INDIA. A powerful marketing campaign, new store openings and passenger growth contributed to robust sales growth at Mumbai Duty Free in May. Moodie Davitt Research estimates that sales overall (across arrivals and departures) surged by +25% year-on-year.
The key categories of liquor, tobacco, beauty and confectionery all showed healthy growth (core category average spend climbed by over +20% in May, we estimate). The retailer was also buoyed by the opening of new luxury stores last year. Aided by these, fashion sales doubled year-on-year in May, we understand.
The ‘Duty free is now free’ marketing campaign, one of Mumbai Duty Free’s biggest ever, has been given added momentum by a big shopping festival in May and June. This has been supported by print media, in-airport and outdoor advertising. The company noted: “The programme has evolved since June last year and has become stronger and stronger in the minds of passengers.”
A highlight of the shopping festival is the US$5 voucher handed to every traveller at Mumbai International during the period. The voucher could be used across Mumbai Duty Free stores with no minimum purchase condition. The unconditional gift voucher helped to gain customer attention before they entered the stores, noted the company.
Mumbai International Airport Ltd supported the activity by ensuring strong communication to travellers. More than 250,000 vouchers were distributed and about 27,000 passengers used these to spend during the shopping festival.
The gift voucher drive was a key contributor to driving conversion, with transaction volumes up by an estimated +30% year-on-year in May.
In addition, customers shopping with Citibank cards could claim 15% cash back on their purchases. Vodafone also contributed by offering an International Roaming Pack worth US$15. Beyond this, shoppers who spent over US$60 in departures also received a ‘Mumbai Duty-Free Is Now Free’ envelope containing discount vouchers, redeemable coupons and experiences from partner brands including Make My Trip, Vodafone, Myntra, Urban Ladder and Mumbai’s luxury mall, Palladium. Click here for our previous story on these partnerships.
Flemingo Travel Retail Ltd CEO Manishi Sanwal said: “This summer travel season we wanted to be a part of the customer’s journey. With immense support from the Mumbai Airport team, we were able to create multiple touchpoints for a customer even before he reached our store. The business results have established the benefit of this partnership.”