Delhi Duty Free turns to fashion

With the opening of the swanky new international airport terminal, Delhi Duty Free Services

(DDFS) now feels the need to revamp its image and look. Till now, it focused on liquor, tobacco and toiletries but now it is ready to diversify into fashion and luxury retail for the sake viability and sustenance. DDFS retails brands like Hugo Boss, German fashion brands MCM, Samsonite Black, Swarovski and Mont Blanc. According to Arun Barathi, COO, Delhi Duty Free Services brands like Hugo Boss, Samsonite Black and Swarovski are 35 per cent cheaper at duty free stores than on the retail shelves across the city. The average store size for each of these is 800 sq. ft. and the total space dedicated to fashion retail under duty free is 3,200 sq. ft. Each store has been given separate place to maintain and bring forward what they stand for.

With European and American markets reaching a saturation point, leading players are concentrating on BRIC countries. Barathi feels the action is expected to shift to India as the luxury market here is growing and fashion retail is the way forward. For years, big brands had stayed away from Indian airport retail because of the less than ideal shopping environment, but T3 along with certain other airport projects around the country have begun to change that view. Duty free pricing benefit in many SKUs could be up to 35 per cent. Collection available at these stores has been specially designed to suit the taste and preferences of travelers.

In February 2011, Airport’s Council International ranked Delhi fourth in the category of airports handling around 40 million passengers. This has put pressure on brands who want to be part of DDFS to be visible and cater to the audience worldwide. DDFS operates the bulk of T3’s retailing and commands over 4,380 sq. mts of shopping space at 14 locations.