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The Travel Retail Industry's 1 Global & Cross-Category Segmentation Study

The Travel Retail Industry's 1 st Global & Cross-Category Segmentation Study

The Travel Retail Industry's 1 Global & Cross-Category Segmentation Study
Research conducted by m 1 nd-set for TFWA & APTRA Supported by:  Nestle International Travel

Research conducted by m1nd-set for TFWA & APTRA

Supported by:

  • Nestle International Travel Retail

  • British American Tobacco International

  • Procter & Gamble Travel Retail

Background

 Lack of cross-category segmentation in Travel Retail  Need for segmentation expressed by brands and
Lack of cross-category segmentation in Travel Retail
Need for segmentation expressed by brands and retailers
Customer universe is the same for all parties in Travel Retail
All players in Travel Retail should speak the same language
Background  Lack of cross-category segmentation in Travel Retail  Need for segmentation expressed by brands
 TR Industry’s 1 st Global and Cross-Category segmentation as industry standard supported through TFWA &
TR Industry’s 1 st Global and Cross-Category segmentation as industry
standard supported through TFWA & APTRA:
Worldwide, regional and per airport reading
Identify strategic opportunities
Increase sales and achieve better ROIs

TFWA & APTRA Segmentation Research Background

  • Locate groups of TR shoppers sharing characteristics that causes them to have similar shopping needs.

TFWA & APTRA Segmentation Research Background  Locate groups of TR shoppers sharing characteristics that causes
  • Each segment…

    • is distinct from other segments (heterogeneity)

    • behaves consistently regarding TR shopping

    • responds similarly to TR market stimuli

    • can be reached by TR market intervention(s) in a similar way

TFWA & APTRA Segmentation Research Background

Possible implementations:

  • Airports: Offer optimal mix of type of shops (DF, branded, souvenir & “local touch”) to attract all segments. Adapt to meet needs of segments not liking current airport offer.

  • Retailers: Assure ideal range and variety of categories, brands and products according to proportions of segments. Offer promotions

& sales based on different segments’ desires. Train staff to

understand segments and act accordingly regarding service level.

  • Brands: Offer products, TR exclusives, line extensions, packaging etc. meeting needs of most profitable segments. Assure offering product range meeting different segments’ requirements.

Methodology

 Recruitment of travellers at 28 airports worldwide  Online questionnaire  Sample size: N =
Recruitment of travellers at 28 airports worldwide
Online questionnaire
Sample size: N = 4’300
Travellers from:
Europe
Asia/Pac
Middle East
N. America
S. America
Africa

Focus on Three Emerging Markets:

Focus on Three Emerging Markets:  Purchase more items of luxury brands in the Duty Free
Focus on Three Emerging Markets:  Purchase more items of luxury brands in the Duty Free
Focus on Three Emerging Markets:  Purchase more items of luxury brands in the Duty Free
  • Purchase more items of luxury brands in the Duty Free stores than buyers from any other countries

  • Perfumes, cosmetics & luxury goods +28% in past 3 years

  • Expected +25% in next 2 years

Russia

Russia  World’s 9 largest country with 143 Mio people  Economy: world's 9 largest by
  • World’s 9 th largest country with 143 Mio people

  • Economy: world's 9 th largest by nominal GDP

  • Russia is going to account for 20%+ of all European DF in 2016

Russia  World’s 9 largest country with 143 Mio people  Economy: world's 9 largest by
  • Currently 150 DF shops in Russia

  • Possibly 30 border railway stations will open Duty Free opportunities

Russia

Russia Top Travel Retail Shopper Segments: 94% 1. Bargain seeking self-indulgers 2. Low-income promotion swayed 62%
Top Travel Retail Shopper Segments: 94% 1. Bargain seeking self-indulgers 2. Low-income promotion swayed 62% of
Top Travel Retail Shopper Segments:
94%
1.
Bargain seeking self-indulgers
2.
Low-income promotion swayed
62% of Russian Shoppers
3.
Low-budget gift seekers
4.
Executive pre-planners
5.
Authentic products seekers
6.
Price-sensitive shopping lovers
7.
Time killing browsers
8.
Inspiration seekers
Bargain Seeking Self- Indulgers
Bargain Seeking Self-
Indulgers
Key Features: • Compare/know the prices of the products needed • Buy at airport only if
Key Features:
Compare/know the prices of the products needed
Buy at airport only if it's cheaper than downtown shops
Like to browse around airport shops trying to find bargains, good
prices, quantity discounts, etc.
Main shopping motivation is self-indulgence with a bargain
Travel Purpose: Flying Travel Class: Frequency: Leisure Economy 59% 80% Low Gender: Age: Household: Living with
Travel Purpose:
Flying
Travel Class:
Frequency:
Leisure
Economy
59%
80%
Low
Gender:
Age:
Household:
Living with partner/ husband/
spouse
Female
Family with children
69%
62 % <
35 years
33%
42%
Living alone
11%
Young adults living with
parents
2%
12%
Other
Income:
Profession:
Purchase
Middle
1‘000-5‘000
Frequency:
Management or
/month
Professional
Medium-
69%
47%
Low
• Enjoy material possessions and having new things (44%) • Like entertainment & are more likely
Enjoy material possessions and having new things (44%)
Like entertainment & are more likely to visit a promotion site with an activity (44%)
Conventional people (38%)
Intensive shoppers, enjoy buying and having new things (35%)
Main airport shopping selection criteria: • Most convenient part of trip (63%) • Offers the best
Main airport shopping selection
criteria:
Most convenient part of trip (63%)
Offers the best prices (46%)*
Main reason to buy expensive
products:
Good bargain (79%)*

