Group 8Arushi Dhamija 20140121018| Jayesh Gawde 20140121034 | Rakhi 20140121052 | Suraj Shivan 20140121072|

Priyanka Sachan 2014012128

Airports as Luxury retail Destination

- Luxury Branding

ContentsIntroduction...........................................................................................................................................2

Background of problem......................................................................................................................2-4

Research Objective................................................................................................................................4

Research Methodology.......................................................................................................................4-5

Research Instrument...........................................................................................................................5-7

Data Analysis...................................................................................................................................7-10

Conclusion.....................................................................................................................................10-11

International Vs Indian Airports.................................................................................................11-12

Implications and Strategies.............................................................................................................13-16

References...........................................................................................................................................16

Appendix........................................................................................................................................17-24

DI’s in nutshell...........................................................................................................................17-24

Bibiliography………………………………………………………………………………………………………………………………….25

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Introduction In today’s era of globally connected economies, airports are emerging as an important and

crucial hub for business and commerce. If one takes out the information boards and luggage

trolleys sprawled across the airports, then many spanking clean and fully air-conditioned

international airports today look like a luxury shopping mall. More and more international

and national airports are now becoming the focus of many high end retail outlets and luxury

brands. As for the consumers, the open plan, door less democratic layout of the stores in an

airport give a sense of confidence and opportunities, many idle travellers who wouldn’t have

wandered in many of the show rooms they otherwise might have felt intimidated by.

Airports provide a wide range of shopping opportunities. Over a period of time, more and

more Luxury Brands are realizing this and are utilising the unlimited opportunities these

swanky and shiny airports have to provide for their promotion, marketing and sales. For e.g.

the $16 Billion Hamad International Airport in Doha, Qatar is considered as a heaven for

luxury and luxury brands lovers. With Tiffany, Chanel, Hermès, Bulgari, Burberry, Chanel

and more, this Airport is considered as a sanctuary for the world’s top luxury brands.

In India, the Indira Gandhi International Airport is considered as one of the most profitable

retail hub for brands. It is the fourth largest retail hub in India with a sales of Rs. 1200 crore

in 2011, but apart from Swarovski and Marks and Spencer and some of the premium high end

brands like Hidesign and Kimaya, not many Luxury Brands are opening their retail outlets in

India. Through this research paper, we’ll try to understand and analyse how Luxury brands

are eyeing the airports and what opportunities Airports in India have that are still left

untapped.

Background of problemAirport shopping is a very crucial part of any global high end or premium or luxury brand’s

retail strategy. With the growth of travel retail (12% w.e.f. 2009), the market for luxury goods

is also expected to grow simultaneously. Invalid source specified.

According to Havas Media’s report on Airport Shopping published in 2013, the value of the

airport retail industry was estimated to be around $46 Billion USD. A majority of this value

(23% approximately) comes from the American Region and 31% of this market comprises of

Cosmetics and Fragrances.

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Airports have a captive audience and yet, not every traveller becomes a buyer. Travellers

coming to an airport can be broadly classified into- Buyers, Potential Buyers (people who

look around but don’t buy) and Non-shoppers (people who don’t even look around). Only

32% of all of these travellers spend more than two hours in the departure lounge where these

high end premium, duty free and luxury retail outlets are located. Only 54% of all the

travellers who arrive at any airport actually buy at an airport and out of these, 57% are

women and 43% are men. 85% of all the purchases that are made at the airports are those

where buyers haven’t decided which brand or product to buy. 34% of the purchases that are

made at the airport are impulse purchases which mean that the buyers have neither decided

the category or the brand nor they are on a physical or mental list.

Airports also offer a wide range of products and categories to its travellers which includes

Beauty Products (which contribute to a majority- 16.3%), Confectionary products (13.6%),

books/magazines, tobacco, alcohol, electronics, souvenirs/ t-shirts, eyewear/jewellery,

bags/purses, clothing and miscellaneous. Although price is the primary motivation for airport

buyrs, other factors are important as well which includes- convenience, product quality,

‘cannot get it home’ and ‘good reminder of my trip’.

When it comes to luxury brands, Ted Baker, Kurt Geiger, Paul Smith, Mulberry, Bulgari,

Hugo Boss, Smythson, Burberry and Harrods, Cartier, Dolce & Gabhana, Gucci, Montlbalnc,

Prada and Tiffany are some of the prominent brands that one can find at a majority of

international airports. LVMH's Christian Dior, L'Oréal's Lancôme, and Bulgari are some of

the prominent luxury labels that dominate the beauty departments of any airport stores.

“The pre-flight shopping experience at Heathrow airport could soon become the norm rather

than the exception, driven by the spending habits of newly affluent tourists from the

emerging markets, China especially. In the specific case of Heathrow, Chinese tourists

represented only 1% of passenger volumes in 2013, but accounted for around 25% of the

airport’s luxury goods sales.”Invalid source specified.

The Indian Market for Luxury items is increasing exponentially and this can be contributed to

rising per capita income, favorable demographics and a shift in preference to branded

products to boost demand. Key growth drivers are the 150,000-plus HNIs (high net worth

individuals) with a net worth of $600 billion. Tier II cities in India are ready to become new

consumption hubs for luxury and many have said that ‘ladder to luxury’ is the ideal

marketing strategy to penetrate in these towns followed by the e-retail route.

