All about retailing stores at Airports

1. BBA-HO&M
AIRPORT
RETAILING

2. INTRODUCTION
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Airports in India are one of the most promising sectors for retail
development.
It is fast becoming a key market in global airport retailing with
investment from international airport operators that include Swiss-
based Nuance Group and Britain’s Alpha Airports Group, now
owned by Italy’s Auto grill, DFS Group, Dufry Group and Gebr
Heinemann.
The current retail-tenant profile at Indian airports includes brands
ranging from apparel to wellness, convenience, travel and books,
electronics, fashion accessories, sunglasses, watches, jewellery,
F&B, perfumes and cosmetics, wine and liquor and travel
accessories

3. Lets know The Difference
• Major differences between Airport and mall shoppers include the
following:
• Airport shoppers may have
anxieties and unfamiliarity
higher stress levels due to travel
with the airport .The customer
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demographic in the airport is more affluent than at malls due to the
influx of business and international travelers.
Due to the fast-paced environment of the airport, many shoppers
are not in the proper mindset to browse
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Product sizes and quantities are major concerns for airport
shoppers
Airport shoppers frequently buy gifts for those at home, so the gift
market is the primary product category they seek.

4. CHARACTERISTICS OF AIRPORTRETAILING

5. ClassifiCation

7. P o r t e r ’ s f i v e forces model

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9. STRATEGIES
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Large dedicated area for retail stores. For instance T2 terminal
recently opened has an area of 700,000 sq. ft area equivalent to 10
football field dedicated to retail, food and beverages, lounge and
travel services.
Duty free shops ( such as alcohol, perfumes etc.)
Shoemaker Pavers England operates 14 stores at airport.
Generally higher priced product sell more than lower priced one.
Store location is small 150-300 sq. ft
Product vary according to the location.

11. STRATEGIES
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• Large dedicated retail space
• For example retail space in Delhi T3 terminal is spread over 290,000 sq.
ft.
Presence of prominent brands such as shoppers Stop, Hidesign, William
Penn, WH smith etc.
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Example Chroma retail sold their JBL headset without giving any
discount or special deal.
Strategy used: Brand Prominent shelf space
Product especially in demand at Chroma store are accessories such as
scratch guard, covers, mouse, power banks and pen drive.
Product are generally in the range of Rs 600 to Rs 4000.
Store space lies between 850 to 2000 sq. ft
The returns per square foot are much higher at airports than at other
stores. For Croma , the annualised realisation is close to Rs.1.2 lakh per
sq. ft at airports, while in the cities it is close to Rs.30,000 to 40,000 per
sq. ft.

12. KEMPEGOWDA INTERNATIONAL AIRPORT
BANGALORE
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The primary drivers of business-Duty-free stores and F&B outlets.
More than 10,000 products in liquors, tobacco, perfumes,
cosmetics, chocolates, apparel, fashion accessories and electronics
from some of the most acclaimed national international brands.
Nuance Group AG, the world's largest international airport retailer,
through its joint venture with Shoppers Stop Ltd, has been currently
operating duty free shops at the departure and arrival halls of the
Kempegowda International Airport, in Bangalore to create a holistic
shop-o-tainment experience
5 stores

14. Conclusion
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Asia-Pacific Aviation (CAPA) estimates that duty-free
spend at Indian airports will touch $1.6 billion by 2021 -
an eight-fold increase in a decade. The combined spend
on duty-free, duty-paid and food & beverage will reach
$3.5 billion by then.
The airport retailing market is estimated to grow from
USD 31.79 Billion in 2016 to USD 47.81 Billion by 2021,
at a CAGR of 8.5% from 2016 to 2021.
Growth in the tourism industry, affordable airline prices,
and the global rise of disposable incomes are some of
the major factors driving this market.