Good deals at duty-free has travellers checking-in

Indians are shopping more at Indian duty-free shops because of the convenience that shopping on arrival offers to passengers, like less baggage to carry and comparable pricing with other duty-free shops.

“We are witnessing more and more local travellers shopping here on their return to Bangalore due to convenience and comparable product ranges and prices with other airports,” says Mr Rolf Blaser, Country Head, The Nuance Group India Pvt Ltd, the travel retail company that operates the duty-free space at Bengaluru International Airport.

Contribution of foreigners

Mr Blaser says that in departure sales, foreign passport holders contribution is higher, while in arrivals, the sales are driven by returning Indians.

Last year (Jan-June 2010), around 85 per cent of the arrival sales at duty free shops was contributed by Indians, while this year (Jan-June 2011), they contributed about 89 per cent. Last year, 30 per cent of departure sales came from Indians, while this year it has shot up to 36 per cent.

Liquor, chocolates, perfumes and cosmetics are the most shopped categories by arriving passengers while departing passengers shop for souvenirs and destination products. Around 25 per cent of the products (books, DVDs and souvenirs) are sourced locally.

With sales at BIA's duty free shops growing at about 30 per cent per annum, the rise in sales has outgrown the growth of passengers at the airport (which is around 13 per cent), says Mr Blaser. The passenger spend ratio has grown over 15 per cent when compared to last year.

NGIPL, jointly owned by the Zurich-based The Nuance Group AG and Indian retailer Shoppers Stop Limited operates the duty free shopping at Bengaluru International Airport (BIA). Mr Blaser says NGIPL will participate in all tender notifications issued by airports in the country that plan to set up duty free shops.

“Mumbai, Kolkata, Cochin airports are expected to shortly issue tender notifications and we are keen on establishing our presence in these airports,” said Mr Blaser.

At the new airports, NGIPL will be competing with global duty free shop players like DFS Group Ltd and Aer Rianta International and Indian companies like Flemingo Duty Free and ITDC.

Globally, The Nuance Group has 370 outlets across 58 airports and 19 countries around the globe. In addition to duty and tax-free stores, Nuance operates brand boutiques, stores at casinos and resorts as well as outlets on board airplanes.