Sang J. Ahn - Bangalore International Airport Limited The Trinity Forum 2015

1. Indian Travel Retail on the rise
Empowered customer
and airport’s response

3. They want different services
1. Personal / Privacy / no demand for service
2. Recognition / special service expectation
3. Fairness

4. Question 1
• What is the demand & travel pattern of future
passenger
- what will the travel experience
- what is the demanded service
- what implication for commercial performance

5. Question 2
• How do we define our industry / our service
- where do we look (brands/operator/airport)
- Are we agile enough
- What is our specific value proposition
in our holistic offering

6. a combined question
from these 2 stories
Are we ready to implement the services for
tomorrow passengers to best satisfy their
commercial expectation and demand?
- are we capable
- are we committed
- are we smart enough

7. Bangalore- the gateway to south India
• Vision
• Passenger increase (operational efficiency)
• India’s Aerospace Hub
• India’s one of largest
Consumer Market
• Cosmopolitan Culture
• Over 688
Multinational
Companies
• Home of 87 Global
Fortune 500
companies

8. Source : Thoughtworks

9. Bangalore Airport
Region/Traffic (Mn.) Domestic International Total
South India 42.41 21.22 63.63
North India 40.72 14.84 55.56
West India 38.7 12.81 51.51
East India 15.48 1.99 17.47
Total 137.31 50.86 188.17
Bengaluru
(FY 2014-15)
12.47 2.93 15.40
BIAL is 3rd Largest (Overall Traffic) Airport in the Country
- Privatized airport
- Emerging market
- Regional airport

10. A look in our passengers
Source : Thoughtworks

11. Source : Thoughtworks

12. Source : Thoughtworks

13. New Customer
• E-commerce is becoming a dominant channel
- modern retail from 17% to 13% between 2013 to 2019,
e-commerce from 2% to 11% (source : mint)
- India has 353 million internet users (only 20% of population)
- Indian e-commerce USD 60 billion in 5 years (source : edaily)
• New customer means empowered customer
- more information
- higher demand
- instant voice

14. BIAL response

15. Upcoming T2
HOTEL
T1
T2
PARKING
PARKING
PARKING
FORECOURTT1-T2 RAIL STATION

16. BIAL response
• Complete self-service competency
• 360 degree information (self-empowerment)
• Re-defining the space itself
• Holistic design of total journey

17. Source : Thoughtworks

18. BIAL commercial
Aeronautical /
Cargo Fuel
Non-Aeronautical/
Commercial

19. BIAL commercial
Retail
Food &
Beverage
Lounges
Landside
Advertising &
Promotions

20. BIAL commercial
International,
61.2%Domestic, 18.2%
Kerbside, 5.2%
Landside, 15.4%

21. BIAL Duty-free
LiquorTobacco
Perfumery
Accessories
Fashion
Food
others
Technology
Souvenirs

22. Indian Travel Retail
• Rapidly growing market with increasing travelers
- In-India TR or By-India TR
- cheaper tickets to boost 21.13% increase in July 2015
• Price sensitive market
- Early stage of TR (shopping will become an integral part)
- But brands loyalty is also growing
• Customer perception / behavior
- 96% look for info before shopping (76% by online) Source : Mint

23. Future of Indian Travel Retail
• #1 outlets and ‘a center of shopping’
• Size will up-grade the quality
• Aviation will be the dominant travel pattern
• More out-bound international / leisure travels
• Diverse brands and medium market products
will expand

24. Challenge
• Infra to meet the upcoming demand (tangible
/ intangible)
• Changing of perception (quality / price)
• How to make customers stand & move in
commercial zone (paradox of bookshop)
• Winners are price & choice diversity

25. Commercial Strategy
• Engage
- present strong story points
- increase communication & trust
• Explore
- new concept / pop-up displays
- experiential products / kind & speedy service (Subway)
• Excite
- Ambience, active promotion, combined suggestions
- product of month / must-buy items

26. Future travelers at BIAL
• Airport’s value proposition to ;
- global shoppers
- concessionaire (commercial operator)
- brands (product developer)
• Ways to ;
- ommi-channel
- travel & shopping curation
- data sharing / pre-order / real-time exchange /
door-to-door

27. Thank you
Sang Joon AHN
VP-Commercial
Bangalore International Airport Limited
ahn@bialairport.com