Global Retail Travel Business
The Travel Retail sector has biggest growth opportunities
among Retail business worldwide.
Global Duty Free & Travel Retail Sales run up until 2020 from US$ 69.3 billion to US$ 85 billion. International tourist arrivals worldwide will increase by 30% to 1.8 billion until 2030.
The Travel Retail market has gone through a significant change over the past 20 years.
- Travel Retail channels are Airports, Airlines, Cruise Lines, Ferries, Border Stores and Diplomatic stores
- Airports have heavily increased their retail spaces and turned into shopping malls with multi-brand stores and stand-alone boutiques
- Travel Retail offers a shop window and communication plattform with highest frequency of customers in your matching target group
- Huge increase of potential customers due to consistant growth rates of international travellers. More than 1 Billion tourists crossing international boarders globally. More than 100 Million Chinese outbound travellers
Travel Retail is a very complex, global and highly concentrated Business.
- TOP 10 Operators are generating 40% of global Travel Retail sales and keeping most airport concessions throughout the world
- 60% of total business is generated in Airports
- Top 100 airports count for 70% of total business
- Most Brands are not prepared to enter the Travel Retail Market
- Little knowledge about market, size, player and potential
- Limited access or contacts to Travel Retail market player
- No or small internal Travel Retail organisation
Global Duty Free & Travel Retail Sales 2018.
- US$ 5.7 billion Watches, Jewellery and Fine Writing
- US$ 9.6 billion Fashion & Accessories
- US$ 25.6 billion Fragrances & Cosmetics
- US$ 5.0 billion Confectionary & Fine Food
- US$ 11.4 billion Wine & Spirits
Environment
CHALLENGES
- Lower sales than Pax traffic increase
- Duty Free price advantage less attractive
- Digital Price Transparency
- Differentiation: Equal retail brand set-up accross the world
- Fast consumer trends change
SOLUTIONS
- Retailers leadership with innovative brands
- Make airports best shopping destination
- Offer the unexpected for impulse buying