Chinese travellers emerged as the leading DF&TR spenders on purchases of more than $200, reveals data from the Top 10 Spending Nationalities report compiled exclusively for TRBusiness by m1nd-set.

In a departure from last year’s Top 10 Spending Nationalities report based on highest purchasing nationalities according to overall market share, this year’s rankings are based on *average buyer spending, informed by research from the Swiss research firm.

Despite China’s lowered economic growth forecast, tax and infrastructure cuts and the continued US trade war, duty free spending appears to be holding up nicely.

DAIGOU SLUMP COULD STILL MATERIALISE

A future slump in Chinese ‘daigou’ shuttle trader sales could yet materialise, but in the meantime, footfall (54%), purchase (51%) and conversion (95%) rates remain healthy.

The decision to purchase is made predominantly before the travel phase begins – leaving for the airport (49%). This is followed closely by decisions made instore (31%), in the airport (11%) and on the way to the airport (10%).

Pre-planned purchases remains extremely high (90%), with a high volume (73%) of visitors planning their visits.

Similar to last year’s findings, self consumption (48%) is the chief reason for purchase, followed by gifting (35%), sharing (10%) and request (6%).

Skincare is the most frequented (52%) and purchased (46%) category. The average number of categories purchased stood at 3.7, of which Chinese purchased from 2.9 categories.

Sitting second in the rankings for those nationalities spending more than $200 were South Korean travellers, who continue to provide a lucrative source of income for DF&TR operators worldwide.

S.KOREANS IN SECOND

South Koreans, similar to Chinese travellers, rank highly when it comes to footfall (56%), purchase (51%) and conversion (91%).

A high number choose to buy before leaving for the airport (53%), followed by instore (31%). Similar to the Chinese, a very high number prefer to plan their purchases (89%).

In third place is Emirati travellers, who remain a critical duty free spending source in the Middle East and globally.

Enhanced point-to-point connectivity from hubs including Dubai and Abu Dhabi are satisfying increased demand for air travel, with UAE travellers becoming more and more discerning in their purchasing habits, notably in fragrances and cosmetics.

Perfumes (24%) are most popular, while fashion & accessories (16%) are also favoured. Once again, footfall (53%), purchase (51%) and conversion (97%) metrics are healthy among UAE travellers, with the conversion rate the highest among the top 10 nationalities in this report .

Meanwhile, Hong Kong travellers ranked highest for those spending between $150 and $200, with UK travellers topping average buyer in the $100 to $150 category.

To read the full Top 10 Spending Nationalities report, see the April issue of TRBusiness. Click here to subscribe.

*Nationalities ranked one to 10 based on average spend per passenger and grouped into three denominations: Those spending above $200, those spending between $150 and $200, and those spending between $100 and $150. Data sourced from m1nd-set’s Business Intelligence Service (B1S).