INDIA REPORT: KEMPEGOWDA INTERNATIONAL AIRPORT
branded outlets, from companies such as Royal Capi-Lux, Apple and Samsung, while the High Street speciality retail area will include nine stores spread over 1,213sq m with brands such as Mac, Swarovski, Superdry and Fossil. In the common arrivals area, there
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will be three duty free stores totalling 363sq m and one 50sq m external retail kiosk, for which WHSmith and Lagardère convenience retail brand, Relay, are among the targets.
‘Preferred retail’ status Guldbjerg, who revealed the new terminal will consist of more than 180 stores added: “Our mission with the opening of Terminal 2 is for Bangalore Airport to be one of the preferred destinations for retail, entertainment and dining. “We want to achieve this by
ensuring each customer touchpoint will be a point of engagement rather than point of sale. The journey from point of sale to point of engagement will go through point of excellence and point of experience.” Currently, the incumbent duty
free operator at BLR is Dufry Group, whose contract will expire once the new terminal opens. Guldbjerg explained: “We will have a separate tender for the new terminal. The entire Terminal 2 commercial space will be tendered out. The Terminal 1 duty free contract will end as soon as Terminal 2 opens.” The decision to tender the entire
Terminal 2 commercial offer will benefit airport and passengers. “This will help obtain plenty of local world- class homegrown brands. With most duty free stores worldwide offering the same products, it is all about brands and brand engagement. India is going through a huge transformation on this front.” Currently, BIAL is planning to issue
the first set of Terminal 2 tenders (including duty free) in January 2020 and tells TRBusiness it would welcome joint ventures. “There will be anchor brands,
concept stores, exclusive outlets and multi-brand shops,” said Guldbjerg. “Multiple operators and different
operating set-ups, depending on the concept are an option.” Different contracts lengths and
OCTOBER 2019
The new Terminal 2 will be an integrated domestic and international terminal with commercial space eventually spanning 40,000sq m.
terms are also on the table. “We are a little dependent on the investment of brands and their sustainability.,” added Guldbjerg. “For a brand like Chanel, for
example, which we are keen to bring to Kempegowda Airport, we could possibly look at a 20-year contract or even longer.” Looking ahead to the opening of
the new terminal, the priority is to create experiences and memories. “If you make points of sale there is no fun in the game,” said Guldbjerg. “It is all about global exposure with local expertise.”
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A work in progress Kempegowda, like many airports in India [and indeed all over the world] is cognisant of the value of its duty free business, which remains a key
growth driver of non-
aeronautical revenue. “Our duty free business is growing
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exponentially at double-digits year- on-year,” said Guldbjerg. “Each year, we keep trying to add new concepts. This year, for example, we have opened World of Whiskies in arrivals and will soon add World of Chocolates in arrivals as well. “The opening of a duty free
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electronics and gizmo store in partnership with Flemingo is part of the next stage of redevelopment in departures. “Liquor, as well as perfumes and
cosmetics are the key growth drivers and we are starting to increase this portfolio in departures. “Each year, we are adding anchor
The first phase of the new 255,000sq m Terminal 2 is scheduled to open in 2021.
TRBUSINESS 47
the existing Terminal 1 and new Terminal 2, increasing transaction values is priority. “There is still a lot of work to do on this front and ample opportunity to drive spend per passenger and average transaction value,” confirmed Guldbjerg. “We are constantly working to
increase spend per passenger and average transaction value by raising operating efficiency, optimising the commercial footprint and adding anchor brands. «
“The new facility will be an integrated domestic and international terminal with commercial space of around 22,000sq m in phase one. This will grow to 40,000sq m in phase two.”
Kenneth Rosvang Guldbjerg, Bangalore International Airport Limited
brands to the duty free profile to enhance the customer experience over there.” Amid all development plans in
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