Indian Airport Retail Register $1 Billion Revenue in 2011
Date: Wednesday , February 01, 2012
Indian airport retail market is witnessing a very enthusiastic growth phase; this is reflected in the $1 billion revenue generated by the sector in 2011. The rise in revenue is attributed to the growth in passenger traffic and the increase in the number of people shopping at the airport. This was suggested in a study conducted by Bangalore-based consulting firm Asipac Projects. The study says that the business is growing at 17-18 percent annually, emerging as a feasible platform for retailers and operators of the new airports.
The top categories emerging in the duty free section are beauty, alcohol, personal care tobacco, whereas, food and beverages, stationary, books are spotted in the duty-paid segment. The airports registered approximately $43 billion in sales globally with London Heathrow and Seoul's Incheon being the most profitable ones.
“Flyers hang around more at an airport like Bangalore as it is far away from the city. Also, shopping at airports in India has anovelty attached to it, considering it is a new concept for us,” says Amit Bagaria, Chairman & CEO, Asipac Projects. The domestic as well international airport at Delhi terminal (T3) has the retail area of around two lakh square feet and built to tap the potential of retail revenues. Airport operators like GMR and GVK that started with very high rental rates are now moving towards a revenue-share model. Malls still work on a per square feet rental model, with few as exceptions.