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Global Airport Retailing 2008 - Focus on Emerging Markets

Published by: Verdict Research Ltd

Published: Aug. 14, 2008 - 169 Pages


Table of Contents



CHAPTER 1 EXECUTIVE SUMMARY

Key Findings

Main Conclusions

CHAPTER 2 MARKET ANALYSIS

Market Definition

Market Size

Market Size and Growth by Geographical Region

Europe Reigns

Americas Follow but Lose Ground

Asia-Pacific Third Largest Region and Growing

Meteoric Growth in Middle East & Africa

Duty-free and Duty-paid Specialists Sales

Duty-free by Product Group

CHAPTER 3 KEY ISSUES

Economic Challenges

Squeeze on Disposable Income

Rising Oil Costs Take Toll

Major Airlines Add Fuel Surcharges

Impact of Exchange Rates

Changes in Tax and Regulatory Regimes

Political Impacts

Geopolitical Influences

Fear and Inconvenience of Terrorism

Environmental Issues

Offsetting and Counting Carbon

Pay as You Burn Environmental Legislation

Passenger Number Growth

Global Tourism Provides Growth

Business Travel Adds to Gains in Airport Retail

Rise of Religious Travel

Global Spread of Low Cost Carriers

Larger Capacity Aircraft

Airline Alliances and Mergers

Retail Core to Airport Revenue Creation

Increasing Investment in Retail

Infrastructure Upgrades Key to Airport Retailing

Rising Spend Per Head

New Opportunities in Airport Retailing

Innovation in Landside Retail

Airports as Destinations

Airport Retail Market Conditions

Impact of Security Controls

Legislation and Regulation

Captive and Opportunistic Market

Affluent Consumer Base

Lower Volumes at Higher Margins

Preferential Trading Partnerships

A Highly Seasonal Business

A Highly Competitive Environment

Pros and Cons of Technology

Airport Retail Management Issues

Privatisation Becomes More Widespread

Concession Management Varied

Short Term Concession Leases a Limiting Factor

Blessing and Curse of Leisure, Food and Beverages

Baggage Charges More Common

Driving Growth in Airport Retail

Conversion Strategy Crucial

Location Ever Important

Increasing Penetration Essential for Success

Importance of Store Design and Format

Importance of Marketing and Advertising

Refining Product Mix is Essential

Price Points Key

Localisation

Business Ethics in Branding

Branded Areas In-store

Importance of Right Staff

Customer Loyalty Crucial to Capture Regulars Spend

CHAPTER 4 KEY PLAYERS

Evolving Key Players in Airport Retail

Aelia Group

Aer Rianta International

Autogrill

DFS Group

Dubai Duty Free

Dufry Group

Gebr Heinemann

Nuance Group

Additional Players of Note

Outlook for Key Players

International Crowd Dominated by Europe

Greater Consolidation Expected

North American Shake-up Expected

CHAPTER 5 FORECAST AND OUTLOOK

Global Market Forecast

Market Forecast by Geographical Region

Europe

Americas

Asia-Pacific

Middle East & Africa

Market Forecast by Duty-free and Duty-paid Sales

Duty-free Specialists Forecast Sales

Duty-paid Specialists Forecast Sales

CHAPTER 6 EMERGING MARKETS

Outlook for Emerging Markets

Potential for Investment in Emerging Market Hubs

Economic Backdrop

Huge Potential in Economic Outlook in China and India

Population Explosion of Emergent Air Travellers

Increased Networks Between Middle East, Africa and Asia-Pacific

Air Travel - Part of the Leapfrog Nature of Emerging Markets

Consumer Culture and Buying Power in Emerging Markets

Diverse Scope for Growth in Emerging Market Locations

Comparing China and India

CHAPTER 7 SPOTLIGHT ON CHINA

Overview

Chinese Retail Sales and Growth

Spend as a Proportion of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Key Issues

Boom in China’s Domestic Retail Channels to be Mirrored

Beijing Olympics an Opportunity to Showcase Chinese Airports

Potential for Strong Sales in Tobacco and Spirits

Quantity of Space at Beijing Airport

Emergent Affluent Middle Class

Limited Infrastructure Restrains Growth

FDI Requires Joint Ventures

Consumer Choice and Branding in China

Growing Travel to China and In China

Restricted Market

CHAPTER 8 SPOTLIGHT ON INDIA

Overview

Indian Retail Sales and Growth

Spend as a Proportion of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Key Issues

