Latin American shoppers value newness in GTR, m1nd-set finds

By Kristiane Sherry |

Anna Marchesini, Head of Business Development, m1nd-set

Anna Marchesini, Head of Business Development, m1nd-set, says Latin American shoppers are receptive to ‘exclusive’ products.

The latest insights report from travel retail research agency m1nd-set has found that Latin American shoppers in the channel are “considerably” more likely to purchase new-to-them products and brands than the global average.

More than 2,000 shoppers from across the region were questioned for the research, which was presented at the ASUTIL Conference, held in Buenos Aires earlier this month. 

Highlights included the insights that 79% of purchasers in the region said they had bought a new-to-them product, a figure “considerably higher” than the global average. 

The research also studied the evolution of air traffic across Latin America, and suggests pre-Covid levels will be reached by 2024.

Fourteen of the top 15 destinations for Latin American travellers are within the Americas region.

Repeat travel is high

Of those 2,000 shoppers questioned, 67% said they plan to travel again within the next six months.

When they travel, just under half said they visit shops on every trip, but just 17% said they will always make a purchase.

A significant majority (84%) of those who do shop say it is an “very” or “extremely” important activity when travelling. 

Over a third of shoppers told researchers than they plan to buy more than they have before.

In terms of categories, Perfumes, Food & Confectionery and Alcohol are the top three categories by footfall for Latin American shoppers. 

Food has the highest conversion rate at 55%, however the Perfumes accounts for the highest share of spend at 22%. Alcohol follows at 17%, followed by Skincare at 12%. 

The research also found that Latin American shoppers are more likely to spend more on Alcohol, Confectionery and Fashion compared to the global average. 

Marketing-aware consumers

The m1nd-set research also looked at what influences purchasing decisions. 44% of Latin American shoppers said they notice marketing messages regarding travel retail and duty free offerings – higher than the global average. 

Sales staff also hold influence for Latin American passengers. Just over half interacted with in-store team members, and of those 61% said it was a positive interaction. 

“Just under half (48%) of shoppers from the region said they purchased a new product in the duty free shops from brands they had already purchased from,” said Anna Marchesini, m1nd-set’s Head of Business Development.

She added that 26% said they purchased a product they had heard of but never tried, and 5% purchased a brand they had never heard of before. 

“The exclusive factor is a key influencer for Latin American shoppers as 60% say they purchased a unique or travel retail exclusive product, which, interestingly, is even more than those who purchased a product because of a promotion (56%).”

Sustainability ‘increasingly important’

Conscious consumerism is also a trend observed among Latin American consumers. 

“As with all world regions, it’s increasingly important for retailers to ensure they have a more sustainable product mix, whether through sustainable packaging, or with environmentally friendly ingredients and production processes,” Marchesini continued. 

“This will become increasingly important also as the Gen Z generation ages and becomes the more dominant shopper age-segment over the coming years. 

“These conscious consumers will be influential in driving the change in terms of both the product mix and will also require changes to the marketing mix. 

“In Latin America, already six out of 10 shoppers say it’s important for them to find a sustainable product selection in the duty free shops.”

Marketing efficacy should be a key focus for retailers in the region, she stressed.

“Firstly, it’s vital that airports, brands and retailers take into account the evolution of the age of the travelling population and the implications this will have on the product mix and marketing mix.  

“We believe it will be increasingly important to digitalise communications about the duty free offer, including the unique value assets and selling points and promotions to reach the younger digital native travelling consumers where they can be found. 

“It will also be effective to focus communications on the travel retail new and exclusive collections, given the high percentage of Latin Americans who purchase exclusives and products they have not purchased before and of course, to communicate more about the sustainable values of products, whether the packaging, production process of composition.” 

As reported earlier, m1nd-set has partnered with retail analyst Blueprint to launch a new consultancy programme focused on Gen-Z consumers.

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