British International Traveller & Shopper Report...• To keep the questionnaire length within this time limit and prevent the effects of survey fatigue, all respondents completed

British International Traveller & Shopper Report

© Counter Intelligence Retail Ltd www.counterintelligenceretail.com

CiR Research – British International Traveller & Shopper Study

Counter Intelligence Retail (CiR)

May 2016

British International Traveller & Shopper Study

2016

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INTRODUCTION

ABOUT COUNTER INTELLIGENCE RETAIL


2016

Counter Intelligence Retail (CiR) is an independent retail development consultancy that works with some of the world’s leading brand owners and retailers

A UK based agency with global experience, CiR provide compelling market intelligence and insight, develop commercial propositions for brands and categories and create amazing shopping experiences all over the world

The CiR Group is made up of 4 specialist functions which offer a dedicated service aimed at optimising all elements of the retail landscape

With experience in more than 70 leading airports, numerous border stores, key ferry routes and multiple domestic market projects, CiR Research provides the most up to date and relevant market intelligence for brand owners and retailers across the globe. CiR Research unlocks the knowledge and insight needed to develop brand and category strategy, respond to the needs of consumers and shoppers and provide the compelling evidence required to drive innovative change to the retail environment

Business Lounge provides an extensive, relevant and appropriate combination of industry data, facts and information. Business Lounge is developed and managed by a team of retail and marketing experts and is designed specifically to support Travel Retail brand owners to grow their business. Business Lounge combines the most robust, credible and auditable data sources available for the Travel Retail channel, with a focus to provide quality information and drive actionable intelligence to influence future planning

CiR Category Development provides clients with the vital data driven insight and strategic platform for brand and category development. With extensive experience in retail

enhancement, the team also provide the fundamental services that drive shopper engagement in store as well as informing and leading the development and creation of amazing shopping experiences

CiR Live! is the ‘active arm’ of CiR and is all about people in the retail environment. With global reach, we deploy staff to merchandise products on shelf, manage in-store activations for brands and categories, provide brand ambassadors to drive sales, support live promotions and provide training to existing staff

