Ashok International Trade Division

Duty Free Shops

Ashok International Trade Division

37 customer-friendly Duty-Free shops at departure and arrival lounges of all major international airports in India, offering a product folio of more than 20,000 items.

AITD - Duty Free Shops (DFS)

A Glorious Past

DFS made a beginning in 1967 Began operating at the International Airports

Chennai Delhi Kolkata

Mumbai

Intended to be show window for Indian Handicrafts

Duty Free Shops

A Glorious Past

Acquired

repute and recognition by adding an enviable product range to attract international travelers

AITD - A Vibrant Present

Year

2000 saw AITD wining a global tender to operate more DFSs at five more airports: Ahmedabad Bangalore Calicut Goa Hyderabad Varanasi

AITD is further awarded the contract by Airport Authority of India to run and manage Duty Free Shops at International Airports :

Chennai Delhi Kolkata Mumbai Thiruvanantpuram

Contract period Contract duration

: :

5 years Jan. 2001 - Dec. 2005

DFS - A Vibrant Present

Whats in it for me
37

DFSs offer a wide range of product of some of best brands of the world more than 20,000 items Product range :

Perfumes & Cosmetics Cigar & Cigarettes Beer, Wine & Spirits Fashion & Leather Accessories Chocolates & Confectionery Electronics Indigenous Merchandise

Duty Free Shops - Locations

Arrival Departure Ahmedabad 1 1

Bangalore Calicut Chennai

1 1 1

1 1 1

Delhi
Goa Hyderabad Kolkotta Mumbai

2
1 1 1 3

8
1 1 1 8

Trivandrum

DFS - Refurbishment
Refurbishment/Rebuilding

airport shops

of a number of

First

refurbished shop opened in the departure lounge of the IGI Airport, New Delhi

AITD - Beaconing Future

Opening of Perfume and Cosmetic Boutiques

First at Departure Lounge of IGI Airport, New Delhi in year 2002 2nd at Departure Lounge at Duty Free Shop at Mumbai in 2003

Stocking latest Perfume and Cosmetic and gift packs from highend brands like :

Parfums Givenchy Nina Ricci Lancome

Also encouraging & stocking Indian product help those to find their own brand identities internationally. To name a few:

Pashmina Silk

Indian Tea Watches

Spices Leather Goods

Books Many more

In year 2003 ITDC opened a Handicraft Boutique at Departure Lounge of IGI Airport, New Delhi

AITD - A Beaconing Future

Installation

facilitated :

of Touch Screen kiosks has

Easy browsing of Catalogues Information on the special promotions, Add - ons and price - off

Discount

to shoppers on food in ITDC restaurants of multi-product shops to specialised ones or Boutiques

Conversion

Journey of Growth Sample Promotions

PRODUCT Teacher's S/W PROMOTION Buy 3 Ltrs. & get 1 Ltr. free DURATION 10th -28th Feb'05

Cutty Sark
Bombay Sapphire Gin Camus VSOP

Buy 3 Ltr & get 1 Till 28th Feb'05 ltr free

Buy 2 Lts. & get a Till GWPs last Sunglass free Buy 1 Lt. & get USD 3 off Till stock lasts

Journey of Growth - Creating History

Highest ever Sales

D

ELHI M U M B A I G O A* BANGALORE KOLKOTTA

6.23 Crs . 5.17 Crs . 1.43 Crs . 1.20 Crs . 54.27 Lacs

Nov., 04 Dec., 04 Jan., 05 Nov., 04 Dec., 04

Journey of Growth
[Rs. In Lacs]

PARTICULARS INCOME BWS Perfumes Cigars & Ciggrettes Electronics Indian Goods Misc Income
Total

2001-02 4804.05 269.43 1261.52 349.84 358.24 141.16 7184.24

2002-03 6157.72 380.8 1759.69 412.46 422.08 334.05 9466.80

2003-04 8046.14 440.12 1655.97 464.44 485.05 320.55 11412.27

2004-05 (Up to Jan'05) 8407.33 465.21 1599.04 440.23 553.71 67.91 11533.43

11412
9467

12500

In lakhs

7184

2001-02

2002-03

2003-04

2004-05

Journey of Growth
Particulars Inventory as on 31st March %age of Inventory to the revenue 2001-02 2002-03 2003-04 3069.17 2786.82 3085.13 42.72% 29.44% 27.03%

Action and Improvement Plan

Shift in product profile

From low priced to high priced merchandise

Promotional offers Price off Gifts with purchase Mumbai Delhi Goa Bangalore

Competitive prices

Refurbishment of shops

Action and Improvement Plan

Introduction of Shop-in-Shop / Boutique concept Cigar, watches, fashion accessories i.e. Mont Blanc, TAG Hueur watches, jewllery etc. On-line purchases Re-introducing Price-List in changed format Aggressive Advertising Panel Rentals Mailers TV Commercial FM Radio Internet Mobile trolley operation in the security hold area of IGIA, Delhi

Action and Improvement Plan

Effective Visual Merchandising Training to Staff/officers

Product knowledge Peoples skills

Uniforms better turn-out Enforcing strict discipline Lower inventories Lower material costs Revising the AITD Manual leading to efficient functioning of the Division

Weaknesses and Threats

Lack of flexibility Lost opportunities due to inherent laid down procedures

Time consuming paper work

Weaknesses and Threats

Lack of secure information

Lack of market intelligence

Poor working relations with Mumbai customs

Entry of new Duty Free Operators Flamingo in direct competition with ITDC Anti tobacco lobby threatening to ban Cigarettes business in Duty Free Shops Liberal import policy causing easy availability of international brands in domestic markets

Weaknesses and Threats

Finally, uncertainty over renewal of

agreement with Airport Authority of India