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With ever increasing air traffic and a potent base of affluent customers, Airport offers a

unique opportunity to build brand awareness, increase recognition and maximize sales

potential on a global scale. If we analyse the travellers who come at the Delhi Airport, then

typically the domestic travellers comprise of 30% Entrepreneurs, 92% Sec A and 50% are

Middle/Senior Level Corporate Decision Makers. 83% of these are With MHI Above Rs

50,000. The International travellers can be segmented as 91% are SEC A, 78% are

middle/senior level corporate decision makers and entrepreneurs and 94% have an MHI of Rs

50,000 and above.

Thus, even though the Indian airports witness good footfall and can be utilized by Luxury

Brands for their marketing, sales and promotion, the capacity and capability of Indian

Airports are not as utilised as the airports in foreign and through this paper, we will try to

analyse how they can be utilised further.

Research ObjectiveTo understand how Luxury Brands are utilizing Airports for their sales and marketing and; to

understand what opportunities Indian Airports are able to provide to Luxury brands as and

how different they are as compared to Airports in foreign.

Research Methodology /Data Collection Methods:

Techniques for collecting data follow a particular method in order to maintain reliability in

the research findings. Studies in many subjects requires plenty of field work using several

techniques such as observations and surveys (questionnaires). This fieldwork requires serious

rigour and method so that the research can be carried out in an optimal way. Apart from these

techniques, in other subjects/topics such as psychology and politics, research is carried out by

studying existing data such as documents. This procedure is known as Deskwork, it involves

collecting data from libraries, data bases and institutions. It depends on the researchers and

the chosen topic and field of which technique to be followed.

Documents: We found several reports and writings to analyse and comprehend its relation to

our findings. There are several kinds of sources to obtain these documents such as library

based, computer based or historical archives. These documents can be in the form of media

documents such as newspaper, magazine articles, documentaries etc. One needs to be very

careful in using these documents as reference as the purpose of the research and the sources

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used might not be very reliable or aligned to the need of the topic. Few documents that helped

us in making our research simpler are:

Airport Retail Flying High, By Robin Mellery-Pratt September 5, 2013

Luxury cosmetics find airports to be the perfect “face” for their brands! By

www.jcdecauxna.com

Brands choose airports as locations for innovative marketing campaigns By Raymond

Kollau January 7,2014

Interviews: An informal mode of communication between two people, this could be shop-

along interviews or in-depth interviews. Another method is Focus Group discussion which

allows the coordinator to understand the perception of multiple individuals involved. A DI is

loosely structured giving freedom to both the interviewee and interviewer to explore

additional aspects and change in direction of the interview. It is a qualitative technqu of

collecting data and offers the opportunity to capture rich, descriptive data about people’s

actions, attitudes and perceptions. They can be used as a stand-alone research method or also

as a multi method design. The interview is carried out by conducting a set of pre-determined

set of open ended questions. Projective techniques can also be integrated in the interviews.

Research Instrument (Depth Interview)

Depth Interviews is a time intensive evaluation technique which produces high quality and

rich data from an interviewee. It is very important to use effective interview techniques, such

as eliminating yes/no and leading questions, using suitable body language and keeping their

personal opinion in check. The process for DI followed the devised path of planning,

developing protocol and then collecting and analysing data to disseminate findings. We

identified our list of stakeholders to be interviewed, they were mostly people who’ve

travelled across the globe and prefer air as their medium to travel most of the times. Then we

developed an interview protocol – guidelines to be followed during interviews. These

instructions were to be followed for each interview to ensure consistency and in turn increase

the credibility of the findings. We used the funnelling technique by questions that starts with

generalised questions related to the research problem and then it gradually narrows down to

specific details. The interview should begin with a broad scheme of questions related to the

research objective, then it moves to open ended questions as per their responses and advances

further with closed ended questions. Mentioned below is the devised protocol for this

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technique. By this technique we wanted to understand the difference between the psychology

of captive audience at the airport and audience at the stand alone retail outlets where a person

can walk away any time. By this we will get an idea how effectively luxury brands are using

airports as a medium to communicate with its potential customers.

Interview Protocol

Tell us something about yourself.

What are your hobbies?

How frequently do you travel? When was the last time you travelled?

Was it in a group or alone?

Which all airports have you been to?

Describe your experience at the airports. What do you do in your time before flight?

Do you prefer shopping at the airports? Why/Why not?

What kind of stores do you prefer to visit when you are waiting at the airport?

Are you looking for discounts/duty free or luxury products?

Have you ever purchased any luxury product at the airport?

What was the purpose of this purchase? (Impulse buy/ As a gift/ Planned) What

prompted you to buy? What were your expectations?

Can you recollect any luxury brand that advertises at the airports?

What is your opinion about the price level of luxury products at the airports?

Any difference that you’ve noticed between the stand alone retail outlets and the

brand stores at the airport?

Is there any difference in the experience or price points between these stores?

What is your opinion of the price level of luxury products at the airports?

You usually buy when you travel alone or in groups?

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Are you more interested in buying global brands or Indian brands at the airport?

