South American Duty & Tax Free Retail Market Study. Putting the right detail into travel retail

Transcription

1 Putting the right detail into travel retail

2 CiR Research Counter Intelligence Retail (CiR) 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 South Korean international 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 licenced under CC By 3.0. Icon authors include: Freepik, Icomoon and Scott de Jonge All rights reserved.

3 TABLE OF CONTENTS 1 METHODOLOGY & OBJECTIVES p PROJECT SCOPE p SAMPLE DEFINITION p METHODOLOGY p. 8 2 BACKGROUND INFORMATION p THE SOUTH AMERICAN ECONOMY p SOUTH AMERICAN TRAVEL TRENDS p KEY TRAVELLING NATIONALITIES IN SOUTH AMERICA p KEY DEPARTURE AIRPORTS IN SOUTH AMERICA p MARKET SUMMARY p SHOPPER PROFILES BY MARKET p DUTY FREE VISITOR AND BUYING BEHAVIOUR BY MARKET p CATEGORY BUYING BEHAVIOUR BY MARKET p ARGENTINA MARKET REPORT p THE ECONOMY IN ARGENTINA p KEY DESTINATIONS & NATIONALITIES: BUENOS AIRES AIRPORT, ARGENTINA p AIRPORT INFORMATION & AUDIT: BUENOS AIRES AIRPORT, ARGENTINA p KEY SUMMARY SHOPPER BEHAVIOUR IN DUTY FREE p KEY SUMMARY OPINIONS OF AIRPORT RETAIL p KEY SUMMARY VISITING AND BUYING BEHAVIOUR: ARRIVALS VS. DEPARTURES p KEY SUMMARY CATEGORY VISITORS AND BUYERS p KEY SUMMARY CATEGORY NON-VISITORS AND NON-BUYERS p KEY NATIONAILITIES AND TRAVEL BEHAVIOUR p KEY TRENDS IN SMOKING BEHAVIOUR p KEY TRENDS IN DUTY FREE SPEND BEHAVIOUR p KEY TRENDS IN OPINIONS OF AIRPORT RETAIL p KEY TRENDS IN PRE-TRAVEL BEHAVIOUR p PROFILE OF SHOPPERS TO DUTY FREE IN ARGENTINA p VISITING AND BUYING BEHAVIOUR IN DUTY FREE p CATEGORY PURCHASE BEHAVIOUR p NON-VISITORS AND NON-BUYERS IN DUTY FREE IN ARGENTINA p CATEGORY NON-BUYERS p. 62 [ 3 ]

4 TABLE OF CONTENTS 5 CHILE MARKET REPORT p THE ECONOMY IN CHILE p KEY DESTINATIONS & NATIONALITIES: SANTIAGO AIRPORT, CHILE p AIRPORT INFORMATION & AUDIT: SANTIAGO AIRPORT, CHILE p KEY SUMMARY SHOPPER BEHAVIOUR IN DUTY FREE p KEY SUMMARY OPINIONS OF AIRPORT RETAIL p KEY SUMMARY VISITING AND BUYING BEHAVIOUR: ARRIVALS VS. DEPARTURES p KEY SUMMARY CATEGORY VISITORS AND BUYERS p KEY SUMMARY CATEGORY NON-VISITORS AND NON-BUYERS p KEY NATIONAILITIES AND TRAVEL BEHAVIOUR p KEY TRENDS IN SMOKING BEHAVIOUR p KEY TRENDS IN DUTY FREE SPEND BEHAVIOUR p KEY TRENDS IN OPINIONS OF AIRPORT RETAIL p KEY TRENDS IN PRE-TRAVEL BEHAVIOUR p PROFILE OF SHOPPERS TO DUTY FREE IN CHILE p VISITING AND BUYING BEHAVIOUR IN DUTY FREE p CATEGORY PURCHASE BEHAVIOUR p NON-VISITORS AND NON-BUYERS IN DUTY FREE IN CHILE p CATEGORY NON-BUYERS p. 108 [ 4 ]

5 TABLE OF CONTENTS 6 COLOMBIA MARKET REPORT p THE ECONOMY IN COLOMBIA p KEY DESTINATIONS & NATIONALITIES: BOGOTA EL DORADO AIRPORT, COLOMBIA p AIRPORT INFORMATION & AUDIT: BOGOTA EL DORADO AIRPORT, COLOMBIA p KEY SUMMARY SHOPPER BEHAVIOUR IN DUTY FREE p KEY SUMMARY OPINIONS OF AIRPORT RETAIL p KEY SUMMARY VISITING AND BUYING BEHAVIOUR: ARRIVALS VS. DEPARTURES p KEY SUMMARY CATEGORY VISITORS AND BUYERS p KEY SUMMARY CATEGORY NON-VISITORS AND NON-BUYERS p KEY NATIONAILITIES AND TRAVEL BEHAVIOUR p KEY TRENDS IN SMOKING BEHAVIOUR p KEY TRENDS IN DUTY FREE SPEND BEHAVIOUR p KEY TRENDS IN OPINIONS OF AIRPORT RETAIL p KEY TRENDS IN PRE-TRAVEL BEHAVIOUR p PROFILE OF SHOPPERS TO DUTY FREE IN COLOMBIA p VISITING AND BUYING BEHAVIOUR IN DUTY FREE p CATEGORY PURCHASE BEHAVIOUR p NON-VISITORS AND NON-BUYERS IN DUTY FREE IN COLOMBIA p CATEGORY NON-BUYERS p. 155 [ 5 ]

