INDIA. In a first for Indian travel retail, traditionally so reliant on arrivals duty free, Ospree Duty Free has posted an equal sales contribution from both departing and arriving passengers at Chhatrapati Shivaji Maharaj International Airport, Mumbai for its 2023 financial year.
According to Ospree this is a result of ‘Project Departures’, which aims to drive departure sales through entertainment, relaxation and shopping incentives.
The campaign marked a +33% year-on-year rise in sales at its departures store, driven largely by an increase from+ 6% to +9% year-on-year in store penetration.
As reported, 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 retailer achieved +44% year-on-year sales growth against a +23% increase in passengers for the financial period ended 30 March 2024.
The ‘Speedbreakers’ campaign
Ospree Duty Free noted: “Traditionally, duty-free sales in India have been heavily skewed towards arriving passengers. The excitement of shopping upon arrival often overshadowed the potential of catering to departing passengers.
“However, we identified an untapped opportunity and embarked on a mission to balance the scales.”
Previously, Ospree Duty Free’s business was predominantly driven by arrivals, accounting for 75% of sales.
To balance this, the retailer initiated ‘Project Departures’ to boost its share in departure stores from 25% to 52% (versus last financial year).
However, Ospree identified a challenge: “In India, departure security and immigration checks are notoriously time-consuming and grueling, causing travellers to endure long queues and extensive wait.
“This stressful and exhausting process leaves them rushing to boarding gates immediately, often bypassing our store.
“Our objective was to engage these weary travellers, providing them with memorable and enjoyable experiences while encouraging them to shop.”
This led to the creation of the ‘Speedbreakers’ campaign, encouraging passengers to pause and shop through strategically placed experiential activities.
The campaign highlights include:
- 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
- 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
It also simplified pre-orders through the Adani One mobile application and website
Brand Ambassadors actively promoted and sold products. Toys and confectionery were marketed to children while liquor, perfumes & cosmetics were targeted at adults.
“This strategic engagement allowed us to turn a leisurely stop into a commercial opportunity, significantly boosting sales,” noted Ospree Duty Free.
The multi-faceted approach was well-received, resulting in departure sales rising three times faster than the growth in passenger numbers, the retailer said. ✈
