British International Traveller & Shopper Report
British International Traveller & Shopper Report
© Counter Intelligence Retail Ltd www.counterintelligenceretail.com
CiR Research – British International Traveller & Shopper Study
Counter Intelligence Retail (CiR)
May 2016
British International Traveller & Shopper Study
2016
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INTRODUCTION
ABOUT COUNTER INTELLIGENCE RETAIL
British International Traveller & Shopper Study
2016
Counter Intelligence Retail (CiR) is an independent retail development consultancy that works with some of the world’s leading brand owners and retailers
A UK based agency with global experience, CiR provide compelling market intelligence and insight, develop commercial propositions for brands and categories and create amazing shopping experiences all over the world
The CiR Group is made up of 4 specialist functions which offer a dedicated service aimed at optimising all elements of the retail landscape
With experience in more than 70 leading airports, numerous border stores, key ferry routes and multiple domestic market projects, CiR Research provides the most up to date and relevant market intelligence for brand owners and retailers across the globe. CiR Research unlocks the knowledge and insight needed to develop brand and category strategy, respond to the needs of consumers and shoppers and provide the compelling evidence required to drive innovative change to the retail environment
Business Lounge provides an extensive, relevant and appropriate combination of industry data, facts and information. Business Lounge is developed and managed by a team of retail and marketing experts and is designed specifically to support Travel Retail brand owners to grow their business. Business Lounge combines the most robust, credible and auditable data sources available for the Travel Retail channel, with a focus to provide quality information and drive actionable intelligence to influence future planning
CiR Category Development provides clients with the vital data driven insight and strategic platform for brand and category development. With extensive experience in retail
enhancement, the team also provide the fundamental services that drive shopper engagement in store as well as informing and leading the development and creation of amazing shopping experiences
CiR Live! is the ‘active arm’ of CiR and is all about people in the retail environment. With global reach, we deploy staff to merchandise products on shelf, manage in-store activations for brands and categories, provide brand ambassadors to drive sales, support live promotions and provide training to existing staff
www.counterintelligenceretail.com
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TABLE OF CONTENTS
British International Traveller & Shopper Study
2016
1 METHODOLOGY & OBJECTIVES p. 6
1.1 RESEARCH APPROACH p. 6
1.2 PROJECT SCOPE p. 7
1.3 GLOSSARY p. 8
2 BACKGROUND INFORMATION p. 10
2.1 THE UK ECONOMY p. 10
2.2 BRITISH CONSUMERS p. 11
3 CHANGE IN TRAVEL BEHAVIOURS – KEY INSIGHTS & ACTIONS SUMMARY p. 12
3.1 KEY TRAVELLING NATIONALITIES p. 13
3.2 CHANGING BRITISH TRAVEL HABITS p. 14
3.3 KEY GLOBAL DEPARTURE AIRPORTS p. 15
3.4 PASSENGER GROWTH FORECAST p. 17
3.5 CHANGING TRAVEL EXPERIENCES p. 18
3.6 BRITISH TRAVEL ACTIVITIES p. 19
4 DUTY FREE – KEY INSIGHTS & ACTIONS SUMMARY p. 20
5 PROFILE OF SHOPPERS – KEY INSIGHTS & ACTIONS SUMMARY p. 22
5.1 DUTY FREE/TAX PAID AIRPORT RETAIL VISITOR & BUYER PROFILE p. 23
5.2 VISITOR PROFILE BY CATEGORY p. 24
5.3 BUYER PROFILE BY CATEGORY p. 25
5.4 LIFESTYLE/SECURITY PERCEPTIONS p. 26
5.5 TOBACCO CONSUMPTION BEHAVIOUR p. 27
5.5.1 CHANGES IN SMOKING BEHAVIOUR p. 28
5.6 CONFECTIONERY CONSUMPTION BEHAVIOUR p. 29
6 BUYING BEHAVIOUR – KEY INSIGHTS & ACTIONS SUMMARY p. 30
6.1 CATEGORY VISITING & PURCHASING p. 31
6.2 FREQUENCY OF SHOPPING CATEGORIES IN AIRPORT RETAIL p. 32
6.3 REASONS FOR VISITING DUTY FREE p. 33
6.4 PLANNED OR IMPULSE VISIT p. 33
6.5 CROSS-CATEGORY SHOPPING p. 34
6.6 SPEND COMPARISONS p. 35
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TABLE OF CONTENTS
British International Traveller & Shopper Study
2016
6.7 PLANNED VS. IMPULSE PURCHASING p. 36
