Duty-Free and - Travel - Retail - Market

SAMPLE
DUTY-FREE AND TRAVEL RETAIL MARKET

(2019-2024)
The Study Offers:
• A detailed understanding of the current market dynamics and growth opportunities.
• The impact of rapid technological developments and innovations in the market.
• An overview of the competitive intelligence, with product innovations and strategies adopted by the
major players.
Domain: NEO Base Year: 2018 Forecast Period: 2019-2024
Industry Reports | Consulting | Intelligence Center
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2 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

TABLE OF CONTENTS
1. INTRODUCTION 5.1.3 Tobacco 6.1.1 Dufry
1.1 Key Deliverables of the Study 5.1.4 Eatables 6.1.2 Lotte Duty Free
1.2 Study Assumptions and Market Definition 5.1.5 Fashion Accessories and Hard 6.1.3 Lagardere Travel Retail
1.3 Scope of the Study Luxury 6.1.4 DFS Group
2. RESEARCH METHODOLOGY 5.1.6 Other Product Type 6.15 The Shilla Duty Free
3. EXECUTIVE SUMMARY 5.2 By Distribution Channel 6.16 Gebr. Heinemann
4. MARKET INSIGHTS AND DYNAMICS 5.2.1 Online selling 6.1.7 King Power International Group
4.1 Market Overview 5.2.2 Store selling (Thailand)
4.2 Market Dynamics 5.2.2.1 Airports 6.1.8 China Duty Free Group
4.2.1 Drivers 5.2.2.2 Airlines 6.1.9 Ever Rich Duty Free
4.2.2 Restraints 5.2.2.3 Ferries 6.1.10 Dubai Duty Free
4.2.3 Opportunities 5.2.2.4 International 6.1.11 Duty Free Americas
4.3 Key Industry Regulations and Policies Railway Stations 6.1.12 Sinsegae Duty Free
4.4 Trends Influencing the Duty-Free and 5.2..2.5 Other Distribution 6.1.13 Aer Rianta International
Travel Retail Market Channels 6.1.14 Starboard Cruise Services
4.5 Porter's Five Forces Analysis 5.3 By Geography 6.1.15 WHSmith
4.6 Industry Value Chain Analysis 5.3.1 North America 6.1.16 James Richardson Group
4.7 Technological Innovations and 5.3.2 South America 6.1.17 Flemingo International Ltd
Developments 5.3.3 Europe *List Not Exhaustive
5. MARKET SEGMENTATION 5.3.4 Asia-Pacific 7. MARKET OPPORTUNITIES AND FUTURE
5.1 By Product Type 5.3.5 Middle East & Africa TRENDS
5.1.1 Beauty and Personal Care 6. COMPETITIVE LANDSCAPE 8. APPENDIX
5.1.2 Wines and Spirits 6.1 Company Profiles

1. INTRODUCTION
1.1 Key Deliverables of the Study
1.2 Study Assumptions and Market Definition
1. 3 Scope of the Study

1. INTRODUCTION
1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

STUDY ASSUMPTIONS MARKET DEFINITION
▪ The base currency considered was the US Dollar (USD). Conversion of other ▪ Duty-free and travel retail market is a global industry selling goods to
currencies to USD was considered based on the average exchange rate for international travelers. The sales from these stores is exempted from various
the respective review-period years. The exchange rate conversion for local and international taxes, and excise duties with the requirement that
forecast period was determined according to the base year’s conversion these goods are only sold to travelers who are going to take them out of
rates. the country.
▪ The base year was identified based on the availability of annual reports and ▪ Products that are sold by these duty-free stores vary from region to region,
secondary information. The base year considered for this study is 2018.
providing a unique experience to the travelers. The industry has grown and
developed in parallel to the development of air and sea travel.
▪ The review period considered for this study is from 2015 to 2018. The CAGR
provided is for the forecast period, 2019-2024. ▪ The duty-free and travel retail market has become successful worldwide.
Airport represents a major distribution channel for the travel retail market
▪ Market size estimations for the forecast years were in real terms. Inflation is
globally, which is supported by other retail channels, like ferries, board
not part of the pricing and the average selling price (ASP) was kept constant
throughout the forecast period for each country. airlines, and cruise ships.
▪ Distribution of primary interviews conducted was based on the regional

share of the market and the presence of key players in each region.
▪ As a result of data triangulation through multiple methodologies and

approaches, the weighted averages of resulting estimates were considered
as the final values.