* Significant difference compared to other segments

• • Airport shopping benefits: • • Cheaper prices* Guaranteed good quality* • Limited / special
Airport shopping benefits:
Cheaper prices*
Guaranteed good quality*
Limited / special editions
Most important promotions:
Price-off
than • Usually compare/know the prices of the products they need & buy @ airport shops
than
Usually compare/know the prices of the products they need & buy @ airport shops only if cheaper
than downtown shops (71%)
Like to browse around in airport shops to find bargains, good prices, quantity discounts,… (67%)
Enjoy killing time at the airport, browsing around different shops and seeing what is available (62%)
If have foreign currency left from the trip they’ll try to spend it in airport shops (55%)
Interested in the selection of products available in airport shops (54%)
Like airport shops that have novelties, promotions, offers new things, … (53%)

Summer-fall 2012

Global cross category travel retail segmentation

11

❶ 65%* Reasons to buy: To stock up (51%) To try out something new (48%)* When
65%*
Reasons to buy:
To stock up (51%)
To try out something new
(48%)*
When buy?
On way back home (74%)
Amount spent: Average
52%
Reasons to buy:
To indulge themselves
(57%)*
When buy?
On way back home (61%)
Amount spent: Average

Top 5 Categories of Bargain seeking self-indulgers

78% buy every trip

Type of the trip when shop:

Leisure trip with family (or partner)

(82%) ❹ 38%* Reasons to buy: To indulge themselves (56%)* When buy? On way back home
(82%)
38%*
Reasons to buy:
To indulge themselves (56%)*
When buy?
On way back home (63%)
Amount spent: Average
❷ 55%* Reasons to buy: To indulge themselves(62%)* When buy? On way back home (69%) Amount
55%*
Reasons to buy:
To indulge
themselves(62%)*
When buy?
On way back home (69%)
Amount spent: Average
23%
Reasons to buy:
As a gift to friend/ colleagues
at home (67%)
When buy?
On way back home (75%)
Amount spent: Below average

* Significant difference compared to other segments

Low-income Promotion Swayed Key Features: • Attracted by promotions • Like entertainment, likely to go &
Low-income
Promotion Swayed
Key Features:
Attracted by promotions
Like entertainment, likely to go & visit a promo site with
an activity
Scratch cards & price draws draw attention
Like receiving advice & guidance from store staff, more
than on average
Buy expensive products if recommended
Gender:
Age:
Travel Purpose:
Flying
Frequency:
Mix
53% <
(Leisure &
30 years
Business)
63%
36%/64%
Medium
Profession:
Household:
Middle Management,
Living with partner/
husband/ spouse
Family with children
Professional,
24%
37%
Living alone
Engineer/Technical
3%
Clerical/Administration
23%
Young adults living with
parents
13%
63%
Other
Income:
Purchase
Smokers:
< 2‘000/Month
Frequency:
35%
40%
High
• Like entertainment & are more likely to visit a promo site with an activity (30%)
Like entertainment & are more likely to visit a promo site with an activity (30%)
Like to get advice & guidance from store staff, more than on average
Most important promotions:
Airport shopping benefits:
Price-off
Guaranteed good quality
Free accessory*
Local products
Special airport edition*
To use during the trip*
Scratch card*
Better advice*
Prize draw*
Main reason to buy expensive
products:
Main airport shopping selection
criteria:
High quality (59%)
From a top brand (44%)*
Exclusive/limited edition (28%)*
Most convenient part of trip (66%)
Recommended by someone (21%)*
Best product selection (58%)*

* Significant difference compared to other segments

More than on average, they don’t find at airport shops the type of products they usually
More than on average, they don’t find at airport shops the type of products they usually buy

Summer-fall 2012

Global cross category travel retail segmentation

14

❶ 58%* Reasons to buy: Travel entertainment for children (72%)* When buy? On way to destination
58%*
Reasons to buy:
Travel entertainment for
children (72%)*
When buy?
On way to destination (60%)*
Amount spent: Above average
28%*
Reasons to buy:
It’s part of the travel routine
(things they need when they
travel) (45%)*
When buy?
On way to destination (73%)*
On way back home (52%)
Amount spent: Below average

Top 5 Categories of Low-income promotion swayed

65% buy every trip and almost for any purpose and destination

High frequency of buying:

• In Duty Free shops at the destination (downtown DF) • During transit & they have
In Duty Free shops at the destination
(downtown DF)
During transit & they have spare time
In arrival Duty Free shops, after the last flight
26%
Reasons to buy:
As a gift to friend/ colleagues
at home (62%)
As a gift to child(ren) (57%)*
When buy?
On way back home (62%)
Amount spent: Above average
❷ 38% Reasons to buy: As a gift to wife/ husband/partner (72%)* When buy? On way
38%
Reasons to buy:
As a gift to wife/
husband/partner (72%)*
When buy?
On way back home (60%)
On way to destination (53%)*
Amount spent: Above average
26%
Reasons to buy:
To try out something new
(65%)*
Gifting for accompanying
adult(s) (58%)*
When buy?
On way back home (67%)
On way to destination (53%)*
Amount spent: Above average

