The following article was published in Duty Free News International, July 2013 issue:
Dutch cigar supplier Royal Agio Cigars has reported a 20% sales increase in Asia/Pacific compared with the previous year.
The company has also appointed Asia Marketing Services as its agent for the Asia/Pacific region, responsible for coordinating the sales and marketing efforts of Royal Agio Cigars’ brands in the Asia/Pacific domestic and travel-retail markets.
Speaking at the Tax Free World Association Asia/Pacific show in Singapore, where the company launched its Balmoral Dominican Selection Short Corona cigars Asia Marketing Services director Hans Rijfkogel told DFNI: “Asia/Pacific is an important area and everything is going well. Chinese passengers are becoming more important and are not only looking for exclusive and high-quality products but also brands.
“We were are happy with the first four to six months of 2013 as more and more people—particularly the Chinese—are travelling and interested in cigars, which can only be good for us. We are trying to get more distribution in travel-retail and to obtain the optimal presentation in duty-free.
The supplier is represented in all major Asian airports through its core range of Balmoral, Panter, Agio Tip and Meharis products and has built up strong relationships with retailers. “This is certainly paying off,” emphasised Rijfkogel. “We have to think like a retailer and like the retailers to think with us.
“DFS Group, for example, whom we work with at Singapore Changi and Hong Kong International airports, gave us very good feedback in terms of how to increase sales and educate staff and consumers. Cigars are relatively new in Asia so sometimes require some explanation about products, brand, flavour and size to drive the sale.”
In terms of pricing Rijfkogel added: “Cigars are expensive in domestic markets so we try to have a global duty-free pricing strategy and to implement the same prices in all Asian airports.”
