According to the research, only around one third of travellers were aware of the possibility to pre-order their duty free products online and just over one fifth, around 21%, of all travellers said they had actually pre-ordered their products via the duty free retailer’s website at least once in the past three years.
The latest research by leading industry travel and travel retail research agency m1nd-set unveils significant room for growth in the online and mobile retail channel within global travel retail. Opportunities for increasing the share of the overall travel retail sales can be seized by a more streamlined approach to e- and m-commerce, according to the research.
The latest research, compiled from interviews conducted among more than two thousand global travellers, from July and October this year, underlines the lack of awareness among travellers of the online and pre-ordering services proposed by duty free retailers. According to the research, only around one third of travellers were aware of the possibility to pre-order their duty free products online and just over one fifth, around 21%, of all travellers said they had actually pre-ordered their products via the duty free retailer’s website at least once in the past three years.
m1nd-set Business Development Head, Anna Marchesini, commented on the findings: “When shoppers are aware of the online or mobile commerce applications, the majority, around 7 out of 10 shoppers, do actually use these services to purchase or pre-order. The majority of shoppers who pre-ordered their products online did so prior to travelling, from home, which demonstrates the potential to increase sales if marketers programme online campaigns to reach travellers who have either just booked or are about to embark on their international trip and entice them with duty free shopping offers.”
“Timing is an essential ingredient when marketing to prospective duty free shoppers", Marchesini continued. “The majority of travellers visit the retailer websites well ahead of their trip, with around two thirds of shoppers who pre-order doing so within up to one month ahead of their international flight.”
Marchesini went on to explain that online sales do not necessarily cannibalise the in-store sales when the traveller arrives at the airport. “Travellers who pre-order online have a tendency to purchase in the duty free shops when at the airport. Six out of ten shoppers who pre-ordered online also went on to purchase in the duty free shops” Marchesini added.
Understanding the motivations to purchase is also an important factor to take into account when marketing the online pre-ordering service to travellers. Marchesini explained some of the main purchase drivers for pre-ordering: “One of the main purchase drivers among those passengers who pre-ordered their duty free products, was the opportunity to buy special promotions offered exclusively online. The offer of attractive gifts with purchase is also among the key reasons for pre-ordering online. A safer and more pleasant experience than shopping in-store, special airport retail exclusive editions and the advantage of not carrying the shopping items around the airport, where home or gate delivery or pick-up on arrival at destination options are offered, are other benefits which shoppers who pre-ordered cited as their motivations” Marchesini added.
The research also reveals the main reasons for not pre-ordering. Lack of knowledge about the pre-ordering service tops the list. Only around one third of travellers were actually aware of the pre-ordering service for their duty free purchases. Other reasons included the travellers’ preference for a physical shopping experience and he possibility to browse in-store and touch, taste and feel the products prior to purchasing. A lack of attractive promotions, purchasing on impulse and not being able to discern the product quality when browsing online were other reasons travellers provided for not pre-ordering.
According to m1nd-set travellers said the lack of sophisticated technology to judge the product quality, including virtual reality presentations, live customer service chats or explanatory videos to demonstrate the product quality were further barriers to purchase.
Marchesini added: “The behaviour among shoppers who pre-order varies quite considerably across regions and categories, both in terms of which categories are purchased and how much is spent on each category. Variations are also quite significant when breaking down the data and analysing by sub-category within the core categories such as Food, Alcohol and Beauty, as well as by age and gender segment.”
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
