King Power's Sunil Tuli shares insights into the company’s ongoing projects and future plans
King Power Group Hong Kong is actively pursuing new ventures to expand its regional footprint. “We are currently looking at some tenders we have bid for in Singapore for branded stores at the airport, as well as a project in downtown Singapore, which we hope to be able to announce soon once the details are finalized,” reveals Sunil Tuli, Group CEO of King Power Group.
Over the past year, King Power has grown its Singapore business with five new stores, including two Marc Jacobs, two Lacoste stores and a Godiva Boutique. The company is also exploring opportunities to expand its business at Hong Kong International Airport.
Tuli emphasizes a flexible approach when it comes to brand collaborations, based on the specific opportunities at each location. “Our retail strategy is about serving the customer at international airports. There is no fixed strategy for deciding which brands to collaborate with; it depends on the opportunities available at the airports and the suitability of the brands for those locations, as well as the ever-changing and growing customer demographics,” he explains.
Navigating post-pandemic challenges
The travel retail landscape has undergone significant changes post-pandemic, with shifting consumer behaviors and spending habits. “While the recovery is in progress, passenger numbers are still below 2019 levels in major locations like Singapore and Hong Kong,” Tuli notes. “More importantly, people’s spending habits have changed. Chinese travelers are not present in the numbers we expected and are not spending as much on luxury as they used to. There’s been a drop in the average unit sale in the premium luxury category.”
Despite these challenges, Tuli remains optimistic about the future. “We hope things will get back to normal by the end of the year,” he says.
The company closely monitors recovery trends at different locations to tailor its strategies accordingly. King Power Hong Kong employs data analytics to stay attuned to market changes and consumer preferences. “We collect data through our POS systems to understand what our passenger profiles are and tailor our product offerings to meet the needs of our customers,” Tuli explains. “As we see the passenger profile change, we leverage our research and data from organizations like APTRA to stay informed about passenger habits.”
As President of APTRA, Tuli plays a crucial role in shaping the travel retail industry’s response to market challenges and opportunities across the Asia Pacific region. “APTRA provides the industry with valuable insights and advocacy and facilitates collaboration between retailers, brands and regulators to promote growth and sustainability. Building this information and sharing it with the industry allows us all to grow and understand the changing dynamics as we watch travel retail slowly but surely recover,” he says.
Building loyalty
As travel resumes, King Power Hong Kong is focused on building loyalty with international travelers, especially from mainland China and Southeast Asia. “Our goal is to retain customers and build loyalty, particularly in the luxury segment,” Tuli says. This involves creating strategies to encourage repeat shopping at its stores.
Recognizing the rising importance of e-commerce to younger shoppers, King Power Hong Kong is integrating omnichannel retailing to provide a seamless shopping experience. “We work with e-commerce platforms such as iShopChangi where permitted, with the aim of offering our customers a cohesive online and offline shopping journey,” Tuli adds.
Challenges and future outlook
The travel retail sector faces several challenges, including fluctuating passenger numbers and changing consumer behaviors. “One of the biggest challenges is the lower numbers of Chinese travelers and their reduced spending on luxury items,” Tuli states. The changing demographics of high spenders has been unpredictable, and the industry is navigating and re-evaluating key demographics of current and future consumers. King Power addresses these challenges by fostering strong collaborations with brands and suppliers, ensuring optimal product availability and adapting to new market realities.
King Power Group Hong Kong’s commitment to luxury retail is evident in its premium boutiques at international airports. The recently opened Marc Jacobs and Furla stores at Changi Airport in Singapore illustrate King Power’s strategic expansion and established regional presence. Each store is meticulously designed to provide a superior shopping experience, aligning with the company’s mission to cater to international travelers’ tastes and preferences.
King Power Group Hong Kong continues to set benchmarks in the travel retail industry through strategic initiatives, brand collaborations, and a keen understanding of consumer trends.