, every traveller, in every possible way within a predefined space. Something exclusive to our customers and to our landlord, something that fits Malaysia as a country and what we’ve witnessed here: open-minded, family-centric, trendsetting and embracing the new.”
Malaysia Airports Senior General Manager Commercial Services Division Puan Faizah Khairuddin said: “We are delighted that be Duty Free has chosen klia2 as the launchpad for its foray into Malaysia – the move speaks volumes of their confidence in us. From its inception, we at Malaysia Airports have always maintained that klia2 is more than just a terminal. We have consciously shaped klia2 into a self-sufficient hub that meets the transportation and lifestyle needs of our travellers – hence our concept of an airport in the mall.
“At the beginning of our journey at klia2, we did extensive market research and found that the majority of klia2 users are savvy trendsetters who are in tune with the latest and the best and have a healthy thirst for leisure. This knowledge has helped us to develop our E.L.I.T.E. brand pillars, and be Duty Free is a living example of these brand pillars in every way. It reinforces klia2’s position as a lifestyle destination and our goal of giving our passengers a unique shopping experience and I’m confident that be Duty Free will grow to be a key partner and will be well received by our travellers.”
To celebrate the opening be Duty Free is offering klia2 travellers the chance to win a ten-day travel package for two worth US$15,000. Customers need to spend a minimum of MYR400 (US$122.41) to qualify for the lucky draw.
The grand prize includes a “dream vacation” to Shanghai, Beijing, Seoul, Taiwan and Sydney and includes flights on AirAsia X and hotel accommodation. The contest runs from 14 October 2014 until February 2015.
be Duty Free retail concept
Inspired by the modern architectural design of klia2, be Duty Free has a futuristic atmosphere, characterised by primer screens that welcome passengers at the main walkway and animated entrance portals that change colours. The store comprises four main shopping areas grouped into eight ‘be’ segments, each designed to cater to specific traveller needs.
be inspired comprises fragrances & cosmetics from international brands including Chanel, Dior, Estée Lauder, Lancôme and SK-II. It is the first shopping area travellers see after immigration, with interactive lighting units at the entrance welcoming them to the store.
The second shopping area – be beautiful (skincare and cosmetics) and be alluring (fragrances) – is made up of popular brands including Calvin Klein, Clinique, Chloé, Davidoff, MAC, Guerlain and Sisley. Highlights include a dome-shaped skincare discovery pod which is in keeping with the futuristic theme, and two ‘fragrance tubes’ allowing customers to experience fragrances with no other interfering scents from the environment.
The third shopping area encompasses be playful, featuring toy brands such as Barbie, Hot Wheels, Lego and My Little Pony; be sweet, mass market confectionery from brands including M&M’s, Kit Kat, Hershey’s and Haribo; and be indulgent, highlighting premium confectionery brands such as Godiva, Lindt, Neuhaus and Ghirardelli.
A rocket playground and Lego play area for kids are major highlights of 'be playful'. A space fantasy theme is at play, with a spaceman and an alien taking residence in the backwall windows. The theme is rounded out by a huge Lego figure of Yoda from Star Wars, created exclusively for be Duty Free and positioned prominently at the store entrance.
At the heart of 'be sweet' is a row of Jelly Bean dispensers in a rainbow of colours, with a pick-and-mix station next to it offering a wide assortment of sweets.
be smart (fashion and travel accessories) and be local (local delicacies and souvenirs) make up the fourth and final shopping area.
Targeting beach and adventure holidaymakers, ‘be smart’ stocks a wide array of products from Bagllerina, Breo, Lomography, Pashma and Prada Sports. The centrepiece is the Flight 001 travel accessories shop-in-shop, encapsulated in a life-sized airplane fuselage, with animated screens in the windows to get passengers in the holiday mood.
Drawing inspiration from the Malaysian ‘Wau Bulan’ kites and Kuala Lumpur’s iconic Petrona Towers, ‘be local’ is rich with local elements of Peranakan prints and batik art, creating a strong Sense of Place.
Wood carvings are found throughout the store with subtle references to the be Duty Free logo. Popular local food brands such as Fung Wong, Ghee Hiang, San Shu Gong, and Cameron Highland tea are paired here with souvenir brands including Arch, myBatik and PETTGS.
be Duty Free: a key stepping stone for expansion into Malaysia
Speaking to The Moodie Report, Max Heinemann said that feedback from passengers since the store’s soft opening – it began trading in July – has been “very, very positive” and “a source of great motivation”. The concept approach, he observed, is “the right one”. Building a rocket slide – just “being a little bit more exciting” in general – also proved to be a good idea.
Commenting on the future of Malaysian travel retail, he said: “I think growth is secure. I know it’s sometimes risky to say that, but in general if things go as smooth as everybody projects, the potential for Malaysia and klia2 in terms of the capacity – which is not maxed out yet – is there. That is one of the reasons why we are here to stay, and also one of the reasons why we have invested heavily in capital expenditures and in shop design on a 3+2 contract.
“Usually the level of investment is relative to the number of years that you have the contract, but here we’ve taken one step before the other. We just said: 'This is our chance to really highlight what we can do and how much commitment we have towards the market.' So we definitely believe in Malaysia 110%.”
The travel retailer is targeting sales growth of between +10% and +12% from the store and will consider – together with Malaysia Airports – the possibility of rolling the be Duty Free concept nationwide. But the concept has been carefully aligned with klia2’s next-generation hub status and customer profile, and Heinemann stressed that klia2 will remain the key focus for now.
With the klia2 business in place, Heinemann revealed that the company is open to competing in tenders for the main KLIA terminal, should the opportunity arise. “We will go for it,” he said. “We will try to secure a space or at least convince Malaysia Airports that we will be as good a partner in KLIA Main as we are in klia2.”
Original Source: www.moodiereport.com
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