Global Fashion Duty Free Retailing – According to the report analysis, Global Fashion Duty Free Retailing suggests that global fashion duty free retail market is growing significantly due to rising passenger traffic at major airports, new retail space openings, and more fashion brands expanding into the duty free channel are expected to fuel the growth over the next five years. Moreover, the global fashion duty free market is forecast to grow at a healthy CAGR of 7.7% to reach USD 7.4 billion in 2022, adding USD 2.3 billion in sales value. Whereas, duty free sales refer to that sale in which no tax and duty is charged by the seller from the end user of the goods and services. In addition, fashion duty free outlets are opened at airports for catering more and more international tourists and travelers.
The Global fashion duty free retailing shops are not opened in the malls or not available on the roads therefore, the duty free retail outlets are mostly found on the international airports where international and national tourist come in contact with retailers and on the seaports. The goods which are sold on the outlets of duty free retails vary by jurisdiction, the process of refunding the duty component or the calculating the duty on the goods which are to be sold. Whereas, South Korea to retain its position as the largest duty free market through to 2022. Moreover, the new stores are going to open and new innovation can be done in the old processing units. Clothing, footwear, jewelry, watches and accessories, luggage and leather goods are some essential goods which are sold on the duty free retail shops whereas, personal care is both largest and fastest growing product category in duty free sales.
Increasing in the tourism will drive the growing landscape of the global fashion duty free retail market. Development in the economy and establishment of new airports terminals lead to the significant growth in the global fashion duty free retail market. But with all the points there is one challenge for the sellers that is a communication gap between the seller and buyer of duty free products on the international airports and seaports. With this challenge also the duty free retail market is growing as the travelers who are having little knowledge of the host country and are wealthier in nature will always drive the growth of this market.
Burberry, Calvin Klein, Ralph Lauren, Hugo Boss, Tommy Hilfiger are the major key player in the duty free retail market. These are those key player who leads the global share in the market of luxury goods which also lead the growth of duty free products. With the existence of these key players, the market of global fashion duty free retailing has become competitive and welcoming the new entrants which provide the financial support to this market. Therefore, the future of this market is expected to grow significantly in the coming years with the more innovation the luxury goods and development in the economy.
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Ankur Gupta, head marketing & communications