Retail in Asia

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Luxury chains ride travel boom, eye new horizons

A rising class of affluent globe-trotters from China, Russia and Brazil is spurring retailers to expand their presence in high-end airports from the US to Germany to China.

Travel retail has long been a fixture for brands like Estée Lauder Cos Inc and LVMH’s Louis Vuitton. But sales at airports and other travel venues have risen far more quickly in recent years than at regular stores for many chains, putting this area of retailing front and centre in many companies’ expansion plans.

Chains with few such stores are adding new ones: Tiffany & Co is set to open a second store in Singapore’s Changi this year and one at Berlin’s new airport next year, bringing the jeweller’s total to eight, while Swiss luxury watchmaker Hublot, which is also part of LVMH, is eyeing Frankfurt’s airport.

(Source: CNBC)