Data Analysis Respondent 1 Shop carefully since you have to make most of it

Gets confused with lots of options

Buy stuff not available in India

Attentive store mangers

Shopping at airport is mostly Group activity

Better layout at airport than retail stores , more open format

Products display also invites at airport

Cheaper at airport hence don’t miss opportunity

Dint see any ads and promotions at airport

Respondent 2 Shops during waiting and transition time at airport

Perceived as low taxed hence cheaper than retail store

Good for gifting purposes

Popular gifting options : chocolate and liquor

For self-gifting options: scarf and perfume

Prefer bags and clothes from outside store as staff is in plenty and

they have better knowledge

In transit routes have more number of stores compared to

international airports

Don’t have to be dressed well for airport’s luxury store as you are

travelling and that’s more comfortable shopping

Saw ads in inflight magazines

Respondent 3 Waiting time at airport is mostly spent at book stores or luxury

brand stores.

During long halts at international airports, usually shop.

Planned shopping at big airports like Dubai

Shops at airports are beautifully lit- attract attention, specially

their name banners

International airports have all the luxury brand shops in a row-

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easy to reach and scan through unlike malls

Staff at airport outlets are more courteous

Shopping as an experience is poor at Indian airports, congested at

airports as stores are smaller as the airports are also smaller

Staff at Indian airports tries conveying and convincing a lot to the

customers, diluting their experience of visiting the store.

Respondent 4 On visiting airports, often buys chocolates, liquor, scarves and

perfumes

Buys as gifts or for self

Gets to know about luxury brands through magazines or

recommendations of friends or on seeing friends buy , look for

them on international airports

In luxury products, look for brand heritage and quality

Looks out for new collections of merchandise at airports,

sometimes some products/designs are not available in the same

brand’s outlet in malls or elsewhere

Sales rep at airports do not poke

Usually shop when coming back to base location

Respondent 5 Leisure traveller, love to travel light hence buy stuff at airport

Buy luxury products well planned

No impulse buying, thinks that’s waste of money

Best deals at airport , due to low taxes

Don’t buy apparel, prefer same brand stores nearby causes it takes

time and efforts to change clothes when you are traveling

Love fragrance at cosmetics store, the reason for entering into

such high end cosmetic store

Buy luxury perfumes for gifting peers and relatives

Dint see any form of advertising on airport for luxury brands

Respondent 6 Love to buy from airports internationally compared to Indian

stores of same brand.

Don’t recall advertisements of luxury brands

High fashion models is more of the representation

Keep a track of luxury brands that I have so that I don’t buy same

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thing again

Shops for self and other members of the family, with the list of

requests

Assume prices are lower at airports owing to tax free nature

More variety of brands available so don’t miss out any opportunity

buying at international

Buy items on return journey and plan everything on what all stuff

to buy

Respondent 7 Waiting time at airport is spent in restaurants, looking at TV

displays, browsing through shops ,internet

Visit duty free section, apparel shops or gadget shops. Never shop

for jewellery, bags, shoes, perfumes etc.

Like shopping at airports because the brands present there are

different from the usual ones at malls

Bought a couple of apparels from airport because never got them

in malls or markets

Feel the same brand has different collection for airports, some of

which is not available in Indian shops

Notice OOH ads on airport due to their presentation style

Luxury brand usually don’t do ads, notice their names written

above outlets and their outlets

Rolling flexes had some ads for luxury brands

Luxury products have a different appeal; their allocation in stores,

feel of the store, exclusivity by keeping just one piece of every

design

On grounds of product quality, premium brands can easily give

them a competition. So it’s more about the brand aura

Often, curiosity about the brand pushes towards the stores

Airport staff and customer treatment is better, may be because

international footfall happens a lot

Feel luxury brands are very clear about their TG. Don’t seem

desperate at all to attract customers. On Indian airports, this

varies .Here the staff looks pushy/desperate to impress every

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customer.

Respondent 8 Time on airport is spent talking on phone. Surfing net or browsing

through shops

Don’t really like shopping at airports, but a couple times, found

the stores so attractive hat visited them and ended up buying.

Chanel and Davidoff perfumes

Ads at airport attract a significant part of attention while sitting or

roaming. For luxury brands, the banner showing their names

attracts attention.

Shop luxury products mainly for self or gifting

Discounts attract, duty free whether cheap or not, the word free

itself has a psychological impact

Bought luxury goods on recommendations

Luxury brands give a sense of long lasting quality. That is only

yours(exclusivity).So feel like buying them

In India, luxury brands have larger stores at malls. But you have to

walk a lot. At airports, though shops are smaller, they are

collectively present in confined zone.

Ads at airports are large, usually bright, sometimes too creative to

be ignored. Plus airports themselves carry an aura of being posh,

so do the stores.

ConclusionSince 2009, the market for travel retail has been reported to be growing at a rate of 12% and

is expected to multiply manifolds in the coming years. Wondering how this industry is

catching up so fast, we decided to ask the travellers themselves what makes them shop at

airports. While discussing their experience and the entire journey of air travel, a significant

part of everyone’s memory was occupied by the time they spend at airport browsing through

the shops, for it is one thing they usually did not get involved much into when busy with

daily chores.

Talking to respondents brought out some interesting observations:

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1. For some, airport becomes a shopping destination to buy those designs and products

of a brand which are not available in their retail outlets and in malls. This observation

was common to both luxury and premium brands.