* Significant difference compared to other segments

Low-budget Gift Shoppers Key Features: • Prefer buying articles someone recommended them (or people they like
Low-budget
Gift Shoppers
Key Features:
Prefer buying articles someone recommended them (or
people they like have it/ like it)
Visit airport shops frequently to avoid having to think
about shopping during other moments of trip
Gifting key reason for buying
Like to get advice & guidance from store staff or from
someone they know, more than on average
Gender:
Travel Purpose:
Flying
Travel Class:
Frequency:
Male
Mix
Economy
(Leisure &
70%
70%
Business)
67%
Medium
Age:
Profession:
Household:
Living with partner/
husband/ spouse
Family with children
56% <
Middle Management,
Engineer/Technical,
31%
35%
Living alone
35 years
Professional,
Clerical/Administration
5%
Young adults living with
parents
58%
12%
17%
Other
Income:
Purchase
Smokers:
< 2‘000/Month
Frequency:
35%
43%
Medium-Low
Like to get advice & guidance from store staff or from people they know, more than
Like to get advice & guidance from store staff or from people they know, more than on average
Most important promotions:
Main airport shopping selection
criteria:
• Price-off
• Quantity discounts*
• Most convenient part of trip (55%)
• Special airport edition*
• Best product selection (50%)*
• Prize draw*
• Scratch card*
Airport shopping benefits:
Main reason to buy expensive
products:
• Pleasant shopping
• Good bargain (56%)
• Guaranteed good quality
• From a name brand (44%)*
• Gift packaging*
• Exclusive/limited edition (28%)*
• Recommended by someone (20%)*
• To use during the trip* • Better advice* • Shopping alone* 
• To use during the trip*
• Better advice*
• Shopping alone*

Summer-fall 2012

* Significant difference compared to other segments

More than on average…  they use airport shops in order to avoid shopping during other
More than on average…  they use airport shops in order to avoid shopping during other moments of
the trip
they visit airport shops because they offer a great shopping experience

Global cross category travel retail segmentation

17

❶ 54%* Reasons to buy: As a gift to friend/ colleagues at home (36%) When buy?
54%*
Reasons to buy:
As a gift to friend/ colleagues
at home (36%)
When buy?
On way back home (47%)
Amount spent: Above average
31%
Reasons to buy:
To try out something new
(51%)
When buy?
On way back home (62%)
Amount spent: Average

Top 5 Categories of Low-budget gift shoppers

66% buy every trip

Type of the trip when shop:

Leisure trip with family (or partner) (70%)

❹ 24% Reasons to buy: To stock up (30%) When buy? On way to destination (45%)
24%
Reasons to buy:
To stock up (30%)
When buy?
On way to destination (45%)
Amount spent: Average
❷ 46% Reasons to buy: As a gift to wife/ husband/partner (51%) When buy? On way
46%
Reasons to buy:
As a gift to wife/
husband/partner (51%)
When buy?
On way back home (53%)
Amount spent: Average
19%
Reasons to buy:
As a gift to wife/
husband/partner (33%)
When buy?
On way back home (47%)
Amount spent: Average

* Significant difference compared to other segments

Interest in Novelties / Exclusivity (Top 3 Segments) Buy mostly my usual products Bargain Seeking Self-Indulgers
Interest in Novelties / Exclusivity (Top 3 Segments)
Buy mostly my usual
products
Bargain Seeking Self-Indulgers
Value exclusive products
Mostly interested by
novelties
Low-budget Gift Shoppers
Low-income Promotion
Swayed
Value special airport
editions
Spend more if exclusive/
limited edition

Value limited edition

Interest in Novelties / Exclusivity (Top 3 Segments) Buy mostly my usual products Bargain Seeking Self-Indulgers
Seg

Seg

Novelties/Exclusivity

Novelties/Exclusivity

Need of staff advice (Top 3 Segments)

Value "better advice" Make purshase decision alone Low-income Promotion Swayed Like to get advice and guidance
Value "better advice"
Make purshase decision
alone
Low-income Promotion
Swayed
Like to get advice and
guidance
Spend more if
recommended to me
Bargain Seeking Self-
Indulgers
Low-budget Gift Shoppers
Shopping alone
Need of staff advice (Top 3 Segments) Value "better advice" Make purshase decision alone Low-income Promotion
  • Seg

  • Need staff advice

Price Sensitivity (Top 3 Segments) Like to treat myself without counting every cent Low-income Promotion Swayed
Price Sensitivity (Top 3 Segments)
Like to treat myself without
counting every cent
Low-income Promotion
Swayed
Ready to pay extra for
brand/ image
Value Cheaper (than street
shops) prices
Not ready to pay extra for
brand/ image
Low-budget Gift Shoppers
Carful how I spend my
money
Value Price-off
Bargain Seeking Self-
Indulgers
Seg
Price Sensitivity
Price Sensitivity (Top 3 Segments) Like to treat myself without counting every cent Low-income Promotion Swayed
Benefits most valued in airport shopping (Top 8 Segments) "Local touch” Local products Limited/ special editions

