Travel retail comes of age

In the queue The following groups have set up retail services at the Bangalore International Airport. Multinationals The Nuance Group: Departmental store Alpha Airports Group: Luxury products Dufry Group: Luxury products Domestic companies Shoppers' stop: Departmental store Pantaloon: Departmental store

Travel retail is still in its infancy in India. However, that is changing. A large number of MNCs and domestic majors are in queue to set up retail outlets at new new airports that are being built.

Ethos Swiss Watch Studios, a premium retail chain, has already won the franchise for running the duty free watch store at the new Bangalore airport.

Yashovardhan Saboo, CEO & MD, Ethos Swiss Watch Studios, says: “Indian consumers buy a lot at duty-free shops compared to what they buy outside.”

According to a study by Tax Free World Association, the world’s largest duty-free and travel retail association, Indians, on average, spend $440 (Rs 17,600) at duty-free shops, which compares well with the $590 (Rs 23,600), that they spend at non-duty free shops at travel destinations.

An indication of the potential of growth in duty free segment in India can be gauged from China, which is growing at 31 per cent per annum, the fastest in the world.

India is expected to follow a similar trajectory once the new airports and air travel infrastructure are set up.

— Tejaswi Rathore