2. Respondents felt that one of the reasons for shopping at airports is also the waiting

time and the aura of the stores at airport - flashy, glittering, on the face, brands not

seen easily in malls and market. They said it felt like they were made curious or grew

curious on seeing those ads and outlets, especially luxury brands which had the

element of expensive, famous and “not everybody’s cup of tea”- all in one.

3. People do buy goods at airport. Two major shopping points- duty free and luxury

goods. Duty free because of lesser prices than market. Luxury goods because for

some airports are the only point where they encounter these brands and for some the

perception is that these goods would be expensive in other outlets. But, impulse

buying was never applicable in case of luxury brands.

4. First moment of truth - Maximum awareness about luxury goods was passed on to

respondents through magazines, recommendations from known people, Instagram and

celebrity style decodes on internet.

5. Some also said that despite having no intentions splurge, the luxury brands at airports

have such attractive stores maintaining a surrounding that smells of style,

international feel and an aura/attitude that only a brand of their stature can carry. This

pulls customers to visit the stores and shop eventually.

International Vs Indian Airports

International airports Indian airports

Stores of most luxury brand are placed at one

confined area, mostly in a row- easy to

locate, scan and see all at once.

Scattered outlets, sometimes even in

corners. This makes them less reachable

and noticeable for customers.

Staff is more concerned about giving the

potential customer/visitor a feel of the brand,

basically helping them experience the brand

through its store, free movement of

customers allowed.

Staff seems to be inclined towards

converting each visitor into a customer,

throwing a lot of information at them,

which at times gets irritating.

Bigger stores, better feel. Smaller, congested stores. Dilutes the

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shopping experience.

Indian luxury consumer prefer to buy luxury goods at international and foreign airports even

if the same store is available at Indian airport or in their city. The primary reason being the

staff at Indian stores. Indian sales representative are looked as under-prepared, their lack of

understanding what brand stands for and importance of its heritage leads to overall loss of an

important factor in them “ conviction“. Seeing the background of general staff being from

middle class Indian they fail to see the necessity of a luxury brand. Secondly their main focus

is on sales and number games hence some end up being too pesky and pushy. They try to

over sale the product, ruining the whole buying experience for the buyers, who wants to

explore the store and wants assistance only when needed.

Second reason for people buying from international airport outlets is that they have bigger

showrooms and are less congested, there people have full freedom to look and feel the

product they want to buy. At their Indian counterparts the store size is smaller due to space

constraints at airports leading to a deduction in the overall experience at store.

Third reason for people buying at international destination is the product variety at their

stores they get various options to choose from, luxury buyers are looking for exclusivity in

the products they buy. At their Indian counterparts, luxury brands have a lag in getting the

first products of new seasons. Also they have a serious concerns about counterfeit products

that one might get in Indian retail store. Hence if a luxury buyer gets an opportunity they take

it at first go.

A common trend that one sees across, Luxury buyers are not ready to compromise on the

experience aspect they get in high end stores. Stores at international airport seems to have got

it right in terms of overall buying experience while their counterparts in India are trying hard

to emulate their success.

Implications and StrategiesAirport retail outlets world over are beginning to be termed as the sixth continent as its

overall value will soon rises to $ 120 Bn dollar industry by 2020. Just after you clear the

security check and as you wait for the boarding, this particular time period is been referred to

as the “Golden Hour” or “Magic Hour” where passengers can relax and shop. Fuelled by the

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voracious appetite of the new rich and the burgeoning middle class of China, Brazil and the

regular shoppers from the Middle East & America waiting time at airports are no longer seen

as halt towards their destination but an integral part of their journey. This is what Dubai

realised early as it built the biggest airport mall in the world to essentially act as a gateway

for flights heading to the East. Its revenues in the year 2012 beat London’s Heathrow airport

and its 5 terminals for the first time and by 2020 is expected to reach double the profitability.

Travel retail is seen as an International gateway to market their brands. Luxury Brands are

keen to get a slice of this action as attaching itself to an airport of International repute nestled

among super brands adds to its appeal of exclusivity. But what started out as standalone small

stores is big business and now is a major part of their retail operations. Heathrow, Dubai,

Changhi have now become destinations in itself as Luxury brands compete with each other to

capture attention, create installations, run advertisements and short movies on giant TV

screens or offer a personalised shopping experience to their exclusive clientele.

The major factors for this shift have been the rise in travellers with excess of half a Billion

flyers last year. The majority of those who travel are from SEC A or B who travel on

business, leisure or a mix of occasional travellers who mix both. This high density traffic

especially

But Airports are also seen by Luxury brands to introduce a new set of buyers to the fold as

the open door system of shops in airports makes customer experience less intimidating and

less of a “Pretty Woman” effect where one would suffer a crisis of confidence when entering

a high street store or a store in the mall. The fact that you are a traveller and would be in

comfortable clothes while roaming around the terminal is well accepted as it eases you into

your comfort zone while shopping.

BIG DATA

The future of airport retail especially for the luxury is one of Big Data and hyper targeting of

individual customers entering the terminals. The space needs to evolve from travel marketing

to traveller marketing

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The airport operators need to fill the brands with precise information on passengers, numbers,

destinations, parking information and time periods they plan to spend in the area to allow

them to target customers, change store layouts, displays, promotions to target a specific

profile of passengers at a given time. This platform of data that is action oriented can be used

to understand the full life journey of the customer to increase customer satisfaction, ticket

size and loyalty.

