In-flight retailing takes off with no air pockets

NEW DELHI: As protests dodge the organised retail industry in the country, in-flight retailing is picking up with no air pockets so far.

As government mulls addition of more domestic carriers and expansion of the aviation sector, this nascent retail sector is set to touch new heights.

"There is phenomenal growth in the retail market as now every company plans to jump into this sector. But we have brought in a novel concept of in-flight retailing which has shown a emphatic growth rate of 50-60 per cent," says Anil Sharma, Managing Director, AVA Merchandising.

AVA, which pioneered its in-flight retail venture in domestic aviation last year with the help of Air Deccan and Go Air, is now targeting 200 crore worth business in the coming fiscal.

Skymall and UK's Alpha group, a premier company active in in-flight catering and airport shopping, are among numerous others expected to enter this lucrative business, says Sharma.

AVA merchandising has already set up outlets at 25 airports across the country and Jetlite, formerly owned by Sahara group, is also slated to introduce in-flight retailing in their carriers shortly.

"The practice of shopping during flights has seen an exciting response from customers as it offers them a new experience of buying products at very low prices."

"The whole idea is to offer the customer the best products in most competitive and affordable rates," adds Sharma whose company has recently launched 'In-flight-bidding,' a concept comparable to an auction in which the customers are given a chance to buy products cheaper.

"The bidding also entertains customers in their monotonous journey at 30,000 feet," he says.

Meanwhile, this parallel retailing as it is being termed, offers lucrative revenues to the airlines companies too. "Though retailing in flights is a common business module in west, but in India it is not only new but also lucrative for both vendors and buyers," says Inder Bilani, Head Marketing, Jetlite Airlines.

Bilani says, "The domestic aviation market is highly competitive and there is constant pressure to reduce cost of traveling so at this juncture we are bound to create new sources of revenues and in-flight retailing can be a viable option."

According to Bilani the passenger base of the domestic aviation currently pegged at almost two million and seven to ten per cent of it prefer shopping during travel.