AITD Presentation

7/27/2019 AITD Presentation

1/27

AshokInternational Trade Division

Duty Free Shops


2/27

Ashok International Trade Division37 customer-friendly Duty-Free shops atdeparture and arrival lounges of all major

international airports in India, offering aproduct folio of more than 20,000 items.


3/27

AITD - Duty Free Shops (DFS)A Glorious Past

DFS made a beginning in 1967

Began operating at the International Airports

ChennaiDelhi

Kolkata

Mumbai

Intended to be show window for IndianHandicrafts


4/27

Duty Free ShopsA Glorious Past

Acquired repute and recognition byadding an enviable product range toattract international travelers


5/27

AITD - A Vibrant Present

Year 2000 saw AITD wining a globaltender to operate more DFSs at fivemore airports:

AhmedabadBangaloreCalicutGoaHyderabadVaranasi


6/27

AITD is further awarded the contract by Airport

Authority of India to run and manage Duty FreeShops at International Airports : ChennaiDelhi

KolkataMumbaiThiruvanantpuram

Contract period : 5 yearsContract duration : Jan. 2001 - Dec. 2005


7/27

DFS - A Vibrant PresentWhats in it for me

37 DFSs offer a wide range of product of some ofbest brands of the world more than 20,000 itemsProduct range :

Perfumes & CosmeticsCigar & CigarettesBeer, Wine & SpiritsFashion & Leather Accessories

Chocolates & ConfectioneryElectronicsIndigenous Merchandise


8/27

Duty Free Shops - LocationsArrival Departure

Ahmedabad 1 1Bangalore 1 1Calicut 1 1Chennai 1 1Delhi 2 8Goa 1 1Hyderabad 1 1

Kolkotta 1 1Mumbai 3 8Trivandrum 1 1


9/27

DFS - Refurbishment

Refurbishment/Rebuilding of a number ofairport shops

First refurbished shop opened in the

departure lounge of the IGI Airport, NewDelhi


10/27


11/27


12/27


13/27


14/27


15/27

AITD - Beaconing FutureOpening of Perfume and Cosmetic Boutiques

First at Departure Lounge of IGI Airport, New Delhi in year 20022nd at Departure Lounge at Duty Free Shop at Mumbai in 2003

Stocking latest Perfume and Cosmetic and gift packs from high-end brands like :

Parfums GivenchyNina Ricci

Lancome

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

Pashmina Indian Tea Spices BooksSilk Watches Leather Goods Many more

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

AITD A B i F


16/27

AITD - A Beaconing FutureInstallation of Touch Screen kiosks hasfacilitated :

Easy browsing of Catalogues

Information on the special promotions,Add - ons and price - off

Discount to shoppers on food in ITDCrestaurants

Conversion of multi-product shops tospecialised ones or Boutiques


17/27

Journey of Growth Sample Promotions

PRODUCT PROMOTION DURATION

Teacher's S/W Buy 3 Ltrs. & get1 Ltr. free

10th -28th Feb'05

Cutty Sark Buy 3 Ltr & get 1ltr free

Till 28th Feb'05

Bombay

Sapphire Gin

Buy 2 Lts. & get a

Sunglass free

Till GWPs last

Camus VSOP Buy 1 Lt. & getUSD 3 off

Till stock lasts


18/27

Journey of Growth - Creating History

D E L H I 6.23 Crs . Nov., 04

M U M B A I 5.17 Crs . Dec., 04G O A* 1.43 Crs . Jan., 05BANGALORE 1.20 Crs . Nov., 04KOLKOTTA 54.27 Lacs Dec., 04

Highest ever Sales


19/27

Journey of Growth

[Rs. In Lacs]

PARTICULARS 2001-02 2002-03 2003-04

2004-05(Up toJan'05)

INCOMEB W S 4804.05 6157.72 8046.14 8407.33Perfumes 269.43 380.8 440.12 465.21Cigars & Ciggrettes 1261.52 1759.69 1655.97 1599.04Electronics 349.84 412.46 464.44 440.23Indian Goods 358.24 422.08 485.05 553.71

Misc Income 141.16 334.05 320.55 67.91Total 7184.24 9466.80 11412.27 11533.43

12500 In lakhs


20/27

7184

2001-02 2002-03 2003-04 2004-05

946711412

12500 a s


21/27

Journey of Growth

Particulars 2001-02 2002-03 2003-04

Inventory as on 31st

March 3069.17 2786.82 3085.13

%age of Inventory tothe revenue

42.72% 29.44% 27.03%


22/27

Action and Improvement Plan

Shift in product profileFrom low priced to high priced merchandise

Competitive pricesPromotional offers

Price off Gifts with purchase

Refurbishment of shopsMumbaiDelhiGoaBangalore


23/27


Introduction of Shop -in- Shop / Boutique concept Cigar, watches, fashion accessories i.e. Mont Blanc, TAGHueur watches, jewllery etc.

On-line purchasesRe- introducing Price -List in changed format

Aggressive Advertising Panel RentalsMailersTV CommercialFM RadioInternet

Mobile trolley operation in the security hold area of IGIA,Delhi


24/27


Effective Visual MerchandisingTraining to Staff/officers

Product knowledgePeoples skills

Uniforms better turn-outEnforcing strict disciplineLower inventoriesLower material costsRevising the AITD Manual leading to efficientfunctioning of the Division


25/27

Weaknesses and Threats

Lack of flexibility

Lost opportunities due to inherent laid downprocedures

Time consuming paper work


26/27


Lack of secure informationLack of market intelligence

Poor working relations with Mumbai customs

Entry of new Duty Free Operators Flamingo indirect competition with ITDC Anti tobacco lobby threatening to ban Cigarettesbusiness in Duty Free Shops

Liberal import policy causing easy availability of international brands in domestic markets


27/27


Finally, uncertainty over renewal of agreement with Airport Authority of India

AITD Presentation

Documents