Companies focus on duty-free shops this festive season

The holiday months of October to February see the highest

numbers of inbound and outbound travellers. So companies are planning to take advantage of this opportunity by focusing on the duty-free zones situated at the major airports. The retailers at these zones have almost doubled their stocks and have stepped up in-store promotions. Duty-free prices of goods at these places are about 30-50 per cent cheaper than traditional retail stores.

According to Delhi Duty Free Services (DDF), the country’s largest duty free retail operator at T3, IGI airport data, the marketing spends over the next four months have gone up 25 per cent year-on-year, which are comparable to Dubai and Singapore. DDF is expecting a 25-30 per cent increase in sales over the same period last year. Most of the sales offtake is expected to come on the back of promotions and freebies which range from free F1 tickets and holidays in Macau to 1 kg gold.

According to a recent Centre for Aviation & Indian Ministry of Tourism (CAPA) report on duty-free retail at Indian airports, the value of airport-based duty-free sales in the country was $215 million (Rs 1,151 crores) last year and growing rapidly. Growth triggers, the report says, include introduction of private capital for airport development, new airports and terminal revamps. In the case of Delhi, for example, duty-free spends shot up 400 per cent over the five years to FY11, it adds.