Asia Pacific duty free and airport retailing outperformed Europe for the first time since the industry was born over60 years ago in 2011.
The region’s sales totalled US$16 billion, up 25.5 per cent on 2010, according toindependent industry analyst Generation Research.
That’s a significant 35 per cent chunk of the global duty free and travel retail sales,one per cent more than Europe’s share. The Americas account for 23 per cent, the Middle East seven per cent and Africa one per cent.
Asia’s share of thepot has increased steadily over the last 10 years as its economies haveexperienced extraordinary economic growth.
In terms of retail categories, the largest by far is airports whichaccounts for nearly 60 per cent of duty free and travel retail revenues.Airlines and ferries each have around six per cent of business and other outletssuch as border shops and downtown duty free stores 29 per cent.
The biggest single product category is fragrances & cosmetics atnearly 31 per cent of sales with wine & spirits at 17 per cent, confectionery &fine food nine per cent, tobacco goods seven per cent. However other luxury goods, whichinclude fashion, accessories, jewellery, watches and gifts, account for37 per cent of sales illustrating the appeal of luxury products to today’stravelling consumer.
The duty free and travel retail community assembled last month for the most important event in the industry’s history in the Asia Pacific region. TFWA Asia Pacific & Gate one2one, the annual conference and exhibition event in Singapore for stakeholders in the industry, was larger and better attended than at any time in its 17 year history.
The growth of duty free and travel retail is tightly linked to the growth in international passenger traffic. Airports Council International (ACI), whose 580 member airport authorities operate over 1,650 airports in 179 countries, reported in August 2011 that worldwide airport passenger numbers had increased by 6.6 per cent in 2010 to 5.04 billion, registering increases in all six regions with the highest growth in the Middle East (12 per cent), Asia-Pacific (11.3 per cent), Africa (9.5 per cent) and Latin America-Caribbean (13.2 per cent).
TFWA Asia Pacific & Gate one2one, which takes place each May in Singapore, provides a forum and trade floor where the international brand-owners can meet and do business with the buyers, agents and distributors from airports, airlines and other outlets across this vibrant region.
The top 10 airports by travel retail sales in 2010 were:
- Dubai International Airport.
- Seoul Incheon Airport.
- London Heathrow.
- Singapore Changi (all with sales above $US1 billion).
- Hong Kong International (over US$600m).
- Paris Charles de Gaulle.
- Frankfurt Airport.
- Tallink/Silja Line.
- Bangkok Suvarnabhumi Airport (US$500-600m).
- Amsterdam Schiphol Airport (US$400-500m).
