Indian Travel Retail on the rise

Empowered customer

and airport’s response

They want different services

1. Personal / Privacy / no demand for service

2. Recognition / special service expectation

3. Fairness

Question 1

• What is the demand & travel pattern of future passenger

- what will the travel experience

- what is the demanded service

- what implication for commercial performance

Question 2

• How do we define our industry / our service

- where do we look (brands/operator/airport)

- Are we agile enough

- What is our specific value proposition

in our holistic offering

a combined question from these 2 stories

Are we ready to implement the services for tomorrow passengers to best satisfy their commercial expectation and demand?

- are we capable

- are we committed

- are we smart enough

Bangalore- the gateway to south India

• Vision

• Passenger increase (operational efficiency)

• India’s Aerospace Hub

• India’s one of largest Consumer Market

• Cosmopolitan Culture

• Over 688 Multinational

Companies

• Home of 87 Global Fortune 500

companies

Source : Thoughtworks

Bangalore Airport

Region/Traffic (Mn.) Domestic International Total

South India 42.41 21.22 63.63

North India 40.72 14.84 55.56

West India 38.7 12.81 51.51

East India 15.48 1.99 17.47

Total 137.31 50.86 188.17

Bengaluru

(FY 2014-15)12.47 2.93 15.40

BIAL is 3rd Largest (Overall Traffic) Airport in the Country

- Privatized airport

- Emerging market

- Regional airport

A look in our passengers

Source : Thoughtworks

Source : Thoughtworks

Source : Thoughtworks

New Customer• E-commerce is becoming a dominant channel

- modern retail from 17% to 13% between 2013 to 2019,

e-commerce from 2% to 11% (source : mint)

- India has 353 million internet users (only 20% of population)

- Indian e-commerce USD 60 billion in 5 years (source : edaily)

• New customer means empowered customer - more information

- higher demand

- instant voice

BIAL response

Upcoming T2

HOTEL

T1

T2

PARKING

PARKING

PARKING

FORECOURTT1-T2 RAIL STATION

BIAL response

• Complete self-service competency

• 360 degree information (self-empowerment)

• Re-defining the space itself

• Holistic design of total journey

Source : Thoughtworks

BIAL commercial

Aeronautical / Cargo Fuel

Non-Aeronautical/ Commercial

BIAL commercial

Retail

Food & Beverage

Lounges

Landside

Advertising & Promotions

BIAL commercial

International, 61.2%Domestic, 18.2%

Kerbside, 5.2%

Landside, 15.4%

BIAL Duty-free

LiquorTobacco

Perfumery

AccessoriesFashion

Foodothers

TechnologySouvenirs

Indian Travel Retail

• Rapidly growing market with increasing travelers- In-India TR or By-India TR

- cheaper tickets to boost 21.13% increase in July 2015

• Price sensitive market - Early stage of TR (shopping will become an integral part)

- But brands loyalty is also growing

• Customer perception / behavior - 96% look for info before shopping (76% by online) Source : Mint

Future of Indian Travel Retail

• #1 outlets and ‘a center of shopping’

• Size will up-grade the quality

• Aviation will be the dominant travel pattern

• More out-bound international / leisure travels

• Diverse brands and medium market products

will expand

Challenge

• Infra to meet the upcoming demand (tangible / intangible)

• Changing of perception (quality / price)

• How to make customers stand & move in commercial zone (paradox of bookshop)

• Winners are price & choice diversity

Commercial Strategy• Engage

- present strong story points - increase communication & trust

• Explore - new concept / pop-up displays- experiential products / kind & speedy service (Subway)

• Excite- Ambience, active promotion, combined suggestions - product of month / must-buy items

Future travelers at BIAL

• Airport’s value proposition to ; - global shoppers - concessionaire (commercial operator) - brands (product developer)

• Ways to ; - ommi-channel - travel & shopping curation - data sharing / pre-order / real-time exchange /door-to-door

Thank you

Sang Joon AHN VP-Commercial Bangalore International Airport Limitedahn@bialairport.com