1. INTRODUCTION
1.3 SCOPE OF THE STUDY
BY PRODUCT TYPES BY DISTRIBUTION CHANNEL BY GEOGRAPHY

Beauty and Personal Care Online selling North America
Wines and Spirits Store selling South America
Tobacco Other Distribution Channels Europe
Eatables Asia-Pacific
Fashion Accessories and Hard Middle East & Africa

Luxury
Other Product Types

2. RESEARCH METHODOLOGY

2. RESEARCH METHODOLOGY
■ Mordor Intelligence (MI) advocates an appropriate mix of secondary and primary research to meet the clients’ objectives.
■ MI translates market insights (market dynamics, competition, varying consumer demands, and regulations) into actionable business insights.
■ The following phases are practiced at Mordor for efficient delivery of various syndicated and consulting assignments.
STEP 1 STEP 2 STEP 3

SCOPING/ PROJECT INITIATION MARKET ANALYSIS PROJECT DELIVERY
Decipher the client’s requirements/ market to

Extensive desk research to identify the most relevant secondary information available
be studied.
Tailor-made research approach for

Contact Mordor’s empaneled experts and identify industry experts across the market
customized reports.
Effective use of Mordor’s knowledge

Conduct primaries and surveys to gather qualitative and quantitative insights
repository to gather relevant insights.
Confirm the objectives of the assignment with

Triangulate and analyze data to finalize actionable business insights.
the client.
Finalize report contents and establish Report delivery with high-quality market insights, competitive landscape, etc.,
a deliverable format as per the proposed content

3. EXECUTIVE SUMMARY

3. EXECUTIVE SUMMARY
DUTY-FREE TRAVEL RETAIL MARKET The duty-free and travel retail market (henceforth referred to as ‘the
Revenue in USD billion, Global, 2015-2024 market studied’) was valued at USD XX billion in 2018, and is expected
01
to reach USD XX billion by 2024, registering a CAGR of XX% during the
period of 2019-2024 (henceforth referred to as ‘the forecast period’).
XX% The market studied is driving the growth of economies, as these travel
CAGR
02 markets allow customers to purchase products from different regions
without paying taxes and experience the innovations in goods sold by
various multi- branded stores.
XX XX XX
XX XX The retail stores at airports are leading in terms of offline distribution
XX
XX 03 channels, by adopting digitalization and other augmented reality (AR)
XX
XX XX into their marketing strategies.
Increase in disposable income is allowing consumers to purchase more

SAMPLE FIGURE
04 retail products. Moreover, growth in the tourism industry and increase in
footfall of international travelers is driving the growth in the market.
At present, there are certain factors impacting the travel retail market.
05 like highly priced products offered at airports in stores and limited time
spent by traveler on these stores, which might hinder the growth in long
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 term.
SOURCE: Mordor Intelligence

4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Key Industry Regulations and Policies
4.5 Trends Influencing the Duty-Free and Travel Retail Market
4.6 Customer Landscape
4.7 Porter's Five Forces Analysis
4.8 Industry Value Chain Analysis
4.9 Technological Innovations and Developments

4.1 MARKET OVERVIEW

■ The duty-free and travel retail market is a tool for economic and social development, including
infrastructure and employment creation. This channel is mainly used by businesses to market their
product overseas and expand globally.
■ The growth of the global duty-free and travel retail market is boosted mainly by the demand for
luxury and premium products, marketed by various retail chains that offer varieties of products. The
increasing focus on digitalizing the retailing process, so that the companies can maximize their profits,
may boost sales in the market.
■ These retail channels provide customers value, improves their experience while traveling, creates
employment that contributes to overall GDP, and generate value addition to economic activity across
the global market.
■ The growing attractiveness of the tourism and travel industry is another factor in the duty-free and
travel retail market increasing the trend. The market studied provides a temporary space that offer
extra time to the end users after security check-in and allows the consumers to indulge in buying the
products, along with the ambiance and experience of shopping for international products.
■ The increase in the footfall of travelers at various international destination is a primary cause driving
the industry. Additionally, factors, like rising middle class population and affordable traveling through
air are expected to drive the industry.
Complete analysis will be provided in the report

4.1 MARKET OVERVIEW

■ The current market trends of moving toward technology-enabled solution, like
artificial intelligence (AI) and digitalization, will further increase the growth of
the market and help in boosting profit for retailer.
■ Moreover, the declining trends in buying products from airport, due to high
pricing and lack of promotion campaigns and/or marketing may restrain the
growth of these retail stores and effect the market, respectively.
■ The partnerships between various companies and duty-free stores are also
driving the market growth, for promoting of their premium and limited
products. These vendors are providing easy home delivery options and
innovative customer services, which is further adding revenues and satisfying
customers.
■ Other factors, like cheap air travel, improvements in standard of living, increase
in expenditures, and net disposable income of the consumers, will drive the
growth in the industry.
■ The rise in economic growth and urbanization in various emerging countries is

another factor driving the growth of this segment in the global market.

