Asia Pacific Duty Free Retailing Market Value, Market Revenue-Ken Research
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 Superdry so contest for prime space will be severe for those only just entering the market.
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Ankur Gupta, Head Marketing & Communications