Following a drop in sales in 2009 the global airport retailing market has bounced back. However, growth is being driven predominantly by passenger volumes, which are increasingly rapidly in emerging markets, rather than an increase in spend per passenger. In 2011, Europe was the largest airport retailing market, however Verdict forecasts that it will be overtaken in size in 2012 by Asia Pacific.
FEATURES AND BENEFITS
Inform your international expansion strategies using our three year regional forecasts of sales, passenger volumes, and spend per passenger.
Select the most suitable products for your retail operations by using our regional category sales data and our three year product category forecasts.
Benchmark your company's performance by accessing profiles of ten key airport retailers including details of their global market share.
Maximize sales at your airport by uncovering how walk through formats, arrivals stores, and online and m-commerce can boost sales.
Prepare your business to exploit the changing airport retailing market by learning how airport passenger compositions are forecast to change by 2030.
HIGHLIGHTS
The global airport retailing market is forecast to expand by 44.5% from 2010 to 2015 with most of this growth coming from emerging economies especially in Asia Pacific, which is forecast to grow by 76.2%, and the Middle East and Africa which is forecast to grow by 40.0%.
Fashion and accessories is the largest product category accounting for 25% of global airport sales in 2010. Sales of fashion and accessories have increased rapidly in recent years driven by the strong appetite for luxury brands in Asia Pacific. In 2010 this region was responsible for 45.6% of fashion and beauty sales at airports.
Walk through stores in airport terminals are growing in popularity. The format enables retailers to create an environment through which all consumers must pass to reach their departure gate. The shops, which tend to include flight information screens, are effective at targeting time scarce consumers.
YOUR KEY QUESTIONS ANSWERED
Which product categories are forecast to deliver the most robust growth? Which outlet operators are focused on developing these product categories?
What product, marketing and channel innovations and strategies should my company consider in order stay on top of market developments?
How did the largest airport retailers perform in 2010, where are their operations located, what are their main retail formats and plans for expansion?
Where are passenger volumes increasing most rapidly, and how will this impact on regional passenger compositions arriving at retail destinations?
Which regions have the highest appetite for beauty, fashion and accessories, electronics, food and confectionary, alcohol and tobacco?
Table of Contents
Table of Contents
OVERVIEW
Introduction
Summary
KEY FINDINGS
Emerging markets have driven the recovery of the global airport retail market in 2011
The power shift toward emerging markets is in full swing
Asia Pacific is set to become the largest airport retailing market in 2012
In 2011, the Middle East and Africa overtook the Americas to become the third largest airport region for retail
Fashion and accessories is the largest product category
Beauty and fashion and accessories are growing extremely rapidly
Dufry will overtake LS Travel Retail and Autogrill to become the largest airport retailer
Downtown duty free shopping is growing rapidly in Asia Pacific
Digital strategies will become much more important
STRATEGIC ACTION POINTS
Luxury fashion and accessories brands should expand in Asia Pacific and the Middle East
North American airports should prepare for a growing volume of Latin American tourists
European airports should increase the presence of mid-market brands in regional terminals
European airports should introduce walk-through stores to target time-scarce shoppers
Airports should give more space over to airside retail
Airports should offer collect on arrival services
Retailers must enhance their e-commerce and m-commerce operations
Airports should use online and m-commerce
Entice customers to spend with enhanced retail environments that are easy to shop
Offer convenience services such as collect on return and home delivery
MARKET CONTEXT AND OUTLOOK
Market Definition
Global airport sales continue to grow, driven by passenger volumes
In 2011, the Middle East and Africa overtook the Americas as the third largest airport retailer
The Americas has the highest volume of passenger numbers
Spend per passenger has recovered to 2008 levels
Regional passenger spend is impacted by the composition of travelers
Global airport retailing outlook, 2011-15
Global airport retail sales to reach $39.1bn by 2015
Passenger numbers will increase globally by 2015
Spend per passenger will increase globally by 2015
Airport retailing sales by category
Fashion and accessories is the largest product category in global airport retailing
Fashion and accessories is the dominant product category in Asia Pacific and the Middle East
Fashion and accessories will remain the largest retail category up until 2015
STRATEGIC ISSUES
Airport footfall
The economy is reshaping global airport footfall
The cost of travel determines passengers' ability to fly and is linked closely with consumer disposable incomes
Flight routes determine passenger volumes at each airport
Regardless of passenger demand, airport and airplane capacity caps footfall
Alternative transport grows in importance for short haul business travel in Europe
Safety considerations remain a deterrent to air travel
Barriers to passenger spending
Worries over baggage allowance dampen passenger expenditure
