The Alcohol Shopper Review 2018

Transcription

1 The Alcohol Shopper Review 2018

2 This report is registered to the individual licensee. Copying or other distribution of this report is not permitted. The information in this report represents our considered assessment of the Duty Free Alcohol Shopper. However, we accept no legal liability for the report contents, nor any conclusions drawn from them by any purchaser or reader. No part of this report may be reproduced, transmitted, held or stored in any retrieval system, or distributed in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of the copyright holders, Counter Intelligence Retail Limited. All icons included in this study have been sourced from and are licenced under CC By 3.0. Icon authors include: Fermam Aziz, Freepik, Google, GraphBerry, Icomoon, Icon Works, Icons8, Linh Pham, Sarfraz Shoukat, Scott de Jonge, TutsPlus, and Yannick. All rights reserved. 2

3 Counter Intelligence Retail Counter Intelligence Retail is the travel retail industry s leading agency, with services covering areas including research, category development and traveller statistics RESEARCH CATEGORY BUSINESS LOUNGE LIVE Airport Interviews Data Management PAX Data Store Audits On-Line Panel Category Analysis Nationality Data Merchandising Focus Groups Strategy Development Price Audit Ambassadors Visitor Observation Range Management Route Data Sampling Virtual Reality Retail Development Airport Information Mystery Shopping INTELLIGENCE I INSIGHT I STRATEGY I ACTIVATION 3

4 Table of Contents REPORT SECTION SLIDE NUMBER Section 1: Research Approach Section 2: The Global Traveller Statistics Section 3: Understanding the Global International Traveller Section 4: Understanding the Duty Free Alcohol Category Visitor Who: Alcohol Category Visitor Profile What: Alcohol Category Visitor Purchases How: Alcohol Category Visitor Behaviour Why: Alcohol Category Buyer Purchase Drivers Why Not: Alcohol Category Buyer Purchase Barriers Section 5: Arrivals Shopping Behaviour Key Opportunities Appendix A: Sub-Category Overviews Appendix B: Regional Overviews

5 Section 1: Research Approach 5

6 Research Approach All research was conducted online from a nationality representative panel with all respondents having travelled in the last 12 months METHODOLOGY OVERVIEW Data was collected via an online study using an external panel Qualifying criteria were: All aged over 21 All flown internationally in the last 12 months Half of the sample were asked for further details about their airport activities on their outbound trip, while half were asked about their return journey Those who had visited Duty Free were asked for information about their Duty Free shopping and purchasing behaviour Further information about the decision making process was gathered for the category considered to be their main category purchased, where base sizes allowed Total sample size of 22,741 interviews, of which 7,738 were visitors to the Alcohol category Buyers were a priority in the shopper sample in Duty Free and specialist stores to ensure a sufficient base for individual category analysis minute survey 6

7 Section 3: Understanding The Global International Traveller 7

8 Global Traveller Profile The global traveller is slightly more likely to be male and aged over 40. The vast majority of travellers are travelling on leisure and in groups DEMOGRAPHICS Base: Total Travellers (22,741) GENDER AGE OCCUPATION Under 40 Over Male Female Under 40 Over 40 Professional / Managerial Self-emp Manual Other Travellers 61% x% x% The global traveller tends to be male, aged over 40 and in a professional / managerial position TRAVELLER TENDENCIES Base: Total Travellers (22,741) TRIP PURPOSE TRAVEL PARTY Leisure Business Alone Not Alone Travellers 1 TRIP 75 FLIGHT FREQUENCY 2-3 TRIPS 4+ TRIPS Global travellers predominantly travel for leisure purposes and in groups. In terms of travel frequency, just 1 in 5 take four or more trips per year Q. Various demographics questions 8

9 Main Purpose and Activities Undertaken Leisure is the main travel purpose for global travellers, with sightseeing & culture being the main activity undertaken MAIN PURPOSE OF TRIP Base: Total Travellers (22,741) Leisure is the main purpose of travel, as indicated by 9 in 10 global travellers Leisure travelling independently Leisure travelling with a tour group Leisure visiting friends and relatives 9% Travelling for business purposes Significantly more under 40s travel independently () compared to those over 40 Over 40s are significantly more likely to travel with a group () compared to those under 40 ACTIVITIES ON LAST TRIP Base: Total Travellers (22,741) Sightseeing & culture 56% Relaxation, e.g; beach Shopping 26% Visit friends & family Adventure, e.g; safari 21% Experience based, e.g; back-packing Attend a sporting event 8% Business meeting Sightseeing & culture is the main activity carried out by global travellers, as indicated by over 2 in 3 This is followed by relaxation and shopping Q7. What was the main purpose of your last international trip? Q8. Which of the following did you do on your last leisure/ business trip? 9

