Concession sales at Singapore Changi Airport (SIN) rose by +8% in 2015 to over S$2.2bn/$1.54bn helped by the popularity of the airport’s online shopping portal (iShopChangi.com) and growing passenger interest in the Changi Millionaire draw.
China, Singapore, Indonesia, India and Australia were the airport’s top five customer groups contributing most to sales last year, according to the airport operator, Changi Airport Group.
Passengers from China accounted for almost 30% of total sales, registering the strongest growth of +28% while Singaporeans accounted for about 20%, maintaining modest growth of +3% year-on-year.
Liquor and tobacco, and perfumes/cosmetics continued to be the most popular product categories at Changi, followed by luxury goods, electronics/equipment, and confectionery.
ONLINE TRAFFIC DOUBLES, SALES QUADRUPLE
A major change last year was that online shopping on iShopChangi.com saw a doubling of traffic to the portal compared to visits in 2014. However sales increased fourfold indicating a rising level of spending per head.
Arriving, departing or transiting passengers at the Singapore hub can shop at iShopChangi.com from two weeks in advance of their travel, and up to 18 hours before their flight.That has been helped by the product range being expanded to seven categories since the site launched in 2013 and it now offers more than 6,000 items for passengers who want to shop online. However, only wine/spirits and beauty products are available for purchase and collection on arrival from DFS and Shilla outlets. Beauty products, electronics and wines and spirits are the most popular items.
MILLIONAIRE DRIVER
The Changi Millionaire promotion has also helped lift revenue. In 2015, the promotion, which runs from May to October, attracted nearly two million lucky draw entries from 229 nationalities globally. The top three groups were Singaporeans, Chinese nationals and Indonesians, with Singaporeans making up over one-in-three of the participants.
To participate in the draw, passengers and visitors needed to shop or dine at Changi Airport, with a minimum spend of just S$30 in a single receipt. Purchases made in both the public and transit areas of Changi Airport are eligible for the draw. Travellers shopping on iShopChangi.com had up to 10 times more chances of being picked as a finalist.
Commenting on the record concession sales, Lim Peck Hoon, Executive Vice President of Commercial at CAG, says: “This is positive for the Singapore air hub as profits from our retail business help to offset the cost of our aeronautical operations.”
