1nSpirit travel retail data hub unveiled during inaugural TRMarketplace event

By Charlotte Turner and Luke Barras-hill |

During the inaugural TRMarketplace digital conference and networking event (28 September – 2 October), official data partners, International Wines & Spirits Research (IWSR) and m1nd-set jointly launched the new ‘1nSpirit’ wine and spirits travel retail data hub.

 

TRMarketplace’s comprehensive 20-session ‘Knowledge & Insights’ webinar programme – accessible to all fully-registered TRMarketplace delegates – concluded with a joint presentation made by two of the leading research companies serving the duty free and travel retail industry.

 

The full-length recording of the webinar is still available to view via the TRMarketplace platform (for fully-registered delegates) on demand for the next six months.

 

As reported, the IWSR and m1nd-set first announced the joint travel retail marketing intelligence platform, ‘1nSpirit: The Wine & Spirits Travel Retail Data Hub’, in June, responding to a huge and ever increasing demand for information on how Covid-19 continues to impact the business.

 

Whilst the official launch of the 1nSpirit product was indeed an important part of the session held on the TRMarketplace platform, prior to it, attendees were treated to unrivalled consumer insights from m1nd-set and in-depth data and analysis of the current state of the wine and spirits industry incorporating 20 key markets, including the duty free and travel retail channel, from the IWSR.

 

IMPACTS OF COVID-19: VARIABLE BY REGION AND LIQUOR SEGMENT

Thorsten Hartmann, Director of Custom Analytics at the IWSR, revealed that a few early findings show a variance on the impact in various country markets, with strong consumption levels building on 2019.

“The one thing that is universally clear, as of any market we are observing, is GTR is the one that has had the most negative response on the basis of complete structural closures. At the moment we are forecasting a 60% joint decline (wine & spirits) in RTD. But there have been some greenshoots of recovery.”

 

While the spirits market registered fairly flat growth in 2019, whisky, gin, tequila and vodka had some nice success in travel retail with new launches and activations.

 

“There will be structural and regulatory restrictions in place that will forbid traffic coming back to where it needs to be, but it will be temporary,” said Hartmann, who also revealed that spirit sales are expected to be down by about one quarter next year on 2019 levels – still not the level of bounce back expected, but on the way.

Peter Mohn confirmed that IWSR and m1nd-set will provide a twice-annual read of the TR liquor market, offering behaviour insights at category and sub-category level and using predictive analysis based on behaviour and sales data sets.

[Image for illustrative purposes only] Peter Mohn confirmed that IWSR and m1nd-set will provide a twice-annual read of the TR liquor market, offering behaviour insights at category and sub-category level and using predictive analysis based on behaviour and sales data sets.

‘NICE GROWTH’ FOR GIN CATEGORY 

He also revealed that despite vociferous industry debate around gin market overcrowding and rumoured ‘gin fatigue’ in some locations, The IWSR expects some ‘nice growth’ for the category over the next five years.

  

Of course, Hartmann identified the impacts of Covid-19 on global beverage and alcohol macro trends.

 

“Conviviality has come to the forefront, fuelled not just by what consumers want, but how beverage owners run their activations and what they are promoting in terms of the brands’ appeal.”

 

Deep-diving into these macro trends, Hartmann reported that in H1, consumer sentiment edged towards ‘tried and trusted’ products.

 

TREND TOWARDS PREMIUMISATION CONTINUES DESPITE COVID-19

The crucial role of activations offered by the on-premise trade wasn’t there, so it became harder to tell brand stories, he continued.

Many will be reassured to hear that the premiumisation story still ‘rings true’, but it will hinge firmly on economic factors such as disposable incomes.

 

Hartmann was emphatic about the permanence of some changes in consumer shopping preferences, highlighting that digital and ecommerce ‘won’t stop’ despite regulatory structures in different countries. He said most of the consultants they have spoken to believe that demand for ecommerce will continue and that many regions will retain a more than 10% share of turnover from ecommerce.

 

“Governments will look at how GTR can help to draw people back to travel where it is allowed,” added Hartmann. “The airports will be keen to create environments where people want to come back to an airport.

 

SPENDING AND TRAVELLING HABITS EXPLORED

“External pressures need to be watched, but we do believe the alcohol industry and trade can help in enticing people back.”

Hartmann then handed over the reins to Peter Mohn, CEO at m1nd-set who offered exclusive consumer insights on pre-Covid travel retail shopping behaviours in the alcohol category.

 

“The unwillingness to carry more items is a crucial factor as a barrier that needs to be overcome,” said Mohn. “We should think about the ecommerce opportunities: ordering before and collect on arrival.”

 

According to m1nd-set, 85% of alcohol shoppers would be willing to travel in the six months after travel bans are lifted, but 78% of those shoppers would change their habits at the airport on future international trips. Of this, 42% of shoppers would spend less time shopping in the duty free store.

 

INSPIRIT WILL PROVID ACTIONABLE INSIGHTS

Moving on to the 1nSpirit platform launch Mohn confirmed that IWSR and m1nd-set will provide a twice-annual read of the TR liquor market, offering behaviour insights at category and sub-category level and using predictive analysis based on behaviour and sales data sets.

The wine and spirits travel retail data hub, which will be offered as a subscription product, will use a scenario-based forecasting tool, allowing brands to prepare for future fluctuations in traffic figures - for instance, how might a further decrease in #chinese passenger numbers at Dubai International Airport impact gin sales?

The wine and spirits travel retail data hub will use a scenario-based forecasting tool, allowing brands to prepare for future fluctuations in traffic figures – for instance, how might a further decrease in Chinese passenger numbers at Dubai International Airport impact gin sales?

Informed by international travellers recruited at airports, the insight will be focused specifically on travellers who have shopped for spirits on their most recent trip. The insights will cover key indicators, such as choice drivers behind purchases, full path-to-purchase analysis, footfall and conversion along with demographics.

 

Linking various data points (volume, value, behavioural indicators, pax data and other aspects affecting the industry) m1nd-set and IWSR will extract trends and actionable insights.

 

The wine and spirits travel retail data hub, which will be offered as a subscription product, will use a scenario-based forecasting tool, allowing brands to prepare for future fluctuations in traffic figures – for instance, how might a further decrease in Chinese passenger numbers at Dubai International Airport impact gin sales?

 

Users will also benefit from ‘enhanced travel retail innovation feeds’ from IWSR/Radius trend spotters – updated in real time.

 

M1nd-set and The IWSR will release the first findings in Q1 2021 with data covering the period July – December 2020, this will then be updated every May (to reflect period July –Dec of prior year) and every October (to reflect period Jan – June of current year).

 

As the official beverage alcohol data partner of TRMarketplace IWSR was able to share teaser articles as part of a ‘data digest series’, exclusively for TRBusiness ahead of the event.

See the first installment here.

See the second installment here.

See the third installment here.

 

ABOUT THE IWSR

To learn more about the trends presented in the webinar and to keep up to date with the IWSR’s latest analysis, you can sign up to receive IWSR’s weekly industry insights email.

If you would like to learn more about our capabilities, and understand how the IWSR may be able to help your business planning, please do not hesitate to get in touch: [email protected]

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