Benefits most valued in airport shopping (Top 8 Segments)

"Local touch” Local products Limited/ special editions Inspiration seekers Exclusive products Gifting packaging Authentic products seekers
"Local touch”
Local products
Limited/ special editions
Inspiration seekers
Exclusive products
Gifting packaging
Authentic products
seekers
Guaranteed good quality
compared to down town
Low-income promotion
swayed
Compare / try out
Better advice
Low-budget gift shoppers
Shopping alone
Pleasant shopping
Bargain seeking self-
indulgers
Executive pre-planners
Time-killing browsers
More time
To use during my trip
Entertain me
Cheaper prices
Price-sensitive shopping
lovers
Segments Benefits
Segments
Benefits

Recommendations:

All 3 key Russian segments:

Recommendations: All 3 key Russian segments:  Give opportunity to try and test (new) products 
  • Give opportunity to try and test (new) products

  • Offer good range of novelties

Bargain seeking self-indulgers:

  • Enhance & guarantee high quality of products

  • Offer wide range of top brands

  • Offer entertaining promotions & animations

  • Show price advantage compared to downtown

  • Offer wide range of (expensive) self-indulgence products (women)

Low-income promotion swayed:

Low-income promotion swayed:  Offer significant selection of well known brands with top image  Present
  • Offer significant selection of well known brands with top image

  • Present appealing & entertaining promotions

  • Approach with active sales advisors

  • Offer sufficient products for immediate consumption

Low-budget gift shoppers:

  • Propose variety of gifting items:

    • purchased by men, for partner & friends

    • souvenirs & confectionary

  • Offer recommendations (e.g. Top 10 selling items)

  • Brazil

    Brazil  World’s 5 largest country with 192 Mio people  Economy: world's 6 largest by
    Brazil  World’s 5 largest country with 192 Mio people  Economy: world's 6 largest by
    • World’s 5 th largest country with 192 Mio people

    • Economy: world's 6 th largest by nominal GDP

    • Brazil is one of the world's fastest growing major economies

    • World Cup 2014, Olympic Games 2016

    • Annual passenger flow growth of over 12% past 8 years

    Brazil  World’s 5 largest country with 192 Mio people  Economy: world's 6 largest by
    • Brazil TR market is estimated $900 Mio

    • TR market currently dominated by Dufry, but many key airport retail contracts expire 2014-15

    • WDFG recently entered market through Belem International Airport

    Brazil

    Brazil Top Travel Retail Shopper Segments: 90% 1. Low-income promotion swayed 2. Emotional high spenders 3.
    Top Travel Retail Shopper Segments: 90% 1. Low-income promotion swayed 2. Emotional high spenders 3. Low-budget
    Top Travel Retail Shopper Segments:
    90%
    1.
    Low-income promotion swayed
    2.
    Emotional high spenders
    3.
    Low-budget gift shoppers
    79% of Brazilian Shoppers
    4.
    Conventional deal seekers
    5.
    Bargain seeking self-indulgers
    6.
    Time killing browsers
    7.
    Price sensitive shopping lovers
    Key Features: Emotional High Spenders • Impulsive shoppers • Easily buy products that catches attention •
    Key Features:
    Emotional High
    Spenders
    Impulsive shoppers
    Easily buy products that catches attention
    Intensive shoppers & enjoy buying
    Like entertainment in shops
    Prefer airport shops that have novelties, promotions
    Like to buy well known brands
    Gender:
    Travel Purpose:
    Flying
    Travel Class:
    Female
    Frequency:
    Mix
    Economy
    58%
    (Leisure &
    68%
    Business)
    43%
    Medium
    Age:
    Profession:
    Household:
    Middle
    Living with partner/
    husband/ spouse
    Family with children
    46% <
    Management
    25%
    Living alone
    42%
    30 years
    Professional,
    2%
    Engineer/Technical
    17%
    59%
    14%
    Young adults living with
    parents
    Other
    Income: Purchase Smokers: 1‘000-6‘000/Month Frequency: 33% 74% High
    Income:
    Purchase
    Smokers:
    1‘000-6‘000/Month
    Frequency:
    33%
    74%
    High
    • Like entertainment & more likely to go visit a promotion site with an activity (53%)
    Like entertainment & more likely to go visit a promotion site with an activity (53%)
    Enjoy material possessions and having new things (51%)
    Into brands, like to buy well known brands (49%)
    Intensive shoppers, enjoy buying and having new things (47%)
    Impulsive shoppers, easily buy something that catches their attention (40%)
    Airport shopping benefits:
    Cheaper prices*
    Main airport shopping selection
    criteria:
    Guaranteed good quality*
    Most convenient part of trip (48%)
    Limited / special editions*
    Offers the best prices (46%)*
    Compare / try out
    Most important promotions:
    Main reason to buy expensive
    products:
    Price-off
    Good bargain (75%)*
    * Significant difference compared to other segments
    Enjoy visiting airport shops even when they don’t need anything specific (76%)
    Interested in the selection of products available in airport shops (74%)
    Like airport shops that have novelties, promotions, offers new things,… (73%)
    Enjoy “killing” time at the airport, browsing around different shops and seeing what is available (69%)
    Like to browse airport shops trying to find bargains, good prices, quantity discounts… (64%)
    Airport shops are among their favorite shopping places while travelling (48%)
    Go to airport shops because they offer a great shopping experience (28%)

