INDIAN AIRPORTS “Airport retailing has become
a popular global concept since its introduction in 1947, however, it was an emerging concept in India until as recently as 2010 when GMR group launched India’s largest airport at New Delhi,” explains Das. He reminds TRBusiness that travel
retail in India is still in its infancy, yet its potential for growth over the next 10 years is clear. Das says DDFS, a joint venture between Delhi International Airport Limited (DIAL), ARI subsidiary Yalorvin Limited and GMR Airports Limited, remains the largest duty free business in India in terms of shop size and volume. “In 2007, Delhi International
Airport ranked 101 in the ASQ survey and today the airport today is ranked number one in 25-40 MPPA [million passengers per annum],” reminds Das. “Renovations are currently taking
place in arrivals, with the new shops set to be unveiled in mid-2018. “In terms of design and product
offerings, the new store will be more appealing and engaging for customers, while new experiential concepts will be developed instore creating a sense of place. The new store layouts will also assist in handling higher passenger volumes travelling through.” According to DDFS, more than
5.4m Indians go abroad to conduct business, attend meetings, study, sightsee, shop, honeymoon and do other things each year. “With more than 20m Indian
nationals now living throughout the world, the volume of outbound travel
is increasing around
+25% a year,” continues Das. Air travel is growing due to robust economic growth, a focus on government stability and increasing trade and investment. “What has significantly helped
is privatisation, PPPs (public private partnerships) for airport development, growth of budget airlines and significant change in government aviation policy for the development of low-cost air travel,” says Das. He highlights that airports’ privatisation and upgrades have shunted travel retail, with growth expected to accelerate in the coming years.
MARCH 2018 Ed Newton, Senior Consultant,
Airports, Travel & Commercial Spaces, Pragma points out that IATA forecasts global passenger demand to nearly double over the next decade, from 3.8bn in 2016 to 7.2bn in 2035. The demographic of travellers will also shift slightly, predicts Mumbai Duty Free. “Indian airports mostly cater to
local Indian travellers flying out for work or leisure and coming back to the same city,” explains Aggarwal. “The transit traffic from Mumbai
is extremely low, thus making it a base for mostly local western Indian region travellers. “With the changing trends of
travel overall where travelling internationally for leisure is becoming more affordable and travelling for work becoming more prominent, the age and gender ratio has widened.” She continues: “One thing for certain is the preference of local Indian travellers to shop at Mumbai Airport, mostly at arrivals.”
Female travel rise In terms of shopper behaviour among Indian travellers, m1nd-set’s B1S report provides some important clues in terms of segmentation. “Indian travellers have a higher-
than-average proportion of ‘rational pre-planners’,
‘price sensitive
shopping lovers’ and ‘inspiration seekers’ compared to other Asian
The Airports Authority of India is 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.
TRBusiness
nationalities,” explains m1nd-set CEO Peter Mohn. The B1S report also reveals there is a similiar balance between planned and impulse shoppers among Indian travellers with 53% planning their duty free spend compared to 47% buying on impulse. Das says that due to the fast growth in passenger travel, there is constant change in demographics, taste, preferences and shopping habits. “DDFS monitors changes through
regular trend analysis, consumer research and constantly works towards evolving existing instore offers”, he says. “Over 60% of the Indian
population is below 30 years of age with a high disposable income. Today’s millennial generation is not only travelling further and more frequently, they are also exploring more of the world. “While 78% to 81% of travellers are
male, the share of women travelling is increasing and this is visible in the growing share of the P&C category towards female brands.”
Confectionery zone at Mumbai Duty Free. TRBUSINESS 23
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