The Road to Luxury

Chapter 11Retail, Distribution, and E-Commerce

The duty-free market is worth more than €30 billion, €10 billion of which is in luxury products. LVMH holds the biggest share of duty-free shopping, with a majority interest in DFS (duty-free shoppers) and sales of more than €2 billion.

Most duty-free stores are in airports, except in Hawaii, Korea, or on the island of Okinawa, Japan, where huge shopping malls are allowed to sell duty free.

The shopping center at Okinawa is an incredible example. Tourists, mainly Japanese, but also Chinese, Korean, and Taiwanese arrive at the airport. The Duty Free Shopping service meets them at the airport and takes them to the shopping center in cars that they will keep for their entire stay on the island. Before they return the cars, they fill up the trunk with duty-free purchases.

It is a military-style organization that takes care of tourists and does not let go of them. The DFS center in Okinawa is huge. There is everything there: restaurants, hundreds of shops with a special area for luxury products, where all the major brands are present. It has to be admitted that it is rather like a cattle market, and a far cry from what luxury is usually considered to be.

Quite surprisingly, major luxury brands set up in these inland, town-center shopping centers!In Waikiki, Hawaii, or Okinawa, the most beautiful brands are displayed next to umbrellas and cheap lingerie. This can sometimes be strange and humorous to see.

In Waikiki, Hawaii and in Seoul, ...