Heinemann co-owner speaks of Chinese spending boom

Claus Heinemann has a passion for retail. As co-owner of powerful German travel retailer Gebr. Heinemann, he has worked in the industry for more than 35 years, distributing premium products and operating stores across the world. He is the fourth generation of the family to run the 136-year-old travel retail business, so the passion is in his blood.

Claus Heinemann, co-owner of travel retailer Gebr. Heinemann

The biggest Duty Free shop in Germany

Heinemann spoke to MJ Rabbit on December 14 at the opening of the new Davidoff of Geneva walk-in cigar humidor at Frankfurt Airport Terminal 1, where Gebr Heinemann operates the impressive multi-brand Duty Free shop, calling it “the biggest Duty Free shop in Germany”. With the opening event, Gebr Heinemann also celebrated its 45-year business partnership with Oettinger Davidoff AG, the Basel-based maker of premium cigars.

Asked about how trading had performed this year, Heinemann began by acknowledging the business challenges. “We operate in so many different areas and we have undertaken so variable developments this year, especially when it comes to currency fluctuations. In Western Europe, the euro rate is very favourable for Americans and Chinese. In places like Copenhagen, Vienna, Frankfurt and Amsterdam we are all over-budget. Our most important area is Turkey, at Istanbul Airport, where there has been a strong increase of our business.” Concurrently, he has observed an “enormous” boost in sales to Americans, thanks to the strong US dollar.

Heinemann noted the recent downing of a Russian jet by Turkey, which has had a profoundly negative effect on Russian travel numbers to Istanbul, where Russians make up 8% of Heinemann’s total business. He also cited the volatile rouble. “The Russians are normally big spenders, but now they pay more attention to the product's price.” He added that Heinemann’s operations at Russian airports had been hit substantially. Faced with these challenges, compounded by poor trading in Egypt and Tunisia, he described the general political environment as uncertain.

Gebr. Heinemann's Duty Free shop at Frankfurt Airport Terminal 1

Chinese travellers love German products

Turning to the Chinese traveller, Heinemann emphasised their importance to the company’s global operations. “The Chinese traveller is very important to Heinemann Duty Free,” he said, adding that 16% of the operator’s sales at Frankfurt Airport are made by people from Chinese destinations.

“They love local German products, which they buy for souvenirs,” he said. “Furthermore they like exclusive and expensive products in categories such as accessories, perfumes, chocolates and cigars… In the Cognac and whiskies category, they choose the most prestigious products as a gift.”

Heinemann said he was pleased with the current level of Chinese per-capita spend, which had increased dramatically over the past years. This year, the company has seen a 25% upswing in sales among Chinese travellers.

In the run-up to the 2015 holiday season, Frankfurt Airport was offering a wide range of festive activities: Christmas decorations, Christmas gift wrapping, shopping coupons, and special offers.

Knowing that today’s retail environment demands newness, Heinemann said the company is always open to looking at new brands that are well-known in the market and had a marketing research department that identified what customers wanted to buy.

"One of the greatest duty free projects on the planet"

UK architect The Design Solution is celebrating with its client Aer Rianta International (ARI) following today's announcement from Abu Dhabi Airports Company (ADAC) that a major duty free contract for Abu Dhabi Midfield Terminal has been awarded to ARI.  

A rendering of the entrance of Abu Dhabi Duty Free's operation at the Midfield Terminal

The Design Solution has worked on the coveted Midfield project right from the building conception, initially hired by ADAC for the master planning of the terminal, which is due to open in 2017 and is expected to handle 30m passengers. ARI then approached The Design Solution to create its design concept for the duty free space dedicated to perfumes, cosmetics, skincare, sunglasses and jewellery. 

The Design Solution director Nick Taylor commented: “We are absolutely delighted with today’s announcement, and equally proud to have been part of what can only be described as one of the greatest duty free projects on the planet. Ever. This was a journey where we pulled out all the stops, thought differently, and not only rose to the ADAC’s unparalleled challenge, but delivered innovative design even beyond our own expectations. For that, I am immensely proud of the entire team here in London. The journey’s just begun. Here’s to a fantastic New Year, bringing the ARI dreams into reality.”

The Design Solution's retail design for the sunglasses category

London-based The Design Solution is a leading specialist travel retail architect and retail design practice. The team brings considerable experience from the greater Middle East/Asia region through a portfolio of major airport projects, including at Muscat, Doha, Mumbai, Delhi, Malta, Salalah, Hyderabad, Bangalore and Antalya.

Davidoff CEO toasts travel retail milestone

Davidoff celebrated the opening of its second walk-in humidor in Europe on December 14 in a moving ceremony that also paid tribute to the cigar specialist’s 45-year relationship with the German family-owned travel retailer Gebr Heinemann. 

Located in the Heinemann Duty Free shop at Frankfurt Airport Terminal 1, the contemporary 15sq m space houses both Dominican cigars made by Davidoff and cigars from Cuba. In addition, an exclusive Heinemann Travel Retail Limited Cigar Edition is available to purchase in the new store for cigar aficionados.

The new Davidoff of Geneva walk-in humidor at Frankfurt Airport Terminal 1

A milestone for Davidoff

During the event, which gathered together media guests as well as Davidoff’s partners from Gebr Heinemann and Frankfurt airport authority Fraport, a Davidoff cigar roller from the Dominican Republic showed off his cutting skills, carefully crafting a range of different products from the brand’s portfolio.

Speaking to the guests at the official ribbon-cutting ceremony, Oettinger Davidoff AG CEO Hans-Kristian Hoejsgaard said: “This is a milestone. It’s our first [walk-in humidor] opening in the EU and our second in Europe, after Zurich Airport. The idea came about two years ago, when Claus Heinemann [Gebr Heinemann co-owner] said to me, ‘We need more theatre in tobacco, maybe Davidoff can help’. And this walk-in humidor is the result. We look forward to making it a destination for travellers.”

