INTERNATIONAL. Swiss research agency m1nd-set’s second non-shopper report, focusing on the reasons international travellers do not buy despite visiting airport shops, looks into how this varies depending on the category.
The study, part of m1nd-set’s Business 1ntelligence Service (B1S), is based on face-to-face interviews with over 20,000 passengers at airports around the world over the past year, and also reveals some key steps to improve the conversion rate among browsers, once they are in the store.
The B1S database breaks down results by region, nationality, gender, destination and origin and category. It found that price emerged as the main barrier to purchase in perfumes & skincare. A lack of assortment was cited as the most common reason for not purchasing confectionery, clothing, cosmetics or souvenirs from duty free shops. For alcohol and tobacco, “Customs allowances” and “carrying items” stopped some travellers from spending in this category.
The first part of the study, released last month, focused on why international travellers do not visit airport duty free shops at all, finding visiting airport restaurants and bars was the number one alternative activity (56% of travellers). The second report also looked at some of the overall reasons for not purchasing in both domestic and duty free stores including a lack of customer service, lengthy check-out procedures, poor merchandising and store design and the tendency to use stores as showrooms before purchasing online.
The second report concludes with findings from the m1nd-set “ASSERT” programme which provides insights for staff engagement and training based on the findings from m1nd-set consumer research. The research company said Identifying the customer profile, their state of mind and what their ideal shopping experience looks like is key to converting browsers.
M1nd-set owner and CEO Peter Mohn commented: “When we combine these non-shopper studies with our reports on what influences shoppers to purchase or spend more, we see that the differentiation of duty free and travel retail shopping experience is fundamental. We see that price becomes less of an issue if the shoppers know they can only purchase the special edition perfume or limited-edition spirit in the duty free shop. This is especially the case among, millennials, across all global regions.”
“It’s all about creating emotions”, Mohn concluded. “Differentiation is not just about product. Airports and airport shops have a unique opportunity to capitalize on the passengers’ excitement with the travel experience by curating the airport and shop design with a distinct local flavour. The positive emotions which can be generated by a unique and entertaining airport or store design, special in-store entertainment or just extremely helpful and kind staff can have a significant impact, both direct and indirect, on converting browsers to shoppers”