4.1. MARKET OVERVIEW

■ In 2018, the Asia-Pacific region had a 44.5% share of the market studied. The Asia-Pacific region is
growing at a fast rate, owing to the improved standard of living, rise in disposable income, and
development of the tourism industry.
■ Introduction of budget airlines and increase in traveler’s growth rate have led to the demand of
travel retail services. Investment in new transport infrastructure, from Seoul to Siem Reap and
Bangalore to Beijing, is another major factor benefitting the industry.
■ Europe is the second largest market for duty-free and travel retail, owing to the largest base in
luxury brands. The region has headquartered some of the major cosmetic and apparel brands.
■ Airports aid to the growing sales of the travel retail market globally, where tourists experience
unique products offered by duty-free retail stores, providing them customized and region-specific
products.
■ As travelers are often in a rush, many retailers are introducing e-commerce platforms, to ensure
fast and accurate service to its customers. In May 2019, Eraman, a Malaysian duty-free travel retail
brand, enabled travelers to preorder and collect products from airport at Kuala Lumpur
International airport. Thus, providing them with the convenience of shopping. Online shopping
has become easier with free returns, easy and speedy deliveries, which is increasing the brand
presence and direct marketing on B2C channels on mobile.

4.2 MARKET DYNAMICS
High
Market Drivers
INCREASE IN DISPOSABLE IMPROVEMENTS IN

STANDARD OF LIVING
Impact
INCOME GROWTH IN TOURISM INDUSTRY XX
Low
Low
Market Restraints
Impact
XX
XX

High

4. MARKET INSIGHTS | 4.2. MARKET DYNAMICS
4.2.1 DRIVERS
Growth in Tourism Industry
■ The growing attractiveness of the tourism and travel industry is the prime
factor in the global market driving the growth of the duty-free travel retail
market. Development of tourism and infrastructure is aiding the growth in the
segment.
■ International departures increased nearly 5% in the first eight months of 2019.
Substantial development of the tourism and travel sector, including medical
tourism, adds to the demand of products in the duty-free and travel retail
market.
■ Growth in travel and tourism has increased the demand of apparel, fashion,
food items, electronics, and wines and spirits category. There has been rise in
the demand of beauty and personal care products by travelers at the airport
facility.
■ In developing economies, such as Asia-Pacific and LAMEA , the increase in
international tourist arrivals is expected to create profitable opportunities for
the market studied.
■ Many jurisdictions (e.g. in the non-EU Europe, Australasia, the Middle East, and
Latin America) give passengers the opportunity to purchase duty-free goods
upon arrival at their destination airport within the territory. Duty-free arrivals
have become an important source of income for airports in such countries.

4.2.1 DRIVERS
INTERNATIONAL TOURISTS' ARRIVAL

Tourists in millions, by region, Global, 2014-2018
2014 2015 2016 2017 2018
Africa Middle East Americas Asia-Pacific Europe
Source(s): UNWTO

4.2.1 DRIVERS
Growth In tourism Industry
■ The globalization of tourism industry and lesser barriers to travel have various consequences, which have
significant economic impact. International travelers have access to a variety of products, including fashion
and accessories, alcohol, fragrances and cosmetics, food and confectionery, tobacco, and jewellery and
watches.
■ The tourism industry has augmented growth in the recent years, as the newer generations travel more
frequently. Majority of the activities in the tourism industry allows people to shop and dine while traveling.
■ The increasing demand for differentiated and value-added products is enhancing the demand of the desire
to travel among population in the APAC region, which will lead to high demand in the duty-free industry.
■ The growing number of international tourists and new air routes, low-cost carrier (LCC) airlines, and rising
number of middle -class families will fuel the growth of the retail-travel industry.
■ Travelers are increasingly predisposed to spending more of their money online, thereby, leaving less for
airport shopping. Therefore, many airlines and airports have started digitalizing their business recently.
■ The tourism industry is innovating to provide unique and enhanced experience to customers, due to the
increase in travelers. There has been an increase in downtown duty-free shops, especially in Korea. These
shops allow travelers to purchase goods at any time during their trip, instead of just before departure.