Davidoff CEO Hans-Kristian Hoejsgaard (right) celebrates with Gebr Heinemann co-founder and CEO Claus Heinemann 

Long-standing partnership

Frankfurt Airport T1 serves many American and Japanese passengers, with the number of Asian travellers peaking in the afternoon, Hoejsgaard noted. “This is the crossroads, this is where we want to be,” he said of the German hub.

Hoejsgaard then paid tribute to the long-standing partnership between the two family-owned companies: “Davidoff is celebrating a special, 45-year relationship with the Heinemann family. It means a tremendous amount to our company.”

In response to this moving tribute, Claus Heinemann reiterated the two companies’ “great relationship” and lauded Davidoff’s “wonderful range of cigars”.

Heinemann noted that some 25% of Frankfurt Airport’s duty-free tobacco business was already generated by cigars, adding that he still saw good potential in the cigar category.

Humidor exudes warmth, modernity and tradition

The new humidor is located, fittingly, next to the Ferragamo luxury fashion store. Ferragamo’s CEO Michele Norsa is a board member of Oettinger Davidoff AG, but this happy coincidence came as a complete surprise to both Hoejsgaard and Norsa. (Norsa has apparently expressed his delight at the brands’ adjacency in the multi-brand duty-free store.)

The humidor itself is modelled on Caribbean dark wood, with the orange stripe around the logo signifying the warm sun. Caribbean-style shutters are subtly reproduced in the interior wooden lattice work. “We wanted to convey warmth, tradition and modernity for a 21st century cigar lounge and humidor,” Hoejsgaard told MJ Rabbit.

Now Hoejsgaard is looking forward to some more Davidoff milestones – most notably, a total of three prestigious shops which will begin trading soon in Manhattan. The three locations include a new flagship at the new, state-of-the-art Brookfield Place shopping mall in the redeveloped World Trade Center, opening later this month. In addition, a spacious new Davidoff lounge will welcome cigar lovers in Tampa, Florida – in the same week as the opening of the Frankfurt Airport humidor.

Happy days indeed in the Davidoff HQ.

Davidoff Art Initiative reveals Caribbean insights

The Davidoff Art Initiative, founded by Swiss cigar specialist Davidoff to support contemporary artists in the Caribbean, has announced the publication of an art compendium capturing the dynamism of the charitable organisation across its first years of operation.

An excerpt from Under the sun: Caribbean Voices in Contemporary Art

Insights into the Caribbean art scene 

The Davidoff Art Initiative was launched in 2012 with the mission of supporting contemporary art and artists in the Caribbean and in particular the Dominican Republic, and fostering cultural engagement between the Caribbean region and the rest of the world. Now in its third year, the Initiative has published Under the Sun: Caribbean Voices in Contemporary Art, a compendium of art, essays, and interviews. The book includes interviews and portfolios from Caribbean and international artists following their participation in the Davidoff Art Residency, as well as commentaries from leading art authorities offering insights into the Caribbean art scene.

Organised across three sections, the publication offers readers an intimate portrait of the Caribbean’s singular creative landscape, along with the role of the Davidoff Art Initiative in providing visibility and support this vital contemporary art community.

Davidoff wins art critics award

In tandem with this milestone, the Davidoff Art Initiative has been bestowed the 2015 Annual Critics Award from the Dominican Association of Art Critics Inc (ADCA). The Annual Critics Award, presented by ADCA in affiliation with the International Association of Art Critics, honours the work of institutions and individuals working in and around the visual arts in the Dominican Republic. The award recognises the Davidoff Art Initiative’s contribution to contemporary art in the Dominican Republic through its residency programme and its support and facilitation of cross-cultural dialogue.

“We are pleased to recognise the invaluable contributions of the Davidoff Art Initiative and their success in promoting and introducing Caribbean artists to broader, international audiences,” said ADCA president Carlos Acero Ruíz.

Art & Gourmet Weekend event launched

Next year, Davidoff offers cigar lovers the chance to attend the 2016 Davidoff Tour Gastronomique Art & Gourmet Weekend (February 18-21, 2016) at Casa de Campo, La Romana, Dominican Republic. The weekend will include Open Studio visits with the Davidoff Art Residency artists in Altos de Chavón, as well as culinary events with three Michelin-starred chef Peter Knogl from Switzerland and a visit to the Davidoff Estate in Santiago de los Caballeros. For details, visit: davidoff.com/events/davidoff-tour-gastronomique-art-gourmet-weekend

Coach debuts modern luxury shops in Paris airport

Coach, the leading New York luxury accessories and lifestyle brand, has opened its first men’s and women’s shops in Paris Charles de Gaulle airport. The two separate boutiques are located in Terminal 2A within the Buy Paris multi-brand stores and offer a full range of Coach’s men’s and women’s essentials including handbags, small leather goods, watches, jewellery and fragrance.

Above: The new Coach women's store at Paris Charles de Gaulle airport; Below: The men's shop

The shops feature the brand’s new modern luxury retail concept in a warm and inviting store environment, housing Coach’s newest product designed by creative director Stuart Vevers. The new store design has a distinctive New York City attitude, expressed through an “iconic” materials palette and outfitted with warm lighting, hand-tufted carpets and fine millwork accents, the company said. 

“We are extremely excited to announce the opening of our two Modern Luxury stores in CDG,” said Coach International President Giorgio Sarne. “They are an essential part of our travel retail expansion strategy and signify the brand’s increasing fashion relevancy. Our location in the airport will allow our travelling customers to experience Coach’s new store environment and latest product offerings.”