Off duty: Strong competition has caused industry exits over the past five years

Operators in the Duty Free Stores industry have faced challenging conditions over the past five years. Despite growth in international arrivals to, and departures from, Australia over the past five years, an overall drop in consumer sentiment has reduced demand for duty free goods by making Australian consumers more cautious with their spending patterns. Furthermore, the depreciation of the Australian dollar over the past five years has produced mixed results for the industry. The decline in the value of the Australian dollar has made trips to Australia more affordable for international consumers, while at the same time making international travel for Australians more expensive...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
1.0%
Forecast Growth 19-24
Profit
Employment
1,934
Businesses
36

Industry Threats & Opportunities

  • Volatile consumer sentiment and falling discretionary income have hindered industry revenue growth
  • Falling discretionary income has negatively affected trading conditions across the duty free market
  • Increases in international travel into and out of Australian will fuel demand for duty free products
  • Industry Report - Starting a New Business Chapter

    The industry has high barriers to entry and the trend is increasing. Licensing requirements are the largest barrier for prospective operators as the industry is heavily regulated. The cost of acquiring a licence may deter new operators from entering the industry. Industry competition and concentration are both high. Existing operators control over 70% of the market, and competition among operators means that players compete on the basis of price, product range and promotional deals. Industry operators also face competition from traditional retailers, as travellers from overseas can apply for a GST refund from these retailers under certain conditions.The industry's mature life cycle status provides little incentive to new entrants. Alo...purchase to read more.

    Additional Insights for the Duty Free Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Duty Free Stores Industry are

  • Ability to alter goods in favour of market conditions
  • Ability to control stock on hand
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and International travel by Australians in the Duty Free Stores industry impact industry performance..

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    What's in this report

    What is the Duty Free Stores Industry?

    Duty free stores primarily sell goods to international travellers. Duty free stores are essentially warehouses that are licenced and controlled by Federal Government customs and excise legislation. These warehouses are permitted to operate as retail outlets to sell customable and excisable goods to international sea and air travellers. Traditional retailers are not included in the industry, but rather operate as external competitors.

    Industry Products
  • Perfume and cosmetics
  • Liquor
  • Luxury goods
  • Tobacco products
  • Food and confectionery
  • Other goods
  • Industry Activities
  • Duty free perfume and cosmetics retailing
  • Duty free liquor and tobacco retailing
  • Duty free electronics and camera retailing
  • Duty free fashion and accessories retailing
  • Duty free confectionery, snack and souvenir retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • International travel by Australians
  • Real household discretionary income
  • Trade-weighted index
  • International travel to Australia

  • Current Performance
  • International

    tourist market

  • Products and profitability
  • Enterprise and employment numbers
  • Chart: Revenue Growth

  • Industry Outlook
  • Trading environment
  • Products and profitability
  • Table: Duty Free Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Duty Free Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Cosmetics and Toiletry Wholesaling
  • Jewellery and Watch Wholesaling
  • Liquor Wholesaling
  • Telecommunications and Other Electrical Goods Wholesaling
  • Tobacco Product Wholesaling

  • Products & Services
  • Perfume and cosmetics
  • Other goods
  • Liquor
  • Luxury goods
  • Tobacco products
  • Food and confectionery
  • Chart: Duty Free Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • People aged 0 to 14
  • Chart: Major Market Segmentation for the Duty Free Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Duty Free Stores

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Duty Free Stores Industry

  • Industry Globalization
    James Richardson Corporation Pty Ltd, Heinemann Australia Pty Ltd, Nuance Group (Australia) Pty Limited, DFS Australia Pty Limited,
  • Table: James Richardson Corporation Pty Ltd - financial performance
  • Table: Heinemann Australia Pty Ltd - financial performance
  • Table: Nuance Group (Australia) Pty Limited - financial performance
  • Table: DFS Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Duty Free Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Duty Free Stores Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australian Tourists
  • Australian residents that travel to overseas countries for various reasons including work and holidays
  • International Tourists
  • Tourists who are residents of another country that travel to Australia for several reasons including work and holidays.
  • Luxury Goods
  • Luxury goods represent designer products or upmarket branded products
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Duty Free Stores market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Duty Free Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Duty Free Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Duty Free Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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