High interest expected: The registration of interest process for HKIA’s prime retail locations at the East Hall Luxury Brand Boutique Boulevard begins today (2 April) and the official tender document will be sent to selected operators from 22 April
HONG KONG. Hong Kong International Airport (HKIA) today announced that it is inviting the world’s top luxury brands to register their interest for the airport’s prime retail locations at the East Hall Luxury Brand Boutique Boulevard.
Following the registration of interest process beginning today (2 April), the official tender document will be sent to selected luxury brand operators from 22 April.
Specially designed for luxury brands, the Boulevard is located airside at the Terminal 1 Departures hall, and available space there has recently been expanded from housing 28 to a maximum of 40 outlets in area of 3,360sq m. Shop sizes range from about 30 to 248sq m.
Currently home to 28 top-tier brands, the Boulevard is one of the most concentrated luxury brand locations of any airport worldwide.
In the light of a long waiting list of luxury brand operators for space, as well as ongoing requests for shop expansion, HKIA has allocated additional retail space for speciality categories on Level 7 in the East Hall, providing new space for luxury brands in the original speciality category locations on Level 6 of East Hall.
Named the World’s Best Airport six times in the past seven years, HKIA has high foot traffic throughout the year with visitors showing a long dwell time and high spending power.
In 2007 a total of 47.8 million passengers passed through HKIA, a +7.5% increase compared to 2006. In addition, passengers usually stay for around three hours at T1, with 87% of them dining or shopping. About 56% of outbound passengers are high-spending professionals, managers, executives or businessmen.
Premier league names: Prada is among the luxury brands located in East Hall. Others include Baccarat, Bottega Veneta, Bvlgari, Burberry, Cartier, Celine, Chanel, Coach, Dior, Dunhill, Zegna, Fendi, Gucci, Hermès, Hugo Boss and Lanvin
With more than 70% of passenger traffic at HKIA coming from Asian countries, the Boulevard serves the burgeoning demand of Asian luxury consumers for world-renowned brands, prompting several luxury brands to take multiple locations within the airport.
Gucci, Coach, Salvatore Ferragamo, Burberry and Shanghai Tang all have stores not only on the Boulevard but also in the West Hall, a prime retail zone serving almost 45% of foot traffic inside the restricted area.
According to a March 2008 passenger tracking study conducted by The Nielsen Company, comparing to other airports, 83% of passengers agreed that HKIA had the best luxury brand boutiques and 75% said HKIA had the largest collection of luxury brand boutiques; 73% agreed that HKIA has the most top-tier brand boutiques.
Passengers also appreciated the central location and luxury environment of the Boulevard. According to the same survey, 75% of passengers said HKIA had the most centralised location for its luxury brand boutiques, and 73% agreed HKIA had the best environment. 10% passengers said they would definitely purchase luxury brand items at HKIA in the future, while 43% said they might do so.
Since the opening of HKIA in 1998 the number of luxury brand boutiques has risen sharply from eight in 1998 to 33 today. A number of the brands have created a specific retail strategy around their location, as HKIA is home to their first airport store; in many cases, the boutiques carry exclusive products or product lines sold only at HKIA. Average sales at HKIA located luxury brand boutiques climbed by +24% last year, outstripping the overall average retail sales upswing of +13.5%.
Luxury brands located in East Hall include Baccarat, Bally, Bottega Veneta, Bvlgari, Burberry, Cartier, Celine, Chanel, Coach, DAKS, Dior, Dunhill, Ermenegildo Zegna, Fendi, Gucci, Hermès, Hugo Boss, Lancel, Lanvin, Longchamp, Montblanc, Omega, Prada, Ralph Lauren, Salvatore Ferragamo, Shanghai Tang, Tiffany & Co and Van Cleef & Arpels.
Long dwell time and high spending power: Passengers usually stay for around three hours at Terminal 1, with 87% of them dining or shopping. About 56% of outbound passengers are high-spending professionals and executives
About Hong Kong International Airport
Opened in 1998, HKIA is an international and regional aviation hub connecting more than 150 cities, including some 40 destinations in Chinese mainland. In 2007, about 47.8 million passengers travelled through HKIA. Visit www.hongkongairport.com
* To request a Registration of Interest form, telephone +852 2183 3296 or +852 2183 3200; fax: +852 2183 3129; e-mail email@example.com; or download the form from the HKIA website www.hongkongairport.com (Business Opportunities section).
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