INTERNATIONAL. As the festive season approaches, Swiss agency m1nd-set has conducted research into gifting as a purchase driver in travel retail throughout the year.
The report found that the percentage of airport purchases bought as gifts was up year-on-year in every season in the 12 months to the end of November 2019. The percentage of purchases bought as a gift was 42% in December 2018 to February 2019, 44% in March to May, 43% in June to August and 46% in September to November.
As a footfall driver, m1nd-set’s research found that ‘looking for a gift’ is the third most common reason given globally to visit airport shops. It was the top reason in the Middle East/Africa region and in the souvenir and confectionery categories.
Furthermore “suitability as a gift” was given as the main purchase driver globally, and was even higher in Asia Pacific and with male travellers.
The report found between 47% and 50% of purchases by men are for gifting, compared to between 35% and 42% of shopping among women. M1nd-set added that there were very few differences in gifting across different age groups.
M1nd-set Owner & CEO Peter Mohn commented: “It is worth noting that ‘gifting for good’ is a growing trend. Between 55% and 73% of consumers, depending on variables, are willing to pay a premium for goods where the sales proceeds will benefit a social or environmental cause. Younger women, in particular, have a greater tendency to support brands with a philanthropic cause.
“Understanding purchase drivers is essential to securing the sale and increasing average spend among shoppers. Sales associates need to learn more about the reasons why travellers enter the store and why they purchase to enable them to make the sale and increase the average transaction value through upselling and cross-category sales.
“Time of year is clearly a key factor, but there are many reasons for gift shopping throughout the year. It’s important to share these insights with frontline staff in their training so they understand how cultural and religious festivals across all creeds and cultures can generate increased sales opportunities.”