This will also reduce costs and increase flexibility as well as bring in more revenues to all

stakeholders involved. For example having English passengers enter the terminal in the

morning would mean, using the big TV screens in the terminals to showcase luxury drinks

like Johnny Walker Black or fine Champagnes essentially plugging in various key contents of

a brand that the target audience has a penchant for buying.

When another nationality say for instance people travelling to Jamaica for instance in the

afternoon, promotions of Hennessey and exclusive Rums would be on display. This creates

an impression to consumers who are weary from their travel that brands care and increases

the desire for the customer to spend.

The high diversity and international  outlook in an airport is an asset as it boosts the traveller

profile, and creates new ideas to tackle it from having Arab speaking assistants when a flight

from UAE lands or orienting a store towards the right as Chinese customers generally shop

from the right to the left. Similarly stores also feature smaller bags when travellers from the

East turn up as they prefer to buy smaller bags than bigger ones. Since it is obvious that

passengers plan to spend more on when they are on holiday it is essential for luxury brands to

act accordingly by creating environments by using data to let them do just that.

NEW TRENDS

Even the age of just putting up a store in major airports is going away as these outlets

contribute significantly to their business so much so that Chanel created a perfume line just

for its airports. Bespoke luxury environments at great cost matching to the high street,

accommodating the open plan store has become a necessary to stand out. Heathrow has over

200 luxury brands spread across terminals which are a shuttle away competing against each

other which prompted Luis Vuitton to create this facade essentially pushing the boundaries

on what an airport store is supposed to look like.

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Even Hermès wants to revamp its boutiques located in about 50 airports around the world to

immersive and experiential customer shopping zones.

,

Location specific experiences such as live local music at luxury goods outlets in Switzerland

or California, or complimentary ayurvedic messages after shopping gives the customers

something new to look forward to.

With the level of interconnectedness tablets and mobiles offer us, brands can tap into this

stream of behaviour to target people at various points in their shopper journey. Right from

helping them choose the location of their layover to providing them information on the ranges

of products they have on offer as they sit in the flight and read the in flight magazine on their

tablet showing them the store location to allowing them to pre book, deliver and gift wrap

whatever the need be, an invisible but attentive shopping assistant giving them experience

which is unparallel.

IMPLICATIONS TO INDIAN AIRPORTS

A collaborative attempt among airport retailers, airport operators & Duty free shops are the

need of the hour in the Indian ecosystem. While Mumbai and Delhi airports offer such space

for the luxury brands, it is not properly planned out. The inclusion of mass market chains

such as WH Smith & Curry’s along with the likes of Chanel or Gucci dilutes the luxury

aspect of shopping. Catering to the needs of all ultimately caters to the needs of none. With

expansions in Bangalore and Hyderabad airports underway and construction of new terminals

it is imperative to have a plan of action on the type of services being offered especially luxury

goods to people at their stop over. India needs to battle the perception of offering counterfeit

goods in its market by collaborating with luxurys retailers to launch one of a kind signature

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collections aimed specifically at the Airport retail segment which blends in western

manufacturing and craftsmanship with Indian aesthetic at its core to tap into luxury buyers

needs for uniqueness and exclusive offerings.

Indian airports need to tap into the information to create strategic plans for their duty free

area including factoring in variables such as customer profile, flight timings, purchasing

behaviour, appropriate atmosphere, well trained staff, a combination of right kind of products

for the right kind of customers to tap into the luxury goods segment.

As was discussed earlier with several brands keen to make major investments in its airport

retail set up, Indian airports need to provide them the safe to create unique one of a kind

stores that match international standards as well as enhance their overall shopping journey to

emerge as a world beater and position themselves as shopping destinations.

With China set to launch 100 airports in the next 10 years it is time India moved to grab a

slice of this pre-flight shopping culture before it is too late.

ReferencesThe luxury opportunity. (2015). Retrieved from www.deloitte.com:

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/consumer-business/deloitte-uk-consumer-the-luxury-opportunity.pdf

Kwan, S. L. (2008). A customer survey of Chinese travelers in airport duty-free shops. Retrieved from Laurea University of Applied Science: https://publications.theseus.fi/bitstream/handle/10024/3830/Kwan_Siu%20Lan.pdf?sequence=1

Media, H. (2013). Airport Shopping. Retrieved from WARC: http://www.warc.com/Content/ContentViewer.aspx

Pradeep Krishnatray, H. D. (2011, November ). Luxury in India: key drivers of a growing market. Retrieved from WARC: http://www.warc.com/Content/ContentViewer.aspx

UK, E. (2016). A Comparison of Buying Behaviour toward Luxury Goods in UK and China. Retrieved from www.essay.uk.com: http://www.essay.uk.com/free-essays/marketing/buying-behaviour-toward-luxury-goods.php

Walker, R. (2014, july 14). Luxury Brands: Eyeing Opportunity From A Captive Airport Audience. Retrieved from Euromonitor: http://www.portal.euromonitor.com

Appendix

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DI’s in nutshell

Respondent 1 – Male 34

Airports are like malls where there is a deadline to how many hours you can shop so you

make the most of it. I don’t travel very frequently but I have travelled to KaulaLampur and

Singapore airports recently where there are a lot of luxury brands. We mainly bought luxury

liquor brands as these aren’t available in India. I also bought a Chanel lipstick. What

prompted me to buy that was the very attentive store assistant who was holding my shopping

bag for me as I tried on lipstick and she seemed very knowledgeable.

