Narita takes to a New Stage

RETAIL INNOVATION • Narita 5th Avenue
May 2007
Narita takes to
a New Stage
N
arita? The question mark says it all. The advertising for the spectacular new addition to Japan’s
travel retail industry, Narita 5th Avenue, invites
consumers to challenge their pre-conceptions of retailing
at the country’s premier gateway.
The main visual, a movie-style poster (page 56), features
a young blonde Western model in a white designer dress
strutting down an illuminated gold ‘catwalk’. In fact it’s
an airport runway, and in the night sky a passenger jet can
be seen coming in to land.
In another fashion catwalk allusion, Narita 5th Avenue is
described by Narita Airport Authority (NAA) as a ‘New
Stage’ and that – both literally and metaphorically – is
exactly what it is.
Opened on 9 April, Narita 5th Avenue is an elegant, fashion-driven duty free offer far removed from what has gone
before at Tokyo Narita Terminal Two. The new stores add
2,800sq m of space to the existing 2,000sq m T2 retail offer.
44
But they bring much more in terms of image and ambience. The gently curved fashion mall that forms the centrepiece of the T2 makeover features boutiques from
Bvlgari, Burberry, Cartier, Coach, Gucci, Hermès, Salvatore Ferragamo and Tiffany & Co as well as slick new
liquor & tobacco, cosmetics & fragrances and electronics
stores, plus a classy food & beverage offer, an Internet
café and a kids’ room.
Together, the 5th Avenue stores are expected to generate
sales of ¥12 billion (US$101 million) in year one.
The Moodie Report was there on 9 April to witness the
beginning of a new era in Japanese travel retail. There was
a buzz in the air as we toured the facility to capture the
sights and sounds of a momentous day. 5th Avenue is a
story of contrasts: out with the old displays and basic
range, in with bright, modern store fronts, vibrant merchandising and a diverse and attractive offer. It’s crowded
with consumers, but never cluttered – and it sparkles
with innovation.
The Moodie Report
May 2007
RETAIL INNOVATION • Narita 5th Avenue
By Martin Moodie
It’s time to forget all those oldfashioned perceptions of Japanese
retailing. It’s time to recognise a
quiet revolution by the country’s
leading travel retailer. It’s time to
take a walk along Narita 5th Avenue.
On the day of the opening The Moodie Report talked
about the new concept with Narita International Airport
Corporation Director Retail Management Department
Atsuhiko Tokuno – who has driven the airport’s upmarket advance – and Masa Takatsu, Merchandising Director of NAA Retailing (NAAR), the joint venture between
NAA and long-time Narita concessionaire JATCO which
runs most of the outlets.
From tobacco to cosmetics to the Akihabara
consumer technology-to-foods store, 5th Avenue’s
fashionable flair is bolstered by a stylish presentation
of the core categories
In keeping with the occasion, the interview is conducted
in true Japanese style; we remove our shoes and sit crosslegged in a business room overlooking the tarmac. I ask
Tokuno about the philosophy behind Narita 5th Avenue’s
retail concept.
“The image of the interior is Western-style,” he replies.
“That is a contrast with the Japanese style of Narita
Nakamise which we opened last June in the South Wing.
The design concept is what we call ‘Timeless Modern’,
which aims to appeal to all consumers, regardless of nationality or gender and not influenced by a particular period.”
The Moodie Report
45
RETAIL INNOVATION • Narita 5th Avenue
May 2007
Tokuno talks enthusiastically about “the space of luxurious and gorgeous design” that opens up in front of the
traveller from the moment they enter the concourse via
the departure security control area – a stark contrast with
the previous offer and image.
“We expect that customers will have a sense of exhilaration before their departure,” he says. “We designed the
whole area with a view to creating an airport that could
entertain our customers – and we did it despite the handicap of having to renovate existing facilities.”
Having secured the support of several luxury names in the
Nakamise outlet last year, the same big-brand appeal
dominated the thinking behind 5th Avenue. “There was
a big demand from customers for top brands like Gucci
and Burberry,” says Tokuno.
“We attracted the top brands in the world – and in the
case of Gucci and Burberry these are their first duty free
boutiques in Japan.”
