INTERNATIONAL. Millennials are less likely to make a purchase in duty free stores than all other age groups combined, a study has found.
Swiss research agency m1nd-set found that China was the only nationality where the millennial age group purchase percentage (52%) exceeded that of its figure for all age groups combined (51%).
The lowest rate of purchase in the millennials category in duty free was by Americans, with just 11% making a purchase, followed by Germans (14%) and Brazilians (20%).
M1nd-set surveyed more than 8,000 travellers across eight nationalities visiting duty free stores to produce the results, with travellers from the UK, France, Japan, and Russia also participating.
The biggest disparity in conversion rates (calculated by the number of shoppers entering duty free stores divided by shoppers making a purchase) was found among German duty free shoppers, with conversion rates of 32% for millennials and 43% for the all age groups category. The next biggest gaps were recorded by the Japanese (64%/74%) and the French (50%/59%).
The highest conversion rates, across millennial and all age groups, were recorded by the Chinese with 95% and 94% respectively. In addition, the research showed that Chinese millennials also visit and purchase in more categories than other nationalities.
M1nd-set’s study also looks at overall shopping behaviour including both the shopping planning and purchase planning behaviour as well as aspects such as price comparison, the impact of communications touch points, and the effectiveness of employees and staff interaction with millennial shoppers.
Assessing the millennial aspects of the report’s findings, m1nd-set Business 1ntelligence Service Director Pablo Saez Gil said: “Today’s millennials have a greater tendency to adopt new technology and new formats of sharing and engaging so it is paramount that brands, retailers and marketers in travel retail keep up with the times and converse in the right register with the millennial consumer.
“Customisation, consistency, experiential and engagement are key when marketing to millennial shoppers in travel retail. They are generally more demanding than other age groups so it is vital to engage and converse with millennials to convey the brand story or unique retail experience.
“It is equally important that this conversation and the brand message is consistent across all touch points and media, from the mobile phone to the billboards or the digital touch screen in-store.”
