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The United Kingdom leads the world in duty-free and travel retail sales according to 2007 reports. The UK is followed by South Korea at number 2 with over US $2 billion in sales. The US rounds out the top three which collectively have captured 25% of the global market. Preliminary 2008 data shows overall market growth of over $2 billion over the prior year. 2009 forecasts from Generation DataBank suggest global sales returning to 2007 levels with business potentially picking up from 2010 to 2012 ($45 billion).
Of the top 10 airlines selling duty-free onboard, five of them originate in the UK, with the largest being British Airways at over $150 million annually. The airports at Heathrow (ranked 1) and Gatwick (ranked 12) serving London alone generate over $1.5 billion in duty-free and travel retail annually.
The top 10 airlines generate at least twice as much as the next ten which earn nearly $500 million in sales. Five of them are GuestLogix customers. The top 50 airlines command over 75% of the airline duty-free and retail market at over $2.0 billion.
| |
Sales |
Market Share |
| Luxury Goods |
12,080.9 |
35.5% |
| Fragrances & Cosmetics |
10,190.0 |
30.0% |
| Wine & Spirits |
5,840.8 |
17.2% |
| Confectionary & Fine Food |
2,990.7 |
8.8% |
| Tobacco Goods |
2,897.5 |
8.5% |
| TOTAL |
34,000.0 |
100% |
Source: Generation DataBank 2008; 2007 sales in US$ millions
The airline traveler demographic represents 90% of the world’s wealth. This is an affluent public that luxury goods makers have consistently managed to capitalize on with over 35% market share by product grouping. Buying for and by women represent the two leading product categories, women’s fragrances and cosmetics, which weigh in at nearly 25% of all duty-free and travel retail sales. Now imagine passengers shopping for gifts, supported by custom wrapping and home delivery, conveniently from their airline seats.
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