Retail turns hot property at Indian airports
Airports are emerging as the next battleground for retailers, as air passenger numbers continue to soar each year in India.
Given the huge demand for retail space, the current vacancy in Mumbai, Delhi and Bengaluru varies from 0-5% in international terminals and 5-10% in domestic terminals, according to an Economic Times report.
Following in the footsteps of major transit points globally, Delhi and Mumbai airports now offer a good tenant mix. Demand for retail space is expected to rise at other busy airports as well.
“As a touch point, airports have the opportunity to create an attractive commercial environment for the well-heeled traveller. At GVK's Mumbai and Bengaluru airports, response to retail space has been good, although travel retail as a concept in India is nascent and still evolving”, said a spokesperson of GVK, which operates Mumbai and Bengaluru international airports.
More than 30 brands have made their foray into domestic travel retail through new T2 terminal at Mumbai international airport.
According to GVK, most of the stores and outlets at Mumbai airport are performing above expectations, while the Duty Free stores and F&B outlets seem to be the primary drivers of business at Bengaluru airport. However, recent trends indicate growth in lifestyle and personal products like cosmetics, fragrance, fashion and accessories.
According to Rajesh Jain, MD & CEO of French lifestyle brand Lacoste India, which has two boutique stores in Mumbai domestic airport and Hyderabad international airport, these stores help connect better with the target audience.
“A lot of impulse shopping takes place at airports. We have been able to break even across our boutique stores. Profitability is a focus area and we believe in bottom line," said Jain.
The company also has two stores in Bengaluru and Mumbai international airport, and is evaluating opportunities at other large airports as well.
The current retail-tenant profile at Indian airports includes brands ranging from apparel to wellness, convenience, travel and books, electronics, fashion accessories, sunglasses, watches, jewellery, F&B, perfumes and cosmetics, wine and liquor as also travel accessories.
Copyright © 2021 FashionNetwork.com All rights reserved.