India in focus – YCP Auctus’ Kadam Aggarwal explores the country’s changing travel retail dynamics

INDIA. At the well-received APTRA India conference in Mumbai (5-7 April), YCP Auctus Partner Kadam Aggarwal delivered a standout presentation, packed with insights related to Indian aviation, tourism and travel retail.

YCP Auctus, part of the YCP Group, operates globally with over 650 consultants across 21 offices, including its headquarters in Singapore.

The company offers specialised advisory services in strategy, market entry, revenue acceleration, M&A and operations improvement, serving clients in diverse industries such as travel retail, aviation, technology and healthcare, among others.

A key highlight of the presentation was India’s aviation outlook, with Aggarwal emphasising the pivotal role Tier 2 and Tier 3 airports will play in the next phase of air travel growth.

He noted the strong rebound in India’s outbound travel market, led by a surge in leisure travel. Additional drivers identified in the growth outlook included the rapid rise of low-cost carriers and major infrastructure development initiatives by the government.

Aggarwal also delved into the evolving consumer behaviour in India’s travel retail sector, noting the growing importance of the country’s rising affluent class, increased disposable income, shifting priorities, and the distinct preferences of Gen Z and Millennials that are reshaping both travel and retail.

Since 2020, India’s economy has shown resilient expansion, and per capita income is on track to double, exceeding US$4,000 by 2029, reflecting the rising spending power of its burgeoning middle class. As the affluent population grows twofold, consumption is projected to surge, particularly in urbanising non-metro cities.

This market evolution is driving a significant shift in Indian consumer behaviour, now increasingly influenced by exploration, indulgence and emotional connection, rather than cost considerations.

Gen Z and Millennials are at the forefront of this change, seeking premium experiences and placing high value on experience and premium products.

Shifting consumer patterns are also evident in the growing preference for new product categories, including gourmet foods, wellness products and innovative tech products.

Notably, these segments are expanding 2.5x faster than legacy categories such as alcohol and tobacco, underscoring a strategic realignment in duty-free retail priorities.

Another key observation is how digital transformation and elevated in-store experiences are reshaping the retail journey. Amid changing consumer expectations, digital solutions have evolved from being optional add-ons to essential tools that enable a connected, data-driven journey, enhancing both convenience and customer engagement.

As travellers become more selective, retail experiences are becoming a key factor in shaping the airport journey. This shift reflects the importance of immersive environments and meaningful staff interactions that drive engagement, boost conversions and build lasting brand loyalty.

One notable trend is how global brands are aligning with local preferences, while Indian brands are establishing themselves with a growing global presence.

In this evolving travel retail landscape, Aggarwal described localisation as no longer just adaptation, but a competitive edge. As Indian brands rise, they are enhancing their narratives to build emotional connections and drive stronger commercial outcomes at airports.

As sustainability awareness becomes increasingly important, consumers are also factoring in the impact of India’s duty-free policy constraints compared to global best practices.

In response, airport retailers are integrating sustainability into every aspect of the shopping experience, from store design to sourcing and supply chain, shifting from transactional retail to purpose-driven experiences.