    Summer-fall 2012

    Global cross category travel retail segmentation

    28

    ❶ 68%* Reasons to buy: As a gift to wife/ husband/partner (78%)* Someone asked to buy
    68%*
    Reasons to buy:
    As a gift to wife/
    husband/partner (78%)*
    Someone asked to buy for
    them (76%)*
    When buy?
    On way back home (73%)*
    Amount spent: Above average
    39%*
    Reasons to buy:
    Someone asked to buy for them
    (63%)*
    To try out something new
    (56%)*
    When buy?
    On way back home (57%)
    In Duty Free shops at destination
    (downtown DF) (41%)*
    Amount spent: Above average

    Top 5 Categories of Emotional high spenders

    88% buy every trip and almost for any purpose and destination

    Type of the trip when shop: Leisure trip with family/friends/alone

    40-50% purchase in each of TOP 5 categories in arrival Duty Free shops, after their last flight

    High spenders in each of TOP 5 categories

    ❹ 31% Reasons to buy: As a gift to friend/ colleagues at home (74%)* Someone asked
    31%
    Reasons to buy:
    As a gift to friend/ colleagues at
    home (74%)*
    Someone asked to buy for them
    (70%)*
    When buy?
    On way back home (72%)
    In Duty Free shops at
    destination (downtown DF)
    (43%)*
    Amount spent: Above average
    ❷ 52% Reasons to buy: As a gift to friend/ colleagues at home (75%)* When buy?
    52%
    Reasons to buy:
    As a gift to friend/ colleagues
    at home (75%)*
    When buy?
    On way back home (68%)
    On way to destination (59%)*
    Amount spent: Above average
    25%
    Reasons to buy:
    Someone asked to buy for
    them (59%)*
    As a gift to friend/ colleagues
    at home (56%)
    When buy?
    On way back home (56%)
    Amount spent: Above average

    * Significant difference compared to other segments

    Key Features: Conventional Deal Seekers • Very careful how to spend money • Usually buy only
    Key Features:
    Conventional
    Deal Seekers
    Very careful how to spend money
    Usually buy only what needed
    Conventional attitude & behavior
    Like to browse around airport shops to try and find bargains,
    good prices, quantity discounts
    Buy only if it's cheaper than downtown shops
    Gender:
    Travel Purpose:
    Flying
    Travel Class:
    Frequency:
    Female
    Leisure
    Economy
    62%
    99%
    79%
    Low
    Profession:
    Children:
    Household:
    Living with partner/ husband/
    spouse
    Professional,
    20+ years
    Family with children
    Clerical/
    38%
    33%
    Living alone
    Administration
    Retired
    I’m a young adult living with parents
    45%
    18%
    4%
    44%
    7%
    Other
    Age: Income: Purchase 33% > Frequency: < 5‘000/Month 50 years Medium-Low 68%
    Age:
    Income:
    Purchase
    33% >
    Frequency:
    < 5‘000/Month
    50 years
    Medium-Low
    68%
    • Not willing to pay more for a product just because of the image it conveys
    Not willing to pay more for a product just because of the image it conveys to other people (56%)
    Very careful how they spend their money (50%)
    Reasonable shoppers, usually buy only what is needed, plan ahead, compare prices and products, ...
    (46%)
    Conventional people (35%)
    Like to live a simplified lifestyle with less emphasis on material possessions (26%)
    Airport shopping benefits:
    Most important promotions:
    Cheaper prices*
    Price-off
    Guaranteed good quality
    Pleasant shopping
    Main airport shopping selection criteria:
    Most convenient part of the trip (53%)
    Main reason to buy expensive products:
    Offers best prices (51%)*
    Good bargain (77%)*
    Offers best shopping experience
    (31%)*
    * Significant difference compared to other segments
    Usually compare/know the prices of the products they need & buy @ airport shops only if cheaper than
    downtown shops (67%)
    ...
    before their flight (55%)
    In general they like to go early to the airport to have time to shop, read, relax,
    Interested in the selection of products available in airport shops (54%)
    Like to browse airport shops to find bargains, good prices, quantity discounts,… (53%)
    Like to visit all kind of shops either at the airport or downtown while traveling (44%)
    Go to airport shops because they offer a great shopping experience (27%)

    Summer-fall 2012

    Global cross category travel retail segmentation

    31

    ❶ 58%* Reasons to buy: As a gift to wife/ husband/partner (50%) When buy? On way
    58%*
    Reasons to buy:
    As a gift to wife/
    husband/partner (50%)
    When buy?
    On way back home (64%)
    Amount spent: Average
    42%
    Reasons to buy:
    To stock up (60%)
    When buy?
    On way back home (59%)
    Amount spent: Average

    Top 5 Categories of Conventional deal seekers

    71% buy every trip

    Type of the trip when shop:

    Leisure trip with family (or partner)