5. MARKET SEGMENTATION
5.1 By Product Types 5.2.2.3 Ferries
5.1.1 Beauty and Personal Care 5.2.2.4 International Railway stations
5.1.2 Wines and Spirits 5.2.2.5 Other Distribution Channels
5.1.3 Tobacco 5.3 By Geography
5.1.4 Eatables 5.3.1 North America
5.1.5 Fashion Accessories and Hard Luxury 5.3.2 South America
5.1.6 Other Product Types 5.3.3 Europe
5.2 By Distribution Channel 5.3.4 Asia-Pacific
5.2.1 Online selling 5.3.5 Middle East & Africa
5.2.2 Offline selling
5.2.2.1 Airports
5.2.2.2 Airlines

5.1 BY PRODUCT TYPE

Revenue in USD million, by Product Type, 2015-2024 DUTY-FREE AND TRAVEL RETAIL MARKET
Share (%) , by Product Type, 2018
Product Type 2015 2016 2017 2018 2019 2024 CAGR (%) (2015-2024)
Beauty and Personal Care XX XX XX XX XX XX XX
SAMPLE FIGURE
Wines and Spirits XX XX XX XX XX XX XX
Tobacco XX XX XX XX XX XX XX
Eatables XX XX XX XX XX XX XX Beauty and Personal Care

Wines and Spirits
Fashion Accessories and Hard Luxury XX XX XX XX XX XX XX Tobacco
Eatables
Other Product Types XX XX XX XX XX XX XX
Fashion Accessories and Hard Luxury
Other Product Types
Total XX XX XX XX XX XX XX
SOURCE: Mordor Intelligence Analysis


5.1.1 BEAUTY AND PERSONAL CARE
DUTY-FREE TRAVEL RETAIL MARKET ■ The beauty and personal care segment was valued at USD XX billion in 2018,
Revenue in USD billion, by Beauty and Personal Care, 2015-2024 and is expected to reach USD XX billion by 2024, registering a CAGR of XX%
CAGR over the forecast period, 2019-2024 (henceforth, referred to as ‘the forecast
XX% period’).
■ The Asia-Pacific beauty and personal care segment accounted for the largest
market share in the duty-free and travel retail market. The main factor
accounting for the growth in this region is the growing popularity of organic
care products with China, India, and Japan leading the markets.
SAMPLE FIGURE ■ Beauty and personal care segment continues to drive industry sales. Majority
of travel retail sales are made in airports. The rest are accounted for by
“downtown shops” (duty-free shops in city centers), as well as sales aboard
aircraft, and cruise ships.
■ Virtual and AR technologies have become popular marketing tools within the
makeup industry over the past year, with companies, such as Tarte, Charlotte
2015 2016 2017 2018 2019 2024 Tilbury, Lancôme, and L'Oreal, offering various immersive virtual experiences
Source: Mordor Intelligence to the customers.
Complete analysis will be provided in the report Complete analysis will be provided in the report


■ Travel retail has become an important channel for premium beauty brands and a destination for
brand discovery and awareness. Travelers are making a key market for prestigious beauty brands,
where they look for products which compliment their travel activities, short frame services, and
travel experience benefits. Globally, travel retail is also improving the brand awareness and
acceptance among customers.
■ There has been a remarkable growth in the sale of cosmetic and perfumes among travelers in the
Asia-Pacific region. Additionally, there has been growing demand for natural and organic personal
care products (NOPC) by customers in the same region, because of the growing concern about
harmful effects of the chemically made products among the population.
■ Cosmetic brands are moving toward adoption of new trends in the industry, such as
implementation of AR for face and skin mapping, so that customers can try products virtually
before visiting a physical store or try on the products. This saves them time, making it more
convenient to buy products.
■ L’Oréal, which owns 34 international brands, bought ModiFace, a Canadian AR and artificial
intelligence company, which focuses on the beauty industry. Its product offerings provide the ability
to perform beauty try-on simulations on live video and to track the face and facial features in
precise detail.


■ Skin care and sun care products segment expanded, due to the increase in aging
population and rising awareness about the benefits of anti-aging products. Industry
players are going to benefit from rising demand of hair care and skincare products,
which forms significant part of cosmetic sales. Salon service is also growing in
airports.
■ There is a huge demand for premium products and growing popularity of make-up
among the females, which is augmenting the growth of this segment in the global
industry.
■ Dermacosmetics is becoming a very significant business within the skincare segment,

and it’s related to the worldwide trend of medical beauty.
■ Growing awareness among men about health, wellness, and personal grooming and
appearance is projected to account for an increase in demand for men’s skin care
products.
■ Some major players in the beauty and personal care products include Avon Products
Inc., Beiersdorf AG, Coty Inc., Kao Corporation, L'Occitane International SA, L'Oréal
Group, Procter & Gamble, Mary Kay Inc., Shiseido Company Limited, Unilever Revlon,
Inc., and The Estee Lauder Companies Inc.


