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Duty Free Airport Stores Woos Travellers

November 5, 2008


Duty free stores in modernized and uplifted Indian airports are all set to woo the Indian traveller. Thanks to modernization of airports with increased focus on Duty Free Retailing. These retailers are now compelled to offer world class quality products – Scotch, Chocolates, Souvenirs, Indian Handicrafts, Herbals, Handloom products etc. These retailers are competitive as well, as they are selling some Single malt bottles at 5% discount to what is being sold in Hong Kong or Singapore.

Mr.Thimmayya, VP of Flemingo said,

In India, we track prices with the best connect airports and have our price positioning strategy in place to deliver better value to customers. Though the trend is moving towards uniform global pricing, we run continuous promotions on key brands.

One of the hurdles faced by by Alpha Future Retail at Delhi Airport is, it incurs higher inland transportation costs for goods coming by sea. Further they also have to pay high fees to airport owners who are charging international level rentals but are unable to ensure a conducive duty-free shopping environment and experience.

Indian Airports rake in less than 35% of their revenues from non-aeronautical sector, which is half of their European counterparts who ring their cash register with more than 70% of revenues from non-aviation business.

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