It’s summer, and judging by the number of “out of office” messages I keep receiving, I am one of the few people not indulging in a summer vacation, and consequently not winging my way through one of the world’s many airports.

 

For those of you who are taking a well-deserved break, how much time did you spend wandering around duty free? Did you buy more than a book, a newspaper or a bottle of whisky?

 

Far from just being a place to while away the time in between check in and departure, according to a recent report by retail research agency and consulting firm Conlumino, the airport terminal could well be the next big retail arena.

 

According to Conlumino, the global duty free market is estimated to produce growth of $25 billion over the next five years, making the departure lounge key real estate for luxury firms.

 

From a retail brand perspective, it makes perfect sense to target airport shoppers, who are essentially flying out of a shopping mall, and their numbers are set to, well, take off. By 2018, the number of outbound international travelers is forecast to reach over a billion, increasing by 142 million since 2013.

 

In response to the growing duty free market, airports are dedicating more space to retail and those such as Heathrow, Dubai, Singapore’s Changi and Amsterdam’s Schipol, are popular shopping destinations for travelers as well as major airport hubs. In fact, the survey shows that travelers favor Heathrow Airport and Dubai International Airport for the presence of global luxury brands across the retail outlets.

 

This is definitely good news for jewelry retailers. According to Conlumino, survey respondents “incurred significant expenditure” on jewelry, among other items, including briefcases, men’s bags, and handbags.

 

“Duty free retailing is becoming a mainstream shopping channel and retailers can not only sell to a captive audience, but also showcase their brands to international travelers, and discover where the demand lies for international expansion,” said Maureen Hinton, research director at Conlumino.

 

Despite shopping in the luxury arena, consumers are still price conscious with the key factors motivating travelers to make purchases at airport retail stores being competitive prices and the availability of luxury brands at discounted prices.

 

As for who is doing the most shopping, it’s hardly a surprise. According to Conlumino’s “Global Duty Free Retailing 2014-2019” report, the Asia Pacific region generates the highest share of sales (43%) with South Korea (13%) and China (9%) world leaders in duty free spending.

 

Currently South Korea leads the market on duty free, attracting travelers from China and other Asia-Pacific countries, but China is set to become the largest market by 2019 as it expands its own duty free channel with more airports and downtown duty free stores. (Let’s hope the current Chinese slump doesn’t affect business too much).

 

Let’s hope more jewelry retailers and outlets follow the money and set up shop airside.

 

Have a fabulous weekend – and safe travels.