6.8 PRE-ORDERING BEHAVIOUR p. 37
6.9 SUB-CATEGORY PURCHASE BEHAVIOUR p. 38
6.9.1 ALCOHOL p. 38
6.9.2 BEAUTY p. 39
6.9.3 CONFECTIONERY p. 40
6.9.4 TOBACCO p. 41
6.9.5 FASHION & ACCESSORIES p. 42
6.9.6 JEWELLERY p. 43
6.9.7 WATCHES p. 44
7 INTERACTION & SATISFACTION WITH RETAIL ENVIRONMENT – KEY INSIGHTS &
ACTIONS SUMMARYp. 45
7.1 AIRPORT AND SHOPPING BEHAVIOUR p. 46
7.2 ENJOYMENT AND SATISFACTION WITH SHOPPING AT THE AIRPORT p. 47
7.3 SATISFACTION RATINGS CROSS-CATEGORY p. 48
8 OPINIONS OF AIRPORT RETAIL – KEY INSIGHTS & ACTIONS SUMMARY p. 49
8.1 STAFF INTERACTION p. 50
8.2 INTEREST IN NEW PRODUCT IDEAS/INITIATIVES p. 51
8.3 FUTURE MOTIVATORS BY CATEGORY p. 52
8.4 DUTY FREE PRICES p. 53
8.5 BEACON COMMUNICATION IN-STORE p. 54
8.6 ARRIVALS DUTY FREE STORE USAGE p. 55
8.7 FUTURE SHOPPING HABITS p. 56
9 MOTIVATIONS TO PURCHASE BY CATEGORY p. 57
9.1 ALCOHOL p. 58
9.2 BEAUTY p. 69
9.3 CONFECTIONERY p. 82
9.4 TOBACCO p. 93
9.5 FASHION & ACCESSORIES p. 104
9.6 JEWELLERY p. 116
9.7 WATCHES p. 126
9.8 NON-BUYERS p. 140
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© Counter Intelligence Retail Ltd www.counterintelligenceretail.com
British International Traveller & Shopper Study
2016
1.1 RESEARCH APPROACH
• Data was collected via an online study using an external panel
• Qualifying criteria were:
• All British nationals
• All travelled internationally in the last 6 months
• All visited a Duty Free/Tax Paid retail outlet
• Total sample size exceeds 1,600 interviews
• Collating overall cross-category shopping and general travel behaviours and attitudes
• Quotas applied to provide detailed information at a category level, however totals are lower for Tobacco and Jewellery buyers due to the low incidence rate of respondents in these categories:
• 200 buyers in Alcohol
• 227 buyers in Beauty
• 255 buyers in Confectionery
• 184 buyers in Tobacco
• 192 buyers in Fashion & Accessories
• 187 buyers in Jewellery
• 201 buyers in Watches
• 211 Non-Buyers
• 20 minute survey
• To keep the questionnaire length within this time limit and prevent the effects of survey fatigue, all respondents completed a core set of questions plus one category deep-dive section
• Fieldwork conducted May 2016
1. METHODOLOGY & OBJECTIVES
ALCOHOL
BEAUTY
CONFECTIONERY
TOBACCO
FASHION &ACCESSORIES
JEWELLERY
WATCHES
NON-BUYER
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British International Traveller & Shopper Study
2016
1.2 PROJECT SCOPE
CiR’s British Nationality Study report provides a comprehensive view of the British traveller, with in-depth information and intelligence into their profile and behaviour within the Duty Free environment, providing insights and recommendations on how best to target this important traveller group and their changing needs given the challenges of the economic climate
Who shops Duty Free? – Visitor and Buyer profiles• Demographics• Reason for travel• Travel experience - frequency of flying, locations visited• Travel motivations - reason for travel, activities undertaken• Future travel expectations – change in frequency, locations, reason for travel,
activities
What do they shop? - Category visiting and buying behaviour• Categories and sub-categories visited• Categories, sub-categories and brands bought • Cross-category visiting and buying• Basket analysis and spend levels• Change in Duty Free spend vis-à-vis other expenditure on travel activities
How do they shop? - Attitudes and behaviours to Duty Free shopping• Pre-travel research and price comparison• Satisfaction with the Duty Free range, pricing and environment• Cross-category comparisons
Why do they shop? - Motivations to purchase by category • Planned vs. impulse purchase behaviour • Reasons to purchase and key drivers influencing product selection• Role of promotions, Travel Retail Exclusives and staff• Trade-up and first-time buying• Purpose of purchase – gift/self/request and recipient profile
Why do they not shop? - Barriers to purchase • Reasons for non-purchase• Opinions and behaviours of non-buyers in Duty Free/Tax Paid airport retail• Motivators to encourage purchase
ALCOHOL
BEAUTY
CONFECTIONERY
TOBACCO
FASHION &ACCESSORIES
