First time duty free buyers are more likely to purchase a duty free exclusive and merchandise that is on promotion than do shoppers who have previously purchased the products in travel retail, according to the latest industry monitor report from m1nd-set.
The report by the Swiss research agency tracks key differences in the paths to purchase and shopping behavior among first time buyers (FTBs).
The report defines this segment as shoppers who only purchase a product (or products) that they have never bought before, and as shoppers who had never bought some of the products they purchased before. It compares these first-timers with shoppers who have previously purchased the products in travel retail and reveals some key differences in behavior between the two groups.
The tendency to purchase travel retail exclusives and promotions is one of the key differences. According to m1nd-set, 71% of FTBs purchase travel retail exclusives and 79% purchase promotions, compared to only 42% and 54% among ‘non-first time buyers.’
The report also highlights the importance of clear and consistent communications to attract FTBs to purchase. This is shown through their tendency to be more undecided than non-FTBs (86% vs 69%) and the fact that they research the duty
free shopping offers online prior to travel more than other shoppers (53% vs 43%).
First-time buyers also notice touchpoints such as advertising billboards more.
Sales staff are also key to influencing the purchase decision among FTBs. They are significantly more likely than non-FTBs to interact with sales staff (76% vs 62%) and among those who inter-act, their purchases are influenced more by these interactions than they are among non-FTBs (74% vs 48%).
Purchases by FTBs in duty free shops are significantly more likely to be triggered by aspects related to value, exclusivity and the in-store experience, than purchases by non-FTBs.
‘Good value for money’ is one of the key purchase drivers among FTBs, followed by the possibility of purchasing a product not avail-
able in the home market. Products that are suitable for gifting and souvenirs are also among the main purchase drivers for FTBs.
“The differentiation aspect – the unique nature of duty free shopping– is one of the main defining criteria of first time buyers in duty free,” said m1nd-set Owner and CEO, Peter Mohn. “This means it’s important to ensure they are aware of the unique and exclusive nature of shopping in the channel.
“These unique values can be demonstrated and promoted not only through the travel retail exclusives, but also through elements such as special packaging, different duty free sizes or formats, and in particular aspects such as local touch to enhance the souvenir and gifting suitability of the products” Mohn added.
“Value for money, promotions, exclusives and gifting opportunities should all be communicated consistently across all touch points.”
