The good news for overseas wine producers is that when airport arrivals and departures start understanding the potential of selling premium wines at these duty free outlets, it would help expand their market; there is plenty of pent up demand with travellers waiting to be wooed with product quality, storage, pricing and display which is sorely lacking at the moment.
According to the latest report from Verdict Research, a Data monitor company, retail sales at airports will grow by 11% in 2008 to $30billion, making it the fastest growing channel of retail after the Internet. Indeed sales through these channels will continue to grow strongly over the next five years. The impact will be stronger in the emerging markets, driven by the rapid increase in air travel and major investment in new airports and retail facilities.
Increasing passenger numbers are a key driver with the strong growth witnessed over the last five years set to continue, particularly in emerging markets according to Verdict. "The key factors stimulating this growth are increased affluence, growing tourism, rapidly expanding airline networks and new routes, especially those of low cost carriers. The increase in business travel as a result of globalization is providing a further boost to airport retailers, says Nick Gladding, author of the report.
India offers phenomenal opportunities for air retailers. It is fast becoming a key market in global airport retailing with investment from international airport operators that include Swiss-based Nuance Group and Britain's Alpha Airports Group, now owned by Italy's Autogrill.
India's emerging middle class, strong consumer culture and rising number of people flying –both domestically and internationally will drive growth according to the report. The air travel market is being buoyed by the development of low cost airline carriers as well as the reconstruction or extension of antiquated airports. Around 100 airport schemes are planned, starting with new airports in the key cities of Bangalore and Hyderabad that have opened this year.
Low cost carriers are still in their early stages of development in India and have huge potential to make air travel more affordable and increase footfall at airports. The thriving Indian economy will also boost demand for business travel, both within the country and internationally from western companies that outsource operations. |