The Duty Free World Council (DFWC) has conducted a Global Shopping Monitor of duty free shopping trends in the fourth quarter of 2015.
The quarterly Global KPI Monitor is part of a continuous project to measure perceptions of the duty free & travel retail industry among travelers, conducted in partnership with research & consulting company m1nd-set.
“This is an exciting research innovation which the DFWC is delighted to bring to our industry and which over time will give industry players in every region the ability to monitor customer trends and behaviors and adjust the shopping offer accordingly,” commented DFWC President Frank O’Connell.
The KPI Monitor covers all key elements of consumer perceptions of duty free shopping, such as satisfaction with various aspects of the shops, product range, differentiation from the domestic channel and perceived value for money. The findings are based on interviews with over 4,000 people who traveled internationally in the previous quarter, with the sample split per region based on industry sales figures from m1nd-setpartner Generation Research.
Based on a sophisticated formula defined by m1nd-set, a Customer Satisfaction Index (CSI) is shown in the DFWC Global KPI Monitor on a global level as well as for each of the 5 regions covered.
The CSI is generated using the ratings for each respective element, analyzed and weighted based on their impact on over-all traveler satisfaction. The cur-rent report illustrates the findings from the first Index; future quarterly reports will show the evolution over time.
m1nd-set Owner & CEO Peter Mohn explains: “Working with brands, retailers, airports, airlines and the trade associations in the industry, we see a constant thirst for data and in particular recent data on duty free and travel retail shopper behavior. This Customer Satisfaction Index will be an important and timely barometer for the duty free & travel retail industry, given both the recent and freshly collated data used to com-pile the reports and the frequency of their publication. The evolutional nature of the data is also a highly sought after aspect of the research demanded by stake-holders today. A one-shot spot-light doesn’t give a rounded enough picture of the reality. Companies need to evaluate trends, which this global index will allow.”
Some of the highlights of the first report include:
1. The DFWC Global KPI Monitor illustrates which elements have the strongest impact on the Customer Satisfaction Index. In the current report the most important aspect is the “uniqueness of products and services,” followed by “perceived value for money” and “variety and range of products” on offer.
2. Under the perception of duty free & travel retail shopping overall, globally 40% of the international travelers see duty free & travel retail as part of the travel experience. However, there are significant differences in traveler perceptions between the regions.
3. The report also provides cross-regional and cross-category comparisons, highlighting the main benefits and key drivers for buying in DF & TR on a global level. It also shows the main differences in the various regions, for example, the perceived value for money across the various categories.
The report also highlights the ranking of the key barriers for not purchasing as well as not visiting duty free & travel retail shops.
4. Under the information on customs regulations and the impact on the actual shopping behavior, the current report suggests that only half of international travelers feel well informed about the regulations, which has a negative impact on purchase behavior.
5. The use of electronic devices to receive or look for information regarding duty free & travel retail shopping is also covered in the analysis. The report indicates that only a minority of travelers use electronic devices for information about shopping on the “sixth continent.”
6. The reports will also cover the macro-economic impact on the business, given the inextricable link between the global economic crises and fluctuations and the duty free and travel retail business. The DFWC Global KPI Monitor will illustrate the impact of the current economic situation on actual travel and shopping behavior, both globally as well as in each of the regions.
Mohn adds: “The quarterly Monitor reports cover a vast range of data. The aim is to provide as holistic a view as possible of the situation and its evolution by identifying the key rends and divergences between regions… We believe the quarterly Monitor will be a useful tool for the industry and we are delighted to provide this service to the DFWC.”
For more information about the full report, please contact m1nd-set at info@m1nd-set. The cost of the quarterly report is 5,000 euros, with the yearly subscription priced at 15,000 euros.