■ Beauty brands are introducing strategies, like Gamification, to increase footfall of customers in the stores.
WeChat mobile game was introduced by Guerlain to promote its KissKiss Matte lipstick, which could only be
played at Beijing Capital International Airport.
■ In 2019, Qatar Duty Free (QDF) and L’Oréal Travel Retail have partnered to launch a luxury Beauty Avenue in
the centre of the retailer’s south shopping plaza, located behind the Lamp Bear at the heart of Hamad
International Airport (HIA). The avenue features four of the global beauty group’s hero brands: Lancôm e,
Giorgio Armani, Helena Rubinstein, and Yves Saint Laurent.
■ In 2019, Shiseido launched Shiseido’s Optune, an IoT-powered skincare system, which integrates a mobile
app that leverages AI to detect users’ skin conditions and then dispenses a personalized formula each day.
Shiseido’s Optune Optune can deliver up to 80,000 possible combinations.
■ In 2018, Shiseido Travel Retail launched NARS Lip gallery in airports in Thailand, China, and Japan to
revolutionize the lip experience. They made its world premiere in Bangkok’s King Power Downtown airport.
■ In November 2017, Lancôme introduced its augmented-reality virtual makeover app, Virtual Mirror, as an
in-store experience. Beauty vending machines, like Sephora and Benefit Cosmetics, also came into
prominence at airports. A strong focus on ‘sense of place’ is a key factor in creating the crucial point of
differentiation for brands.

5.1.1 BEAUTY AND

PERSONAL CARE
■ L’Oréal has most notably rolled out activation
campaigns to attract travellers to shops, such as the
Shu Uemura Shu Kiss initiative in Seoul, in
partnership with distributor Lotte; or the Ralph
Lauren Father’s Day campaign in Brazil, in
cooperation with distributor Dufry.
■ Click and collect and special delivery for clients in

airport lounges are some of the strategies used by
the retailers to encourage them to shop before they
board and to promote products globally.

• 5. MARKET SEGMENTATION
5.2 BY DISTRIBUTION CHANNEL

Revenue (%), by Distribution Channel, Global, 2015-2024
SAMPLE FIGURE
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
online offline

5.2 BY DISTRIBUTION CHANNEL
■ Travel retail sales at airports amounted to about USD 41.74 billion, in 2018.
DUTY-FREE TRAVEL RETAIL SALES
In USD million, by Distribution Channel, Global, 2018 Travel retail includes all sales made in shops located in duty-free areas or any
areas dedicated to travelers.
■ Airports have significantly increased their retail spaces and have shopping
malls with multi-brand shops and independent boutiques.
SAMPLE FIGURE
■ Airports and operators have launched home delivery services for shoppers
who buy from their sites or in the airport to provide them good shopping
experience. Passengers who reach the airport a couple of hours early are the
target segment for retailers in their vicinity.
■ Offline sales is majorly driven by retail stores in the airports and railway
stations, as they are the major attractions for travelers for their varied
offerings through these channels. These stores are constantly innovating to
cater to the demands of their customers.
■ Additionally, development of new and existing airports will add more retail
Airport Airlines Ferries Other Shops space, which is a key factor contributing to growth in airport retailing, globally.

5.2.2 BY DISTRIBUTION CHANNEL| OFFLINE SELLING

DUTY-FREE AND TRAVEL RETAIL MARKET DUTY-FREE AND TRAVEL RETAIL MARKET
Revenue in USD million, by Offline Distribution Channel, 2015-2024 Share (in %), 2018
Distribution Channel 2015 2016 2017 2018 2019 2024 CAGR (%)(2019-2024)
Airports XX XX XX XX XX XX XX
Airlines XX XX XX XX XX XX XX SAMPLE FIGURE
Ferries XX XX XX XX XX XX XX
Railway Stations XX XX XX XX XX XX XX
Airports
Other Distribution Channels XX XX XX XX XX XX XX
Airlines
Ferries
Total XX XX XX XX XX XX XX
Railway Stations
Other Distribution Channels


5.3 BY GEOGRAPHY
DUTY-FREE AND TRAVEL RETAIL MARKET ■ In 2018, Asia-Pacific sales amounted to about USD XX billion. Travel retail
Sales, by Region, Global, 2018
includes all sales made in shops located in duty-free areas or any other area
dedicated to travelers.
■ Asia-Pacific retail travel accounted for the largest market share, in 2018. North
America, especially the United States, plays a special role in the market.
Changes from the United States may affect the growing trends of duty-free
travel retail. The Americas region is one of the most diverse, in terms of its
market and offerings.
SAMPLE FIGURE
■ In Europe, duty-free retail has become a prime component of aviation and
maritime financing, as well as an integral part of travelling experience.
■ Airport shops accounted for the largest slice of the global sales, with general
retail stores accounting for the larger share.
■ South Korea is the world’s largest duty-free market, accounting for nearly USD
Asia-Pacific Europe Americas Middle East Africa
12 billion in sales, with China and Japan also being significant markets.
Source: Mordor Intelligence


