The Shilla Duty Free Shop at Incheon International Airport.
South Korea’s top travel retailers Hotel Shilla and Lotte Group lost in bidding for rights to run duty-free concessions in Taiwan’s main gateway Taoyuan International Airport to incumbent Taiwanese firms.
The Taoyuan International Airport recently held an open tender of awarding two duty-free contracts for the concessions in terminal two of the airport as the operation rights of Taiwanese retailers EverRich Duty Free and Tasa Meng Corp. are set to expire this year, according to industry sources on Wednesday.
Korean retailers Hotel Shilla and Lotte Group seeking global expansion submitted their bids but EverRich was named the top bidder for both Zone C and Zone D concessions of the airport and Tasa Meng was picked as the second-place bidder for the both concessions. Hotel Shilla was named the third-place bidder for Zone C and Lotte Group did not make the top 3 at either of the two zones.
Taiwan’s EverRich Duty Free.
The top two bidders EverRich and Tasa Meng are expected to take one concession each, leaving no chances for the Korean bidders.
The defeat comes at a time when Hotel Shilla and Lotte Group are pushing hard to expand their global presence in the duty-free retail business amid intensifying competition in the local travel retail business. Hotel Shilla currently operates five posts outside Korea - Singapore, Macao, Hong Kong, Thailand, and Japan. Lotte Group runs total seven branches overseas - two each in Japan and Indonesia, and one each in Guam, Vietnam, and Thailand.
By Baek Sang-kyung and Cho Jeehyun
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