Industry Analysis & Industry Trends
Duty-free retailing is expected to prosper over the five years through 2012-13, with industry sales rising by an annualised 4.9%. Trading conditions for duty-free retailers have benefited from solid growth in the volume of international arrivals and departures into and out of Australia (with the exception of 2008-09). Demand for duty-free was also aided by growth in the trade-weighted index, which made international travel more affordable for Australian tourists. Consumer demand for duty-free merchandise over this five-year period was also influenced by trends in disposable income and the consumer sentiment index.
Retailers of duty-free merchandise are expected to experience a 3.7% rise in sales to $1.2 billion over 2012-13... purchase to read more
Industry Report - Industry Products Chapter
Fragrances and alcohol
Duty-free retailing has long been synonymous with the sale of alcohol and fragrances. Therefore, it is hardly surprising that these two categories account for about 60% of the total duty-free market. Fragrances have long been a traditional duty-free item, with female fragrances accounting for a significant 80% of sales, and male fragrances contributing the remaining 20%. Alcohol is the other key seller for the industry, and while duty-free purchases are often seen as an opportunity to stock up the bar, a limit of 2.25 litres per returning Australian resident or international tourist entering Australia generally hinders potential sales that could be generated by this segment... purchase to read more