IndiaRetailBiz

Flemingo Duty Free Shops Pvt Ltd, a UAE-based duty free operator having operations spread across the UAE, India, Kenya, Srilanka and Tanzania, including 25 stores at arrival and departure terminals of 12 Indian airports in the northern, southern and western regions of the country, was among the 17 applicants, whose proposals to bring in Rs.590 crore in FDI were cleared by the Union Finance Minister P Chidambaram, on Thursday the 19th July, 2007, reports PTI. Flemingo has proposed to invest Rs.100 crore.

Being a highly potential business, the airport duty free retailing is drawing interest of many local and foreign players. Since, this business calls for technology and sourcing network, most aspirants have tied up with MNC players. Notable among the major tie-ups in this space are Alpha with Pantaloon, Nuance with Shoppers’ Stop,  Aer Rienta with Flamingo and Aldeasa with ITDC.

Apart from the duty free stores already under operations, Flemingo has also obtained licences to operate duty-free shops at Chennai, Visakhapatnam, Haldia, Goa and Mumbai seaports.

Flemingo has associated with the Switzerland-based Kraft Foods to offer Toblerone, Milk chocolate brands, Maxwell House instant coffee and Tang powdered soft drinks at preferential rates to customers visiting their shops in India.

The duty-free shopping at Indian airports is still a new concept. According to Mr Atul Ahuja, Director, who had spoken earlier to the Hindu Business Line, the average spend in duty-free shops internationally is about $14 per person while in India, it is among the lowest at $2 per person. Customers in India, according to him, require education on the advantages of duty free shopping.

While 70% of the revenue at international airports outside India, for comes from non-aeronautical services, in India, it is just 25%, added.

Retailing at airports in terms of space, ambiance and environment, according to him, was still evolving.