I was with my family so shopping was a group activity. We usually don’t buy luxury brands

as high street stores are intimidating to enter based on the prices written in the store windows

but in airports it’s an open plan where , there are no doors or window displays so you could

just walk in and browse whether you want to buy it or not. When I look at the brands in

Airports, I feel like getting enough money to be able to one day buy them. I remember seeing

Tiffanys advertising on giant TV screens in KL. The hoarding’s on the side of walking

escalators also had an alcohol brand advertising it but can’t recall who it was.

The reason why we bought the luxury alcohol brand was because of a large bottle kept in the

shape of Eiffel Tower which really attracted our interest. This prompted us to buy this Wine

away from the duty free area where we usually as a family buy in bulk especially chocolates

& perfumes.

The price level I feel is low in airports as they aren’t taxed.

Respondent 2 - Female 28

I have been airports in London, Dubai, Los Angeles and Singapore in the past year with

plenty of waiting time spent in these airports. These airports build awareness on what brands

are internationally popular and carry a lot of prestige. Plus compared to high street stores

which are subject to luxury taxes especially in stores in India, airports offer a better deal. The

store might have only the popular and bestselling items and not enough range but they aren’t

very pricey so it’s ideal to buy for gifting purposes like a perfume or a scarf.

High street stores are better for bags and clothing as there are more options and the

employees know a lot about the products more than the ones in the airport. In high transit

routes like Heathrow and Dubai, there are a large number of brands available as compared to

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Delhi but India seems to be catching up ever since Mumbai has a new International terminal.

The ambience of these stores in Airports isn’t as personalised as that in high street stores. But

the great thing is you don’t have to be dressed well to enter one of these airport stores as

everyone is a fellow traveller who is dressed in comfortable clothes.

The medium’s they advertise in airports vary but these luxury brands use the power of their

appeal to draw in customers and usually many of these travelling customers are first time

buyers. They would never visit or seek out such a store in the mall or high street.

I also see luxury brands advertising in In-Flight magazines where I note what products are on

offer and what’s so I check out only those stores when I land at the airport.

DI Respondent 3 - Female 21

Travelled to all international airports India and in abroad Thailand, Singapore, Malaysia,

Macau Hong Kong, and Dubai. Time spent is mostly at book store or luxury store or niche

store in India. But when she has long halts at international airport she buys from airport. Plan

her shopping on big airports say Dubai. Airport has big aisles and shops are in line not like

mall, no turns. Brand name is most important. Generally buy along with friends and family.

Stores are in order and have big layout. Even scarf is posted on glass cage. Everything is

artistic. No promotions or sales at all for high end luxury store. Big fonts and big brand name

and people to help you around. Happy to buy luxury for cheap but not in India. Exclusivity in

store and store catalogue matters. No digital promotions at all. Staff matters international are

courteous but Indian are pesky or don’t bother at all. Buys Chocolates, Perfumes, belts,

shoes, beauty products not available in India, no bags as the leather peels of due to Indian

weather. Guys are very sorted while buying but girls look around and want to explore.

Experience at airports is cluttered and have less space and congested experience is not

comfortable. Big airports abroad also has, food outlets, forex and toilet break at regular

intervals at foreign intervals. Also buys tourist items. Store managers are well updated with

product knowledge and they suggested good alternatives and helped them choose better

suited product. Staff can make process fast and slow. Price range is also better in Dubai store

versus Indian airport. International airport also has more credibility, more products range,

newer and innovative. Mostly buy on way back home. Some luxury store offers pre-buy that

helps a lot. She can’t recall Indian luxury brand. When same brands are available at

international she prefers international but not store in India similar for stores in malls. Stocks

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are good at airport and have better variety compared to Indian stores. At hub airports she will

prefer to buy fast moving luxury brand at smaller airports and more durable items are bought.

DI Respondent 4 – Male 29

Travelled to major international destinations for holidays and also has relatives in London

and Dubai. Mostly buy cheaper luxury goods like exquisite chocolate, liquor, perfumes and

scarfs as gift for close friends while buy really expensive one for self. Get to know about

newer products of brands via magazines and websites. Sometimes friends flaunt their new

products and then I register new brands and products and keep a looking for them during

abroad travels. In luxury brands look for brand heritage and product quality. Wants finer

things in life. At bigger airports gets confused looking at number of luxury stores and their

products, twice or thrice bought goods on impulse and the thought that we might never visit

this airport again. Else they buy for gifting purposes on major holidays. At airport stores look

out for newer collections and new trends which comes late to Indian stores. Also at

international airport they have options of both multi brand store and mono brands store. For

more expensive items like shoes and clothes prefers mono brand stores as they have better

sales representative and ambience. Sales rep lets you guide through choices and explains only

when asked to without being nosy. Sometimes few products are shown on internet but

personally loves to feel the texture and feeling of the product before buying also in India

there is a fear of getting counterfeit goods which are very hard to distinguish. Comparing

Indian airports to international:- International are big and broad with more space and better

staff. All the stores in the airport are clearly visible with very less corner stores. Utility

counters are also kept nearby which helps a lot. Best part is if luxury stores are near first class

lounge since it becomes easier to rest after shopping for about 3 hours at stretch. Most Indian

airports have no planning and smaller outlets making luxury feel premium this takes away

fun element. If compared to Indian mall outlet international airport outlets are big and have

greater and newer collections hence prefer shopping while coming back from vacation or a

trip.

