Airport Retail——“Waiting” to Make Money
As airports become more and more like shopping malls with better consumer experience, passenger satisfaction increases subsequently, which leads to doubling of retail spending at the airport. According to statistics, every 10 minutes of increase in passengers’ stay at the airport will lift retail sales by 16%.
Take Hong Kong International Airport, one of the world’s busiest aviation hubs as an example. The airport currently has two passenger terminals that are home to a total of about 300 retail shops. According to its Annual Report 2016/17, retail and advertising revenue has increased by 3.7% to HK$7.803 billion, accounting for 41.9% of total revenue. The growth of airport passenger traffic promoted opening of new retail outlets at the airport, and a large number of retail promotional activities added to the increased revenue. This not only drives the growth of the airport's non-aviation sources of revenue(hereinafter referred to as “non-aviation revenue”) but also benefit the overall airport revenue.
The non-aviation revenue of airports accounts for more than 70% of the total revenue in developed countries, but for less than 50% in the Chinese mainland. This results from the fact that commercial operations are mainly monopolized by airports and remain at the initial stage of development. They are currently limited to providing only basic public services, leaving huge room for improvement of revenue from comprehensive commercial operations.
C-star Retail Forum 2018 has invited Mr. WANG Wei, China Strategic Advisor of Azurium of Australia as keynote speaker to share insights into airport retail in new convergence era.
Mr. WANG Wei, China Strategic Advisor of Azurium of Australia, Executive Director of Shanghai XiAiDi Consulting Firm, Expert Committee Member of Mall China and Shanghai Shopping Centre Council, Member of Academic Board of Asia Pacific Commercial Real Estate College (APCREA).
With over 20 years of experience in the retail industry and commercial property development, WANG Wei has held senior positions in various multinational companies and recognized brands such as Inchcape, FILA, Volvo, Swire and CP Group.
He has participated in landmark shopping mall projects in first-tier Chinese cities, such as Super Brand Mall, Shanghai Hongqiao Airport Retail and Shanghai Center Tower. He has contributed significantly in the roles of positioning, design coordination, marketing and leasing of projects. Due to his unique work experience on all three platforms of the shopping mall industry as a retailer, developer and consultant, and his outstanding professional communication skill, Mr. WANG Wei has established a broad industry perspective and extensive network of connections.
WANG Wei is also a popular columnist and renowned commentator of China’s major industry media sites including Wingshang Web and Real Estate Magazine. He also acts as a professional trainer for Wingshang College and APCREA, and provides a training program for major industry leading enterprises such as China Resource Land, Wanda Group and Suning as well as many medium and small developers, sharing insights and inspirations that are up-to-date with the world yet appropriate for China’s conditions, with both international height and domestic depth.