Overview

Fall of duty: Volatile consumer sentiment and increased competition have caused declines

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.

REPORT SNAPSHOT

Industry Analysis & Industry Trends

Operators in the Duty Free Stores industry have struggled over the past five years. Despite growth in the number of international arrivals and departures in Australia, negative consumer sentiment over much of the period hindered industry trading conditions. The decline in Australia’s dollar value also hampered the demand for duty free goods, producing mixed results for the industry. The depreciation of the Australian dollar made travel to Australia more affordable for international consumers, but also made international travel by Australian consumers more expensive. The relative affordability of travel for both Australian and international consumers had a flow-on effect and influenced spending amounts in duty free stores...

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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. While industry competition is high, concentration is medium. Existing operators control over 60% 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..

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Industry Products

What is the Duty Free Stores Industry?

Duty free stores primarily sell a range of 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
Tobacco
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

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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