JEWELLERY
WATCHES
NON-BUYER
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British International Traveller & Shopper Study
2016
• There is a slight bias towards xxx for both visitors and buyers
• Overall, there are more xxx visiting and buying from Duty Free. Non-buyers are significantly morelikely to be xxx
• Buyers are more likely to be travelling to xxx while non-buyers are more likely to be travelling toxxx
• Compared to the profile of Duty Free visitors overall, those travelling for xxx purposes are morelikely to make a purchase at Duty Free whilst xxx are more likely to xxx and in xxx
FLIGHT FREQUENCY
>40<40 1 2-3Top WC
Bus. Leisure
OtherWC
SOCIAL GRADE
4+
xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%VISITORS
GENDER AGE
xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%
TRAVEL PURPOSE
BUYERS
DUTY FREE
xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%NON-
BUYERS
5.1 DUTY FREE/TAX PAID AIRPORT RETAIL VISITOR & BUYER PROFILE
Other
xx%
xx%
xx%
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British International Traveller & Shopper Study
2016
• Confectionery visiting, buying and spend are highest for xxx. This sub-category attracts xxx ofvisitors, and xx% decide to make purchase. Those who visit and purchase are likely to be xxx, xxxand xxx travellers
• x, x, x respectively, come after xxx for both visiting and buying in Duty Free. These three sub-categories are particularly attractive to xxx travellers
• Visits to xxx attract a high level of xxx travellers and about xxx result in purchase. Biscuits havexxx spend per head compared to other Confectionery sub-categories
• Xxx visits are driven mainly by outbound passengers and have the lowest percentage of spendin Confectionery
• Leading Confectionery brands for British travellers are xxx and xxx
6.9.3 SUB-CATEGORY PURCHASE BEHAVIOUR - CONFECTIONERY
AVERAGE SUB-CATEGORY SPEND
AVERAGE ITEMS PURCHASED
% SPEND OF CONFECTIONERY SPEND
xx%
xx%
xx%
US$xx
x.x
xx%
xx%
xx%
xx%
US$xx
x.x
xx%
xx%
xx%
xx%
US$xx
x.x
xx%
xx%
xx%
xx%
US$xx
x.x
xx%
CHOCOLATECANDY / SWEETS
CHEWING GUM**
BISCUITS
VISITED
BOUGHT
CONVERSION
CONFECTIONERY
No. 1 CONFECTIONERY BRAND
No. 2 CONFECTIONERY BRAND
xx%
xx%
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British International Traveller & Shopper Study
2016
TIME ARRIVED AT THE AIRPORT PRE-FLIGHT
7.1 AIRPORT AND SHOPPING BEHAVIOUR
Almost xxx travellers arrive at the
airport at least 2 hours ahead of their
flight
Travellers aged xxx are allowing
significantly longer, with xxx arriving
2.5 hours or longer ahead of their
flight. Those travelling for xxx
purposes also allow longer
Xxx consider the time taken to clear
security to be longer than expected.
Interestingly, xxx travellers are more
likely to consider the time taken to
clear security is longer than
expected, potentially reducing the
amount of time these core shoppers
have to visit Duty Free
Xxx and xxx travellers are most
critical of the length of time, so
promoting the fast-track service may
appeal to those wanting time to
shop
Under 1 hour
1-1.5 hours
1.5-2 hours
2-2.5 hours
2.5-3 hours
Over 3 hours
TIME TO CLEAR
CHECK-IN AND
SECURITY
A LOT SHORTER
THAN EXPECTED
A LOT LONGER
THAN EXPECTED
TIME SPENT SHOPPING AT THE AIRPORT
The average time spent shopping at
the airport is xxx minutes
x in x spend over xx minutes
shopping, but these are more likely
to be xxx
Travellers using xxx airlines are most
likely to spend under xx minutes
shopping
x in x travellers, are spending the
same amount of time shopping now
compared to 2-3 years ago
Shoppers aged xxx spent longer
shopping at the airport on their last
trip, xx% vs xx% overall, and falling to
xx% if aged xx, indicating increasing
enjoyment with the airport shopping
experience, but more so for xxx
travellers. However, as xxx consider
the check–in process lengthy,
increasing communication on speed
and efficiency should appeal
Under 5 minutes
5-10 minutes
11-15 minutes
16-30 minutes
31-45 minutes
46-60 minutes
Over 1 hour
TIME SPENT
SHOPPING
COMPARED TO
NORMAL
A LOT LONGER
THAN NORMAL
A LOT SHORTER
THAN NORMAL
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British International Traveller & Shopper Study