Atsuhiko Tokuno: “We designed the whole area with a
view to creating an airport that could entertain”
Was it difficult to persuade such names to come on
board? “With Gucci we had already tried to attract them
many times, but we kept failing,” Tokuno replies. “But
Narita 5th Avenue outlets
Shop name
Category
Space
Gucci
Burberry
Coach
Salvatore Ferragamo
Cartier
Bvlgari
Tiffany & Co.
Hermès
Fa-So-La Duty Free Cosmetics & Perfumery
Fa-So-La Duty Free Tobacco & Liquor
Cafe & Bar Avion
Asian Cafe Bowl Bowl
Refresh Salon Raffine well-being area
Yahoo! Internet Cafe
Fa-So-La Tax Free Akihabara
Luxury boutique
Luxury boutique
Luxury boutique
Luxury boutique
Luxury boutique
Luxury boutique
Luxury boutique
Luxury boutique
Cosmetics & fragrances
Liquor & tobacco
Food court
Food court
Service facility
Service facility
Consumer technology, destination
merchandise, foodstuffs
Service facility
150sq m
100sq m
100sq m
110sq m
160sq m
160sq m
130sq m
160sq m
400sq m
100sq m
80sq m
400sq m
30sq m
150sq m
400sq m
Kids’ Room
170sq m
Source: NAA; The Moodie Report
48
The Moodie Report
Neuhaus Créateur Chocolatier,
since 150 years the reference in luxury chocolate.
RETAIL INNOVATION • Narita 5th Avenue
May 2007
The 160sq m Hermès boutique features the French luxury house’s characteristically brilliant window displays
last year we opened Narita Nakamise [a fine new airside
retail complex in Terminal One –Ed] and we were evaluated favourably by a lot of brands because of Nakamise’s
great atmosphere. As a result Gucci decided to open in
Narita 5th Avenue.”
Why such a push behind fashion and luxury? “From our
customers’ point of view, shopping is one of the great pleasures of overseas travel, ranking alongside visiting historic
sites and enjoying food. So we wanted customers to be able
to find their favourite brands at Narita,” Tokuno replies.
How the new Narita takes shape
Section
Narita 5th Avenue
Narita
New shops
Existing shops
Total
Nakamise
Shops
Space Shops
Space Shops
Space Shops
Space
Duty free stores
Brand boutiques
General shops
Food & beverage
Service facilities
Total
2
500sq m
8 1,070sq m
1
400sq m
2
480sq m
3
350sq m
16 2,800sq m
6 1,140sq m
5
200sq m
2
50sq m
1
210sq m
2
410sq m
16 2,010sq m
8 1,640sq m
13 1,270sq m
3
450sq m
3
690sq m
5
760sq m
32 4,810sq m
5 1,380sq m
9 1,220sq m
2
610sq m
1
330sq m
20sq m
17 3,560sq m
Source: NAA; The Moodie Report
50
The Moodie Report
www.zegna.com
May 2007
RETAIL INNOVATION • Narita 5th Avenue
“And from a company management point of view it had
a lot to do with creating stores that are capable of boosting our non-aeronautical revenues. Our company’s plan
is to drive these revenues as much as possible, and
Nakamise and 5th Avenue are core to achieving that.”
Increasing non-aeronautical income should enable Narita to ease its landing fees, which are among the highest
in the world.
Big Change leads to New Stage
The stores have also been tailored specifically to the
Narita passenger profile – 75% of shoppers are Japanese.
“Some people have said that Japanese travellers can buy
those luxury brands abroad, but the big advantage here is
that the staff can speak Japanese,” Tokuno points out.
“We also put a big emphasis on after-sales service, so that
customers can enjoy shopping in a relaxed way.”
In fact the whole principle of customer service is of fundamental importance to NAA, he says. “Our management vision is ‘We pursue customers’ satisfaction and aim
at providing services that are beyond expectation’.
Improving customer service is a key issue for us and our
subsidiaries.
“The whole company make a big effort to improve customer satisfaction. The staff at the airport bonds like a
family and treats customers well. The aim is to make customer service our top priority, and not just at Narita 5th
Avenue – we would like customers to enjoy our airport as
an integrated concept, not just as a passing point.”
Adds Takatsu: “For fashion boutiques such as Hermès and
Cartier we have management contracts with JATCO –
and they train their sales staff very hard, sending them to
train with Hermès in Paris, for example.”
