INDIAN AIRPORTS
Duty free at Delhi and Mumbai spurs India’s retail evolution
was able to build on gradual growth during the early part of the year with sales hitting a record high in June till October 2017,” says Abhijit Das, Head of Marketing, Delhi Duty Free Services (DDFS). He says DDFS has addressed low penetration levels with innovative promotions in key categories and on major brands. Nidhi Aggarwal, Marketing Manager, Mumbai Duty Free says: “With state-of-the-art stores and abundant variety available at competitive prices, the awareness of Indian travel retail has spread extensively, making it a preferred shopping destination among travellers.”
Rising passenger traffic in the Indian market is driving airport retail concessionaires to innovate and expand their offers to suit a new demographic of traveller, as Jessica Mason reports.
Above: DDFS departures at Indira Gandhi International Airport.
A
strengthening of the rupee against the US dollar, demonetisation
and
competition to engage the Indian passenger in the region is placing pressure on travel retail. However, despite the challenging trading environment for travel retail over the past 18 months, Indian airport retail developments have registered growth in sales. The outbound Indian travel market saw +7% growth from Asian airports and +6% globally in 2017, according to a recent report from Swiss research agency m1nd-set’s Business Intelligence Service (B1S), which
“With state-of-the-art stores and abundant variety available at competitive prices, the awareness of Indian travel retail has spread extensively, making it a preferred shopping destination among travellers.”
Nidhi Aggarwal, Marketing Manager, Mumbai Duty Free
22 TRBUSINESS
forecasts that the market will grow by a further +8% in 2018, in Asia and globally.
India will climb from third to second place in the ranking of travelling nationalities to Asian airports in 2018 and from sixth to fifth place for airports globally, m1nd-set predicts. Destinations that will benefit most
from the increase in outbound Indian traffic in 2018 include Latin America and the Caribbean. Currently the destination with the fewest arrivals from India at under 1% of the market, it is set to register the biggest growth in Indian arrivals at +27% this year. Meanwhile, travel to the Middle East, the largest destination for Indian travellers with 31% of the Indian outbound market, will increase by around +4% next year. Aside, Europe’s modest increase of +1% in outbound Indian traffic, Africa will suffer the most significant fall in traffic, with a 24% decline over the next 12 months. “Delhi Duty Free Services [DDFS]
New projects on horizon The Airports Authority of India
(AAI) is set to undertake new development projects across India’s airports over the coming years. Plans include constructing a new integrated passenger terminal building at Chaudhary Charan Singh International Airport in Lucknow Uttar Pradesh to deal with the increase in passenger traffic. The new terminal, which is purported to be able to handle 4,000 passengers during peak hours, will welcome a total of 6.35m passengers per year. AAI is also set to develop Deoghar Airport in Jharkhand and create a new terminal at Allahabad before the Hindu pilgrimage for Ardh Kumbh Mela festivities in January 2019. Overall, it’s an exciting time for
travel retail in India, with Flemingo International’s recent victory in the duty free departure and arrivals tender at India’s Chandigarh International Airport [CHIAL], being just one example. The advancement in Indian airport retailing has been predicted for many years, but we are now seeing the region mature.
MARCH 2018
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