The Hindu Business Line : Indian duty-free stores gear up to woo shoppers

A bottle of Scotch whiskey which your friend had coaxed you to parcel on your way back from the US can be found at rates 5-10 per cent cheaper, not forgetting super offers of ‘buy one get one free’ or other discounts.

For all you know, you could be the winner of a lucky draw and take a hamper back home! All this, without having to lug around a heavy hand luggage through all your pit stops and of course, keeping the wrath of custom niti-gritties at bay.

Globe trotting Indians may be the largest spenders at duty-free stores at airports abroad for now, but Indian duty-free outlets are all geared to woo them away. With attractive offers and promotions, competitive prices and a healthy mix of international brands and local flavour, the number of outbound foreigners and inbound Indians who have converted from a causal browser to a loyal shopper has increased.

Thanks to the stores’ image makeover from a liquor hub to a wide variety of perfumes, chocolates, confectionery, souvenirs, Indian handicrafts and handloom, tea and herbal cosmetics.

Mr P.K. Thimmayya, Vice-President, Flemingo, says, “In India, we track prices with the best connect airports and have our price positioning strategy in place to deliver better value to customers. Though the trend is moving towards uniform global pricing, we run continuous promotions on key brands that make purchase in India more practical.” In fact, the International Airport at Kochi has raked in the maximum benefits, with 45 per cent of its revenue coming in from the non-aeronautical sector, lower than European airports (about 70 per cent) but a notch above Singapore and Toronto airports (about 40 per cent), sources said.

Despite being on the upswing, the figures of the average per passenger spend is a far cry from those of the major international airports; $1.5-$4 in India and $12-$30 in popular destinations.

Official spokesperson of Alpha Future Airport Retail says, “Indian duty-free outlets are extremely competitive but not necessarily cheaper. In fact, shopping destinations like the Delhi duty-free stores have to incur higher inland transportation costs for goods coming in by sea. Further, Indian operators have to pay high concession fees to airport owners who charge international level rentals but cannot ensure a conducive duty-free environment.”

Even regulations on Liquids, Aerosols and Gels (LAG) such as limiting alcohol beverages to two litres, whereas Dubai allows four litres if bought at their outlets, hinders shopping experience, they added.

Mr Shivkumar, CEO, Nuance Group India says, “The Government needs to offer duty-free operators complete ‘exporter’ status and benefits as we bring in foreign exchange and convince consumers to buy here rather than spend abroad”.

Did we hear you are reserving your gift list for the Indian duty-free stores? Smart choice.