MALAYSIA AIRPORTS HOLDINGS BERHAD ANNUAL REPORT 2022 SEC 01 04 05 06 02 03 94 OPERATIONAL REVIEW Expand omni-channel capabilities Malaysia Airports’ Airports 4.0 digital transformation initiative has seen the introduction of online e-commerce platforms in Malaysia and Türkiye – shopMYairports and shop@saw - which aim to enhance customers’ experience on the retail front. By providing the online platforms to airport retailers, they are able to expand their reach beyond their bricks and mortar shops at the airport to sell to access non-passengers. This also enables airport tenants to remain agile and capture future growth through online shopping which has seen explosive growth during the pandemic. The online platforms also offer click and collect options, enabling passengers to be serviced efficiently without them having to be physically present at the outlet, freeing up commercial space for products which are best sold in-person. RETAIL SALES OF DUTY FREE AND NON-DUTIABLE GOODS Increase retail spend per pax at Eraman This year provided an opportunity for Eraman to move strongly ahead with revenue generation given the realignment exercise and new channels put in place during the pandemic. We focused on four major areas in 2022 to increase the propensity of this business segment to generate revenue as passenger traffic at airports rose through the year – business enhancement, digitalisation, improved brand experience and promotions. As a result of that, Eraman’s sales per ticket rose to RM280, compared to RM233 recorded pre-pandemic in 2019. This was remarkable, because in 2022, international passenger movements at airports in Malaysia, the main driver of Eraman’s sales traditionally, recovered to only 31.0% of 2019’s levels. Business enhancement As part of the overall Commercial Reset undertaken by Malaysia Airports, the F&B segment was enhanced, particularly at KLIA Terminal 1 where Eraman operates the ‘Food Garden KLIA’. With the opening of the revamped Food Garden KLIA at the end of 2021, a diverse mix of tenants and brands continued to open up their outlets in 2022 including PastaMania, O’Brien’s, Dunkin’ Donuts, TGM by Plaza Premium, Asian Noodle and Little Wok. In 2022, Food Garden KLIA generated sales of RM16.6 million. Travel retail was another area for enhancements to capitalise on travellers looking to release pent-up demand for travel retail products. We opened a new emporium at PEN for perfumes and cosmetics as well as chocolates in April 2022, with the outlet generating revenue of RM2.9 million. A multibrand perfumes and cosmetics outlet in collaboration with House of Coty also opened at KLIA Terminal 1 at the end of 2022. One of the strategies we developed during the pandemic was to extend our sales reach beyond the airport premises – through delivery services for F&B, direct sales through corporate and government links and third-party e-commerce platforms. We continued to enhance these alternative channels for example by providing delivery of Food Garden KLIA and Marrybrown F&B products to customers located within a 10 km area surrounding KUL. We also organised direct sales activities in partnership with government entities and corporate bodies, setting up sales promotions within their premises. In addition, we added a storefront selling duty paid products on the Shopee platform to expand our e-commerce reach. NON-AERONAUTICAL BUSINESS In 2022, Malaysia Airports obtained approval from the Royal Malaysian Customs Department for the sale of duty free goods on the shopMYairports platform through a convenient click and collect process, namely pre-order online and collect at the airport. This is a new milestone as previously duty free items were only available for in-store purchase. Malaysia Airports celebrated the first anniversary of shopMYairports with the ‘Goldenaire’ campaign which ran from September 2021 till February 2022 which gives shoppers a chance to a grand prize of a 200-gram gold bar and monthly prizes of 2.5 gram gold wafers worth up to RM100,000.
RkJQdWJsaXNoZXIy NTkwNzg=