Membership renewal reminder

Membership renewal reminder

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If you haven’t already paid your 2014 membership fee, we strongly encourage you to do so. In order to participate in the AGM in May, payment of the membership fee is required. We would be most grateful if, when making the fee payment that you accept to pay the bank charges as APTRA lost a significant amount of money from the accumulated charges on bank transfers. These are not very high (around USD30 on average), but when multiplied by a large number of transfers, it amounts to a considerable loss for APTRA.

Any company wishing to provide further support can do so through voluntary contributions or sponsorship of the research reports which are read by key decision makers in the industry around the region. For more details, please contact Michael Barrett: michael@aptra.asia .

To join APTRA or to find out more about our activities, please contact us by writing to info@aptra.asia.

In the spotlight: Lorenzo Formoso

Lorenzo C. Formoso (Enchong), Chief Operating Officer Duty Free Philippines

Meet Elvis Enchong

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State-owned Duty Free Philippines has gone from strength to strength over the last 27 years and is now under the energetic leadership of Enchong Formoso.

But it is his orchestration of the industry’s humanitarian efforts following Typhoon Haiyan in November 2013 that has hit the headlines most recently.

Within days of the disaster he set up DFP C.A.R.E.S., a charity providing support for the relief and rehabilitation of victims of natural calamities, and he spearheaded the drive to raise funds and mobilise partners, staff and the industry as a whole to help those affected by the crisis.

On embarking on your career path in duty free and travel retail did you ever envisage that one of your primary concerns might one day be charity fund-raising and the alleviation of suffering among your people?

I never imagined we at Duty Free Philippines would be treading this path. The Philippines is often visited by tropical storms hence Filipinos are already accustomed to the resultant floods and damage to land and property. But the unprecedented magnitude of super Typhoon Haiyan and the scale of devastation stunned us and the whole world. We just cannot sit around and watch while our countrymen suffer. We had to do our fair share to help alleviate their plight, hence the birth of DFP C.A.R.E.S.

DFP C.A.R.E.S. stands for “Coordinated Action in Response to Emergency Situations”. It was created as a support program that aims to encourage and mobilize DFP’s former and current employees, suppliers and partners in the travel retail industry to help generate funds that will be primarily allocated for the relief and rehabilitation efforts for victims of natural calamities in the country.

So far, DFP C.A.R.E.S. has undertaken the following projects/activities:

• DFP CARES donated packed meals to the government’s Department of Social Welfare and Development for the survivors arriving at the Villamor Airbase in Manila from Tacloban, one of the most ravaged provinces in the Visayas last November 2013.

• Yuletide Gift Pack – in cooperation with Yearsley, DFP’s supermarket supplier, a special gift pack consisting of special food items was sold at cost to Fiestamall customers wanting to send help to affected families located in the province of Cebu’s Hilotongan, Lipayran and Mambucayao Gamay islands. Sponsors or those who purchased the pack even got to sign cards bearing an inspirational message of good will and holiday greetings attached to the gift packs. Packs were distributed to 1,000 families last December 29, in time for New Year’s Eve.

• KISAP MATA PARA SA PAGASA Photo Exhibit – DFP sponsored a fundraising event in support of the rehabilitation drive by Photogra.ph, a group of professional and amateur photographers. The exhibition was held at the Fiestamall Atrium from December 16 to 31. In January, it was moved to the plush Rockwell Powerplant Mall in Makati City.

• A month-long special in-store promotion coined “Celebrate Homecomings and Donate” was implemented in partnership with Diageo last December 2013. Diageo generously donated to the recovery projects for Typhoon Haiyan victims One Dollar ($1) for every bottle of Johnny Walker sold at DFP Manila stores.

• DFP CARES distributed packed meals in January 2014 to the University of the Philippines students from Tacloban who were relocated to the school’s Manila campus.

As of March 2014, DFP CARES has received a total of US$100,000 in cash donations from the international travel retail community, our suppliers, and DFP current and former employees.

DFP CARES is now geared towards the implementation of projects focused on long-term recovery, development and restoration of livelihood and properties destroyed by typhoon Yolanda/Haiyan. For 2014, a new program is being developed dubbed “Rebuilding LIVES, one BLOCK at a time”. The program, in coordination with the global non-profit organization Habitat for Humanity, aims to encourage customers, partners and friends to symbolically purchase “hollowblocks” to be used to build homes. Funds raised shall be allocated mainly for building homes for the survivors residing in the affected province of Ormoc, Leyte.

How has your career developed and what led you to your present role? Can you chart briefly how DFP has developed under your leadership?