www.counterintelligenceretail.com

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TABLE OF CONTENTS


2016

1 METHODOLOGY & OBJECTIVES p. 6

1.1 RESEARCH APPROACH p. 6

1.2 PROJECT SCOPE p. 7

1.3 GLOSSARY p. 8

2 BACKGROUND INFORMATION p. 10

2.1 THE UK ECONOMY p. 10

2.2 BRITISH CONSUMERS p. 11

3 CHANGE IN TRAVEL BEHAVIOURS – KEY INSIGHTS & ACTIONS SUMMARY p. 12

3.1 KEY TRAVELLING NATIONALITIES p. 13

3.2 CHANGING BRITISH TRAVEL HABITS p. 14

3.3 KEY GLOBAL DEPARTURE AIRPORTS p. 15

3.4 PASSENGER GROWTH FORECAST p. 17

3.5 CHANGING TRAVEL EXPERIENCES p. 18

3.6 BRITISH TRAVEL ACTIVITIES p. 19

4 DUTY FREE – KEY INSIGHTS & ACTIONS SUMMARY p. 20

5 PROFILE OF SHOPPERS – KEY INSIGHTS & ACTIONS SUMMARY p. 22

5.1 DUTY FREE/TAX PAID AIRPORT RETAIL VISITOR & BUYER PROFILE p. 23

5.2 VISITOR PROFILE BY CATEGORY p. 24

5.3 BUYER PROFILE BY CATEGORY p. 25

5.4 LIFESTYLE/SECURITY PERCEPTIONS p. 26

5.5 TOBACCO CONSUMPTION BEHAVIOUR p. 27

5.5.1 CHANGES IN SMOKING BEHAVIOUR p. 28

5.6 CONFECTIONERY CONSUMPTION BEHAVIOUR p. 29

6 BUYING BEHAVIOUR – KEY INSIGHTS & ACTIONS SUMMARY p. 30

6.1 CATEGORY VISITING & PURCHASING p. 31

6.2 FREQUENCY OF SHOPPING CATEGORIES IN AIRPORT RETAIL p. 32

6.3 REASONS FOR VISITING DUTY FREE p. 33

6.4 PLANNED OR IMPULSE VISIT p. 33

6.5 CROSS-CATEGORY SHOPPING p. 34

6.6 SPEND COMPARISONS p. 35

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TABLE OF CONTENTS


2016

6.7 PLANNED VS. IMPULSE PURCHASING p. 36

6.8 PRE-ORDERING BEHAVIOUR p. 37

6.9 SUB-CATEGORY PURCHASE BEHAVIOUR p. 38

6.9.1 ALCOHOL p. 38

6.9.2 BEAUTY p. 39

6.9.3 CONFECTIONERY p. 40

6.9.4 TOBACCO p. 41

6.9.5 FASHION & ACCESSORIES p. 42

6.9.6 JEWELLERY p. 43

6.9.7 WATCHES p. 44

7 INTERACTION & SATISFACTION WITH RETAIL ENVIRONMENT – KEY INSIGHTS &

ACTIONS SUMMARYp. 45

7.1 AIRPORT AND SHOPPING BEHAVIOUR p. 46

7.2 ENJOYMENT AND SATISFACTION WITH SHOPPING AT THE AIRPORT p. 47

7.3 SATISFACTION RATINGS CROSS-CATEGORY p. 48

8 OPINIONS OF AIRPORT RETAIL – KEY INSIGHTS & ACTIONS SUMMARY p. 49

8.1 STAFF INTERACTION p. 50

8.2 INTEREST IN NEW PRODUCT IDEAS/INITIATIVES p. 51

8.3 FUTURE MOTIVATORS BY CATEGORY p. 52

8.4 DUTY FREE PRICES p. 53

8.5 BEACON COMMUNICATION IN-STORE p. 54

8.6 ARRIVALS DUTY FREE STORE USAGE p. 55

8.7 FUTURE SHOPPING HABITS p. 56

9 MOTIVATIONS TO PURCHASE BY CATEGORY p. 57

9.1 ALCOHOL p. 58

9.2 BEAUTY p. 69

9.3 CONFECTIONERY p. 82

9.4 TOBACCO p. 93

9.5 FASHION & ACCESSORIES p. 104

9.6 JEWELLERY p. 116

9.7 WATCHES p. 126

9.8 NON-BUYERS p. 140

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2016

1.1 RESEARCH APPROACH

• Data was collected via an online study using an external panel

• Qualifying criteria were:

• All British nationals

• All travelled internationally in the last 6 months

• All visited a Duty Free/Tax Paid retail outlet

• Total sample size exceeds 1,600 interviews

• Collating overall cross-category shopping and general travel behaviours and attitudes

• Quotas applied to provide detailed information at a category level, however totals are lower for Tobacco and Jewellery buyers due to the low incidence rate of respondents in these categories:

• 200 buyers in Alcohol

• 227 buyers in Beauty

• 255 buyers in Confectionery

• 184 buyers in Tobacco

• 192 buyers in Fashion & Accessories

• 187 buyers in Jewellery

• 201 buyers in Watches

• 211 Non-Buyers

• 20 minute survey

• To keep the questionnaire length within this time limit and prevent the effects of survey fatigue, all respondents completed a core set of questions plus one category deep-dive section

• Fieldwork conducted May 2016

1. METHODOLOGY & OBJECTIVES

ALCOHOL

BEAUTY

CONFECTIONERY

TOBACCO

FASHION &ACCESSORIES

JEWELLERY

WATCHES

NON-BUYER

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2016

1.2 PROJECT SCOPE

CiR’s British Nationality Study report provides a comprehensive view of the British traveller, with in-depth information and intelligence into their profile and behaviour within the Duty Free environment, providing insights and recommendations on how best to target this important traveller group and their changing needs given the challenges of the economic climate

Who shops Duty Free? – Visitor and Buyer profiles• Demographics• Reason for travel• Travel experience - frequency of flying, locations visited• Travel motivations - reason for travel, activities undertaken• Future travel expectations – change in frequency, locations, reason for travel,

activities

What do they shop? - Category visiting and buying behaviour• Categories and sub-categories visited• Categories, sub-categories and brands bought • Cross-category visiting and buying• Basket analysis and spend levels• Change in Duty Free spend vis-à-vis other expenditure on travel activities

How do they shop? - Attitudes and behaviours to Duty Free shopping• Pre-travel research and price comparison• Satisfaction with the Duty Free range, pricing and environment• Cross-category comparisons

Why do they shop? - Motivations to purchase by category • Planned vs. impulse purchase behaviour • Reasons to purchase and key drivers influencing product selection• Role of promotions, Travel Retail Exclusives and staff• Trade-up and first-time buying• Purpose of purchase – gift/self/request and recipient profile

Why do they not shop? - Barriers to purchase • Reasons for non-purchase• Opinions and behaviours of non-buyers in Duty Free/Tax Paid airport retail• Motivators to encourage purchase