6 TABLE OF CONTENTS 7 BRAZIL MARKET REPORT p THE ECONOMY IN BRAZIL p KEY DESTINATIONS & NATIONALITIES: SAO PAULO AIRPORT, BRAZIL p KEY DESTINATIONS & NATIONALITIES: RIO DE JANEIRO AIRPORT, BRAZIL p AIRPORT INFORMATION & AUDIT: SAO PAULO AIRPORT, BRAZIL p AIRPORT INFORMATION & AUDIT: RIO DE JANEIRO AIRPORT, BRAZIL p KEY SUMMARY SHOPPER BEHAVIOUR IN DUTY FREE p KEY SUMMARY OPINIONS OF AIRPORT RETAIL p KEY SUMMARY VISITING AND BUYING BEHAVIOUR: ARRIVALS VS. DEPARTURES p KEY SUMMARY CATEGORY VISITORS AND BUYERS p KEY SUMMARY CATEGORY NON-VISITORS AND NON-BUYERS p KEY NATIONAILITIES AND TRAVEL BEHAVIOUR p KEY TRENDS IN SMOKING BEHAVIOUR p KEY TRENDS IN DUTY FREE SPEND BEHAVIOUR p KEY TRENDS IN OPINIONS OF AIRPORT RETAIL p KEY TRENDS IN PRE-TRAVEL BEHAVIOUR p PROFILE OF SHOPPERS TO DUTY FREE IN BRAZIL p VISITING AND BUYING BEHAVIOUR IN DUTY FREE p CATEGORY PURCHASE BEHAVIOUR p NON-VISITORS AND NON-BUYERS IN DUTY FREE IN BRAZIL p CATEGORY NON-BUYERS p. 223 [ 6 ]

7 1. METHODOLOGY & OBJECTIVES 1.1 PROJECT SCOPE CiR s provides a comprehensive view of the profile and behaviour of the four key travelling nationalities in South America within the Duty Free environment of these countries. The Market Study focuses on visitors and buyers in Duty Free / airport stores in both Arrivals and Departures to better understand how Duty Free shopping attitudes and motivations differ, what lessons can be learned for further development and how brands can best tailor their approach in these locations. For each market the study examines the following for Arrival and Departure stores: TOBACCO TOBACCO NON-BUYER Who is shopping? Visitor and Buyer profiles Demographics Current travel experience - frequency of flying, locations visited Future travel expectations change in frequency ALCOHOL What do they shop? - Visiting and buying behaviour Locations, categories and sub-categories visited Categories, sub-categories and brands bought Cross-category and location visiting and buying Basket analysis and spend levels Change in Duty Free spend vis-á-vis other expenditure on travel activities ALCOHOL NON-BUYER How do they shop? - Attitudes and behaviours to Duty Free shopping Actual spend vs. intended spend Pre-travel research Price comparisons Satisfaction with Duty Free range, pricing and environment Cross-category comparisons BEAUTY Why do they shop? - Motivations to purchase by category Planned vs. impulse purchase behaviour Key drivers influencing product selection Role of promotions, TR Exclusives and staff Trade-up & first-time buying Purpose of purchase gift/self/request & recipient profile BEAUTY NON-BUYER CONFECTIONERY Why do they not shop? - Barriers to purchase Reasons for non-purchase Motivators to encourage purchase CONFECTIONERY NON-BUYER [ 7 ]

8 BUENOS AIRES EZEIZA DEPARTURES Buenos Aires Ezeiza Terminal A Departures Duty Free Stores Alcohol Source: CiR Business Lounge, October 2015 [ 8 ]

9 Note: Dummy Data 4.9 KEY NATIONALITIES AND TRAVEL BEHAVIOUR KEY NATIONALITIES IN DUTY FREE XXXXXXXXXXXX Argentina x% Brazil x% Colombia x% Chile x% KEY DESTINATIONS VISITED BY SHOPPERS IN DUTY FREE CONTINENT VISITED ON THIS TRIP 15% MAIN DESTINATION VISITED Argentina Europe 1% 1% USA Brazil 83% Americas MENA Asia Pacific Spain Mexico XXXXXXXXXX [ 9 ]

10 Note: Dummy Data 4.10 KEY TRENDS IN SMOKING BEHAVIOUR SMOKE FREQUENCY Regular Occasional SMOKING BEHAVIOUR GENDER AGE <40 >40 XXXXXXXXXXXXXX NATIONALITY USUAL SMOKING FORMAT CIGARETTES CAPSULE CIGARETTES OTHER TOBACCO I.E. CIGARS, CIGARILLOS, PIPE TOBACCO & SNUS ELECTRONIC CIGARETTES ROLL YOUR OWN TOBACCO XXXXXXXXXXXX BRANDS SMOKED AT HOME VS. BOUGHT WHEN TRAVELLING TRAVEL BRAND % % % % % HOME BRAND % % % % % XXXXXXXXXXXXXXX [ 33 ]