Walk-through, not walk by
The creation of a near walk-through store concept (the
aisles lead between the stores) will obviously boost footfall. And such is the accessibility and quality of the offer
that store penetration and spend seem sure to rise sharply,
too. “Narita 5th Avenue is a large shopping mall which
enables customers to enjoy shopping by wandering
around the area, while Narita Nakamise is a straight-line
street,” notes Tokuno.
“The circuit-style shopping mall, which features a smooth
curve, produces a fascinating space that makes customers
want to walk into it.”
The back of the retail complex is what Tokuno describes
as “a disadvantageous space”. As a result, interestingly,
NAA chose to put one of its big drawcards there – the
The Moodie Report
5th Avenue is Tokyo Narita Airport’s second great
retail opening in the past 12 months. The renovation of Terminal One’s South Wing led to the introduction in mid 2006 of Nakamise – a strip of
boutiques which were at that time unrivalled in the
country’s airport retail channel.
Whereas 5th Avenue uses the tag line ‘New Stage’,
for Nakamise it was ‘Big Change’ – and once again
the copywriters were right on the money. The
3,500sq m area offers a long ‘street’ of stores and
boutiques, again highlighted by top luxury names,
including Salvatore Ferragamo, Armani, Ralph
Lauren, Cartier, Bvlgari, Hermès, Tiffany & Co, and
Coach. They are bolstered by more traditional duty
free stores, dedicated to liquor & tobacco, cosmetics & fragrances and the Akihabara concept selling
consumer technology, Japanese food products and
destination merchandise.
Because of its straight-line layout Nakamise lacks
the charm of its 5th Avenue counterpart – but not,
apparently, its pulling power. During The Moodie
Report’s visit the shops were packed with customers. Goodness knows what the area must look
like during peak periods such as Golden Week.
The success of Nakamise has not only driven commercial revenues at Narita Airport and lifted the
whole consumer offer: it has laid down a qualitative
benchmark which the world’s top luxury brands
have acknowledged through their presence in 5th
Avenue. As a double act, Narita’s Big Change and
New Stage have already proven a spectacular
success.
53
RETAIL INNOVATION • Narita 5th Avenue
May 2007
Retail makeover: other
categories are important,
but fragrances and
cosmetics hold centre
stage at 5th Avenue
Akihabara consumer technology-to-foods store. He
explains: “Akihabara has a big theme and a wide entrance
to attract customers.”
Tokuno describes as “purposeful shops”, including a
Yahoo! Internet facility, a Raffine well-being boutique and
various food & beverage outlets.
Around the same area travellers can also find what
The boutiques add glamour to the retail complex, but it
Sales in Nakamise, T1 South Wing (2 June 2006–28 February 2007)
Shiseido 13%
Liquor
30%
Liquor
&
Tobacco
shop
Tobacco
70%
Fragrance
16%
Make-up
38%
Cosmetics
&
Perfumery
shop
Skincare
33%
Source: ANA; The Moodie Report
54
The Moodie Report
Photo: Robert Daly – Getty Images
Travel in luxury.
Smile.
And always bring home more than
one great accessory.
For information about opening a Bijoux Terner boutique contact:
Charles Pelegrin · + (1) 786 301 0190 · [email protected]
Lucio Souto + (1) 305 606 2581 · email [email protected]
Corporate Office: 6950 North West 77th Court · Miami · Florida 33166
Telephone + (1) 305 500 7500 · Fax + (1) 305 500 7593
[email protected]
TFWA Asia Pacific Booth #8
RETAIL INNOVATION • Narita 5th Avenue
May 2007
What women want: Bvlgari is just one of the beautifully presented luxury boutiques designed to encourage
Japanese travellers to buy at home – in Tokyo Airport – rather than abroad
is cosmetics & fragrances that holds centre stage, in terms of both space and
revenue. So how did NAAR approach
this pivotal category in terms of retail
design and store execution?
“The retail design of the categorised
cosmetics store makes it possible for
customers to enter from the front and
from either side,” Tokuno replies.
“This offers customers the ability
to easily drop in and buy.
“We have also used fixtures and
fittings as low as possible –
130cm – in order to make the
view across the store as good as it can
56
be. And we have opted for a mixture of popular overseas brands as
well as the top Japanese names.”