    (78%) ❹ 33% Reasons to buy: To indulge themselves (47%) When buy? On way back home
    (78%)
    33%
    Reasons to buy:
    To indulge themselves (47%)
    When buy?
    On way back home (48%)
    Amount spent: Average
    ❷ 50% Reasons to buy: To indulge themselves (36%) As a gift to child(ren) 36%) When
    50%
    Reasons to buy:
    To indulge themselves (36%)
    As a gift to child(ren) 36%)
    When buy?
    On way back home (55%)
    Amount spent: Average
    20%
    Reasons to buy:
    Because someone asked to
    buy for them (51%)*
    As a gift to friend/
    colleagues at home (51%)*
    As a gift to wife/
    husband/partner (36%)*
    When buy?
    On way back home (46%)
    Amount spent: Average

    * Significant difference compared to other segments

    Impulsive vs. Reasonable Shopper (Top 5 Segments) Impulsive shopper Bargain Seeking Self- indulgers Know in advance
    Impulsive vs. Reasonable Shopper (Top 5 Segments)
    Impulsive shopper
    Bargain Seeking Self-
    indulgers
    Know in advance what I
    want to buy
    Emotional High Spenders
    Low-budget Gift Shoppers
    Low-income Promotion
    Swayed
    Browse around airport
    shops
    Reasonable shopper
    Conventional Deal
    Seekers
    Seg
    Impulsive vs.
    Reasonable
    Price Sensitivity (Top 5 Segments) Like to treat myself without counting every cent Low-income Promotion Swayed
    Price Sensitivity (Top 5 Segments)
    Like to treat myself
    without counting every
    cent Low-income Promotion
    Swayed
    Ready to pay extra for
    brand/ image
    Value Cheaper (than street
    Low-budget Gift Shoppers
    shops) prices
    Not ready to pay extra for
    brand/ image
    Conventional Deal Seekers
    Carful how I spend my
    money
    Emotional High Spenders
    Value Price-off
    Bargain Seeking Self-
    Indulgers
    Seg
    Price Sensitivity

    Recommendations

    Most key Brazilian segments:

    Recommendations Most key Brazilian segments:  Assure range of items for impulsive shoppers (majority)  Offer
    • Assure range of items for impulsive shoppers (majority)

    • Offer good range of limited editions, novelties, TR exclusives

    • Install active & helpful sales advisors

    • Enhance & guarantee high quality of products

    Emotional high spenders:

    • Offer wide range of luxury and expensive self-indulgence products

    • Enhance the “good value” aspect of DF

    • Offer well known brands with a local touch

    Conventional deal seekers:

    • Assure sufficient conventional brands to “stock up” and for gifting

    • Offer range of items cheaper than downtown and enhance savings

    • Present range of conventional & traditional products

    China

    China  World’s most populous country with 1.3 Bio people  Economy: world's 2 largest by
    • World’s most populous country with 1.3 Bio people

    China  World’s most populous country with 1.3 Bio people  Economy: world's 2 largest by
    • Economy: world's 2 nd largest by nominal GDP

    • China is the world's fastest growing major economy

    • Soon world’s largest luxury market

    • 38.6 million Chinese traveled internationally between Jan-Jun 2012 (+20%)

    China  World’s most populous country with 1.3 Bio people  Economy: world's 2 largest by
    • Typical wealthy Chinese goes on holiday 3x times/year

    • Chinese tourists in Europe spend an average of $1,000 on DF each trip

    China

    China Top Travel Retail Shopper Segments: 92% 1. Inspiration seekers 2. Low-income promotion swayed 3. Emotional
    Top Travel Retail Shopper Segments: 92% 1. Inspiration seekers 2. Low-income promotion swayed 3. Emotional high
    Top Travel Retail Shopper Segments:
    92%
    1.
    Inspiration seekers
    2.
    Low-income promotion swayed
    3.
    Emotional high spenders
    70% of Chinese Shoppers
    4.
    Authentic product seekers
    5.
    Conventional deal seekers
    6.
    Low-budget gift shoppers
    7.
    Local touch gift buyers
    8.
    Executive pre-planners
    9.
    Price sensitive shopping lovers
    Key Features: Inspiration • Seekers Choose airport shops due to chances of finding something unique/ typical,
    Key Features:
    Inspiration
    Seekers
    Choose airport shops due to chances of finding something unique/
    typical, from visiting country
    Interested in the selection of products in airport shops
    Like airport shops that have novelties, promotions, let you try new
    things
    Visit airport shops for choice, quality, service (not price!)
    Go to airport shops because of great shopping experience
    Travel Purpose:
    Flying
    Travel Class:
    Frequency:
    Business
    Mix
    40%
    (Premium &
    Ecomomy)
    26%
    Medium
    Gender:
    Children:
    Household:
    Living with partner/
    husband/ spouse
    <20 years
    Family with children
    22%
    Living alone
    48%
    5%
    I’m a young adult living with
    13%
    parents
    34%/66%
    62%
    12%
    Other
    Age:
    Income:
    Profession:
    Purchase
    All
    Frequency:
    < 5‘000/Month
    Management
    ages
    48%
    High
    54%
    • • • • Into brands, like to buy well known brands (50%) Intensive shoppers, enjoy
    Into brands, like to buy well known brands (50%)
    Intensive shoppers, enjoy buying and having new things (46%)
    Enjoy material possessions and getting new things (43%)
    Impulsive shoppers buy items that catches their attention (42%)
    Like to treat themselves without counting every penny (30%)
    Stylish people (29%)
    Willing to pay more for a product that is consistent with the image they want to convey (27%)
    • • • • Into brands, like to buy well known brands (50%) Intensive shoppers, enjoy
    Most important promotions: • Special airport edition* Main airport shopping selection criteria: • • Most convenient
    Most important promotions:
    Special airport edition*
    Main airport shopping selection criteria:
    Most convenient part of trip (48%)
    Best product selection (42%)
    Highest chances of finding something
    typical/ unique (34%)*
    Offers best shopping experience (30%)*
    Airport shopping benefits: • Limited special editions* • Exclusive products* • “Local touch”* • Gifting packaging*
    Airport shopping benefits:
    Limited special editions*
    Exclusive products*
    “Local touch”*
    Gifting packaging*
    Main reason to buy expensive products:
    High quality (60%)
    Exclusive/limited edition (49%)*