Significant and Innovative Investment in Indian Airports

Principal Hubs in Delhi and Mumbai

New Hyderabad & Bangalore Airports

Emerging Aviation Industry

Expansion in Retailing Offer

Increasing Passenger Numbers

Rising Prosperity and Consumerism

Changing Regulatory Frameworks

CHAPTER 9 SPOTLIGHT ON MIDDLE EAST & AFRICA

Overview

Key Issues

Natural Hub Boosted by Aggressive and Savvy Investment

Regional Diversity

Economic Growth and Diversification

Massive Expansion of Routes and Passenger Numbers

Retail Destination

Longer Term Opportunities

Middle East Big Four

Sales and Growth: UAE, Qatar, Bahrain and Oman (Muscat)

Spend as % of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

United Arab Emirates

Retail Sales and Growth in the United Arab Emirates

Spend as a % of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Dubai International Airport

Abu Dhabi International Airport

New Ajman International Airport by 2011

Al Ain - Focus on Cargo

RAK International Airport Pushes for Market Share

Qatar

Overview

Retail Sales and Growth in Qatar

Spend as a % of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Bahrain

Overview

Retail Sales and Growth in Bahrain

Spend as % of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Oman

Muscat Airport

Retail Sales and Growth in Muscat, Oman

Spend as % of Wider Regional and Global Markets

Number of Passengers and Growth

Passenger Numbers as % of Regional and Global Figures

Opportunities in Other Middle Eastern Countries

Saudi Arabia

Jordan

Israel

Opportunities in Africa

Growing Passenger Numbers in Africa

Underinvestment in African Airports and Retailing

Pockets of Growth and Limitations of Instability

Continent Most Easily Crossed by Air

Influence of Local Economy and Domestic Retail Channels

South Africa: Ahead of Pack

Kenya: Transit Potential

Egypt: Holiday Destination and Hub

Ethiopia: Increasingly Connected

Nigeria: Medium Term Prospect

CHAPTER 10 GLOSSARY

Financial Statistics - VAT

Abbreviations


LIST OF TABLES

Table 1: Duty-free and duty-paid specialists 2008

Table 2: Global airport retailing growth and market size 1997-2007 and forecast to 2012

Table 3: Global airport retailing market size by region 2002-2007

Table 4: Global airport retailing growth rates by region 2002-2007

Table 5: Global airport sales - duty-free and duty-paid 2002-2007

Table 6: Duty-free sales split by product group 2002-2007

Table 7: Duty-free sales split by product group 2002-2007

Table 8: Global passenger numbers 2005-2008e

Table 9: Growth in global passenger numbers 2006-2008e

Table 10: Proportion of total passengers by region 2005-2008e

Table 11: Number of international passengers by Top 20 airports 2007e

Table 12: Spend per head 2005-2008e

Table 13: Concession Management Models 2008

Table 14: Global airport retailing growth and market size 1997-2007 and forecast to 2012

Table 15: Global airport retailing market size by region 1997-2007 and forecast to 2012

Table 16: Global airport retailing market growth by region 1997-2007 and forecast to 2012

Table 17: Global airport retailing market size by duty-paid/duty-free specialist sales 1997-2007 and forecast to 2012

Table 18: Global airport retailing market growth by duty-paid/duty-free specialist sales 1997-2007 and forecast to 2012

Table 19: Global duty-free specialists sales by region 1997-2007 and forecast to 2012

Table 20: Global duty-free sales by product group 1997, 2002, 2007 and forecast 2012

Table 21: Product group sales as a proportion of global duty-free sales 1997, 2002, 2007 and forecast 2012

Table 22: Global duty-paid specialists sales by region 1997-2007 and forecast to 2012

Table 23: Chinese Airport Retail Sales and Growth, 2002-2007 and forecast to 2012

Table 24: Chinese airport retail spend as a proportion of Asia-Pacific and global markets 2002-2007 and forecast to 2012

Table 25: Passenger numbers in Chinese airports and growth 2002-2007 and forecast to 2012

Table 26: Passengers numbers in China as a proportion of Asia-Pacific and global passenger numbers 2003-2008e

Table 27: Indian airport retail sales and growth 2002-2007 and forecast to 2012

Table 28: Indian airport retail spend as a proportion of Asia-Pacific and global markets 2002-2007 and forecast to 2012

