The Beauty Category Drives Foot Traffic In Travel Retail, According to…

Price is the obvious principle driver for duty free shoppers, but it’s also about those elements that are different and unique to this channel, including items and brands that can’t easily be found anywhere else.

According to The NPD Group’s Travel Retail practice, the beauty category is successfully driving footfall into duty free stores globally; and with an average spend of $75.5 per visit, beauty is also the category with the highest average spend.

The global beauty buyer is an important shopper for travel retailers, with seven out of 10 beauty buyers also buying another item from other duty free categories.

The profile of the global beauty shopper is younger and female, with 45 per cent being under the age of 35, and 61 per cent being female. Of all beauty shoppers in the duty free channel, 58 per cent travel independently and for leisure. These consumers are also much savvier in their purchase habits and choices, thanks in part to access to technology and the rise of comparative pricing apps.

“This digital model has also increased convenience; shortening the lead times conditions the consumer to expect instantaneous fulfillment of their purchases,” said Paul Cantrell, Executive Vice President, NPD Travel Retail, The NPD Group. “These new expectations require brands to be more agile than ever before. In this newly created space direct-to-consumer and digital native brands are emerging as models for growth ahead of mass-marketed brands. Private Label is also having a renaissance.”

While the majority of shoppers (62 per cent) cite price as being the main advantage of purchasing beauty items in duty free stores compared to other places selling beauty products, close to 40 per cent view the availability of more premium brands and specialist items as being the main advantage.

Limited and exclusive editions of products are also key purchase drivers in travel retail, with exclusives growing in importance over the years. Offering unique products presents a clear opportunity for brands and retailers to differentiate themselves while also increasing foot traffic.

“Price is the obvious principle driver for duty free shoppers, but it’s also about those elements that are different and unique to this channel, including items and brands that can’t easily be found anywhere else,” said Cantrell. “The key for retailers and brands in this channel is to communicate these benefits further ahead of a beauty shopper’s travels so they’re prepared to purchase as soon as they get to the airport.“

About The NPD Group, Inc.

NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, travel retail, video games, and watches / jewelry. For more information, visit npd.com. Follow us on Twitter: @npdgroup @npdstyle

Share article on social media or email:

Published at Tue, 02 Jul 2019 00:00:00 +0000