According to study, ’Duty-Free Retailing In Asia-Pacific,
2017-2022: Market & Category Expenditure And Forecasts, Trends And
Competitive Landscape’ some of the major
trades that are currently working in the Asia are; Nuance, Colombian Emeralds, Uruguay,
HudsonRegStaer.
Duty free retails are
tax-free and free from excise duties, on the provision that goods are only sold
to travelers who will transferring them out of the nation. Duty-free retailing
includes various products such as hard luxury goods, fashion apparel and
accessories and electronics; cosmetics and perfumes; wines and spirits;
tobacco; and confectionary and fine foods. It generates value adding economic activity
and employment which contributes to over all GDP. Moreover, it plays an
important role in the financing of airports and of shipping lines, and thereby
of the aviation and maritime industries. This in turn supports the wider
economy generating jobs and value added in all sectors and their supply chains
and enhancing the economic potential.
A number of duty-free
operatives have established their presences in major Asian cities, including Japan,
South Korea, Thailand, China and Singapore. Growing tourism, expansion of
off-airport duty free locations, rising online duty free sales are key factors
that will positively influence the regional duty free sales. South Korea is the
largest duty free market, with high growth prospects, and the smaller markets
are becoming lucrative revenue drivers – such as India, Japan, Thailand and
Indonesia. Thailand is supported by tourism and the construction of larger
airports and multiple downtown duty free formats.
The duty free market
in Japan is dependent on Chinese tourism, but with the depreciating yuan against
the yen, spending power has reduced and caused duty free volume growth in Japan
to ease. Moreover, the Chinese government is pushing efforts for consumers to
spend their income within China, due to downtown and arrivals of the duty free
formats. To cater the duty free retail, majority of the Asian countries are
easing their visa policies, and developing their tourism. Duty free operators
are also seeking development in new markets as competition in in house market
strengthens with coming of new airport and downtown duty free locations.
The large increase in
international travelers has increased the growth of low cost airlines, and new
air routes across the world. This is being exploited by the expansion of more
duty free retail space offering greater opportunities for travelers to spend. Privatization
of airport duty-free shops has seen increased focus on improving sales. In
India “GMR runs the RGIA Hyderabad duty-free, and has a JV with Aer Rianta to
run IGIA Delhi duty-free also. Airport Authority of India observed the success
of private players in duty-free.
In 2018 Asia pacific was
the biggest duty free market and achieved duty free sales of US$28.2 billion in
2018 and is predict to grow at a CAGR of 8.7% to reach US$42.7 billion by 2022 attributed
to new openings and renovation of duty free stores across the major global
airports in the region, with downtown and even cruise ships. Some of the
prominent brands actively targeting the APAC duty free
market include Burberry, Michael Kors, Lacoste, Furla, Coach, Hugo Boss, Calvin
Klein, and Super dry so contest for prime space will be severe for those only
just entering the market.
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Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