    * Significant difference compared to other segments

    • Interested in the selection of products available in airport shops (69%) • Like airport shops
    Interested in the selection of products available in airport shops (69%)
    Like airport shops that have novelties, promotions, offering new things,… (64%)
    Enjoy visiting airport shops even if they don't need anything specific (63%)
    In general, like to go early to the airport to have time to shop, read, relax,… before their flight (63%)
    Airport shops are among their favorite places to shop while traveling (53%)
    Go to airport shops for other reasons than price (choice, quality, convenience, service,
    Go to airport shops because they offer a great shopping experience (28%)
    Don't mind the price difference between downtown & airport shops (27%)
    ...
    )
    (34%)
    ❶ 49% Reasons to buy: As a gift to wife/ husband/partner (73%)* To try out something
    49%
    Reasons to buy:
    As a gift to wife/
    husband/partner (73%)*
    To try out something new
    (62%)*
    When buy?
    On way back home (61%)
    During transit & have some
    spare time (41%)*
    Amount spent: Above average
    38%*
    Reasons to buy:
    As a gift to friend/ colleagues
    at home (61%)
    When buy?
    On way back home (67%)
    Amount spent: Above average

    Top 5 Categories of Inspiration seekers

    75% buy every trip

    74% do not plan in advance and might buy something they like airport shops

    High spenders in each of TOP 5

    categories ❹ 32% Reasons to buy: To try out something new (53%) When buy? On way
    categories
    32%
    Reasons to buy:
    To try out something new
    (53%)
    When buy?
    On way back home (70%)
    Amount spent: Above average
    ❷ 44% Reasons to buy: As a gift to child(ren) (47%)* As a gift to my
    44%
    Reasons to buy:
    As a gift to child(ren) (47%)*
    As a gift to my child(ren) (44%)
    When buy?
    On way back home (59%)
    During transit & have some
    spare time (47%)*
    Amount spent: Above average
    29%
    Reasons to buy:
    As a gift to wife/
    husband/partner (49%)*
    To try out something new
    (42%)
    As a gift to friend/
    colleagues at home (41%)*
    When buy?
    On way back home (55%)
    Amount spent: Above average

    * Significant difference compared to other segments

    Authentic Product Seekers
    Authentic Product
    Seekers
    Key Features: • Very occasional shoppers • Shops only when absolutely necessary • Like to live
    Key Features:
    Very occasional shoppers
    Shops only when absolutely necessary
    Like to live simplified lifestyle
    Little emphasis on material possessions
    Only interested if unique, special articles available
    Travel Purpose: Flying Travel Class: Frequency: Business Economy 38% 67% Medium
    Travel Purpose:
    Flying
    Travel Class:
    Frequency:
    Business
    Economy
    38%
    67%
    Medium
    Gender: Household situation: 28% Living with partner/ husband/ spouse Family with children 38% Living alone 26%
    Gender:
    Household situation:
    28%
    Living with partner/ husband/
    spouse
    Family with children
    38%
    Living alone
    26%
    34%/66%
    8%
    Other
    Age: Income: Purchase All > 6‘000/Month Frequency: ages 59% Low
    Age:
    Income:
    Purchase
    All
    > 6‘000/Month
    Frequency:
    ages
    59%
    Low
    • Very occasional shoppers, go shopping only when necessary (30%) • Like to live a simplified
    Very occasional shoppers, go shopping only when necessary (30%)
    Like to live a simplified lifestyle with less emphasis on material possessions (21%)
    Airport shopping benefits:
    Main airport shopping selection
    criteria:
    Local products*
    Limited / special editions*
    Most convenient part of trip (66%)
    “Local touch”*
    Highest chances of finding something
    typical/unique (40%)*
    Most important promotions:
    Main reason to buy expensive
    products:
    Price-off
    Good bargain (66%)
    High quality (58%)
    Special, something they don’t
    usually find (56%)*
    * Significant difference compared to other segments
    • Like to visit all kind of shops either at airport or downtown while traveling (44%)
    Like to visit all kind of shops either at airport or downtown while traveling (44%)
    Prefer shopping in other places than airport shops while traveling (25%)
    More than on average they don't like to waste time at airports and tend to arrive at last minute
    Summer-fall 2012
    Global cross category travel retail
    segmentation
    42
    ❶ 51% Reasons to buy: As a gift to friend/ colleagues at home (72%)* When buy?
    51%
    Reasons to buy:
    As a gift to friend/ colleagues
    at home (72%)*
    When buy?
    On way back home (69%)
    Amount spent: Average
    40%*
    Reasons to buy:
    As a gift to friend/ colleagues
    at home (67%)
    When buy?
    On way back home (72%)
    Amount spent: Below average

