chinese passenger shopper research 2012

Copyright © Counter Intelligence Retail 2012

TFWA Chinese Passenger Shopper Research 2012

Chinese Passenger Shopper Research 2012

Garry Stasiulevicuis Counter Intelligence Retail Ltd

Singapore Show Monday 14th May 2012



COUNTER INTELLIGENCE RETAIL

UK based dedicated TR agency…

•  Category development and market intelligence

•  150,000 interviews in last 18 months

•  200,000 shopper observaQons

•  Intelligence from more than 40 naQonaliQes



RESEARCH FINDINGS TAKEN FROM CIR STUDIES & DATA BASE

Global sample of >40,000 Chinese Passengers



•  AXtudes and behaviours during the airport experience

•  PercepQons towards the key categories

•  MoQvaQons, triggers and barriers to purchase

•  Cross category relaQonships

•  Key category metrics including penetraQon and conversion

•  Key needs and requirements of the traveller

•  In bound and outbound travellers

•  Comparisons to the Global traveller

2011/12 RESEARCH TOPICS



AN ECONOMIC POWERHOUSE

Against a backdrop of Global unrest………

•  High spending power

•  High net worth travellers

•  Strong gi\ing culture

•  Significant contribuQon to TR growth



THE CHINESE and TRAVEL RETAIL

2011 2020

65m 100m

Sources –Trendwatching 2012, Moodie Report 2012, ISWR Forecast Report 2011-‐2016, Mail online 2.1.2012

Chinese are in the top 5 highest spending naQonaliQes

Chinese sales in travel retail has increased significantly – 63% increased in spending in

the last year

China is home to the world's fastest growing travel market, with 72 new airports being built

in China by 2015



•  Chinese travellers are technology savvy…. •  Research brands online before travel •  Using social media or new portals

•  High awareness of key brands and prices •  Awareness of product offer and latest trends

•  Travellers draw up a shopping list prior to travelling…… •  Request purchasing is a key behaviour

PRE TRAVEL BEHAVIOUR -‐ IMPACTORS

Source: Moodie Report 2012. TNS China’s Luxury Consumers



MORE THAN 65M CHINESE TRAVELLERS

100% Chinese PAX 40% Visit DF Retail/Luxury

25% Purchase DF/Luxury

Clear opportunity to drive more traffic and more conversion to purchase

Source: CIR & Various Industry Studies



THE CHINESE TRAVELLER

Chinese Traveller

Male 56% Female 44%

Business 33% Leisure 67%

1-‐3 Flights 85% 3 + Flights 15%

26-‐45 66%

Chinese Buyer

Ave spend $177

Categories visited 1.5

Items purchased 1.8

Buy almost / every trip 29%

Global Traveller Male 56% Female 44%

Business 19% Leisure 81%

1-‐3 Flights 47% 3 + Flights 53%

26-‐45 60%

Global Buyer

Ave spend $102

Categories visited 1.3

Items bought 1.8

Buy almost / every trip 30%

Source: CIR database 2008-‐2012



BUSINESS LEISURE ORGANSIED LEISURE

THE CHINESE TRAVELLER – TRAVEL PURPOSE

PURPOSE OF TRAVEL

BUYERS %

33%

62%

50%

62%

17%

57%


SPEND $ $155 $180 $210



HIGH LEVELS OF VISITING DF BUT OPPORTUNITY TO INCREASE CONVERSION TO PURCHASE

10% 30% 60%

30% 40% 30%

VISIT DUTY FREE WHEN TRAVELLING

PURCHASE FROM DUTY FREE

WHEN TRAVELLING

NEVER OR RARELY OCCASIONALLY MOST OR EVERYTIME




ATTITUDES AND PERCEPTIONS

INTERNATIONAL BRANDS

PREMIUM & LUXURY PRODUCTS

TO SELF TREAT

AUTHENTICITY OF PRODUCTS

QUALITY OF PRODUCTS




PLANNING LEVELS ARE LOWER THAN THOSE SEEN ON A GLOBAL BASIS……..

Visit DF Retail

55% 45%

PLANNED IMPULSE

2006 (Packaged Tours only)

70%

GLOBAL AVE

30%

GLOBAL AVE

40% 60%

Source: CIR & Various Industry Studies Figures are rounded for purpose of presentaQon



BROWSING & BARGAIN HUNTING ARE KEY MISSIONS

To browse to pass Qme

To look for a bargain

To buy a specific item

To browse and maybe buy

To buy a gi\

30% 25% 20% 15% 10%

Arrows indicate global average as higher or lower than Chinese Passenger Base data Source: CIR & Various Industry Studies Figures are rounded for purpose of presentaQon



CATEGORY SPECIFIC MISSION

24% 26%


25%

25%

30% 20% 25%

BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY



CATEGORY PENETRATION

BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY ALL SHOPPERS


100%

65% 65%

45% 55%

40%

60%

25% 20% 15% 20%

5%

Total passengers Beauty Liquor Tobacco ConfecQonery Luxury Visited Purchased Conversion rate



PURCHASE DRIVERS

SELF


50% 65% 60%

55% 60%

20%

GIFT

REQUEST




REASON FOR PURCHASE

Planned Purchase

Planned To Brand

Planned Exact Product


Impulse Purchase

70% 70% 70% 80% 55% 90%

45% 50% 50% 45% 35% 55%

40% 40% 35% 40% 30% 35%

30% 30% 30% 20% 45% 10%




HIGH SPEND AMONG THOSE TRAVELLING ON AN ORGANISED LEISURE TRIP

BUSINESS LEISURE ORGANSIED LEISURE

BEAUTY

LIQUOR

CONFECTIONERY

TOBACCO

LUXURY

$210 $225 $245

$170 $180 $215

$145 $160 $140

$130 $140 $165

$355 $475 $545




CROSS CATEGORY PURCHASING


+

+

+ +

+

+

+

+




PRICE & EXPERIENCE

Price PercepQon (No price advantage)

50%




The Non Buyer



THE NON BUYER

Planned To Buy

70% 30%

BOUGHT DID NOT BUY

AVE SPEND $206 $? LOST SPEND

VALUE AUTHENTIC QUALITY




30% 20% 25% 20%

SHOPPERS WHO PLANNED TO BUY BUT DID NOT

35%


20%





KEY REASONS FOR NOT BUYING

TOO EXPENSIVE

NOT INSPIRED

COULD NOT FIND

50%

50%

15%

75%

60%

5%




The Luxury Shopper



THE LUXURY MARKET

•  China will be the world’s biggest luxury goods market by 2020

•  Over the next decade, Chinese consumers will account for 44% of global spending

•  TransiQoning from a saving to spending culture

•  China will account for half of Luxury goods companies forecasted global growth over next 10 years




THE LUXURY SHOPPER

•  Due to high Luxury goods taxes overseas shopping is very popular amongst Chinese tourists

•  Chinese naQonals’ spending on luxury goods overseas’ is said to be four Qmes greater than purchasing levels within China

• Watches & Designer clothing account for 50% of luxury spend


16% of Chinese

travellers visit luxury

Average basket value

$448

Highest cross purchasing with P&C (30%)



Chinese Passenger Shopper Research 2012

Garry Stasiulevicuis Counter Intelligence Retail Ltd

Singapore Show Monday 14th May 2012

chinese passenger shopper research 2012

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