As one of the agency’s pioneers in 1987, my contribution as the head of Logistics was to set up the company’s organizational and operational structure and controls. Once the agency was fully established, as the Deputy General Manager for Sales and Marketing, I spearheaded the design and implementation of effective marketing programs that focused on specific market segments, which DFPC caters to and hence increased sales and profits. One of my priorities then was also to lobby for the enactment and enhancement of the ‘Balikbayan’ (returning Filipino residents) Law which provides benefits to the Overseas Filipino Workers and ‘balikbayans’, a major market of DFPC. A “Babalik Ka Rin” marketing campaign intended to promote said program eventually gained numerous awards and accolades for DFP.

Since my appointment as DFP’s Chief Operating Officer in 2011, I have rallied my Management Team to exert all efforts to increase revenues and steer DFP to remain on track by opening new stores to cater to more tourists and travellers; ongoing renovations and enhancements of store facilities to be at par with international travel retail standards; implementation of intensified advertising and promotional efforts to reach a wider market; and continuing improvements on our customer service programs to efficiently address the needs of our shoppers.

What in your view is the primary role of APTRA in the Asia Pacific duty free and travel retail industry?

I believe that APTRA, aside from representing the region’s duty free industry, has a crucial role in addressing the threats against the industry.

The duty free & travel retail industry faces many challenges, not least the threatened removal of duty and VAT exemption on liquor and tobacco sales in travel retail in the Philippines. How are you tackling this issue?

The new Sin Tax law recently enacted again imposed excise and VAT on DFP’s importation of alcohol and tobacco products. This has caused us to raise prices but at the same time manage our margins to remain competitive in the business. Right now, we are working for the restoration of DFP’s exemption from the said law’s provisions and we are hopeful that our position will be reconsidered.

Are there any other challenges to the business in the Philippines?

Yes. Another business challenge to DFP is the Open Skies policy. In the past, almost all international passengers go through the Ninoy Aquino International Airport in Manila where DFP has its presence in both departure and arrival areas. Our flagship store, the Fiestamall is strategically located within a few meters from this airport to serve our customers with a bigger store offering a wider range of products that the limited airport space cannot give. In keeping up with the opening of more international gateways all over the Philippines, DFP has been extremely busy opening up several stores in key international airports to serve the duty free shopping needs of their passengers.

If you were to set the agenda for APTRA for the year ahead which action point would be at the top of the list?

To represent the members in pertinent issues and other concerns that affect the industry and their businesses.

Your charitable work must be very demanding on top of a full-time job. Do you have any leisure time and, if so, how do you like to fill it?

My love for music has made me enjoy performing for an audience who appreciate music from the 70’s and 80’s. The ‘Midlife Crisis’ band is a seasoned, all-professional music band, where I am a rhythm guitarist and vocalist. We are proud to say that apart from rockin’ and rollin’, the band also supports 19 music scholars at the University of the Philippines College of Music.

Annual General Meeting & Board elections

Annual General Meeting & Board elections

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As announced in last month’s newsletter, APTRA’s Annual General Meeting will take place on Wednesday 14 May in Singapore during the TFWA Asia Pacific Exhibition at the Marina Bay Sands exhibition hall. The meeting will be in Room 3012 on Level 3 from 4.30 to 5.30 pm. The AGM will be an opportunity to present members with the activities and achievements throughout 2013 and in recent months. In the spirit of inclusiveness with which the board manages the association, there will be an opportunity for open discussion and questions to the board. Members are strongly encouraged to attend and are welcome to bring colleagues to the meeting. Numbers will need to be communicated to APTRA in advance.

With two new vacancies on the board there will be elections to fill these two positions. Members interested in submitting an application for a board seat are invited to do so by informing APTRA’s administrative officer, Jazlyn Koh, by Wednesday, 30 April 2014. For those of you who are unable to attend this AGM, please make use of the Proxy Form to appoint your proxy. The proxy form has to be received by the APTRA Secretariat latest by Wednesday 7 May to be valid. To obtain a proxy form and board election form, please write to Jazlyn at admin@aptra.asia.

If there are any specific issues you or your company would like the board to address during any of the next meetings, please write to us to let us know. You can send any questions or points of order you would like the board to address during this meeting to APTRA’s executive officer, Michael Barrett: michael@aptra.asia. The meeting will be followed by a cocktail at 17.30.

APTRA at TFWA Asia Pacific

APTRA at TFWA Asia Pacific

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There will be plenty of opportunities to interact with APTRA during the annual TFWA Asia Pacific event in Singapore next month. The association will have a strong presence with participation in the conference agenda, where APTRA President Jaya Singh will be speaking during the morning keynote session and executive officer Michael Barrett will be moderating the industry association working lunch (invitation only).