10 Airport Experience Travellers have xx minutes spare time to browse and buy in the Duty Free stores, after going through check-in and security HOW TRAVELLERS SPEND THEIR TIME IN THE AIRPORT Base: Total Travellers (22,741) Travellers arrive, on average, at the airport x hour xx minutes before their flight, and spend xx minutes in departures 0 hours 30 minutes x hr. xx mins 31 mins Airport Arrival Takes on average 30 minutes to check in and get through baggage and security 31 mins Departures Terminal/ Free time xx minutes 31 mins Departure On average overall time in airport xx minutes On average it takes 30 minutes to get through check in and security, which allows nearly an hour of free time for travellers to browse and buy in Duty Free stores Q19. How much time did you spend in XXX airport overall? Q20. How much free time did you have in XXX airport after clearing security but before boarding the plane? 10

11 Airport Activities Undertaken Checking s is the number one activity carried out by travellers whilst waiting for their departure, followed by shopping in Duty Free, and getting food and drink ACTIVITIES IN AIRPORT WHILST WAITING TO BOARD Base: Total Travellers (22,741) 43% Checking s Shopping in Duty Free 31% Drink in bar Takeaway food/drink 26% Buying/reading newspaper Sit down meal in restaurant 21% Relaxing in Business Lounge Shopping in specialist retail stores 14% Using smoking area Using vending machine 11% Changing money Working Massage Taking part in a competition Almost 1 in 2 travellers check their s whilst they are waiting in the airport. This is followed by shopping in Duty Free, having a drink in the bar or a getting a takeaway Significantly more under 40s (46%) check their s compared to those over 40, and those travelling alone (45%) compared to those travelling with someone else Q22a. Which of the following activities did you do while waiting for your plane at XXX airport? 11

12 The Indian Traveller 2018 Section 4: Understanding the Alcohol Category Visitor 12

13 The Alcohol Category Airport Visitor x in 5 travellers visit a Duty Free or specialist retail store whilst in the airport with of these going on to browse the Alcohol category. Of those browsing Alcohol, almost 2 in x make a purchase THE ALCOHOL CATEGORY AIRPORT VISITOR TOTAL TRAVELLERS DUTY FREE NON- VISITOR 100% DUTY FREE VISITOR ALCOHOL VISITOR ALCOHOL NON-VISITOR ALCOHOL BUYER ALCOHOL NON-BUYER Q22a. Which of the following activities did you do while waiting for your plane at XXX airport? 13

14 UNDERSTANDING THE ALCOHOL CATEGORY VISITOR IN AIRPORT STORES WHO WHAT HOW WHY WHY NOT Who is the Alcohol category Which Alcohol sub- Reasons for airport store Why Alcohol visitors make a Factors preventing Alcohol visitor & buyer and what categories are browsed and visiting and the extent to purchase and what are category purchasing and are their current store bought, and how much is which staff influence their purchase reasons and how to drive future perceptions spent on each shopper behaviour in-store drivers conversion 14

15 The Indian Traveller 2018 WHO The Alcohol category visitor is more likely to be male and over 40 compared to the average Duty Free visitor In line with Duty Free visitors overall, Alcohol visitors are predominately travelling LCC/economy class and for leisure Around one third of Alcohol visitors have only flown internationally once in the last 12 months, lower than the average of 38% for Duty Free visitors overall Alcohol category visitors are more likely than average to visit Duty Free every time they fly, 70%. Only 6% say that they rarely visit Duty Free when flying Amongst Alcohol visitors, females (73%), over 40s (72%) and business/first class flyers (71%) show a greater propensity to visit Duty Free every time they fly 15

16 Who: Alcohol Category Visitor Profile The Alcohol visitor is more likely to be male and aged over 40 compared to the average Duty Free visitor. are travelling for leisure and take an LCC/economy class flight, in line with the global average GENDER FLIGHT TYPE MALE: VS. 54% GLOBAL VISITORS AGE LC / ECON: VS. 82% GLOBAL VISITORS DIRECTION >40 THE ALCOHOL CATEGORY AIRPORT VISITOR OVER 40: VS. 51% GLOBAL VISITORS TRAVEL REASON INBOUND: VS. 50% GLOBAL VISITORS ANNUAL TRAVEL 2-3 LEISURE: VS. 91% GLOBAL VISITORS 2-3 TRIPS: VS. 42% GLOBAL VISITORS Q. Various demographics questions 16

