INDIA. Ospree Duty Free is celebrating a stellar 2023/24 financial year, which may rank the company as the world’s fastest-growing travel retailer.
The company achieved what it called “unprecedented growth” in sales of +44% year-on-year in the financial period ended 30 March 2024 for its arrivals and departures duty-free operations at Chhatrapati Shivaji Maharaj International Airport, Mumbai.
Ospree Duty Free was borne in March out of Mumbai Travel Retail Private Limited (the joint venture between Adani Airport Holdings and Flemingo Travel Retail).
That was almost double the +23% passenger growth recorded over the same time span. The sales increase was driven by an impressive +15% increase in spend per passenger.
Commenting on the company’s likely status as the world’s fastest-growing travel retailer, Ospree Duty Free CEO Avishek Bambii Das told The Moodie Davitt Report: “This achievement reflects our unwavering commitment to innovation, exceptional customer service, and hard work of our dedicated team.
“We will continue to push boundaries and set new standards in the travel retail industry, always striving to deliver the best for our customers and stakeholders.”
Ospree Duty Free said its success was underpinned by a combination of transformative growth, unparalleled customer experience and a steadfast commitment to sustainability.
“Our journey of innovation and excellence continues as we set new standards ensuring every traveller’s journey through our doors is a memorable and enriching experience,” the company said.
Ospree Duty Free said it is committed to challenging conventional norms and thinking ‘Out of the Box’.
“We wanted to turbocharge growth by relooking at what we call the ‘7 Ps of Duty Free Excellence’ by driving more than 100 initiatives in FY 23-24,” the company commented.
Ospree described the 7 Ps of Duty Free Excellence as follows:
PRODUCT
Ospree expressed its pride in meeting increasing demand for luxury and bridge-to-luxury assortments. The retailer has launched various India-first products including Kylie Cosmetics, Don Julio 1942, Venchi chocolates & B&O speakers. An impressive 173 new brands were introduced across various categories in FY23/24.
The company also launched its own concept stores:
- Vue De Luxe: A luxury sunglasses store featuring a range of renowned brands including Dita, Dior, Off-White, Vava and others, leading to the eyewear category growing by +33%
- Meridiem: The specialised watch emporium boasts a curated selection of prestigious timepieces including Franck Muller, Tag Heuer, Baume & Mercier, Frederique Constant, Longines, Rado and others driving a +25% growth.
- Out of Office: The luggage store offers selections from Tumi, Mandarina Duck, Samsonite and Porsche Design.
- The Bharat Story: The newly launched store provides an evocative sense of place with a wide array of luxury Indian destination goods, leading to +104% growth in the category year-on-year.
- Bon Voyage: Ospree’s first duty-free convenience store
PRICE
Ospree Duty Free said it endeavours to provide the best value on world-class products to all shoppers. Through a balance of competitive pricing, and innovative payment solutions, it seeks to provide exceptional value to customers.
Highlights include:
- No Cost EMI (Equated Monthly Installments): The first duty-free business to offer this service convenience.
- Credit Card offers: Ospree Duty Free tied up with leading banks to provide up to 15% uncapped cashback for our shoppers.
PREMIUMISATION
An elevated product range and the introduction of new product categories helped Ospree Duty Free deliver +10% growth in ATV.
PENETRATION
International travel can often be tiring and stressful, the company noted. To offset the negatives of lengthy queues at check-in, security and immigration, Ospree Duty Free introduced an array of experiential initiatives to drive penetration. They included:
- Don Julio 1942 live DJ and liquid tasting: Upon entering the Ospree store, travellers were greeted by the ambience of a live DJ playing popular tunes.
- Ardbeg Circus: This interactive circus-themed animation included entertainment, spin the wheel giveaways and photobooths.
- Meet & greet with Bollywood Celebrities: In a country where Bollywood reigns supreme, Ospree Duty Free has repeatedly brought the magic of the silver screen to life by organising meet-and-greet sessions with superstars such as Shah Rukh Khan, Anil Kapoor, Sunny Deol, Ajay Devgn and Kartik Aryan.
