DFWC Monitor shows duty free price sensitivity is rising

By Kevin Rozario |

Price is becoming more of an issue (click to enlarge).

Price is becoming more of an issue (see top right of chart and click to enlarge).

Data from the latest quarterly Global Shopping Monitor for Q3 2016 from the Duty Free World Council, in partnership with research consultancy m1nd-set, shows that perception of price is the only parameter to show a negative trend.

The percentage of travellers who agree that prices are usually cheaper in duty free and travel retail has levelled off to 29% in Q3, after falls in the previous two quarters. The percentage of shoppers who find that duty free prices are cheaper than elsewhere has fallen by -2% since the first monitor in Q4 2015.

Others aspects such as offering a truly different experience, exclusive and unique products, a great place to buy gifts have all gained in the eyes of the consumer (see chart right) with none of the other seven parameters going backwards.

Perceived value for money remains the most important contributing factor to shopper satisfaction levels, followed by uniqueness of products and services based on the fourth edition of the DFWC Shopping Monitor, providing a full year analysis of the key indicators. The data is based on a sample of 4,000 travellers.

While less than half of DF&TR shoppers price compare (48%), this is up +2% on Q2 2016. They are most likely to compare prices on make-up and alcohol and least likely to do so on confectionery. Although – with the furore today that Mondelez has spaced out the triangles in Toblerone to minimise ingredient costs but sell the product at the same size in the UK domestic market – this category may also come under sharper scrutiny by shoppers in future.

When comparing price, travellers tend to look at downtown shops (19%), other DF&TR shops (18%) and the Internet (11%).

DFWC Q3 monitor

SATISFACTION UP

The DFWC global satisfaction index has seen a two-point gain overall, while Asia Pacific has performed particularly well with a +4% increase compared to the first edition in Q4 2015 and up +2% on the previous quarter this year.

Use of electronic devices to gather information on shopping also shows a strong upward trend, increasing by +2% compared to the previous quarter and+ 4% since Q4 2015. Similarly, the percentage of shoppers claiming to never use their electronic devices for shopping information has fallen sharply over the past four quarters from 53% to 42%. The Monitor reveals that Chinese travellers are particularly avid information seekers on their mobile devices.

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