–Contributed by Vivin Wason

Travel retail is a serious option which any retailer in the expansion mode should consider. The fact they can bank upon is the steep rise in the number of air travelers in the last one year.  While in most developing countries the number of air travelers grew by 8-9%, India saw a 30% increase making the figure reach close to a 100 million people. The low cost carriers have been instrumental in making this possible. The figures themselves reflect the enormity of scope for retailers at the airports.  Quality retail space is as it is a matter of concern. With high realty prices in good locations Retailers have to locate themselves either outside the city where the traffic flow I generally low or in the midst of an already over saturated market without proper parking arrangements and other facilities.

As the airports get modernized the retail stores situated inside these airports would certainly benefit. The favorable prospects for these retailers are ensured by a number of factors such as – presence of duty free shops attract planned as well as impulse buy for products such as Tobacco, liquor, chocolate, perfume and consumer electronics. Secondly, continuous traffic flow ensures walk-ins throughout the day as well the night. Airport retailing is not time bound, which gives the retailer the flexibility to work in shifts. As a number of countries have restriction on carrying LAGS (liquids, aerosols and gels), people find it more convenient to shop from the duty free outlet at the arrival.

Already a number of big names are buzzing around the soon to be turned around Banaglore airport. These names include the Nuance Group, HMSHost; Gebrueder Heinemann, Dufry International; DFS Group; Alpha, SSP; and domestic names such as Shoppers' Stop, Oberoi and Pantaloon Retail. But these are already established names in the field of retail. Travel retail in India can be explored by medium sized retailers as well. As a large chunk of the shopping done at the airports is out of impulse or in an unplanned manner, you never know when a consumer might feel the need to buy a leather bag, a gift for his loved one whom he is visiting after a long time or pick up some wine to tickle his own taste buds. 

Reference Article : http://www.businessgyan.com/content/view/3232/547/