Shortened shopping times decrease the time available for consumers to make purchases
Low disposable incomes reduce customers' ability to shop
Security processes aggrieve consumers, putting them in a bad mood
Competition from alternative retail destinations can deter passengers from making purchases
Strategies to drive passenger spending
Arrivals stores offer a new growth opportunity for retailers
Offering a home delivery service can combat luggage restrictions
Online duty free sites can drive sales from time-scarce consumers
Collect on arrival assists passengers affected by baggage restrictions to shop with confidence
Enforced footfall of walk-through stores creates major opportunity
M-commerce enables passengers to browse and pre-order on the move
Future growth strategies
The drive to expand is consolidating the airport retail market
Making airports destinations in themselves attracts non-travelers
Future focus: retailing actualities
North American airports could capture higher Latin American travelers' spend
Latin American passengers are growing in number
European airports can capitalize on the growing number of Asia Pacific passengers
Regional travel is booming in Asia Pacific
Middle Eastern air travel is dominated by passengers from Asia Pacific
European travelers dominate African air travel
COMPANY COMPARISONS
LS Travel Retail is the largest global airport retailer
LS TRAVEL RETAIL
LS Travel Retail is undergoing structural changes as it prepares to step up its global presence
Lagardere Services has integrated its travel retail subsidiary Aelia into LS Travel Retail
LS Travel Retail's airport operations are predominantly European
LS Travel Retail's EMEA operations specialize in multi-brand duty free retail
LS Travel Retail ASPAC specializes in entertainments-based travel retail stores
LS Travel Retail North America specializes in entertainments-based travel retail stores
Recent key events - LS Travel expands in Europe
Aelia announces plans for expansion in the Czech Republic
LS Travel retail buys out Nuance's shares in Duty Free Paris
LS Travel Retail ASPAC creates dedicated fashion and accessories role
Financial results - continued strong recovery in 2011
LS Travel Retail reports strong H1 2011 results
Outlook - concentration on mature markets means LS Travel Retail will be overtaken
AUTOGRILL
Autogrill has refinanced its debt as it prepares to free up capital for expansion
Autogrill has grown through acquisition
Autogrill is one of the world's leading airport retailers
Europe dominates Autogrill's retail turnover
Autogrill's retail operations are managed by Aldeasa and World Duty Free
Recent key events - Autogrill has invested in its existing airport locations
Autogrill has refinanced in preparation for expansion
Figure: Emerging market and mature economies growing at different rates, real GDP growth (%)
Figure: The relationship between fuel prices and average airline fares, 2011
Figure: Crude oil prices and forecasts 2007-12e
Figure: Distribution of high-speed rail in Europe, 2011
Figure: Barriers to passenger spending and their solutions, 2011
Figure: Zurich A irport arrivals duty free advertising, 2011
Figure: Nuance 's second Zurich arrivals duty free store
Figure: Zurich arrivals duty free store
Figure: Amsterdam Schiphol Airport smartphone app
Figure: Frankfurt Airport smartphone app
Figure: Airport services operated by top 10 airports by passenger volumes, 2011
Figure: Consumer attitudes to shopping and airport retailing solutions
Figure: Dublin Airport Terminal 2, The Irish Whiskey Collection
Figure: Aerotropolis, 2011
Figure: Airline traffic distribution, by region, 2010
Figure: Airline traffic distribution, by region, 2030
Figure: Passenger composition, 2010 and 2030
Figure: Airport retailers' market share, 2010
Figure: Airport retailers' revenue growth, 2010
Figure: Top 3 airport retailers, by region, by revenue, 2010
Figure: Top 3 airport retailers, by category, by revenue, 2010
Figure: LS Travel Retail EMEA duty free formats Buy Paris Duty Free and Aelia Duty Free, 201 1
Figure: Discover Glasgow LS Travel Retail EMEA gifts and souvenir format, 2011
Figure: So Chocolate, Singapore LS Travel Retail's luxury confectionery format 2011
Figure: Watermark book store, 2011
Figure: Autogrill's main markets, % of sales FY2010
Figure: The Shop, Palma de Mallorca Airport 2011
Figure: Dufry's main markets (% of sales; including new acquisitions), fiscal 2010
Figure: Walk-through duty free store, Oslo
Figure: Frankfurt regional produce store
Figure: Gebr Heinemann online duty free store
Figure: Watsons your personal store, Zhuhai airport 2011
Figure: World of Wine, Sydney Airport departure shop opened in 2010
Figure: Dubai International Airport, 2011
Figure: Dubai Duty Free, Dubai International Airport 2011
Figure: Dubai Duty Free, Dubai International Airport 2011
Figure: Dubai Duty Free, Dubai International Airport 2011
Figure: Dubai Duty Free, Dubai International Airport 2011
Figure: Runway duty free, Kosovo 2011
Figure: Beauty store, Cyprus 2011
Figure: Delhi duty free, India 2011
Figure: Shilla Duty Free fashion and accessories store in Incheon International Airport, South Korea
Figure: Louis Vuitton store in Incheon International Airport, South Korea
Figure: DFS Galleria, Guam, 2011
Figure: DFS Duty Free 2011
Figure: Victoria's Secret, Honolulu International Airport, 2011
Global Airport Retailing: Market Size, Retailer Strategies and Competitor Performance published by Verdict Research Limited in December 19, 2011. This report consists of Pages: 163 and the price starts from US $ 4495.
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