    Top 5 Categories of Authentic product seekers

    66% buy every 2 nd trip or less

    76% do not plan in advance and might buy something they like in airport shops

    ❹ 34% Reasons to buy: As a gift to wife/husband/partner (60%) When buy? On way back
    34%
    Reasons to buy:
    As a gift to
    wife/husband/partner (60%)
    When buy?
    On way back home (54%)
    Amount spent: Below average
    ❷ 47% Reasons to buy: To stock up (57%) To try out something new (43%) To
    47%
    Reasons to buy:
    To stock up (57%)
    To try out something new
    (43%)
    To indulge themselves (41%)*
    When buy?
    On way back home (76%)
    Amount spent: Average
    22%
    Reasons to buy:
    To stock up (49%)
    When buy?
    On way back home (63%)
    Amount spent: Average

    * Significant difference compared to other segments

    Price Sensitivity (Top 5 Segments) Inspiration Seekers Like to treat myself without counting every cent Low-income
    Price Sensitivity (Top 5 Segments)
    Inspiration Seekers
    Like to treat myself
    without counting every
    cent Low-income Promotion
    Swayed
    Ready to pay extra for
    brand/ image
    Authentic Product Seekers
    Value Cheaper (than street
    shops) prices
    Conventional Deal Seekers
    Not ready to pay extra for
    brand/ image
    Carful how I spend my
    money
    Emotional High Spenders
    Value Price-off
    Seg
    Price Sensitivity
    Interest in Novelties / Exclusivity (Top 9 Segments) Buy mostly my usual products Executive pre- Local
    Interest in Novelties / Exclusivity (Top 9 Segments)
    Buy mostly my usual
    products
    Executive pre-
    Local Touch Gift Buyers
    Conventional Deal Seekers
    planners
    Price Sensitive Shopping
    Lovers
    Value exclusive products
    Mostly interested by
    novelties
    Authentic Product Seekers
    Low-budget Gift Shoppers
    Emotional High Spenders
    Low-income Promotion
    Swayed
    Inspiration Seekers
    Value special airport
    editions
    Spend more if exclusive/
    limited edition
    Interest in Novelties / Exclusivity (Top 9 Segments) Buy mostly my usual products Executive pre- Local
    Value limited edition
    Value limited edition
    Seg

    Seg

    Novelties/Exclusivity

    Novelties/Exclusivity

    Impulsive vs. Reasonable Shopper (Top 9 Segments) Impulsive shopper Know in advance what I want to
    Impulsive vs. Reasonable Shopper (Top 9 Segments)
    Impulsive shopper
    Know in advance what I
    want to buy
    Emotional High Spenders
    Inspiration Seekers
    Low-budget Gift Shoppers
    Low-income Promotion
    Swayed
    Price Sensitive Shopping
    Lovers
    Executive Pre-Planners
    Browse around airport
    shops
    Authentic Product
    Reasonable shopper
    Seekers
    Conventional Deal
    Seekers
    Seg
    Impulsive vs.
    Reasonable
    Local Touch Gift Buyers

    Recommendations

    Most key Chinese segments:

    Recommendations Most key Chinese segments:  Offer wide selection of novelties across categories  Assure good
    • Offer wide selection of novelties across categories

    • Assure good personalized service (ideally with Chinese speaking staff)

    • Present creative shopping environment and emotional presentation of SKUs

    Inspiration seekers:

    • Offer exceptional & local items in various categories

    • Present good range of limited & exclusive editions

    • Offer range of luxury self-indulgence products

    Authentic product seekers:

    • Offer range of unique items, not global brands found everywhere

    • Present local & authentic products (souvenirs & local touch)

    Next Steps of Segmentation Project

    Next Steps of Segmentation Project
    • Segmentation outcomes reveal some segments are perfectly adapted to current airport offers and others are far from delivering their full spending potential.

    • Receiving quantitative and qualitative information about ideal category & product mix as well as supreme promotions & offers is crucial to maximize TR sales.

     Segmentation outcomes reveal some segments are perfectly adapted to current airport offers and others are
    • Quantification of the sizes of segments on a regional and individual airport basis at 25 key Travel Retail airports in 2013

    • Allow the matching of each airport’s Travel Retail offer according to the shares of the segments needs & expectations at an airport & regional level.

     Segmentation outcomes reveal some segments are perfectly adapted to current airport offers and others are

    Let‘s speak ONE language in ONE Travel Retail World!

    Let‘s speak ONE language in ONE Travel Retail World! Thank you to the supporters: British American

    Thank you to the supporters:

    Let‘s speak ONE language in ONE Travel Retail World! Thank you to the supporters: British American
    Let‘s speak ONE language in ONE Travel Retail World! Thank you to the supporters: British American

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    Let‘s speak ONE language in ONE Travel Retail World! Thank you to the supporters: British American