Table 29: Passengers numbers in Indian airports and growth 2002-2007 and forecast to 2012

Table 30: Passengers numbers in India as a proportion of Asia-Pacific and global passenger numbers 2003-2008e

Table 31: Middle Eastern airport retail sales and growth: UAE, Qatar, Bahrain and Oman (Muscat) 2002-2007 and forecast to 2012

Table 32: Spend as a proportion of Middle Eastern and global markets 2002-2007 and forecast to 2012

Table 33: Passengers numbers in the Middle East Big Four and growth 2002-2007 and forecast to 2012

Table 34: Passengers numbers in the Middle East Big Four as a proportion of Middle East and global passenger numbers 2003-2008e

Table 35: UAE airport retail sales and growth 2002-2007 and forecast to 2012

Table 36: UAE airport retail spend as a proportion of Middle East and global markets 2002-2007 and forecast to 2012

Table 37: Passengers numbers in UAE airports and growth 2002-2007 and forecast to 2012

Table 38: Passengers numbers in UAE as a proportion of Middle East and global passenger numbers 2003-2008e

Table 39: Qatar airport retail sales and growth 2002-2007 and forecast to 2012

Table 40: Qatar airport retail spend as a proportion of Middle East and global markets 2002-2007 and forecast to 2012

Table 41: Passengers numbers in Qatar airports and growth 2002-2007 and forecast to 2012

Table 42: Passengers numbers in Qatar as a proportion of Middle East and global passenger numbers 2003-2008e

Table 43: Bahrain airport retail sales and growth 2002-2007 and forecast to 2012

Table 44: Bahrain airport retail spend as a proportion of Middle East and global markets 2002-2007 and forecast to 2012

Table 45: Passengers numbers in Bahrain airports and growth 2002-2007 and forecast to 2012

Table 46: Passengers numbers in Bahrain as a proportion of Middle East and global passenger numbers 2003-2008e

Table 47: Muscat airport retail sales and growth 2002-2007 and forecast to 2012

Table 48: Muscat airport retail spend as a proportion of Middle East and global markets 2002-2007 and forecast to 2012

Table 49: Passengers numbers in Muscat airport and growth 2002-2007 and forecast to 2012

Table 50: Passengers numbers in Muscat as a proportion of Middle East and global passenger numbers 2003-2008e


LIST OF FIGURES

Figure 1: Landside vs airside 2008

Figure 2: Global airport retailing market size 1997-2007

Abstract

Introduction

While consumers in many countries are cutting back their retail spending in response to the worsening econmic climate, no such restraint is being shown at airport retailers they continue to benefit from rapid growth in the number of air passengers and consumer enthusiasm for duty-free shopping. This is particularly true in emerging markets, especially China, India and the Middle East.

Scope

*Market sizes and forecasts (2002-2012) for airport retailing in Europe, the Americas, Asia-Pacific and Middle East & Africa.

*Strategic analysis of the key opertators in airport retailing including Aelia, Autogrill, DFS Group, Dubai Duty Free, Dufry and Nuance Group.

*Additional market segmentation for duty-free vs duty-paid retail spending and spending by product group.

*Special focus on airport development and retailing opportunities in China, India, the Middle East & Africa.

Highlights

Global airport retailing is now a $27.1bn market and the fastest growing channel in global retail aside from the Internet. While mainstream retailing is experiencing a slowdown due to the credit crunch and squeezed disposable incomes caused by the rising cost of living, growth in airport retailing continues unabated.

Though global airport retailing will see strong growth across different regions, the greatest opportunities will be in the emerging markets. Driven both by an expanding number of affluent travellers having reasons to fly and a growing culture of consumerism, there is huge scope for airport retailing in these increasingly prosperous nations.

The Middle East & Africa has been hugely successful over the past five years. Though a relatively minor market, with an 11.8% global share the Middle East & Africa region has grown rapidly. The Middle East & Africa airport retailing market was worth $3.2bn in 2007 and is set to remain the fastest growing market over the next five years.

Reasons to Purchase

*Understand the potential of this rapidly developing retail channel, the issues specific to it and the opportunities available to those that invest.

*Identify the emerging markets that offer investors the greatest opportuinities so that you can target investments shrewdly.

*Use this report's reliable forecasts to quantify the rate of growth in airport retailing and benchmark your expectations against the market.

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