SOUTH KOREA. Obligation-free purchases on so-called “ no-landing sightseeing flights ” or “ flights to nowhere ” generated common gross sales of 1.2 million KW (US $ 1,075) per passenger for Lotte Obligation Free at Within the first quarter of 2021, March’s determine rose to 1.62 billion KW (US $ 1,450), the retailer revealed in the present day.

With outward and return journey being severely restricted by the pandemic, these flights have turn into an modern means for passengers to expertise the enjoyment of flying whereas having fun with responsibility free. Since Asiana Airways provided the primary non-destination flight on December 12, seven airways have operated 75 flights to nowhere which have attracted round 8,000 passengers, Yonhap Information Company reported in the present day, citing the Ministry of Lands, Infrastructures and Transport.

Vacation spot Obligation Free Land: two passengers present their purchases

“As with abroad departures, responsibility free purchasing is accessible, and increasingly passengers are utilizing it as a chance for purchasing,” Lotte Obligation Free stated. “The unit worth of passengers on a non-landing circuit is thrice larger than earlier than the coronavirus. The tariffs imposed on the franchise [i.e. above the duty free allowance] can be decreased by -30% (as much as 150,000 KW / 134 USD) via voluntary notification, in order that the burden is just not excessive. “

Presently, the duty-free restrict per Korean nationwide is 600 USD (roughly 670,000 KW), and passengers can get pleasure from further advantages freed from taxes and duties as much as one carton of cigarettes, 1 liter of alcohol below $ 400 and a fragrance of 60ml.

This graph exhibits the spectacular month-to-month gross sales progress generated by the idea of “no-landing vacationer flight”. Click on to enlarge.

Some 1,600 of these passengers purchased from Lotte Obligation Free in March, about thrice greater than in December 2020, when non-landing vacationer flights started. March gross sales jumped + 25% from the earlier month, pushed by sturdy promotional exercise carried out in affiliation with the seven collaborating airways, Lotte Obligation Free.

Magnificence Class Dominates Gross sales As On-line Shares Rise

Cosmetics and fragrances had been Lotte Obligation Free’s dominant class throughout all channels within the first quarter, producing 45% of complete gross sales, adopted by vogue and leather-based with 29%, watches and jewellery with 12% and l alcohol and cigarettes with 5%.

A spokesperson for Lotte Obligation Free stated, “Earlier than Corona, cosmetics and perfumes accounted for 35% of complete Korean buyer gross sales, and watches and jewellery 5%. So we promote a number of watches, jewellery, luggage, footwear, and so forth. “

On-line gross sales generated 60% of Lotte Obligation Free gross sales within the quarter, adopted by downtown shops with 36% and airport shops with simply 4%. The retailer’s withdrawal from its alcohol and tobacco enterprise at Incheon Worldwide Airport Terminal 1 in early March was a serious contributor to the low proportion. Presently, all flights for non-landing vacationer flights depart from Incheon Worldwide Airport T1

Gen Z shoppers made up about 50% of buyers, whereas girls made up 56% of buyers.

The affect of the pandemic – and Lotte Obligation Free’s speedy adaptation to it – could be seen within the dominance of on-line gross sales now. In March 2019, when Martin Moodie interviewed Lotte Obligation Free CEO Kap Lee, e-commerce accounted for 25% of the retailer’s gross sales, roughly double the share from 5 years earlier. For the primary quarter of 2021, the channel climbed to 60%. Click on to enlarge.

Modern advertising and marketing and VIP constitution flights drive spending

In mid-March 2021, Lotte Obligation Free held an occasion that provided first-come, first-served, no-landing tour tickets to main prospects of the Myeong-dong downtown retailer when buying greater than 550 US $ of products. The Air Busan flight that took off from Incheon on April 3 and 10 and returned over the Japanese island of Tsushima (the setting for the hit PlayStation 4 recreation Ghost of Tsushima) obtained a powerful response, with a complete of 260 seats bought on the 2 days. .

Who would have imagined in early 2019 that Lotte Obligation Free would turn into an in-flight retailer? However it’s not inflight purchasing as we all know it, as Lotte Obligation Free swivels shortly to adapt to a world the place subsequent to nothing is regular. (Above) The cabin crew attracts the fortunate winners in a raffle.

Passengers utilizing these constitution flights spent about 1.2 million kilowatts on common, on par with normal non-landing flights, however prospects over 40 made up 86% of the full whereas 62% had been girls. The purchasing traits of Lotte Obligation Free’s VIP prospects had been “excellent,” the retailer stated. Vogue and leather-based occupied the primary place, accounting for 56% of gross sales, adopted by cosmetics and perfumes with 24%, spirits and cigarettes (6%) and watches and jewellery (4%).

Creed, Make Up for Ever, Profit, Biotherm Homme and Lancôme strains prime the flight platform bestseller listing

Lotte Obligation Free stated it was contemplating further constitution operations due to the enthusiastic assist for the idea.

The journey retailer has additionally launched a spread of promoting actions resembling giving free money and freebies to airline associates, enhancing Lotte Web Obligation Free membership ranges and holding in-flight prize attracts. in reference to the seven Korean airways that follow non-landing tourism. flights. On the finish of April, Lotte Lodge and Asiana Airways will launch a product combining resort lodging, air journey and duty-free purchasing.

Lotte Obligation Free partially reopens shops at Gimpo and Gimhae airports to serve non-landing flights

Following the current announcement by the Ministry of Lands, Infrastructure and Transport that it will enable non-landing vacationer flights at regional worldwide airports resembling Gimpo, Gimhae and Daegu airports from Could, Lotte Obligation Free , which has shops in Gimpo (Seoul) and Gimhae (Busan Airports) are partially reopening shops in response to scheduled flight schedules.

Lee Jung-min, Head of Lotte Obligation Free’s Platform Enterprise Division, stated, “Lotte Obligation Free plans to proceed to function varied occasions primarily based on the trade’s largest airline community in an effort to meet the calls for. duty-free buy from Korean prospects.

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