17 Duty Free Sub-Category Visiting & Purchasing Whisky/Whiskey is the most visited and purchased Alcohol sub-category and drives the highest conversion rates. Wine/Champagne is visited by around x in 10 Alcohol visitors and purchase, a conversion rate of DUTY FREE SUB-CATEGORY VISITING Base: Alcohol Visitors (7,738) DUTY FREE OVERVIEW ALCOHOL CATEGORY OVERVIEW ALCOHOL WHISKY/ WHISKEY WINE/ CHAMPAGNE VODKA RUM COGNAC/ BRANDY LIQUEURS GIN TEQUILA CHINESE WHITE SPIRITS VISITED VISITED VISITED VISITED VISITED VISITED VISITED VISITED VISITED VISITED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED PURCHASED CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION CONVERSION Whisky/ Whiskey is by far the most visited and purchased Alcohol sub-category Q28b. Which of the following product areas did you visit? Q28c. For each of the product areas you visited in the category, please indicate which of the following you purchased from? 17

18 What: Sub-Category Brands Purchased Certain brands play a key role in in their own sub-categories, with more than 1 in 3 Liqueurs buyers purchasing xxxxxxx and almost one third of Gin buyers purchasing Gordon s SUB-CATEGORY BRANDS PURCHASED ALCOHOL Base: Buyers (4,112) LIQUEUERS Base: Buyers (369) GIN Base: Buyers (282) TEQUILA Base: Buyers (161) CHINESE WHITE SP Base: Buyers (54) TOP BRANDS TOP BRANDS TOP BRANDS TOP BRANDS TOP BRANDS Q29d. Which of the following brands did you purchase on your last visit to airport stores? 18

19 What: Opportunity for Trade-Up vs. Usual Purchase at Home XX%of Alcohol buyers in Duty Free purchase an item that is more expensive than they would normally purchase domestically TRADE-UP OPPORTUNITY Base: Alcohol Buyers (3,016) More expensive vs. normal Similar price vs. normal Cheaper vs. normal Vs. 47% DF average Vs. 51% DF average Vs. 2% DF average Q40. Which of the following best describes your purchase of XXXX? 19

20 How: Purchase Planning by Alcohol Sub-Category x in x purchases in the Alcohol category are planned, driven by planning levels in the two main categories purchased Whisky/Whiskey and Vodka. Rum and Liqueur buying is most planned, while Gin buying is most impulsive WHISKY/ WHISKEY VODKA WINE/ CHAMPAGNE RUM COGNAC/ BRANDY MAIN ITEM BUYERS (1,403) MAIN ITEM BUYERS (316) MAIN ITEM BUYERS (313) MAIN ITEM BUYERS (243) MAIN ITEM BUYERS (229) ALCOHOL MAIN ITEM BUYERS (3,016) PLANNED IMPULSE PLANNED IMPULSE PLANNED IMPULSE LIQUEURS MAIN ITEM BUYERS (168) GIN MAIN ITEM BUYERS (168) TEQUILA MAIN ITEM BUYERS (61) CHINESE WHITE SPIRITS MAIN ITEM BUYERS (29*) Green denotes 5% higher than average Red denotes 5% lower than average Q32a. Was the purchase of XXXX a planned or an impulse purchase? *Caution: Low base 20

21 VODKA 21

22 Alcohol Category Overview: Sub-Category Summary One quarter of Alcohol visitors visit the Vodka sub-category and 9% make a purchase, a conversion rate of 35% VODKA SUB-CATEGORY METRICS PURCHASING VISITING OF ALCOHOL DUTY FREE STORE VISITORS VISIT THE VODKA SUB-CATEGORY OF ALCOHOL DUTY FREE STORE VISITORS PURCHASE A VODKA ITEM CONVERSION OF VODKA SUB-CATEGORY VISITORS BUY A VODKA SUB-CATEGORY ITEM Q28b. Which of the following product areas did you visit? Q28c. For each of the product areas you visited in the category, please indicate which of the following you purchased from? 22