ALCOHOL

BEAUTY

CONFECTIONERY

TOBACCO

FASHION &ACCESSORIES

JEWELLERY

WATCHES

NON-BUYER

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2016

• There is a slight bias towards xxx for both visitors and buyers

• Overall, there are more xxx visiting and buying from Duty Free. Non-buyers are significantly morelikely to be xxx

• Buyers are more likely to be travelling to xxx while non-buyers are more likely to be travelling toxxx

• Compared to the profile of Duty Free visitors overall, those travelling for xxx purposes are morelikely to make a purchase at Duty Free whilst xxx are more likely to xxx and in xxx

FLIGHT FREQUENCY

>40<40 1 2-3Top WC

Bus. Leisure

OtherWC

SOCIAL GRADE

4+

xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%VISITORS

GENDER AGE

xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%

TRAVEL PURPOSE

BUYERS

DUTY FREE

xx% xx% xx% xx% xx% xx% xx% xx%xx% xx% xx%NON-

BUYERS

5.1 DUTY FREE/TAX PAID AIRPORT RETAIL VISITOR & BUYER PROFILE

Other

xx%

xx%

xx%

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2016

• Confectionery visiting, buying and spend are highest for xxx. This sub-category attracts xxx ofvisitors, and xx% decide to make purchase. Those who visit and purchase are likely to be xxx, xxxand xxx travellers

• x, x, x respectively, come after xxx for both visiting and buying in Duty Free. These three sub-categories are particularly attractive to xxx travellers

• Visits to xxx attract a high level of xxx travellers and about xxx result in purchase. Biscuits havexxx spend per head compared to other Confectionery sub-categories

• Xxx visits are driven mainly by outbound passengers and have the lowest percentage of spendin Confectionery

• Leading Confectionery brands for British travellers are xxx and xxx

6.9.3 SUB-CATEGORY PURCHASE BEHAVIOUR - CONFECTIONERY

AVERAGE SUB-CATEGORY SPEND

AVERAGE ITEMS PURCHASED

% SPEND OF CONFECTIONERY SPEND

xx%

xx%

xx%

US$xx

x.x

xx%

xx%

xx%

xx%

US$xx

x.x

xx%

xx%

xx%

xx%

US$xx

x.x

xx%

xx%

xx%

xx%

US$xx

x.x

xx%

CHOCOLATECANDY / SWEETS

CHEWING GUM**

BISCUITS

VISITED

BOUGHT

CONVERSION

CONFECTIONERY

No. 1 CONFECTIONERY BRAND

No. 2 CONFECTIONERY BRAND

xx%

xx%

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2016

TIME ARRIVED AT THE AIRPORT PRE-FLIGHT

7.1 AIRPORT AND SHOPPING BEHAVIOUR

Almost xxx travellers arrive at the

airport at least 2 hours ahead of their

flight

Travellers aged xxx are allowing

significantly longer, with xxx arriving

2.5 hours or longer ahead of their

flight. Those travelling for xxx

purposes also allow longer

Xxx consider the time taken to clear

security to be longer than expected.

Interestingly, xxx travellers are more

likely to consider the time taken to

clear security is longer than

expected, potentially reducing the

amount of time these core shoppers

have to visit Duty Free

Xxx and xxx travellers are most

critical of the length of time, so

promoting the fast-track service may

appeal to those wanting time to

shop

Under 1 hour

1-1.5 hours

1.5-2 hours

2-2.5 hours

2.5-3 hours

Over 3 hours

TIME TO CLEAR

CHECK-IN AND

SECURITY

A LOT SHORTER

THAN EXPECTED

A LOT LONGER

THAN EXPECTED

TIME SPENT SHOPPING AT THE AIRPORT

The average time spent shopping at

the airport is xxx minutes

x in x spend over xx minutes

shopping, but these are more likely

to be xxx

Travellers using xxx airlines are most

likely to spend under xx minutes

shopping

x in x travellers, are spending the

same amount of time shopping now

compared to 2-3 years ago

Shoppers aged xxx spent longer

shopping at the airport on their last

trip, xx% vs xx% overall, and falling to

xx% if aged xx, indicating increasing

enjoyment with the airport shopping

experience, but more so for xxx

travellers. However, as xxx consider

the check–in process lengthy,

increasing communication on speed

and efficiency should appeal

Under 5 minutes

5-10 minutes

11-15 minutes

16-30 minutes

31-45 minutes

46-60 minutes

Over 1 hour

TIME SPENT

SHOPPING

COMPARED TO

NORMAL

A LOT LONGER

THAN NORMAL

A LOT SHORTER

THAN NORMAL

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2016

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9. MOTIVATIONS TO PURCHASE BY CATEGORY

• This section provides a deep-dive investigation into each category individually

It focuses on the main item purchased and investigates in more detail:

