INTERNATIONAL. The watches and jewellery sector is travel retail’s “poorest performer” in terms of conversion rates, according to new research. [Note: The views expressed here are not those of the publisher. See reader comment below, with which we concur.]
The Tax Free World Association (TFWA) study found that while one in seven shoppers visit watches and jewellery, only 5% make a purchase. This equates to a conversion rate of just 34%, the lowest of all the categories.
The Watches and Jewellery report, part of the TFWA Category Reports series produced by Counter Intelligence Retail, did have some positive news though.
On average, watches and jewellery shoppers visit 2.1 categories, which is significantly higher than shoppers overall (1.5). TFWA said this showed that those visiting the category had more time to shop, making them valuable within the airport retail environment.
TFWA also noted that travel retail was a “sound springboard” for watches and jewellery brands in terms of attracting new customers. The study showed that 78% of shoppers buying for themselves purchased a brand they do not usually buy, while 40% purchased the brand for the first time. Seven in ten of buyers had no prior awareness of the brand.
“This indicates that the channel can offer outstanding exposure to new audiences. It is also the perfect place to upsell, with one in five trading up from their domestic product ranges and brands,” TFWA said.
While only one in two watch and jewellery buyers purchased for themselves, the lowest of all categories, almost one in every two purchases are for a gift.
“While passenger numbers are increasing significantly across the globe, our ability to turn these travellers into customers has not kept pace, and conversion is a major issue for our industry,” said TFWA President Erik Juul-Mortensen. “As the poorest performer, there is clearly considerable scope to drive sales in watches and jewellery.”
The report is based on approximately 1,000 shopper interviews conducted at four airports across the globe. A minimum of 50% of the sample were duty free buyers.