DI Respondent 5 – Female 28

I mostly travel for leisure purposes but I’ve had a lot of travel opportunities because of my

profession too. Last year I visited Czech, Hungary, Netherlands and Austria. I travelled for 2

weeks straight. And as I was visiting a friend of mine I had a lot of luggage to carry so I did

not want to go to any store to buy anything that I will have to take care of during the flight. I

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am a light flyer. I was travelling alone and in my waiting time I preferred to eat than to look

at stores. Even when in groups, as far as I can recollect I always get something to eat or drink

rather than looking at products if I don’t have anything specific in mind.

Luxury purchases for me are not impulse. I think there is a difference in price points of the

stores at the airports and the stand alone outlets. I make sure I buy high quality liquor

whenever I’m travelling back as its duty free and airports provides best deal for them. It can

be used for gifting or otherwise. I would never buy clothing at the airport, I will never take

the pain of trying clothes there I think. But for cosmetics, I’m allured by the fragrances a lot.

I just cannot ignore the fragrance in the air whenever I pass by a store like that. I’ve bought 2

perfumes (DNG) at the airport both for gifting purposes, one to my boss and one to a friend

of mine for her first anniversary. I found a huge deal for that pair of perfumes otherwise I

wouldn’t have bought it. I cannot recollect any hoarding/advertisements at the airports but

I’m sure to have seen some. Luxury brands are important, but they are sometimes way too

expensive for their worth. SO I am not very particular about buying them.

DI Respondent 6 - Female 24

I recently travelled to Dubai. Given a choice, I would buy things at the airport not at the

standalone outlets reason being accessibility of big brands under one roof when I have

nothing to do. Also, the brands at the airport just feel fancier. I cannot recall any

advertisement by any brand that I might have seen. But I do remember pictures of models

outside stores like UCB and all. I did not buy any luxury product at the airport. I went inside

Burberry and Chanel. I already owned a perfume from Burberry so I didn’t buy anymore.

And did not buy anything from Chanel as I had quite a lot of fragrances stocked up, I knew

before entering I might not purchase anything. But the store looked brilliant so I had to enter.

Long back I did purchase Kate Spade bag at the airport, I think that was my first purchase at

the airport other than chocolates and liquor that people ask me to get. I am convinced with the

prices that luxury brands pose them to be at I will take time to reach that stage when I can

buy these things without giving much thought. I am not very sure but I think prices at the

airport are lesser owing to the tax free rule. There are more brands available at the airport

than I might have access to in the malls. I usually plan to shop at my destination city/country

and only while returning I feel like purchasing something at the airport.

DI Respondent 7 – Female 29

Asst.Manager Wipro (2010-present)

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Hobbies – Travelling, Cricket watching (Travel to explore new culture and cuisine and their

specilaities, adapting to new environments)

How frequently do you travel – Every alternate month (both national and international- a lot

of international like Chicago, Singapore, Australia, UK,San Fransisco,San

House,Mineapolis,Maldives

When was the last time you travelled – 2 weeks back-Chicago-Work

Were you travelling on your own or were you in a group-Alone

How frequently do you use air travel – 95% Time is a bigger consideration than money( 70%

official and 30% personal)

Which airports have you been to? -

Describe your experience at the airports, what you do in your time before the flight- Collect

boarding pass, security check, sit in lounge/resto, read newspaper, browsing internet,

TV,browse through diff shops,eat a lot n work. Shops- duty free shops giving tax free

imported products , gadget shops and go to apparel shops.Not bags, jewellery,perfumes,

books.

Do you lie shopping at airports, why? Yes. Sometimes shop. Some brands which are not

usually available in nearby markets are present there. Felt there is a trend of the same brand

having diff kind of collection in usual retail and airport stores. Cross checked this. Retail

outlets said they don’t have a piece that you saw on airport. Left buying a couple of times due

to high price and hoping to get in retail shop. Didn get it. So bought some apparel once or

twice. Buy something or the other everytime from duty free section. Dubai has the best

collection in its duty free section.

Do you notice the ads and promotions at airports? Why/Why not? Yes. Do it a lot. Coz I like

the way the ads are presented/projected at airports. Lively, sometimes rolling screens.,

creative presentations. Feel the way advertisements were done has been transformed, and this

is clearly visible on airports. Observed ads of LB on airpots as well. Watches, clothes, bags.

What was the main reason for your shopping? Gifting/ocassion/self – Self

Can you recollect any luxury that advertises on airports? GUCCI, LV(Max), Ferragamo,

Chanel.