• Gift/self/request purchasing & recipient profile if not for self-use

• Planned or impulse purchase

• Reasons to purchase and key drivers influencing product selection

• Role of promotions, Travel Retail Exclusives and staff

• Dominant brands

• Trade-up & first-time buying

• Each category is summarised individually so can be read in isolation

The sequence of topics is:

9.1 Alcohol

9.2 Beauty

9.3 Confectionery

9.4 Tobacco

9.5 Fashion & Accessories

9.6 Jewellery

9.7 Watches

9.8 Non-buyers



2016

Brand loyalty is high, with xx% of planned

buyers knowing the brand they will buy in

Duty Free

xxx are more likely to have planned their

exact product choice

However, x in x know the brand they want to

buy, but could be open to influence on which

product variant is purchased

Xxx of Alcohol buyers make a

planned purchase in the

category, driven by xxx buyers

xxx are more likely to buy on

impulse, accounting for 5% of

purchases

PLANNED

IMPULSE

xx% xx%

EXACT PRODUCT

BRAND

PRODUCT TYPE

RANGE OF BRANDS

SOMETHING FROM THE

CATEGORY

PRICE

xx% xx% xx% xx% xx%

2.

xxx

4.

xxx

1.

xxx

3.

xxx

5.

xxx

PLANNED Vs. IMPULSE PURCHASE

LEVEL OF PLANNING

HOW DO THEY SHOP ALCOHOL?

REASON FOR PRODUCT SELECTION

Xxx drive Alcohol product selection, especially for older shoppers (aged 40+) but xxx is also a key motivator for

xxx. Brand familiarity is also important.

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2016

xxx is the top brand purchased by British buyers of Confectionery. It is particularly appealing to xxx, buyers xxx

and xxx travellers

x, x, x and x have a similar appeal across demographics. x in 10 x purchases are made by xxx travellers, whilst

xxx is favoured by xxx PAX

WHAT DO THEY PURCHASE?

BRANDS PURCHASED

AGE <40 V. 40+

LEISURE V. BUSINESS xx% xx% x% x%xx% xx% x% x% x% x%

AVERAGE CONFECTIONERY SPENDUS$xx

% SPEND vs. CORE CATEGORY SPENDxx%

xx% x%xx% x% x%

xx% xx% x% x%xx% xx% x% x% x% x%

Top 5

Confectionery

Brands

Data indicates how

sub-groups compare

to the average

GENDER

PACK/FORMAT PREFERENCE

x

x

xx%

xx%

xx%

xx%

xx%

xSeveral pack styles are liked, influenced by

the reason to purchase and brand of

choice

With xxx being the leading brand, the

preferred format is a xxx style, but this is

closely followed by xxx, xxx and xxx

packaging

A xxx is more popular with female buyers

while younger male travellers preferred xxx

packaging

x

x

xx% xx% x% x%xx% xx% x% x% x% x%

PACK/FORMAT PREFERENCE

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2016

REASONS FOR NON-PURCHASE

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WHY DO THEY NOT BUY?

1 in x British visitors to Duty Free / airport stores

intended to purchase but did not. These are

more likely to be xxx travellers

xxx passengers are more likely to have never

intended purchasing

YES

NO

xx%xx%

HAD THEY PLANNED TO PURCHASE?

CATEGORIES INTENDED TO BUY IN DUTY FREE BUT DID NOT

xx%xx% xx%xx% xx%xx%Failed to buy xx%

Lost sales are highest in x and x, where x failed to make an intended purchase

Alcohol is more likely to be losing sales amongst x travellers

Just under x of travellers intended to buy from Beauty but did not; of these the majority are x

x travellers are significantly more likely to have planned to purchase from Duty Free but did not

Sales are least likely to be lost in x, x and x

1. xxx

2. xxx

3. xxx

4. xxx

5. xxx

TOP 5 REASONS

Xxx are the main barrier to purchasing in Duty

Free, especially for xxx, accounting for x in x

lost sales

1 in x are disappointed with xxx

Therefore more immediate attention is

needed to improve the xxx in Duty Free stores

Xxx in some airports can also disappoint,

especially if a purchase had been planned if

the product had been seen in another airport

Counter Intelligence Retail

The Pallion,

Whinchat,

Skipwith Road,

Escrick,

YORK,

YO19 6EJ

United Kingdom

TEL: +44 (0) 8459 013641

E-mail: enquiries@ counterintelligenceretail.com

Website: www.counterintelligenceretail.com

Documents

British International Traveller & Shopper Report...• To keep the questionnaire length within this time limit and prevent the effects of survey fatigue, all respondents completed