Duty Free and The global duty-free and travel retail market is estimated to generate revenues of around USD 112 billion by 2023, growing at a compound annual growth rate of approximately eight percent during 2018-2023 as per the figures of the ‘Duty-Free and Travel Retail Market – Global Outlook and Forecast 2018-2023’ report by ResearchAndMarkets.
According to the report, two Middle Eastern duty frees are among the prominent players in the duty free and travel retail markets, including Dubai Duty Free (DDF) and Qatar Duty Free (QDF).
A press release by DDF revealed that sales for 2018 reached USD 2 billion, representing a four percent increase over the previous year.
As for the various market segments leading that industry, these include fragrance and cosmetics, liquor, fashion and accessories, tobacco goods, electronics, watches, and confectionery. The five top selling categories for the year at DDF included liquor followed by perfumes, cigarettes, cosmetics, and electronics.
The industry is driven by the increasing focus on digitalization of travel retail industry. The rise in the outbound tourists, a strong economy, the opening of new routes, and growing middle-class desire for air travel are some of the factors driving the development of the global market.
The growing demand for retail chains that offer luxury and premium brands of various products is augmenting the growth of the global duty-free and travel retail market. Leading brands are opening exclusive stores for special products, promoting, and selling limited editions to increase their visibility and brand awareness in the global market. These distribution channels provide passengers value, enhance their experience while traveling, generate value addition to economic activity, and creates employment that contributes to overall GDP across the global market.
For instance, DIOR and QDF launched exclusive DIOR LES PARFUMS Podium at Hamad International Airport. Qatar Airways Group Chief Executive, HE Akbar Al Baker said: “Today marks an important milestone as we come together to celebrate a world exclusive partnership with Dior Parfums. At Qatar Airways Group, we take our role in ensuring that the journey is the best part of our passengers’ travel experience very seriously, delivering excellence both on the ground and in the skies. With new, innovative and immersive experiences like the one we see here today, it is clear that both Dior Parfums and Qatar Airways Group are organisations whose identities are synonymous with innovation, elegance and firsts.” Qatar Duty Free had also launched the first AIGNER luxury pop-up in Qatar, and TUMI’s first pop-up store in the Middle East.
Various leading vendors are providing easy home delivery options and innovative customer services that improve their satisfaction levels and contributes to the growing revenues in the global duty-free and travel retail market. The benefit of attractive prices, service, convenience, recognition, and high-end product merchandising are some of the factors that will promote the evolution of the retail industry.