BW Confidential - Issue #10 - May/June 2012 - (Page 70)

Travel retail Asia Pacific: India The charm offensive After years of over-optimism and under-delivery, the duty-free business in India is gaining traction by Kevin Rozario U nder state control, India’s duty-free business was tiny with a value that had no relation to the size of the market, which was estimated at more than 90 million passengers in 2011. Poor retail facilities, a clunky supply chain and the bureaucracy of the national airport authority were all barriers to development. No surprise then that beauty brands had kept away. At IDFS Tradings, the inflight travel-retail specialist and a partner at Delhi’s Terminal 3 duty-free operation, executive Yasmin Kapoor admits: “As there was no concept of retail in the old Indian airports, the ambiance that was required for travel retail was a nonstarter. In the past two years initiatives by the government along with private partners have upgraded the airports, while keeping in mind the importance of airport retail in the design and layouts.” Those private-public partnership projects at hubs like Indira Gandhi International and Chhatrapati Shivaji International in Mumbai have not 70 just changed the structure of the market, but given beauty brands more confidence about it. Suddenly there were big airport players Travel retailers will have to think harder about how to target India’s evolving and complex consumer profile. Beauty brands also need to buck up their ideas when it comes to product portfolios—cut and paste has not always worked well in India like Fraport, Malaysian Airports and Airport Company South Africa which understood not just the value of retail, but how to implement it. As a result global travel retailers like DFS Group, The Nuance Group, Aer Rianta International and others moved in, though not always painlessly. Nuance, for example, pulled out of its Hyderabad operation in May 2010 after two years because “it became clear that the original assumptions for the business regarding passenger numbers and, more importantly, the retail spending potential of passengers, had been far too optimistic,” says a local source at Nuance Group India. Despite swanky new terminals, and even whole new airports, at Bangalore, Delhi, Hyderabad and Mumbai, travel retailers it seems are learning—sometimes the hard way—that India is more multifaceted than first thought. Coming up with a creative offer The Nuance Group India is still present and doing well at Bengaluru International Airport. Country head Rolf Blaser says of the market: “We have to have the international concepts, but we have to bring in a lot of local flavor. Trial May-June 2012 - N°10 - BW Confidential credit: istock

Table of Contents for the Digital Edition of BW Confidential - Issue #10 - May/June 2012

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note Market facts, figures & trends
Best of BW Highlights from our e-publication
Launches The latest in fragrance, skincare & make-up
Interview Clinique global brand president Lynne Greene
Insight: Skincare
- Category overview
- Retail technology
- Retail viewpoint
- The latest trends
Wellness
- Spas & healthcare
- Spa case studies
Retail
- Inspiration from Apple
- Store concepts
Market watch: China
- Country overview
- Industry viewpoint
- Prestige retailing
- Taobao & the internet
Digital focus Social media strategies
Strategy spotlight Case studies to inspire
Travel retail: Asia Pacific
- Regional overview
- India
- Interview: Delhi Duty Free Services coo Arun Barathi
Radar Six up-and-coming beauty brands
Packaging
- Make-up packs
- Innovation showcase
Last word Metis Insights director Stéphanie Morou

BW Confidential - Issue #10 - May/June 2012