- Live Performances: To infuse joy and relaxation into the travel experience, the retailer hosted a variety of live performances that catered to diverse tastes:
- Violinist and Pianist: “Melodic tunes and vibrant beats transformed our store into an oasis of excitement,” commented Ospree Duty Free.
- Caricature Artists: Personalised sketches offered travellers a memorable and unique keepsake of their journey.
- Massage and Manicurists: These services provided travellers with moments of tranquility, allowing them to both unwind and indulge.
- Jugglers and Magicians: Engaging performances captivated and entertained passengers, especially children, adding an element of wonder and delight to their holiday experience.
- Hydration Initiative: Recognising the importance of hydration, especially after long waits at security and immigration, Ospree Duty Free initiated a water distribution activity at the entrance of the store for all departing passengers, underlining the company’s commitment to consumers’ wellbeing
These collective measures resulted in a +33% SPP growth in departures duty-free sales, Ospree said – three times passenger growth.
PROMOTION
Competitive pricing allied to value-added promotions such as ‘Shopping Carnival’ and ‘Duty-Free Frenzy’ were key to enhancing the shopping experience, Ospree Duty Free said.
“With the majority of our travellers being Mumbai locals, we expanded our award-winning ‘Duty Free is Now Free’ campaign to 16 brand partners, providing a potential value back of ~US$1,200 to Ospree shoppers,” the company added.
“This helped in unlocking a world of saving and well-deserved rewards to our loyal customers, including vouchers from luxury hotel stays and fine-dine restaurants to online flight bookings.”
Shoppers at Ospree Duty free receive the same amount of value in redeemable vouchers as they spend.
PRESENTATION
The company highlighted the utmost care and attention it devotes to representing partner brands with the highest level of visibility and world-class presentation through innovations in visual merchandising, product displays and attention-grabbing communication.
It cited the high-profile Don Julio DJ set-up, Ardbeg Dark Circus and Ardbeg Smoke Trail promotions as notable examples.
PEOPLE
“People are the most important asset of our company. they are the face of Ospree Duty Free,” the company observed
“We implemented multiple innovative techniques to boost employee morale to achieve the ultimate goal – a happy and satisfied customer.”
Key initiatives included:
- Incentive schemes: Ospree said it had introduced a unique reward system to provide incentives to staff based on personal targets, rather than incentives based on overall business targets. On-the-spot rewards were also implemented.
- Rigorous training modules: These have ranged from cashier training to reduce billing times, to sales training programmes with industry veterans.
- Rewards and recognition programmes
ADANI ONE APP & SUSTAINABILITY INITIATIVES
Ospree Duty Free said its Adani One app has helped in increasing pre orders from 11% to 16%, with a particular focus on new customer acquisitions. This digital approach has simplified the pre-order process for customers, the company noted.
The retailer said its innovative approach extends beyond customer experience to embrace sustainability.
“Digital integration within store assets – screens, danglers and tablets – minimises paper usage, aligning with our commitment to environmental stewardship,” the retailer explained.
“Embracing eco-friendly practices, we have transitioned from plastic to recyclable paper bags, setting new benchmarks in responsible retailing. Additionally, our online pre-order service streamlines operations, reducing congestion and enhancing efficiency.”
Ospree Duty Free highlighted ‘The Bharat Story’ as exemplifying the company’s dedication to sustainability and community support.
“By championing locally sourced products and traditional craftsmanship, we not only celebrate India’s rich cultural heritage but also contribute to upliftment of our impoverished artisans.”
“Our ongoing efforts underscore our commitment to supporting local artisans and promoting sustainable practices.” ✈
Note: The Moodie Davitt Report is the leading international information source on India’s travel retail and airport non-aeronautical revenue sectors. All stories are archived permanently in our India newsroom (accessed via the regional section on our home page drop-down menu).