23 Vodka Sub-Category Overview: Category Behaviour Good quality is by far the leading purchase driver for Vodka at, but is still below the average for the category. Self purchasing is higher than average amongst Vodka buyers. Leading brands are Absolut, Smirnoff and Finlandia PURCHASE DRIVERS Base: Main Item Vodka Buyers (316) Item is good quality Cheaper prices Well-known brand For a treat / reward International brand Attractive promotion One third state good quality as being the main reason for purchasing vs. 38% Alcohol average vs. 21% Alcohol average vs. 25% Alcohol average vs. 16% Alcohol average vs.14% Alcohol average vs. 15% Alcohol average PURCHASE PLANNING Base: Main Item Vodka Buyers (316) PURCHASE REASON Base: Main Item Vodka Buyers (316) LEADING BRANDS Base: All Vodka Buyers (659) Plan their purchase (vs. Alcohol average of 59%) Of those that plan their purchase plan their purchase to exact product level Purchased for self/share vs. 79% Alcohol average Purchased for gift/request vs. 21% Alcohol average Q39. Why did you select XXX? / Q32a. Was the purchase of XXX a planned or an impulse purchase? Q33. What was your main reason for purchasing XXX? / Q29d. Which of the following brands did you purchase on your last visit to airport stores? 23

24 Glossary Term Airport allowances/ Duty Free allowances What passengers can take to their destination Definition Buyers Conversion/ conversion rate Footfall Gift Solutions Gift with Purchase Impulse/planned purchase or visit Bought a product from at least one store in the airport selling Duty Free/Tax Paid merchandise on their most recent international trip in the last 6 months Proportion of travellers who purchased from a category out of the sample who visited the same category This term is sometimes used interchangeably with visits or visitors and it relates to the number of travellers visiting either a category or Duty Free store(s) Availability of a variety of gifting ideas, which can be applied to different occasions and people (e.g. birthday gifts, gifts for females, children) Often abbreviated to GWP. A marketing promotion whereby a free gift is received on purchasing Planned means that a decision to visit (or purchase from) a Duty Free store/category was made prior to arriving at the airport. Impulse means that a decision to visit/purchase before entering Duty Free/category was not planned in advance Limited Edition Products Main purchase Non-Buyers Number of items PAX Promotions Purchase occasion Products that are produced in a limited/specific number and therefore have a limited number available for sale or are only available for a limited period of time The purchase respondents considered to be their main item if they made multiple purchases Visited a Duty Free/Tax Paid store in the airport on their last international trip, but did not make a purchase Refers to a number of items purchased within a category/duty Free Passengers A variety of marketing activities put in place to enhance sales of a product or range of products Why a buyer purchased their item, whether this was for self-use, as a gift or on behalf of someone else s request 24

25 Glossary Retail spend Shopper Sub-category Trade-up Term Definition Sometimes referred to as basket spend ; it is the sum of all spend across seven categories (Alcohol, Beauty, Confectionery, Tobacco, Fashion & Accessories, Watches and Jewellery) A traveller who enters into a retail store, either visiting or buying Each category is further divided into sub-categories: Alcohol: Whisky, Vodka, Wine/Champagne, Cognac/Brandy, Gin, Rum and Liqueurs Beauty: Fragrance, Skincare and Cosmetics Confectionery: Chocolate, Candy/Sweets, Biscuits and Chewing Gum Tobacco: Cigarettes, Roll Your Own, Cigars, Cigarillos, Pipe Tobacco and Snus Fashion & Accessories: Sunglasses, Women s Clothing, Men s Clothing, Children s Clothing, Handbags/Luggage, Shoes and Sportswear Jewellery: Earrings, Bracelets, Necklaces, Rings and Cufflinks - Costume and Luxury Watches: Male Watches, Female Watches and Children s Watches Buy a product that is more expensive/better quality than you would normally buy 25

26 This report is registered to the individual licensee Copying or other distribution of this report is not permitted The information in this report represents our considered assessment of Indian travellers. However, we accept no legal liability for the report contents, nor any conclusions drawn from them by any purchaser or reader No part of this report may be reproduced, transmitted, held or stored in any retrieval system, or distributed in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of the copyright holders, Counter Intelligence Retail Limited All icons included in this study have been sourced from and are licensed under CC By 3.0. Icon authors include: Freepik, Icomoon and Scott de Jonge All rights reserved 26

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