2012-11-04

Shopping at the airport can be so indulging that there are occasions when some have missed their flights. Most people buy at the airport due to the duty free shopping they can get their hands on. Most shopping done at the airport are the last minute purchases or a souvenir to remember the place or just a good deal at the airport. Across India the duty free outlets had a turnover of $215 million in 2011 as per the Center for Aviation (CAPA) travel retail report 2012. Speculations have been made by CAPA that a potential spending of $3.5 billion can be expected for duty free plus other retail including food and beverages by 2021. Here are the top 5 Indian international airports with biggest duty free stores, as listed by yahoo.com.

Delhi Airport

Delhi Airport is the foremost among the other major Indian airports with a sale of $72.7 million in 2011. The duty free shops at the Indira Gandhi International Airport offer many varieties of products which appeal to both the local and the international travelers. Liquor is the most desired item of purchase in many of the airports, making a sale of 63 percent in India as compared to 17 percent worldwide. Few items mentioned by the passengers as the items that they would like to see more in quantity at the Delhi airport are souvenirs, electronic goods and books.

Mumbai Airport



At the Chhatrapathi Shivaji International Airport in Mumbai the duty free shops are at the international terminal. The total amount of sale was estimated to $60.6 million annually in 2011. With the growing number of passengers since 2006 the revenue has increased with retail marketing at the airports. The new proposed Navi Mumbai International Airport at Kopra-Panvel area shows a promising future for generating more revenues from duty free splurge.  The other major duty free product picked at the airport is fragrance or perfumes estimating to 14 percent of the sale. On the list of items requested by customers to add at the airport were sports goods, fashion and clothing and electronic goods.
The history behind putting up duty free stores goes back to 1947 in Ireland at the Shannon Airport, started by Brendan O’ Regan. It was a service planned for the Trans-Atlantic passengers, who travelled between Europe and North America and stopped both ways for refueling. The set up was an instant hit. It has stayed in the market ever since and have been incorporated all around the world.

Cochin Airport



The largest airport in Kerala, Cochin International airport is third on the mega duty free access list. The duty free shops sprawl two floors in the arrival section and has duty free outlets on full scale in the international terminal. At this airport with the available duty free resources the annual sale accumulates to $19.4 million.
With the progress in retail sales in the last decade, is  was provoked by introducing private capital for operations and airport advancement, the construction of brand new airports with terminal overhaul and increased international operators plus the duty free vendors joining the market.
The other products passengers indulge in at the airport are confectionery, treating themselves with candies and pastries, mostly by the ones with sweet tooth makes 9 percent of sale. Incidentally it is also one of the items asked by passengers in more variety and quantity at the Cochin Airport. Other than that the passengers also asked to add more of alcohol, watches and jewelry among the duty free items

Bangalore Airport

The Bangalore International Airport is one of the largest airports in the country. The duty free stores are in great demand at this airport, proved by the total annual sale of $17 million at these retail outlets. It has been tagged the fourth busiest airport in the country with 12.69 million passengers traffic. For the fiscal year 2011-2012 it was awarded ‘India’s best airport’ by the survey performed by Skytrax.  The Bangalore Airport is speculated to manage 18 million passengers by the year 2015.
On the list of items tobacco makes 7 percent of the duty free purchases made at airports. The items requested by the passengers to see more at the Bangalore airport are electronic goods, watches and jewelry and cosmetics.
As per the CAPA Report the raise in the positive air traffic predicts the possibility of fast growth in the retail industry by more number of passenger flows, even if the passengers do not engage in shopping at the airport.

Hyderabad Airport

Hyderabad International Airport also called the Rajiv Gandhi International airport is on the fifth place. The annual sale at this airport is estimated to be $6.3 for the purchase of duty free items at the respective outlets.
Apart from liquor, perfumes, tobacco, 5percent of the sale is from supermarket items at the airport.  The items requested by travelers at Hyderabad airport are cosmetics, electronic goods and fashion and clothing.
In some countries, including India a duty or tax is imposed on goods which are brought into the country, even though these items are bought duty free in other country, applied only on specific goods. The airport also levies duty on goods that exceed the allowed value or quantity.  As per the CAPA India is still under performing in the duty free retail sectors for a number of reasons, which include the short of high quality airport retail infrastructure, complex distribution and formerly strict investment policy, considering all airports in the country.

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