Declining positive price perceptions within DF&TR are a ‘cause for concern’, according to the Duty Free World Council’s (DFWC) latest report.

The DFWC Quarterly Shopping Monitor for Q3 (in partnership with m1nd-set), reveals that the perception that ‘prices are usually cheaper’ in duty free shops has dropped consistently over the past four quarters.

This perception is now shared by less than a quarter of shoppers (24%) globally, and is ‘cause for concern’, says DFWC.

Given that ‘price advantage’ and ‘value for money’ are the top two reasons for shopping in duty free – by 35% and 34% of shoppers respectively – it’s vital that duty free ‘retains a positive price perception among shoppers’, it adds.

 

 

CONSUMER SATISFACTION IN DUTY FREE

In fact, the DFWC report says that ‘negative price perception’ among travelling shoppers in South America, has resulted in a 2-point decline in customer satisfaction ratings in the region’s DF&TR channel.

Asia Pacific, however, has outperformed all the other regions in terms of customer satisfaction in duty free, climbing a further two points in Q3, says DFWC. The region is now not only three points ahead of the global average, but four points above the second-best rated region – the Middle East and Africa – which increased by just one percentage point this quarter.

The DFWC says it is also concerned about the widening gap between the Asia Pacific region and other world regions in terms of ‘customers’ overall satisfaction’ with the duty free shopping experience.

 

SHOPPING NOW PART OF THE DF&TR EXPERIENCE

Nevertheless, the report’s findings reveal that duty free shops are still considered a great place to ‘try new brands’ and ‘find exclusive and unique products’ – by 29% and 28% shoppers, respectively. As a result, these attributes continue to drive consumer satisfaction in the channel, according to the report.

In fact, shopping in duty free is increasingly perceived as ‘part of the travel experience’ by 45% global shoppers, says DFWC.

Apart from the fact that consumers can buy ‘unique products which aren’t available at home’, the ‘convenience factor’ is another top motive for purchasing in duty free this quarter (for 25% of travelling shoppers).

Finally, duty free shopping is particularly popular for gifting solutions, with 40% of global shoppers viewing the DF&TR channel as ‘a great place to buy gifts’ too.

The DFWC Quarterly Shopping Monitor for Q3 (in partnership with m1nd-set) is compiled from interviews with over 4000 travellers at airports across all major world regions during Q3 2017.