How optimistic is he for the
future? “The whole company goal
is to lift non-aeronautical revenues
and with Nakamise and 5th Avenue
we can increase retail sales. In 2010
the parallel runway will be completed and then air traffic will increase
significantly.
“In accordance with that increase the
number of customers will also increase. So
we feel optimistic.”
NAAR is considering renovating the
The Moodie Report
Photo: Robert Daly – Getty Images
Some of our most
luxurious accessories
come in pairs.
For information about opening a Bijoux Terner boutique contact:
Charles Pelegrin · + (1) 786 301 0190 · [email protected]
Lucio Souto + (1) 305 606 2581 · email [email protected]
Corporate Office: 6950 North West 77th Court · Miami · Florida 33166
Telephone + (1) 305 500 7500 · Fax + (1) 305 500 7593
[email protected]
TFWA Asia Pacific Booth #8
RETAIL INNOVATION • Narita 5th Avenue
May 2007
The huge (160sq m)
Cartier boutique is
elegance personified,
thanks to a minimalist
display and rich red
walls nicely offset by
wooden units and
flooring
existing T2 shops next, in order to create a better synergy between old and new: but for now it’s time simply to
reflect on a job well done.
As we exit the interview room we see the crowds pouring into the new stores. Tokuno concludes with a smile:
“We’re very relieved to see so many people in 5th
Narita T2 airline profile by departures
Others
23%
Avenue. We are very happy to see people with such high
expectations.”
There’s no question about it, Narita’s ‘New Stage’ is
worthy of the build-up. It’s retailing’s equivalent of
haute couture, and Japanese travel shopping is all the
better for it.
Sales in Nakamise, T1 South Wing
(2 June 2006–28 February 2007)
Shiseido 7%
Cathay
Pacific
5%
Skincare
19%
American
Airlines
5%
Air China
7%
Liquor 13%
Fragrance
9%
Category
share
across two
shops
Tobacco
30%
JAL
60%
Make-up 22%
Source: NAA; The Moodie Report
58
Source: Dufry; The Moodie Report
The Moodie Report
Health Warning: Tobacco seriously damages health.
RETAIL INNOVATION • Narita 5th Avenue
May 2007
Taking a walk along 5th Avenue
Following The Moodie Report's interview with NAA Director
Retail Management Atsuhiko Tokuno and Retailing Director
Merchandising Masa Takatsu, we took a walk along Japan's
New Stage: 5th Avenue.
With a name like 5th Avenue it’s not surprising that
space is the overwhelming characteristic of Narita’s selfstyled ‘New Stage’.
The gently curving aisles are wide, lushly carpeted and
eminently stylish. Everywhere there is the feeling of
luxury and refinement, from the 150sq m Gucci boutique
with its clean, stainless steel surrounds to the elegant
Café & Bar Avion that looks out over the tarmac and
runways.
Besides being luxurious, the stores are also accessible. As
travellers clear security 5th Avenue is right in front of
them, offering multiple points of entry to various outlets.
The central attraction is the cosmetics and fragrances
store, an open plan 400sq m outlet without any frontage,
doors or walls, allowing the potential shopper to enter
and exit freely.
A stunning dual Chanel display – Rouge Allure and a
new collection for face, lips and eyes – entices the traveller
in to a cosmetics-dominated offer that features top brands
such as Clinique, Lancôme, Estée Lauder and YSL, as well
as Japanese brands led by the store’s best-seller, Shiseido.
The store offers a telling contrast to the oft-replicated
60
beauty offer in the established T2 outlets, just yards
away. While the latter are cramped and plain, the new
outlet sparkles with innovation and variety.
The outrageous fluorescent pink and orange hair of the
MAC sales ladies contrasts with the white lab coats of
those in the Clinique section. There’s a brilliantly
coloured Shu Uemura area, a Tokyo Lash bar, and a
feisty, almost film-studio combination of black steel and
soft pastel pink lighting. Music blares out over the tannoy
and everywhere there is a buzz in the air. It’s a store of
contrasts and of ceaseless activity – crowded with consumers but never cluttered.