5.3.1 BY GEOGRAPHY | NORTH AMERICA

■ The North American region is one of duty-free and travel retail industry's most diverse regions, with
thriving retail airport, border, and cruise sectors. Equally diverse are the travelers of the region, with
very different buying habits, motivations, and perceptions.
■ The trade war between the United States and China is impacting its traffic. Traffic has slowed
significantly and the spending per passenger is decreasing in double digits. Trends also suggest that it
is temporary. According to a source, only 2% of American travelers are buying in the duty-free travel
retail market, they are the modest buyers in the travel retail.
■ The Americas duty-free retail travel market is third largest by the geographical segmentation followed
by the Asia-Pacific and Europe markets. However, the growth in the Americas region when compared
to other regions, is quite slow.
■ In North America, Canada saw the highest footfall of travelers in 2018, thus adding to the growth in
sales of the duty–free retail market. Beauty and personal care products have outperformed other
categories, in terms of growth in the market.
■ There was a rise in air passenger traffic in 2018, which had direct effect on the spirit sales. With rising
passenger numbers, there has been an increase in the overall sales of the duty-free travel retail market.

DUTY-FREE TRAVEL RETAIL MARKET

Revenue Breakdown in USD million, North America, 2015-2024
SAMPLE FIGURE
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

5.3.1 BY GEOGRAPHY
| NORTH AMERICA
■ The aviation distribution channel accounted for half
of the total duty-free retail market sales in North
America. However, retail space at airports is typically
less developed and less used in the Americas
compared to other regions, though increasing in
magnitude.
■ The average number of retail outlets at the North

American airports exceeds most of the other regions
(maybe because the overall average terminal space is
greater than in other regions). However, North
American airports have a lower physical retail space
allocation compared to passenger traffic.


■ Top Airports Revenue in Duty-free Travel Retail category
■ Los Angeles International Airport In-terminal concession revenue increased by ÚSD 11.0 million, due to
increase in international passengers. The revenue from duty-free travel retail channel was USD 153.7
million in 2018 when compared to USD 142.8 million in 2017.
■ Detroit Metropolitan Wayne County Airport duty-free travel retail revenue amounted to USD 42 million in
2018 when compared to 40 million in 2017.
■ Orlando International Airport revenue from General Merchandise purchase was USD 21 million in 2018 as
compared to USD 20 million in 2017. Revenue from the food and beverage segment was USD 29 million
as compared to USD 28 million in 2017.
■ In 2019, Laroche named SSP Canada added local Canadian brands Big Rig Brewery, Bridgehead Coffee, La
Bottega Nicastro, and Zak’s Diner, along with SSP Canada proprietary brands, including Tim Hortons,
Canal Market Hall, and Urban Crave at Ottawa airport.
■ In 2019, Paradies Lagardère will add local flair with Bee Savvy, Hummingbird Chocolate, Low Poly Crafts,
Purple Urchin, Split Tree Cocktail, Strut Jewelry, and Top Shelf Preserves, as well as inter-nationally known
brands Dylan’s Candy Bar, Maison de la Presse, TripAdvisor, Relay, No Boundaries, and The Locks. These
programs include an outstanding selection of authentic merchandise from local vendors, which will offer
travelers an enhanced customer experience.

6. COMPETITIVE LANDSCAPE
6.1 Company Profiles 6.1.12 Sinsegae Duty Free
6.1.1 Dufry 6.1.13 Aer Rianta International
6.1.2 Lotte Duty Free 6.1.14 Starboard Cruise Services
6.1.3 Lagardere Travel Retail 6.1.15 WHSmith
6.1.4 DFS Group 6.1.16 James Richardson Group
6.15 The Shilla Duty Free 6.1.17 Flemingo International Ltd*
6.16 Gebr. Heinemann (Thailand)
6.1.7 King Power International Group

(Thailand)
6.1.8 China Duty Free Group
6.19 Ever Rich Duty Free
6.1.10 Dubai Duty Free
6.1.11 Duty Free Americas

