Delhi Duty Free, which until now focused on liquor, tobacco and toiletries, is diversifying into fashion and luxury retail.
The company claims brands like Hugo Boss, Samsonite Black and Swarovski will be up to 35 per cent cheaper at duty free stores than on the retail shelves across the city.
“Fashion retail is the way forward. For years, prestige 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 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 travellers,” Mr Arun Barathi, COO, Delhi Duty Free Services Pvt Ltd, said.
DDF retails brands like Boss (Hugo Boss), German fashion brands MCM, Samsonite Black, Swarovski and Mont Blanc. “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 - their identity,” he said. Each brand has about 100-200 stock keeping units.
With European and American markets reaching a saturation point, leading players were concentrating on BRIC countries, Mr Barathi said, adding that the action is expected to shift to India as the luxury market here is growing at 25 per cent.
Indian luxury market
The Indian luxury market is estimated to be $ 4.35 billion and this forms only two per cent of the global share. “There is a sizeable population engaging in outbound travel and getting exposure to global luxury market. Global players will have to look at innovative methods of reaching and engaging with customers to succeed in the Indian market,” he added.
“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 in order to be visible and cater to the audience worldwide,” Mr Barathi said.
Delhi Duty Free Services operates the bulk of T3's retailing. It commands over 4,380 sq metres of shopping space at 14 locations.
On whether the company is looking at other brands as well, he said, “DDF wants more brands so that we can give more options and choice to our buyers.”
Speaking on the footfalls and revenues, Mr Barathi said revenues have been very good with spend per person on the rise.