Across the far aisle stands the tobacco & liquor outlet, at
100sq m just a quarter of the size of its beauty products
counterpart. That says much about how the Japanese
duty free channel has evolved down the years. Gone is the
liquor and tobacco-dominated offer of the 1970s and
1980s, to be superseded by the 21st century dominance
of cosmetics, fashion, electronics and luxury.
Liquor still has its place – but now the focus is on superpremium and ultra-premium lines from the likes of Hennessy, Rémy Martin, Martell, Chivas Regal and Johnnie
Walker. Each is nicely presented in wall units, layered
according to age or quality statement. Johnnie Walker
runs the gamut from Black Label through Gold, Green,
Blue and the new Blue Label King George V (¥46,000),
while Hennessy makes the steps from VSOP to XO to
Paradise to Richard (¥140,000).
The Moodie Report
May 2007
RETAIL INNOVATION • Narita 5th Avenue
dazzles like the high class jeweller it is; all items are under
glass, and there are seating areas for prospective purchasers
to study pieces. Neat little displays are set into the walls.
Next door is a stunning 160sq m Hermès boutique, featuring its trademark window displays – all greens to the left
and all orange to the right. Inside the Hermès logo is
imbedded in the tiles while the products range from scarves
and ties to ¥31,000 (US$260) dressing gowns for children.
Around the next aisle is Gucci, a cutting-edge 150sq m
store featuring an ultra-modern grey steel look and evoking a tremendous sense of space.
Outside the store, promotional staff tempt passers-by
with samples of Royal Salute – the days of such ultra-premium items just walking off the shelves are long gone.
Tobacco sales though are going strong, reinvigorated in
recent times by the huge popularity of Chunghwa and
other Chinese brands with mainland travellers. There’s a
superb wall display for Mild 7 alongside similarly attractive displays from the likes of Kent, Dunhill, Lucky Strike
and 555, as well as a big presence from Philip Morris, led
by flagship brand Marlboro.
To the other side of the cosmetics and fragrances store is
the aisle that leads through the majority of the fashion
boutiques. A 110sq m Salvatore Ferragamo outlet is first
up. This big, open store offers shoes, leather and ties for
men as well as handbags, purses, smaller accessories and
scarves for women.
Next is a huge (160sq m) Cartier boutique. This is elegance personified, thanks to a minimalist display and
rich red walls nicely offset by wooden units and flooring.
The aisles then sweeps around a curve that holds an elegantly merchandised Coach (100sq m) outlet to the left
and a 160sq m Bvlgari boutique to the right.
The latter features big department store style windows
and a split area – one with wooden flooring that offers
jewellery and watches while an adjoining section has tiled
floors and includes fashion and accessories, ties, purses,
wallet, bags, sunglasses and handbags. In keeping with 5th
Avenue’s spirit of accessibility there are two points of
entry to the store.
The other boutiques all look the part. Tiffany & Co
The Moodie Report
The Fa-So-La-run Akihabara shop may be at the back of
5th Avenue, but on opening day it was jam-packed with
customers. As we enter a media scrum forms, attracted
not by The Moodie Report’s presence but by that of
famous Japanese model Kurara Chibana, runner-up in last
year’s Miss Universe competition.
But even after the beauty queen is gone the store remains
packed. There’s something for everyone in here, from
consumer technology – including a stunning strobelighted Sony area – to toys, souvenirs and gorgeously
packaged Japanese foodstuffs.
A Kimono-clad woman gives out samples, while inside
the crowd jostles over Japanese cakes, sweets and souvenirs, while alongside a colourful Swatch area heads a
fashion watches section including local favourites Seiko
and Casio as well as an international line-up including
Fossil, Diesel and DKNY.
The food & beverage offer embraces Café & Bar Avion and
the quirkily named Asian Café Bowl Bowl, both suitably
understated and perfectly in tune with the overall ambience.
The tour is complete and the photographers and
reporters make their way back to landside.
But the shoppers remain. As I turn back down the central
aisle to leave I see the MAC area full of excited young
shoppers. Opposite, the Ferragamo, Cartier and Bvlgari
boutiques are all doing business, while outside each outlet there are bouquets of flowers, all celebrating a landmark day in Japanese duty free.
Forget those modest days of yesteryear as Japanese travellers
did most of their duty free shopping abroad – partly because
of the paucity of their own airport offer. 5th Avenue truly
does see Japanese travel retail reach a New Stage. I
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