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INTERNATIONAL. The Duty Free World Council (DFWC) has initiated a Global Shopping Monitor of duty free shopping trends, with the first report covering the fourth quarter of 2015.
The move, said DFWC, is part of a continuous project to measure perceptions of the duty free & travel retail industry among travellers. DFWC is conducting the quarterly Global KPI Monitor in partnership with specialist travel retail research company m1nd-set.
DFWC President Frank O’Connell said: “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 behaviours and adjust the shopping offer accordingly.”
The Monitor covers satisfaction with the shops, product range, differentiation from the domestic channel and perceived value for money, among other topics. The findings are based on interviews with over 4,000 people who have travelled internationally in the previous quarter, with the sample split per region based on industry sales figures from m1nd-set partner Generation Research.
m1nd-set has defined a Customer Satisfaction Index (CSI), generated using the ratings for each respective element, analysed and weighted. The current report illustrates the findings from the first Index; future quarterly reports will show the evolution over time.
m1nd-set Owner & CEO Peter Mohn said: “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 behaviour. 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 compile 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 stakeholders today. A one-shot spotlight doesn’t give a rounded enough picture of the reality. Companies need to evaluate trends, which this global index will allow.”
Among the highlights of the Q4 2015 report are the following:
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 the “perceived value for money” and the “variety and range of products” on offer.
2. Another tendency revealed in the report is the perception of duty free & travel retail shopping overall. As an example, the current DFWC Global KPI Monitor shows that globally 40% of the international travellers see duty free & travel retail as part of the travel experience. However, there are significant differences in traveller perceptions between the regions.
3. The report also provides cross-regional and cross-category comparisons. It highlights the main benefits and key drivers for buying in duty free & travel retail on a global level and the main differences in the various regions as well as, 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 shops.
4. A further vital aspect is the information on Customs regulations and the impact on shopping behaviour. The current report suggests that only half of international travellers feel well informed about the regulations, which has a negative impact on purchase behaviour.
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 first report indicates that today, still only a minority of travellers use electronic devices for information about travel retail shopping.
6. A further area the reports will cover is the macro-economic impact on the business, given the link between the global economic crises and the duty free and travel retail business. The DFWC Global KPI Monitor will illustrate the impact of the current economic situation on the actual travel and shopping behaviour, both globally as well as in each of the regions.
For more information and to find out more about the full report, please contact m1nd-set at info@m1nd-set. The cost of the quarterly report is €5,000, with a yearly subscription priced at €15,000.
