Sunil Tuli, Group Chief Executive of King Power Group Hong Kong and President of the Asia Pacific Travel Retail Association (APTRA), offers a comprehensive analysis of the pressures and prospects shaping Asia Pacific travel retail. Despite a turbulent 2024, Tuli remains optimistic about the region’s potential as the global growth engine for the industry.
A Year of Contrasts
“Asia Pacific has always been the cornerstone of travel retail growth and will continue to drive the industry’s long-term success,” Tuli asserts. However, he acknowledges that 2024 presented substantial challenges, particularly for China, where economic struggles, including a real estate slump and youth unemployment, dampened consumer confidence and discretionary spending.
To counter these pressures, Chinese authorities introduced significant fiscal measures in November, aiming to reignite economic activity amid rising trade tensions with the U.S. and tariff disputes with the EU. Tuli warns of potential ripple effects on global trade and consumer sentiment as geopolitical uncertainties escalate.
Adapting to Changing Consumer Dynamics
One notable shift is the evolving behavior of Chinese travelers. “Luxury goods are no longer the sole focus; experiences—particularly outdoor, wellness, and sports-related activities—are becoming dominant,” says Tuli. This trend is evident in collaborations like Austria’s tourism partnership with Sichuan, targeting independent travelers keen to explore the Alps.
Travel retail stakeholders must adapt to these changes by aligning offerings with experiential travel and integrating digital touchpoints, given the rise of e-commerce in influencing consumer behavior.
India: A Rising Force in Travel Retail
Beyond China, India’s growing middle class is emerging as a powerhouse in global and airport retail. Tuli highlights India’s appeal to destinations like Indonesia, Thailand, and Malaysia, which are leveraging visa-free policies and tailored campaigns to attract Indian tourists.
Indian travelers are also shaping trends in liquor and beauty markets. Rising demand for single malts, craft spirits, and luxury cosmetics signals new opportunities for the travel retail sector. The upcoming APTRA India Conference in 2025 will address these developments and their implications.
New Growth Horizons
Countries such as Vietnam, Indonesia, and Fiji saw a surge in tourism in 2024, fueled by relaxed travel restrictions and enhanced air connectivity. Tuli emphasizes that these emerging markets present significant opportunities for travel retail as the region capitalizes on its cultural richness and natural beauty.
Resilience Amid Uncertainty
While Asia Pacific faces economic and geopolitical headwinds, its dynamism and adaptability remain unparalleled. “Travel retail thrives on resilience,” Tuli concludes. “By embracing innovation, understanding consumer shifts, and fostering collaboration across the industry, the region is well-positioned to navigate challenges and seize opportunities in 2025 and beyond.”
This perspective underscores Asia Pacific’s pivotal role in shaping the future of global travel retail, making it a region to watch for continued growth and transformation.
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