Saturday, January 30, 2016

Duty-free shops at airports in non-metro cities see uptick in business

MUMBAI: International flyers from smaller Indian cities are thronging duty free shops at airports in large numbers, shopping for single malts and premium perfumes.

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"Nowadays, customers from non-metro cities have become very well informed, and there has been a rise in the number of flyers from such cities over the past two years. A growth in their disposable income fuels their buying behaviour. All these have helped us in boosting sales in non-metro cities such as Lucknow, Amritsar, Jaipur, Mangalore, etc," said Anirban Dutta Chowdhury, CEO, India at Flemingo International, which operates duty free shops at 11 cities in India, including Kolkata, Chennai, Trivandrum, Calicut, Trichy, Goa and Ahmedabad, apart from the ones mentioned earlier.

Flemingo currently gets 55 per cent of its India business from Kolkata and Chennai while the rest comes from non-metro cities.

The latter chunk has "grown substantially" over the past few years and will continue to grow, said Chowdhury without elaborating.

The airports are operated by state-run Airports Authority of India. Its chairman RK Srivastava said there has been an increase in demand for duty free in non-metro airports.

AAI over the next seven years will be investing close to $12 billion for construction of new regional airports and expansion of existing ones. More than ten of these will have bigger duty free areas.

"We are expanding our retail space. We will have stores at both arrival & departure terminals at all the locations where we operate. Departure stores at some locations such as Amritsar and Calicut were closed. Now we are in the process of reopening and making new stores there," said Chowdhury.

More Indian travellers are buying at duty-free stores in local airports instead of overseas, attracted by discounts and a growing range of spirits and perfumes stocked by operators in the country.

Source - TOI 

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