But is it really cheaper to buy goods in duty-free stores than in domestic shopping malls?
Is it really cheap or fake?
The reason why the airport duty-free shop is booming is undoubtedly due to the word tax-free. Many consumers believe that it is much more cost-effective to buy goods in duty-free stores than in domestic shopping malls.
The report pointed out that the so-called duty-free shops refer to the exemption of VAT or consumption tax, and the types of taxes and fees exempted by duty-free shops in different countries are different. But sometimes, the price of goods in duty-free shops is equivalent to tax-free.
Nick Trend, chief consumer editor of Telecom Travel, said in an interview that retailers sometimes put the money in their pockets rather than giving away the exempted taxes and fees.
A company called SkyTour even cited examples to prove that duty-free goods are not cheap: a bottle of Aberlour 12-year Single Malt Whiskey costs 42.69 pounds at the airport duty-free shop, while 36 pounds at Asda, a large supermarket in the UK; DieselOverflow watches cost 182.5 pounds at the duty-free shop, while watches are sold on watches. WatchTown sells for 125 pounds.
To that end, Nick Trend suggests that duty-free stores need to be more transparent and clearly tell consumers where they are exempt.
Seize the airport retail market
According to Boston Consulting Group, the number of global pilots rose from 2 billion in 2002 to 4 billion in 2017. Meanwhile, global tourism revenue, including airport duty-free store sales, has tripled in the past 15 years, reaching $69 billion in 2017.
Not only that, according to CNN, Estee Lauder is also planning to contract Airport advertisements, open new flagship stores and add more shopping functions. For example, Estee Lauder is testing a new feature in Korea that allows customers to deliver goods to their airplane seats by purchasing their products online.
In addition to cosmetics and whiskey, manufacturers of high-end clothing also want a share. Moncler, an Italian high-end clothing company, believes that airports are a good place to attract the next generation of luxury consumers.
Moncler currently has 10 airport stores and plans to add another 20 by the end of next year.
We invested a lot. Luciano Santel, executive director of Moncler, said Moncler was working on developing products for airport duty-free stores and was trying to show them in smaller airport stores in different ways.
Source: Liable Editor of International Finance Daily: Liu Jiayi_NBJS8465