Beauty share soars as 90% of APAC buyers pre-plan purchases
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I
t is no surprise that beauty continues to outflank every DF&TR category by quite some
length, particularly in Asia Pacific, with perfumes and cosmetics sales up 20% to $18.2bn in 2018, according to preliminary Generation Research figures. This means it now accounts for more than half (51.7%) of the region’s $35.2bn total. This was aptly summed up by TFWA
President Alain Maingreaud during the TFWA Asia Pacific Exhibition & Conference in Singapore. “Over 50 cents of every dollar
spent on duty free and travel retail in this region goes towards perfumes & cosmetics,” he said. “The next largest product category, fashion and accessories, claimed a little over 13 cents by comparison and showed only half the growth of fragrances and cosmetics.” But where and when is the
decision to visit the beauty aisles and purchase being made? According to research from m1nd-set shared with TRBusiness, pre-planned beauty visits (49%) are higher than duty free in general (45%). Indeed, the majority of beauty purchases are pre-planned (84%) versus duty free buyers overall (80%) and this jumps even higher when comparing Asia Pacific buyers (90%) to those in Europe (77%) and Africa/Middle East (76%). The inclination to purchase before leaving for the airport is in general high for beauty (52%) compared to duty free generally (45%). Less people chose to purchase on arrival at the airport (42%) and instore (31%) when contrasted with duty free overall, while a very small number made up their minds to purchase en- route to the airport (6%).
Millennials outspend others Self-usage of beauty products is higher (58%) than the average duty
JUNE 2019 84% OF BUYERS PLAN THE PURCHASE
Before arriving at the airport
Beauty Shoppers in Travel Retail
MOMENT OF DECISION TO PURCHASE:
At the airport
35%
NOTICE TOUCH POINTS BOUGHT
BEFORE ARRIVING AT THE DF SHOP
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free buyer (46%), but are less likely to be purchased as a gift (30%) compared to the regular duty free buyer (38%). The main driver to spending is tied to value/promotions (78%), followed by experience instore (57%) and gifting (51%). Importantly, price advantage versus home country (44%) emerges as the main individual factor influencing buying decisions, higher than that of the average duty free purchaser (35%). Split by demographic, millennials display a higher inclination to purchase via value/ promotions (84%) over senior buyers (67%), while experience in store is more likely to influence a purchase among millennials (63%) than older shoppers (53%). Meanwhile, millennials tend to
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have more open wallets when it comes to beauty (US$167) compared to senior buyers ($111) and are more attuned to advertising touchpoints (35%) before they shop than their other duty free shoppers (29%). Geographically, this incidence leaps when it comes to online, with Asia Pacific shoppers exceptionally prone to online touchpoints (93%) compared to the Americas (79%) and
M1nd-set TRBUSINESS 29
but also to drive footfall in the very first place, it is therefore crucial to address key drivers to purchasing beauty products in the duty free shop, by clearly highlighting offerings of specific products (e.g. travel retail exclusives) and attractive promotions outside the shops, but also improve the retail environment and store front appeal by ensuring the presence of attractive displays and effective ‘engagement’,” comments m1nd-set. “Supplementing store activations
with concourse activities is also extremely important, especially to appeal to those undecided shoppers who have only generally planned their purchase.” «
“It is crucial to address key drivers to purchasing beauty products in the duty free shop by clearly highlight offerings of specific products (e.g. travel retail exclusives) and attractive promotions outside the shops, but also improve the retail environment and store front appeal.”
42% 52% 6% On the way to the airport
While pre-planned purchases take the lead in the highly lucrative beauty segment, a healthy number of shoppers are making on-the-spot decisions to purchase instore. TRBusiness shares a selection of key shopping highlights, courtesy of m1nd-set.
BEAUTY REPORT: INSIGHT
Especially
Online 88%
Europe (74%). “Not only to boost conversion,
Discussions 38%
Above: Fifty-two percent of beauty shoppers plan their purchases before arriving at the airport, according to m1nd-set’s Business Intelligence Service.
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