Luxury wine and spirits travel retail goes up a notch

IF LOTTE Duty Free (LDF) Singapore managing director Jeff Soongyu Jeong could have his way, taste-making consumers travelling through Changi Airport would be such fans of Suntory, Hennessy, Penfolds and Pernod Ricard, they’d turn into advocates of those alcohol brands.

To help them get there, the Korean travel retailer last month reopened its Terminal 3 central duplex store after a US$19 million revamp.

Towering in the heart of T3’s transit area, the new store – by far the largest of LDF’s in the world – sports an 8-metre LED media wall and an all-glass facade. Within are various new concepts and technologies, a highlight being the world’s first The House of Suntory shop-in-shop boutique.

With a design inspired by the Japanese whisky brand’s embodiment of Japanese art and culture, the space will feature a wide selection of premium spirits, including the limited-edition centennial release of Hibiki 21 Years Old.

Meanwhile, the Hennessy shop-in-shop features a display made of floating curves, referencing the oak staves worked by copper craftsmen, as well as the French cognac maker’s craftsmanship. Here, LDF promises fans that they will find a unique product assortment that showcases Hennessy’s rich legacy.

Cutting-edge digital experiences, meanwhile, are what consumers can expect at Australian winemaker Penfolds’ shop-in-shop. Get recommendations from a digital sommelier, or immerse yourself in an underwater visual odyssey via a Penfolds 3D screen exclusively created in collaboration with Australian artist Mikaela Stafford.

Over at the Pernod Ricard shop-in-shop, shoppers are introduced to a cross-category concept, the first of its kind at Changi Airport. Here, an array of both blended scotch and single malts from the French company are available.

“We meticulously select these brands based on their brand heritage, compelling storytelling, and exceptional design capabilities,” says Jeong. He adds that LDF’s alignment with them allows it to offer exclusive and rare products, and makes its stores the “go-to destinations in the region for unique and sought-after liquor selections”.

LDF’s customers are mainly those preferring mid- to high-priced products to maximise their customs allowance.

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Apart from the shop-in-shops, there are new experiences to be had elsewhere in the store. On the upper deck, an interactive wine sommelier that operates via transparent LED touchscreens suggests suitable wines depending on one’s preferences.

Also on this deck is the Lifestyle Lounge, a quiet retreat for travellers to recharge themselves and their electronic devices in peace. From the vantage point of the upper veranda, a panoramic view of the surrounding area can be had – in addition to cocktails mixed by Toni, the Makr Shakr robotic bartender.

“For fiscal year 2024, we are projecting a substantial growth in sales, anticipating a high-double-digit percentage increase,” reveals Jeong. He expects an uptrend in the alcohol market in both on-trade channels – where beverages are sold for consumption on-site – and off-trade channels, where beverages are sold to be consumed elsewhere.

“There are significant opportunities for ‘premiumisation’ within the market, as consumers in key regions like Vietnam and China increasingly seek out premium and luxury alcoholic beverages, showcasing a shift towards higher-end consumption patterns,” he adds.

The latest opening marks the complete launch of LDF’s 19 stores at Changi Airport, which cover over 8,000 square metres of retail space across the four terminals. It is also LDF’s largest overseas operation.