Let's have a closer look:
1) Purpose
Travel Retail or Duty Free is about meeting your consumer’s needs when they’re traveling, by ensuring the availability of your brands in appropriate Duty Free locations ideally providing little discount
2) Market Size
Duty Free market 2019 size is more than $70 billion and it is projected to reach $155 billion by 2025! More than 4 billion people travel every year only by air. Main product categories are: 1) Fragrance & Cosmetics - 39.9%, 2) Wines & Spirits - 15.4%, 3) Fashion & Accessories - 13.7%, 4) Tobacco - 9.9%, 5) Watches & Jewellery - 7.6%, 6) Electronics & Gifts - 6.8%, 7) Confectionary & Fine Food - 6.7%
3) It's not just airports...
Airports represent 53% of total revenue generated by Travel Retail business Worldwide but there are many other Duty Free channels namely: Airlines, Border & Port shops, Ferries, Crusie Lines, Military, Diplomatic, Ship-Chandling, DF Zones, Downtown, etc
4) Why it's important for you?
By placing your brand in Duty Free besides achieving extra volumes & profitability, you will get an excellent opportunity to build brand awareness by showcasing your product to millions of travelers Worldwide. As a result, it will positively impact your local business
5) Duty Free complexity
Despite its big size Duty Free market is very fragmented & complex – requiring specific route to market and many, often small, customer relationships. Duty Free distributors holding thousands of SKUs and do not drive demand for individual brands. In order to penetrate Travel Retail market, you must have specially dedicated force or an experienced consultant which can arrange this business for you