11 Note: Dummy Data 4.11 KEY TRENDS IN DUTY FREE SPEND BEHAVIOUR AGREEMENT WITH STATEMENTS Agree/ Strongly agree XXXXXXXXXXXXXXXX I have cut back on non-essential products nowadays Cut back on Duty Free spend so I can spend more on other aspects of the holiday Travelling abroad less frequently so fewer opportunities to shop Duty Free stores Duty Free prices are more attractive now due to the tax savings available Duty Free prices are less attractive now as the exchange rate is poor Spend now prioritised on: Sight-seeing at destination Entertainment at destination Stay within budget Spend in destination stores Transport & Destination of accommodation choice RECENT CHANGES IN PURCHASE LEVELS IN DUTY FREE XXXXXXXXXX Decreased a lot Same Increased a lot Decreased a little Increased a little [ 11 ]

12 Note: Dummy Data 4.15 VISITING AND BUYING BEHAVIOUR IN DUTY FREE PLANNED VS IMPULSE VISITING TO DUTY FREE ARRIVALS DEPARTURES Plan Plan 50% Plan Plan 50% Impulse Impulse 50% Impulse Impulse 50% XXXXXXXXXXXXXXX REASONS FOR VISITING DUTY FREE To browse and maybe buy something To take advantage of airport prices/offers Look for bargains/ deals What I always do when travelling Look for/buy a gift Look for new products To treat myself To look for a souvenir Look for exclusive/limited edition products I remembered I needed something XXXXXXXXXXXXXXXXX 23% 16% 18% 17% 16% 45% 53% 48% 45% 42% 47% 42% 45% 38% 40% 36% 39% 36% 34% Arrivals Departures [ 12 ]

13 Note: Dummy Data CROSS-CATEGORY PURCHASING CROSS-CATEGORY PURCHASING- ARRIVALS (2 or more categories) buy Confectionery buy Beauty buy Fashion & Accessories buy Confectionery buy Beauty buy Alcohol buy Alcohol buy Confectionery buy Beauty buy Confectionery buy Fashion & Accessories buy Beauty CROSS-CATEGORY PURCHASING- DEPARTURES (2 or more categories) buy Confectionery buy Beauty buy Confectionery buy Alcohol buy Beauty buy Alcohol buy Beauty buy Confectionery buy Beauty buy Confectionery buy Beauty buy Confectionery Would still have bought in other categories if main item had been unavailable ARRIVALS DEPARTURES XXXXXXXXXXXXXXXX [ 13 ]

14 Note: Dummy Data 4.16 TOBACCO CATEGORY PURCHASE BEHAVIOUR WHY DO THEY SHOP TOBACCO? PURPOSE OF PURCHASE SELF Arrivals Departures XXXXXXX GIFT REQUEST REASON FOR PRODUCT SELECTION It is my/recipients usual brand 45% 37% It is good quality 27% 42% It is a well-known brand Attractive promotion Price less expensive than at home Exclusive product to the airport For a treat/reward Convenient pack sizes Arrivals 30% 31% 15% 18% 10% 19% 10% 18% 8% 14% 10% 13% Departures XXXXXXXX [ 14 ]

15 Note: Dummy Data WHY DO THEY SHOP BEAUTY? GIFT PURCHASING RECIPIENT PROFILE GENDER AGE 5% 10% XXXXXXXXXXXXXX RELATIONSHIP Other family Friends Partner/ spouse Work Colleague Business manager/ partner XXXXXXXXXXXXXXXX [ 15 ]

16 Note: Dummy Data SPEND BEHAVIOUR ON CONFECTIONERY IN DUTY FREE BUDGET SETTING ARRIVALS DEPARTURES SET A BUDGET, AVERAGING $X SET A BUDGET, AVERAGING $X RANGE $X-$X RANGE $X - $X XXXXXXXXXXXXXXX ARRIVALS PROPENSITY TO TRADE UP DEPARTURES TRADE UP SIMILAR SPEND TRADE DOWN TRADE UP SIMILAR SPEND TRADE DOWN XXXXXXXXXXXXXXXXXX [ 16 ]

17 Note: Dummy Data HOW TO ENCOURAGE FUTURE PURCHASING - BEAUTY NON-BUYERS FUTURE PURCHASE MOTIVATORS Cheaper prices 65% 70% XXXXXXXXXXXXXXXX Wider range of brands and products 40% 35% Gift solutions Duty Free exclusive products 10% 15% 10% CHEAPER PRICES Limited edition products / packaging 15% 10% Arrivals Departures PREFERRED PROMOTIONAL MECHANIC XXXXXXXXXXXXXXXXXX Buy 2 get 1 free 70% 60% Buy 1 get 2nd half price 30% 40% Gift with purchase Discounted price on a single item Buy 2 save x% 40% 30% 30% 30% 15% 25% BUY 2 GET 1 FREE MULTI-BUY Arrivals Departures [ 17 ]

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