6.1 COMPANY PROFILES
6.1.1 DUFRY
■ Dufry AG is a global travel retailer with operations in 60+ countries and 400 locations. Dufry is
present in around 2,200 shops located at airports, cruise liners, seaports, and other tourist
locations. The leading traveler retailer in the market, Dufry has more than 60 years of travel
retail experience. They provide world-class one-stop tax- and duty-free shopping for travelers Founded in 1987
worldwide.
Basel, Switzerland
■ Dufry’s business operating model is based on a matrix organization where global functions
run through the three operational layers consisting of Country, Division and Headquarters.
https://www.dufry.com/en
■ Recently Dufry has introduced RED by DUFRY to retain its loyal customers which primarily
works through mobile app. They have also introduced Business Operating Model (BOM). (+41) 800 3333 8379
■ In 2018, Dufry opened and expanded 192 new shops adding 26,800 m² of retail space.
DUFRY
Revenue in CHF million, 2016-2018
CHF 8.7 billion Revenue ~29,000 Employees
8,685.00
8,377.00
7,829.00
CHF 1,040.3 million 379.2 million Net

EBITDA Profit
2016 2017 2018
Source: Mordor Intelligence

6.1.1 DUFRY
■ Dufry works with diversified portfolio of over 100 renowned global and local brands offering a diversified portfolio of retail formats, including duty-free, duty-paid, brand
boutiques, specialized concepts, and convenience stores, that focus on the specific needs of travelers and is active in different retail channels, from airports, luxury cruise
ships, sea ports, railway stations, border shops to downtown tourist areas.
■ The company currently generates 60% of its revenues in duty-free and 40% in duty-paid operations, with both sectors continuing to offer growth opportunities.
According to Dufry, the duty-free segment has a strong growth pipeline. Additionally, on the duty-free segment, airport channel is the fastest growing business for the
company.
■ It created a new retail concept, a general travel retail shop for domestic passengers to offer domestic travelers the similar experience offered to international travelers,
which offers an assortment comparable to a duty-free shop.
■ There are a number of countries where domestic travelers account for the majority of passengers, particularly in large countries, such as China, the United States, and
Brazil, thus offering additional potential to internationalize this concept. The concept was first introduced in Brazil, in a pilot at Brasilia Airport back in 2014.
■ Given the successful launch, it expanded the concept to another six airports in Brazil, including Galeão Airport in Rio de Janeiro and Guarulhos Airport in São Paulo, as
well as in Viracopos and Curitiba airports.
■ Dufry’s Hudson is an established convenience store concept, which has been very successful in the past 25 years in North America, which has been deployed by the
company in 13 other countries since 2009.
■ To provide customers with unique and personalized shopping experience, Dufry is currently developing several digital initiatives, such as the implementation of the
digital signage technology as key element of the new shop concept. It is also expanding the online reserve-and-collect service and extending the deployment of the
customer loyalty program RED by Dufry.

6.1.2 DUFRY– BUSINESS SEGMENTS
DUFRY DUFRY
Revenue Share (%), by Product Category, 2018 Revenue Share (%), by Division, 2018
Perfume & Cosmetiics
2% Eastern Europe Asia, Middle East
Tobacco Goods and Australia
16.0%
UK & Central Europe
Food Confectionery & Catering
13% 32% 27.2%
Wine & Spirits 1.2% Latin America
2% 5% 3.7%
Luxury Goods North America
16% Literature & Publications
28.4%
Southern Europe and Africa
12% Electronics
18% 23.5% Distribution Center
Other
■ The turnover in Eastern Europe, Asia, Middle East, and Australia was huge, with ■ The main markets in Europe, Asia, Middle East, and Australia, delivered a
an organic growth of double digit at 15.1%. double-digit organic growth. The operations in Hong Kong and Perth were the
main reasons for high organic growth in the regions.
■ Organic growth in Southern Europe and Africa was~2.6% in full year 2018. Its
operations in South America faced a huge challenge, driven by strong ■ Eastern Europe had performance slowdown in the second half of 2018, however
devaluation of local currency. the overall performance was good.
■ Central America and Caribbean had a good performance along the year, further ■ In 2018, North America delivered good organic growth of about 6.8%.
supported by a strong development of the cruise business.

6.1.2 DUFRY– BUSINESS SEGMENTS
DUFRY DUFRY
Net sales (%), by Channel, 2018 Net Sales (%), by Market Sector, 2018
3% Railway Stations
Airport
4% 39.0% Duty-Free
3%
Cruise Liners & Sea Ports
61.0%
Duty-Paid
Border, Downtown & Hotel Shops
90%
■ The most important and successful channel for Dufry is, by far, the airport ■ Dufry produced about 61% of its sales in duty-free and 39% in duty-paid
channel. Airports offer a whole array of possible concepts and formats, which activities, with both sectors continuing to offer significant growth opportunities.
Dufry covers with its dedicated shop designs.
■ On the duty-free side, it is expected that the airport channel will remain the
■ Dufry operates various border shops in Greek cities and further developing this largest and fastest growing part of its business.
channel in other Asian and Latin American countries.
■ The company sees further potential in the growth of the cruise ship industry,
■ Dufry offers inflight sales on board Air Arabia and TAP Portugal. Developed in duty-free border shops, and duty-free downtown throughout selected markets.
collaboration with the airlines and taking into account the destination, the
inflight catalogue enables passengers to buy duty-free items during the flight, ■ The duty-paid sector has huge potential for development in the airport sector,
including perfumes and cosmetics, spirits, gifts, watches, and other items from as the growth of domestic travelers is in line with international travelers.
the most renowned international brands.

