Travel retail has shown steady growth in recent years in the world. Europe is the second-largest travel retail market after Asia-pacific and the UK is the highest contributor to the European travel retail market.
Travel Retail is a major component of aviation and maritime financing and has become an integral part of traveling experience owing to Europe’s stronger base of luxury brands. The European region holds headquarter of one of the largest luxuries and fashion brands in travel retail such as LVHM from France, H&M from Sweden.
Growth in travel & tourism due to a rise in disposable income and rapid growth in urbanization, the shift in consumer lifestyles is expected to drive the rise of the European travel retail market. Continuous development in the travel and tourism industry along with hospitality sector infrastructure, advancements in booking through the online channel will further add to the development of the travel retail industry in Europe.
The travel and tourism industry are one of the largest growing sectors across the world. Increased passenger traffic has led the infrastructure development in the travel- retail market such as larger retail experiences which include shops, restaurants, bars and other forms of retail. Wealthy tourists from the Middle East, China, the U.S., and Russia continue to contribute a significant part in the market
It is estimated that every year, over 1 billion people travel internationally; that is approximately 15 percent of the global population and this number is expected to increase in coming future, thus supporting the travel retail market developments. However, low consumer interest in shopping at travel points. Limited time for vacations and relaxation for many travelers compels them to focus on traveling rather than spending time and money on related activities such as retail shopping. On the contrary, steps taken to develop the travel & tourism industry of the region is expected to create opportunities in the near future.
Key Market Trends
Fragrance & Cosmetics Segment Share is Dominating the Travel Retail Market in Europe
The fragrances and cosmetics segment had a higher share in the overall sales in Europe travel retail which was nearly one-third of the total market. Improved consumer lifestyle toward premium fragrances, and cosmetics, increase in disposable income, and rapid growth in urbanization are the key factors that drive the growth of the segment in the European travel retail market. However, the luxury retail segment is expected to grow fastest owing to a premium lifestyle and huge market opportunity in the luxury product segments.
Airport Retailing is Generating Higher Revenues than other Channels in Europe Travel Retail Market
Airport retailing is one of the biggest retailing sectors in the European travel retail market. Airport retailing has become an important channel for brands to promote and create awareness about products in the market. Airports, as they are unable to generate much profit from airfares, are diversifying to nom- aeronautical segments such as retail, restaurant bars, cafeterias. The high share of the airport in travel retail in Europe is attributed to a greater average number of shops within airport terminals at airports with an increase in the number of passengers at airports. It is expected that the airport size and passenger footfall will continue to rise which will positively impact the airport travel retail market in Europe.
The European travel retail market is highly competitive, with several international as well as domestic brands present in the market which include Dufry AG, Daa Plc., Autogrill S.p.A., Flemingo International Ltd., Lagardère SCA, Heinemann SE & Co. KG, RegStaer, LVMH Group, TRE, WH Smith PL, and others. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Value Chain Analysis
4.3 Porter's Five Forces Analysis
4.4 Insights on Trends in Passenger Traffic by Channels
4.5 Insights on Government Regulations and Initiatives Effecting the Market
4.6 Technology Innovations in the Market
6.1.1 Fashion and Accessories
6.1.2 Jewellery and Watches
6.1.3 Wine & Spirits
6.1.4 Food & Confectionary
6.1.6 Fragnances and Cosmetics
6.1.7 Others (Stationery, Electronics, etc.)
6.2 By Channel
6.2.4 Others ( Airlines, Railway Stations, Border, Downtown)
6.3 By Key Countries
6.3.1 United Kingdom
6.3.6 Rest of Europe
7.2 Company Profiles
7.2.1 Dufry AG
7.2.2 Autogrill S.p.A.
7.2.3 Lagardere SCA
7.2.4 Gebr. Heinemann SE & Co. KG
7.2.7 Flemingo International Ltd.
7.2.8 Daa Plc.
7.2.10 WH Smith
A selection of companies mentioned in this report includes:
- Dufry AG
- Autogrill S.p.A.
- Lagardere SCA
- Gebr. Heinemann SE & Co. KG
- Flemingo International Ltd.
- Daa Plc.
- WH Smith