Ospree Duty Free celebrates “pioneering” equal sales from both departing and arriving passengers
Ospree Duty Free is hailing the success of its focus on increasing sales in Departures stores
In India, where duty free is largely an arrival dependent business, Ospree Duty Free has “made history” by becoming the country's first duty-free store to achieve an equal contribution of sales from both departing and arriving passengers.
“This landmark achievement not only underscores Ospree Duty Free’s innovative strategies but also sets a new benchmark in the Indian retail landscape,” the travel retailer said.
Traditionally, duty-free sales in India have been heavily skewed towards arriving passengers. At Mumbai International Airport, Ospree Duty Free, however, identified an untapped opportunity and embarked on a mission to balance the scales between arrivals and departures sales.
Its business was predominantly driven by arrivals, accounting for 75% of sales. To balance this, Ospree Duty Free we initiated “Project Departures” to boost its share in departure stores from 25% to 52% (vs last financial year).
Ospree Duty Free's Speedbreakers campaign highlights concept stores, adding a sense of place to the retail offer
Lengthy departure security and immigration checks were taken into account and led to the creation of the Speedbreakers campaign, designed to both halt and sell to travelers through strategically placed experiential activities.
To tackle the issue of reduced dwell time and rushed travelers, Ospree Duty Free crafted an environment within its departure stores that seamlessly blended entertainment, relaxation, and shopping incentives. The goal, according to Ospree Duty Free, was to “engage travelers during their wait, transforming their hurried journey into a leisurely and enjoyable shopping experience”.
These Speedbreakers halted travelers, allowing staff to then engage with them and drive sales.
Campaign highlights include:
- Don Julio 1942 Live DJ and Liquid Tasting: Upon entering the Ospree store, travelers are greeted with the ambience of a live DJ playing their favorite tunes. For connoisseurs and enthusiasts, exclusive live tasting sessions of Tequila Don Julio 1942were offered. “These interactive experiences not only educated travelers about premium brands but also provided a unique and enjoyable diversion during their shopping at a duty-free store,” Ospree Duty Free said, adding that it became the first airport retailer in Asia to host a Live DJ in a silent airport, and to provide liquid tasting sessions (first in India).
- Ardbeg Circus: An interactive circus-themed animation included entertainment, spin the wheel giveaways and photobooths.
- Meet & Greet with Bollywood Celebrities: In a country where Bollywood reigns supreme, Ospree Duty Free brought the magic of the silver screen to life by organizing meet-and-greet sessions with superstars such as Shah Rukh Khan, Anil Kapoor, Sunny Deol, Ajay Devgn and Kartik Aryan. These interactions not only thrilled fans but also created unforgettable memories, enhancing the overall travel experience.
- Live Performances: To infuse joy and relaxation into the travel experience, Ospree Duty Free hosted a variety of live performances that catered to diverse tastes: Violinist and Pianist; Caricature Artists which offered personalized sketchers to travelers; Massage and Manicurists and Jugglers and Magicians.
- Social Cause: Hydration Initiative - Recognizing the importance of hydration, especially after long waits at security and immigration, the travel retailer initiated a water distribution activity at the entrance of our store for all departing passengers. This simple yet thoughtful gesture was highly appreciated by travelers, reinforcing our commitment to their well-being.
- Concept Stores: Ospree Duty Free concept stores in Departure include: Vue de Luxe, luxury sunglasses store featuring esteemed brands like Dita, Dior, Offwhite, Vava etc growing the overall category by 33% and Meridiem boasting a curated selection of timepieces like Franck Muller, Tag Heuer, Baume et Mercier, Frederique Constant, Longines, Rado etc driving a 25% growth. Out of Office luggage store features selections from Tumi, Mandarina Duck, Samsonite and Porsche Design while The Bharat Story provides a sense of place with luxury Indian destination goods, leading to 104% growth in the category. Bon Voyage is the first duty free convenience store.
- Simplified Pre orders through Adani One App and Website
Results and Impact
According to Ospree Duty Free, this campaign was not only experiential but also commercial.
“The results of these strategic initiatives were nothing short of remarkable,” the company said. “Ospree Duty Free saw a significant increase in departure sales, ultimately achieving an equal contribution from both departure and arrival segments.
“While engaging travelers through various activities, our brand ambassadors actively promoted and sold products. Toys and Confectionery were marketed to children, while liquor, perfumes, and cosmetics were targeted at adults. This strategic engagement allowed us to turn a leisurely stop into a commercial opportunity, significantly boosting sales.”
Key Achievements
- Departure sales grew 3 times the PAX growth
- Increased sales and penetration: The campaign marked an improvement of 33% in sales at the Departure store with a notable increase from 6% to 9% in store penetration in FY2023 compared to FY2022, demonstrating the commercial success of the initiatives.
- Enhanced traveler experience: This multi-faceted approach significantly improved the mental state of passengers, making their time at the airport more enjoyable and less stressful. This was evident from the overwhelming positive feedback, highlighting the campaign’s effectiveness in elevating the traveler experience.
- Unique positioning: As the only duty-free retailer in India to organize such an extensive and diverse campaign, Ospree Duty Free has set a new benchmark in the travel retail industry, showcasing its commitment to innovation and customer-centricity.
Ospree Duty Free also noted that in comparing YoY growth, it achieved a “remarkable” 44% sales growth, against a 23% increase in passengers.