6.1.3 DUFRY BRANDS

BEAUTY

6.1.3 DUFRY BRANDS

LIQUOR

6.1.3 DUFRY BRANDS

TOBACCO

6.1.3 DUFRY BRANDS

WATCHES AND JEWELERY

6.1.3 DUFRY BRANDS

TEXTILE, LEATHER, AND LUGGAGE

6.1.3 DUFRY-RECENT DEVELOPMENTS

M Merger and Acquisition I Product Innovation E Expansion P Partnership
Dufry opened new generation stores in Zurich

and Cancun, an innovation of general retail store
Dufry acquired RegStaer Vnukovo and it
that enables the company to communicate with reached an agreement to acquire 60% stake
its customers using technology. FEB 2019
of RegStaer Vnukovo.
EI EI M
Dufry opened newer and bigger walk through store
FEB 2018 JUN 2019
at Malta International store. The store offers new
brands that were previously not available at this
location, including MAC, Benefit, Victoria’s Secret,
Aqua Di Parma, Moroccan Oil, Jo Malone London,
and Rituals.

FOR MORE INFORMATION,
PLEASE CONTACT
5th Floor, Brigade Towers, Financial District, +1 617-765-2493
Gachibowli, Hyderabad – 500032, India
info@mordorintelligence.com www.mordorintelligence.com
Industry Reports | Consulting | Intelligence Center
+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com

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DUTY-FREE AND TRAVEL RETAIL MARKET

Domain: NEO Base Year: 2018 Forecast Period: 2019-2024

Industry Reports | Consulting | Intelligence Center

+1 617 765 2493 | info@mordorintelligence.com | www.mordorintelligence.com

2 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

3 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

1.2 Study Assumptions and Market Definition

1. 3 Scope of the Study

4 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

1.1 STUDY ASSUMPTIONS AND MARKET DEFINITION

▪ Distribution of primary interviews conducted was based on the regional

▪ As a result of data triangulation through multiple methodologies and

5 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

1.3 SCOPE OF THE STUDY

BY PRODUCT TYPES BY DISTRIBUTION CHANNEL BY GEOGRAPHY

Wines and Spirits Store selling South America

Tobacco Other Distribution Channels Europe

Fashion Accessories and Hard Middle East & Africa

Other Product Types

6 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

7 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

STEP 1 STEP 2 STEP 3

Decipher the client’s requirements/ market to

Tailor-made research approach for

Effective use of Mordor’s knowledge

Confirm the objectives of the assignment with

8 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

9 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

Increase in disposable income is allowing consumers to purchase more

SOURCE: Mordor Intelligence

10 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

4.2 Market Dynamics

4.5 Trends Influencing the Duty-Free and Travel Retail Market

4.6 Customer Landscape

4.7 Porter's Five Forces Analysis

4.8 Industry Value Chain Analysis

4.9 Technological Innovations and Developments

11 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

4.1 MARKET OVERVIEW

12 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

4.1 MARKET OVERVIEW

■ The rise in economic growth and urbanization in various emerging countries is

Complete analysis will be provided in the report

13 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

4.1. MARKET OVERVIEW

Complete analysis will be provided in the report

4.2 MARKET DYNAMICS

INCREASE IN DISPOSABLE IMPROVEMENTS IN

INCOME GROWTH IN TOURISM INDUSTRY XX

Complete analysis will be provided in the report

15 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

16 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

INTERNATIONAL TOURISTS' ARRIVAL

2014 2015 2016 2017 2018

Africa Middle East Americas Asia-Pacific Europe

Complete analysis will be provided in the report

17 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

18 SAMPLE –DUTY-FREE TRAVEL RETAIL MARKET

5.1 By Product Types 5.2.2.3 Ferries

5.1.1 Beauty and Personal Care 5.2.2.4 International Railway stations

5.1.2 Wines and Spirits 5.2.2.5 Other Distribution Channels

5.1.3 Tobacco 5.3 By Geography