INDIA. The Indian travel retail industry needs to offer more than the core categories of liquor and tobacco, as well as offer greater variety within categories, if it wants to exploit this growing market’s full potential. That was a central message from several speakers on the closing day of the first India Duty Free Workshop.
Indian Duty Free Services CEO Deepak Talwar pointed out several times that the duty free industry here is “too reliant” on liquor and tobacco.
Pointing to his inflight retail operations for Jet Airways, he noted that even though the two categories only make up about 10% of sales, the airline has a spend per passenger of US$1.60. This suggests that there is a market for products from other categories.
But even in the category of liquor itself, not enough variety is being offered, said Albert Bichot Export Director and Chief Wine Maker Ariff Jamal.
He noted that duty free stores are stocking only wine of “inferior quality” or “low prices”. As a result these stores are losing out on the spend of the burgeoning middle class and the rich, who are looking elsewhere for their quality wine.
Pointing to sales figures in the domestic market, Jamal said the problem was not that Indians are not consuming wine. “What is holding us [the duty free industry] back is not the domestic market, it’s something totally different. We need to find out what the problem is,” he said.
MORE STORIES ON THE INDIA DUTY FREE WORKSHOP
Paul Topping issues call for Indian duty free lobby group to be set up – 22/02/2006
India Duty Free Workshop kicks off with cocktails and a disco – 21/02/2006
