Overview

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

IBISWorld’s Duty Free Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Travellers seek value by comparing prices among industry operators and traditional retailers
  • Discretionary income growth has supported trading conditions across the duty free market
  • Increases in international travel by Australians should fuel demand for duty free products

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    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 - Industry SWOT Analysis Chapter

    The industry is in the mature phase of its life cycle. Industry value added, which measures the industry's contribution to the overall economy, is expected to decline at an annualised 0.9% over the 10 years through 2021-22. This decline contrasts with annualised Australian GDP growth of 2.6%. The weak performance can be attributed to the industry's competitive environment and pressure on product margins. Trends in establishment numbers have supported the industry's mature life cycle status. Establishment numbers are expected to contract over the 10 years through 2021-22, due to strong price- and product-based competition across the industry and from operators in the traditional retail market.

    In-store product ranges also highlight the industry's mature status. Adv..

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    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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    New Zealand Special Report

    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 Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Duty Free Stores Industry Revenue Outlook

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

  • Products & Markets
    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
  • Tobacco
  • Chart: Duty Free Stores Industry Products and Services Segmentation

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Rent
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Duty Free Stores

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Major Companies
    James Richardson Corporation Pty LtdNuance Group (Australia) Pty LimitedDFS Australia Pty Limited
  • Table: James Richardson Corporation Pty Ltd - financial performance
  • Table: Nuance Group (Australia) Pty Limited - financial performance
  • Table: DFS Australia Pty Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Duty Free Stores Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Travel Retailer
  • A retailer that sells goods associated with travel along with duty-free items.
  • Why buy this report?

    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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