Exclusive CiR research into behaviours of shoppers at Asian border stores has revealed unique buying patterns and trends, including the fact that alcohol is one of the most popular categories.

 

In a recently completed in-depth research study amongst Chinese Mainland and Chinese Hong Kong travellers, CiR explored the shopper motivations and behaviours that contribute to the apparent success of border stores in the Asia Pacific region.

 

“With Chinese travellers remaining the number one nationality by share of global duty & tax free spend, this report recommends how brands and retailers can maximise growth in this dynamic and important channel,” says Counter Intelligence Retail (CiR).

 

The pull of alcohol is clear, says CiR, with 49% of store traffic visiting the category, demonstrating the prominent role it plays in bringing primary footfall into store, closely followed by visitors to fashion & accessories and beauty.

 

“In the second tier of categories bringing shoppers into store are jewellery & watches, tobacco & confectionery.

 

HIGH 78% CONVERSION LEVEL IN BORDER STORES

CiR says that 78% of all store visitors will become purchasers in Asian border stores; a conversion figure that will surely be the envy of airport operators. CiR also reveals tobacco and beauty shoppers are most likely to convert, followed by alcohol and confectionery buyers.

 

“Provenance through recognised quality and brand identity are the top two purchase drivers,” reveals CiR. Almost one third highlighted that good quality was the key purchase motivator, followed by a further 24% who scored brand identity as a key motivator.

 

Almost half of Asian border store-shoppers trade up when they buy, says CiR. Combined with the guarantee of quality and a recognised brand, buyers are motivated to trade up to a more expensive, or better quality product than is usually bought at home.

 

“Better prices would appeal to 40% of respondents, but beyond this better promotional offers would appeal to over a quarter of shoppers, followed by a wider product range and the opportunity to sample products,” says the research company.

 

“Expectations of airport duty free exclusivity are also moving into this channel, with limited edition and exclusive products, as well as gift solutions, appealing to over one-fifth of shoppers.”

 

The new CiR report is available at the end of January 2017, priced at £5,000 (GBP).

Contact Stephen Hillam at [email protected] for more information.