Customer loyalty Boosts GTR

It is widely reported that the consumption patterns in India are changing due to a variety of factors, including increased international travel, exposure to global trends, rising disposable incomes, and a growing middle-class. The retail spaces at airports, especially duty-paid stores, often reflect these changes as they cater to a diverse and international customer base. But even as these changes take place, what is important for the companies to enhance their popularity and increase the count of repeat customers is to build up brand loyalty, as explained by Gaurav Singh, CEO, April Moon Retail Private Limited. Duty-free allows customers to choose for products at a lower rate. On the other hand, the duty paid stores offer a blend of authenticity and better curated offerings and assortments as compared to the high street market. Domestic travellers in India are 45 percent more than international travellers, which gives the duty-paid stores in India a chance to cater to a selective larger audience. Therefore, the key to success in the competitive landscape of travel retail liquor sales in the country lies in understanding the customers' perspective and crafting an offering that addresses their desires and concerns.

The interest in wines, liqueurs, bitters and aperitifs among consumers in India, particularly at duty-paid stores at airports, has been evolving. As the consumer footfall is filtered here, brands serve to a target audience with specially curated offerings. It is widely reported that the consumption patterns in India are changing due to a variety of factors, including increased international travel, exposure to global trends, rising disposable incomes, and a growing middle-class. The retail spaces at airports, especially duty-paid stores, often reflect these changes as they cater to a diverse and international customer base.

These stores typically offer a wide range of alcoholic beverages, including wines and spirits, to appeal to travellers who may wish to purchase such items either for personal consumption or as gifts. Moreover, the younger demographic in India has shown an inclination towards experimenting with new types of alcoholic beverages, which could contribute to a growing interest in a wider variety of drinks, including wines, liqueurs, bitters and aperitifs.

Our urban population is also becoming more knowledgeable about different types of alcoholic beverages, partly due to the influence of social media and the availability of information online.

At HOE, wines and alcoholic beverages' contribution has risen from 2 percent to 4 percent. Furthermore, the hospitality industry in India, including bars and restaurants, has been incorporating a more extensive selection of alcoholic beverages in their offerings, which can also influence consumer preferences and lead to an increased interest in these products at airport stores. As such, April Moon Retail's innovative approach exemplifies how strategic pricing, authenticity and customer engagement can effectively attract and retain buyers, even in the face of significant price differences between the duty-paid and duty-free products. 

The AMRPL Strategy

The company's strategy entails leveraging various growth opportunities within duty-paid travel retail operations at Indian airports to achieve profitable expansion. "We firmly believe in the India growth story and are committed to investing in and nurturing the latent potential that exists. Our growth strategy envisions further expansion, aiming to scale up our operations effectively," says Gaurav Singh.

This growth roadmap includes a focus on digital innovations and investment in technology, strategic partnerships, customer engagement, customer experience with improved store layout and customer service, exclusive launches along with the right brand or product mix, marketing and promotional campaigns, staying agile and adapting to changing trends and offering health-conscious choices.

With the notable increase in outbound traffic from India with 20 percent jump at the largest Indian airports, April Moon Retail has observed a substantial impact on its business operations, particularly within the duty-paid travel retail sector. As such, its stores, strategically positioned to cater to this demographic, have experienced a significant uptick in footfall, resulting in escalated sales volumes and an expanded customer base. The influence of this trend on its business is multifaceted. First, it has necessitated the diversification of product offerings to meet the evolving preferences of more travel-savvy Indian consumers. Secondly, the rise in traffic has prompted the company to invest in enhanced customer service training. 

The Road Ahead

Looking ahead, April Moon Retail's five-year outlook for the duty-paid travel retail sector in India remains optimistic. "We anticipate continued growth in outbound travel, propelled by economic advancements and a young population eager to explore the world. In alignment with this projection, we are committed to a strategic expansion plan," Gaurav states.

This includes recognising the importance of digital connectivity, optimising retail spaces to create immersive shopping experiences, focus on sustainable practices both in-store and in their supply chain, and seeking strategic partnerships and collaborations with brands to enhance the product portfolio. Continuous investment in market research is also considered crucial. In five years, April Moon Retail envisions its duty-paid travel retail stores as the foremost destination for travellers seeking premium liquor and other luxury products.