APTRA will also be present at the exhibition with a stand (B2/K37) where some of the latest initiatives under development such as the RRTP and industry database will be showcased. The APTRA Annual General Meeting will take place on Wednesday 14 May as mentioned below and on Tuesday 13 May, the association will be present along with our research partners m1nd-set at the invitation-only sunglasses category research preview event organized by APTRA members Luxottica in partnership with De Rigo, Marcolin, Marchon, Maui Jim and Safilo.

We look forward to meeting you during the conference and exhibition week!

APTRA welcomes Distell

APTRA welcomes Distell

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South African wine and spirits company, Distell, is the latest new member of APTRA.
Distell is a relatively new company – only 14 years old – created in 2000 through the merger of Stellenbosch Farmers Winery (SFW) and Distillers Corporation, but has a history of almost 90 years. SFW was founded in 1925 by an American medical doctor, William Charles Winshaw, who arrived in South Africa during the Boer War and Distillers Corporation dates back to 1945, founded by a South African businessman. Over the years the two companies have grown the South African wines and spirits industry despite a restrictive business environment.

The merged company boasts a selection of the world’s finest liqueurs, wines and spirits, such as Amarula Cream, Nederburg wine and Bunnahabhain single malt whiskey. Today the company employs more than 5000 staff and maintains a strong culture of social responsibility by helping disadvantaged people to become landowners.

For more information on Distell, visit the company website: www.distell.co.za or contact Luke Maga, General Manager ASIAPAC / Middle East Travel Retail. Luke’s full contact details – as well as those of all members – can be found in the members’ only section.

APTRA launches Chinese version of monthly newsletter

APTRA launches Chinese version of monthly newsletter

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To respond to the industry’s growth from China and the increasing number of industry executives working across the People’s Republic of China, APTRA has launched its monthly newsletter in Chinese.

Any parties interested in receiving this new language edition can subscribe by sending a request to info@aptra.asia stating the full name, company and email address of the interested executives.

Don’t miss out: APTRA’s Industry database

Don’t miss out: APTRA’s Industry database

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The response to our call for action to feed the soon-to-be-launched APTRA industry database, has been very productive with a large number of members already submitting their data. Don’t miss out on the opportunity to have your company profiled in the database which will feature all members – at no cost – and, in particular, list airport commercial contacts and retailers’ respective category purchasing managers for each airport or airline they operate concessions at, making it easy to search for the appropriate buyer for each category at airports and airlines around the Asia Pacific region.
To ensure your company is listed, you need to fill out a simple contact sheet. Please contact Michael Barrett at michael@aptra.asia to request the form if you haven’t yet receive it.

Asia Pacific consumer insights report : Gifting and personalised services

Asia Pacific consumer insights report : Gifting and personalised services

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In this month’s Asia Pacific Consumer Insights update, m1nd-set reports on gifting and personalized services in Asia Pacific duty free. The first positive finding from the study is that 3 out 4 of travellers buy gifts from duty free shops, with about half buying either on every trip or every second trip. The report goes on to reveal the leading gifting nationalities.

It is no surprise that Chinese travellers are the most common gift-buyers from duty free, followed closely by Japanese and Indian travellers. The types of products purchased for gifting is explored in the report with some interesting findings showing the difference in categories chosen by each nationality as gifts. The food and confectionery category is top of the list, followed by perfumes and cosmetics, but this varies depending on the nationality. Another interesting finding is which nationalities are more inclined to require a personalized shopping service in duty free shops.

To find out more members can find the charts from the exclusive APTRA insights report in the members’ only section of the APTRA website. For further information on these findings, please contact Peter Mohn at pmohn@m1nd-set.com. To access the charts in the members’ only section, please click here.

RRTP presentation now available for brands

RRTP presentation now available for brands

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Prior to the official launch of APTRA’s responsible retail training programme (RRTP) the development of which is now complete, we are calling on member brands from the liquor category to ensure the widespread adoption of the training programme by retailers across the region. The programme development has been funded through generous donations from several companies from the liquor category. It is currently undergoing pilot tests and evaluation before it is launched on a broad scale among retailers across the region. APTRA has put together a brief presentation document which explains the principles and objectives of the training, and demonstrates some of the content which trainees will encounter when they take the training. This is available in PowerPoint format for member brands to share with retailer clients.
To receive the presentation document, please contact Michael Barrett at michael@aptra.asia.