Hotel Shilla has described Phuket as an eventual “crown jewel” of Thai travel-retail after confirming it is to open its first overseas downtown duty-free shop on the island with a local partner in the second half of the year.
While the exact size of the store in Tambon Kathu, Amphoe is unknown, the store will consist of traditional core duty-free products such as liquor and tobacco and a mix of local Thai products. It will also be equipped with “support facilities” to ensure optimum customer experience.
A Hotel Shilla spokesman told DFNIonline that preparation is going quite well and the alliance with the local partner looks very promising.
The spokesman also said Bangkok was an option for the outlet, but the contract between Airports of Thailand (AoT) and King Power (Thailand) made it impossible. He explained: “The Shilla Duty Free chose Phuket, where the pick-up counter is serviced by a common operator which has responsibility to give a service to the duty-free operator.”
He added: “The temporary pick-up counter in [Phuket] terminal one will be operated by The Shilla Duty Free and permanent pick-up counter in T2 by King Power, which will handle the delivery of Shilla Duty Free products due to the contract between AoT and King Power.”
Reflecting on Phuket as a destination for the new store, the spokesman said: “Chinese inbound passengers have been showing constant growth in Thailand and Phuket in particular, the second most popular travel destination in Thailand, which is leading the growth. With The Shilla Duty Free’s accumulated know-how of serving Chinese travel-retail consumers, Phuket is a more than satisfactory destination.”
In order to attract even more Chinese consumers, the retailer, which secured approval this month for a new themed hotel in central Seoul – the Shilla downtown Seoul outlet will eventually move to the new hotel — will focus on travel agencies in Mainland China and Thailand. “In the case of Chinese travel agencies, The Shilla Duty Fee has a good understanding and good relationships.
“Apart from Chinese customers, Russians might be the secondary target since Phuket is also a popular choice for Russian travellers looking for somewhere sunny for holidays.”
Looking ahead, the retailer is expecting the Thai travel-retail market in general to grow significantly and the spokesman admitted it is not as mature as the Korean equivalent. “It is believed to be one the fastest growing markets in global travel-retail and our most important objective is enhancing that growth.”