CHINA. A new study from Swiss independent research company m1nd-set* into Chinese shopping behaviour says that the nation’s travellers have mixed views about the merits of Arrivals duty free shopping in Mainland China
As revealed by The Moodie Davitt Report last February, the Chinese government authorised the opening of 19 new arrivals shops at various points of entry in Mainland China including airports and seaports. The international airports of Beijing and Shanghai already operate arrivals shops, run by Sunrise Duty Free. The new licences are part of a concerted government programme to maximise domestic consumption.
The permits were granted for the following locations:
AIRPORTS
– Guangzhou Baiyun International Airport
– Hangzhou Xiaoshan International Airport
– Chengdu Shuangliu International Airport
– Qingdao Liuting International Airport
– Nanjing Lukou International Airport
– Shenzhen Bao’an International Airport
– Kunming Changshui International Airport
– Chongqing Jiangbei International Airport
– Tianjin Binhai International Airport
– Dalian Zhoushuizi International Airport
– Shenyang Taoxian International Airport
– Xi’an Xianyang International Airport
– Ürümqi Diwopu International Airport
PORTS
– Futian, Huanggang, Shatoujiao and Wenjindu (all Shenzhen)
– Zhuhai Zhakou
– Heihe
m1nd-set surveyed over 2,000 Chinese travellers in December 2016. It said that “almost half” of respondents said they would still favour purchasing at the departure airport duty free shop on the return journey, while only around one third would prefer purchasing on arrival in China.
One in five travellers claimed they would favour the departure duty free shop on their outbound trip. Business travellers expressed a stronger preference to purchase at departure shops on both their outbound and return trips as well as on arrival at their destination than other segments. Their preference to purchase on arrival back in China was lower than the average however, m1nd-set said.
Respondents said that convenience, quality and value for money, language advantages and ease of communication would be key reasons for shopping on arrival back in China. However, some Chinese travellers felt the products would be more affordable outside China, m1nd-set said, one of the main reasons for preferring to shop at the departure store on the return leg. The reassurance that the products will be authentic was another key motivator to purchase outside of China, some respondents said (see Moodie Davitt comment below).
CEO Peter Mohn commented: “While brands stand to gain from the increased sales outlets and the ease for Chinese travellers to purchase in their home country on arrival, retailers outside China will be showing concern for the potential lost business if Chinese travellers shift their purchasing decisions to the arrivals shops back home.
“We see that it will be increasingly vital for retailers to provide a different shopping experience to woo the Chinese traveller. This will mean brands and retailers will need to work closer than ever together on providing location specific travel retail exclusives and an improved, more unique shopping experience in order to retain the Chinese traveller spend in the duty free shops outside China.”
*For further details on the study, contact pmohn@ms-research.net or visit https://www.m1nd-set.com/
Comment: The study is timely given the imminent expansion of Chinese arrivals duty free shopping. It should be noted, however, that arrivals shopping is in its infancy in China, writes Martin Moodie. Pricing at Sunrise Duty Free’s stores is actually ultra-competitive and there are no concerns over authenticity of product. Establishing an arrivals duty free culture in a country requires time and repeat travel for the concept to be embedded.
As Sunrise and China Duty Free Group develop the arrivals offer, it is likely that consumer perceptions will change fast from those witnessed in the m1nd-set study. In that context, Chinese arrivals duty free is certain to be a very influential travel retail phenomenon over the next decade.
