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Duty Free Shops go online for booking orders

Posted: Friday, 05 June 2015 12:38

Duty Free Shops go online for booking orders

June 05: The Rs. 20 billion duty free retail segment of the retail industry in India is getting ready to go online through the click and collect model with what they consider ‘value’ pricing across categories such as liquor, tobacco, beauty and fashion, according to a media report but the service is already reported to be functional in Delhi and Bengaluru websites

Click For Large ViewSo far, the FDI regulations do not permit any of these players to engage directly with consumers except when they are flying with legitimate tickets and boarding passes.

However, duty free companies like DFS and the Nuance Group have been trying to facilitate purchases through pre-booked orders made through the net before reaching the airport, which can be collected by passengers before boarding their flight, according to a report in Hindu Business Line.

“We are doing a template in Singapore whereby passengers can pre-order their airport purchases online and the same concept will soon get launched in India where price is going to be the prime driver. Our rates are 50 per cent cheaper than downtown prices for categories like liquor and even beauty brands would be about 15-30 per cent less than the usual prices,’’ reportedly says Manishi Sanwal, Managing Director, DFS India, according to the report.

The Hong Kong-based DFS operates categories such as liquor, food and tobacco and occupies 55,000 sq ft at the new T2 airport in Mumbai. Even the Nuance Group, which operates the duty free airport in Bangalore, is trying to capture the captive audience of passengers at the airport.

“We want to give more value and convenience and have a click & collect model. But more than competing with attractive prices with e-commerce players, our competition will be from other international airports,” said Anirban Chowdhury, Country Head Nuance Group. "The entire product range is also available online; passengers can simply book at the website www.bengalurudutyfree.in and collect the merchandise from the store at the airport," he adds.

Click For Large ViewAccording to consulting firm CAPA (Centre for Aviation), in India, liquor leads the duty free category accounting for 63 per cent sales compared with 17 per cent globally. Most of the liquor sales are ostensibly of hard liquor though wine is a part of liquor in the stores in India. With a couple of cabinets filled with wine (excluding champagnes) the choice is rather limited, at least at the Delhi airport though Mumbai seems to have a better and bigger collection.

The article says they are soon to start the service and awaiting clearance.  But when I opened the Delhi Duty Free website, I found the products listed for online booking-including 7 pages of wine, though the choice and quality is rather limited. Simply go to their website and go to the Pre-order section. You will be asked your Passport details and the contact number and voila-you are ready to pay and pick up as you reach the Duty free section. Presumably, they will call and take your flight details to keep the package ready.

The site gives some interesting information regarding the customs duties and how much is allowed to be imported. It also give a good opportunity for you to compare prices with those overseas, if you are interested.

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