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Can you recall the mediums these brands advertise in airports? Rolling flexes, brand outlets,

not on walls

What kind of stores do you visit when you are waiting at the airport? Already answered –

visited LB outlets. The products had a very diff appeal compared to the usual good outlets

you visit like UCB, Allen. The collections are limited but it feels like they are selling

something extremely precious like jewellery.Every piece is unique and has no duplication.

The way the staff tretas. The presentations style is very nice.

Are you looking for discounts, duty free or luxury products specifically? First, the appeal and

curosity to see them closely and see what extra do they have. The finishing of the products is

nice. Not sure if their quality and product has anything stark different diff from premium

brands. Feels it’s more about the name and branding. Not on product grounds. Hence, Sceptic

to spend 40-5-K for LV .Rtaher would buy 10K bags of premium brands.

It might be diff for an upper class woman. For me, quality and usability.

Did not find all LB aspirational. Like LV. Some brands make an entirely diff kind of

products.They gave a feeling of uniqueness. On Delhi airport, Wanted to buy a laptop bag.

DA MILANO- had amazing product, diff from the ones available in malls.Thought would

buy it from mall, but never got it. So missed buying it.Will surely buy it next time.10K but

worth it.

Have you bought a luxury product? Ferragamo perfume-6K,D&G – perfume(self)

What prompted you to buy? – Curious about the brand that it is so expensive. Heard from

friends that they were good. Product was worth the money.

What were your expectations? Should be worth every penny.

What type of products do you generally/normally want to buy at the airports?

What is your opinion about the price level of luxury products at the airport – only for upper

class. Overpriced.

Are luxury brands important to you? If so, what luxury brands would you like to buy – not

imp. Dnt aspire for them.pretty satisfied with premium brands.

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Any difference that you've noticed between the stand alone retail outlets of the brand and the

outlets in the airport – malls. Difference- airport staff n customer interactions are better

dressed, better interaction, shops are more attractive. 5% difference.

Do you buy when you're in a group or when you're alone? Do your friends - alone

Are you more interested to buy global or domestic (Indian) brands here at this

airport ?

Have you seen and bought luxury brands at an airport in India?- no

Opinion- they are very clear about their customers. Not bothered of reaching out to everyone.

Should try and reach out to middle class.

Opinion- they are very clear about their customers. Not bothered of reaching out to everyone.

Should try and reach out to middle class.

DI Respondent 8- Male 27

Data Analyst, TCS, Dallas,Texas, onsite

Hobbies –Photography, basketball, travelling

How frequently do you travel – once in 2-3 months- personal

When was the last time you travelled –

Were you travelling on your own or were you in a group-

How frequently do you use air travel – 30% air travel, train , bus, bike

Which airports have you been to? – Delhi, LA,Las Vegas,

Dallas,Frankfurt,Ahmedabad,Pune,Dehradun

Describe your experience at the airports, what you do in your time before the flight- Get rid

of all formalities. Then roam around.Talk on phone.Internet.Window shopping. Shopped in

duty free section.

Do you like shopping at airports, why? No. But find the items attractive. So ended up buying

a couple of times. Don’t really shop at airports because I already carry all necessities.

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Do you notice the ads and promotions at airports? Why/Why not? Yes. Actually they are the

first ones to attract my attention because they are bright, placed right in front of your visible

zone.The habit to keep looking ,sometimes makes me dig into products and their ads.

What was the main reason for your shopping? Gifting/ocassion/self – Self/ and gift

Can you recollect any luxury that advertises on airports? Picard, Gucci, Hugo Boss,

Swaroski,Diesel,LV,Mulberry

Can you recall the mediums these brands advertise in airports? Banners on top of the

hops..basically outlets

What kind of stores do you visit when you are waiting at the airport? Food, electronics,

perfumes, belts, shades

Are you looking for discounts, duty free or luxury products specifically? The word free has

an effect at the back of the mind. Look for discounts as well. Will buy LB if at sale.

Have you bought a luxury product? Perfume – Chanel, Davioff

What prompted you to buy? The brand, the feedback. Feedback assures quality product. I

would use what I like, irrespective of multiple LB serving same products.

What were your expectations?

What type of products do you generally/normally want to buy at the airports? Wish to buy

watch and perfumes.

What is your opinion about the price level of luxury products at the airport –

Are luxury brands important to you? If so, what luxury brands would you like to buy – I think

their effect and the product lasts longer. I see the return I will get after investing so much..

Any difference that you've noticed between the stand alone retail outlets of the brand and the

outlets in the airport – At airport, outlets are smaller, easily scanned. Malls have larger stores

plus makes you walk a lot. Airports have an aura of posh location. That compliments the

brands standing there.

Do you buy when you're in a group or when you're alone? Do your friends - alone

Are you more interested to buy global or domestic (Indian) brands here at this

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airport?

Have you seen and bought luxury brands at an airport in India? No

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Media, H. (2013). Airport Shopping. Retrieved from WARC: http://www.warc.com/Content/ContentViewer.aspx

Pradeep Krishnatray, H. D. (2011, November ). Luxury in India: key drivers of a growing market. Retrieved from WARC: http://www.warc.com/Content/ContentViewer.aspx

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Walker, R. (2014, july 14). Luxury Brands: Eyeing Opportunity From A Captive Airport Audience. Retrieved from Euromonitor: http://www.portal.euromonitor.com

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