2016
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9. MOTIVATIONS TO PURCHASE BY CATEGORY
• This section provides a deep-dive investigation into each category individually
It focuses on the main item purchased and investigates in more detail:
• Gift/self/request purchasing & recipient profile if not for self-use
• Planned or impulse purchase
• Reasons to purchase and key drivers influencing product selection
• Role of promotions, Travel Retail Exclusives and staff
• Dominant brands
• Trade-up & first-time buying
• Each category is summarised individually so can be read in isolation
The sequence of topics is:
9.1 Alcohol
9.2 Beauty
9.3 Confectionery
9.4 Tobacco
9.5 Fashion & Accessories
9.6 Jewellery
9.7 Watches
9.8 Non-buyers
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British International Traveller & Shopper Study
2016
Brand loyalty is high, with xx% of planned
buyers knowing the brand they will buy in
Duty Free
xxx are more likely to have planned their
exact product choice
However, x in x know the brand they want to
buy, but could be open to influence on which
product variant is purchased
Xxx of Alcohol buyers make a
planned purchase in the
category, driven by xxx buyers
xxx are more likely to buy on
impulse, accounting for 5% of
purchases
PLANNED
IMPULSE
xx% xx%
EXACT PRODUCT
BRAND
PRODUCT TYPE
RANGE OF BRANDS
SOMETHING FROM THE
CATEGORY
PRICE
xx% xx% xx% xx% xx%
2.
xxx
4.
xxx
1.
xxx
3.
xxx
5.
xxx
PLANNED Vs. IMPULSE PURCHASE
LEVEL OF PLANNING
HOW DO THEY SHOP ALCOHOL?
REASON FOR PRODUCT SELECTION
Xxx drive Alcohol product selection, especially for older shoppers (aged 40+) but xxx is also a key motivator for
xxx. Brand familiarity is also important.
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British International Traveller & Shopper Study
2016
xxx is the top brand purchased by British buyers of Confectionery. It is particularly appealing to xxx, buyers xxx
and xxx travellers
x, x, x and x have a similar appeal across demographics. x in 10 x purchases are made by xxx travellers, whilst
xxx is favoured by xxx PAX
WHAT DO THEY PURCHASE?
BRANDS PURCHASED
AGE <40 V. 40+
LEISURE V. BUSINESS xx% xx% x% x%xx% xx% x% x% x% x%
AVERAGE CONFECTIONERY SPENDUS$xx
% SPEND vs. CORE CATEGORY SPENDxx%
xx% x%xx% x% x%
xx% xx% x% x%xx% xx% x% x% x% x%
Top 5
Confectionery
Brands
Data indicates how
sub-groups compare
to the average
GENDER
PACK/FORMAT PREFERENCE
x
x
xx%
xx%
xx%
xx%
xx%
xSeveral pack styles are liked, influenced by
the reason to purchase and brand of
choice
With xxx being the leading brand, the
preferred format is a xxx style, but this is
closely followed by xxx, xxx and xxx
packaging
A xxx is more popular with female buyers
while younger male travellers preferred xxx
packaging
x
x
xx% xx% x% x%xx% xx% x% x% x% x%
PACK/FORMAT PREFERENCE
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British International Traveller & Shopper Study
2016
REASONS FOR NON-PURCHASE
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WHY DO THEY NOT BUY?
1 in x British visitors to Duty Free / airport stores
intended to purchase but did not. These are
more likely to be xxx travellers
xxx passengers are more likely to have never
intended purchasing
YES
NO
xx%xx%
HAD THEY PLANNED TO PURCHASE?
CATEGORIES INTENDED TO BUY IN DUTY FREE BUT DID NOT
xx%xx% xx%xx% xx%xx%Failed to buy xx%
Lost sales are highest in x and x, where x failed to make an intended purchase
Alcohol is more likely to be losing sales amongst x travellers
Just under x of travellers intended to buy from Beauty but did not; of these the majority are x
x travellers are significantly more likely to have planned to purchase from Duty Free but did not
Sales are least likely to be lost in x, x and x
1. xxx
2. xxx
3. xxx
4. xxx
5. xxx
TOP 5 REASONS
Xxx are the main barrier to purchasing in Duty
Free, especially for xxx, accounting for x in x
lost sales
1 in x are disappointed with xxx
Therefore more immediate attention is
needed to improve the xxx in Duty Free stores
Xxx in some airports can also disappoint,
especially if a purchase had been planned if
the product had been seen in another airport
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