m1nd-set studies first time buyers in latest report
In its latest industry monitor report, Swiss research agency m1nd-set reveals key differences in the paths to purchase and shopping behavior among first time buyers (FTBs).
The report defines the segment as shoppers who only purchase a product (or products), which they have never bought before and as shoppers who had never bought some of the products they purchased before. It compares these first-timers with shoppers who have previously purchased the products in travel retail and reveals some key differences in behavior between the two groups.
Among the key differences is the tendency to purchase travel retail exclusives and promotions. According to m1nd-set, 71% of FTBs purchase travel retail exclusives and 79% purchase promotions, compared to only 42% and 54% among ‘non-first time buyers’.
The report also highlights the importance of clear and consistent communications to attract FTBs to purchase. This is demonstrated through their tendency to be more undecided than non-FTBs (86% vs. 69%) and the fact that they research the duty free shopping offers online prior to travel more than other shoppers (53% vs. 43%).
FTBs also notice touchpoints such as advertising billboards more often. And sales associates are more likely to influence the purchase decision among the group. They are significantly more likely than non-FTBs to interact with staff (76% vs. 62%) and among those who interact, their purchases are influenced more by these interactions than they are among non-FTBs (74% vs. 48%).
Other insights discussed in the report include the most common categories FTBs purchase, age demographics and key purchase drivers. Purchases by FTBs in duty free shops are significantly more likely to be triggered by aspects related to value, exclusivity and the in-store experience, than purchases by non-FTBs. “Good value for money” is one of the key purchase drivers among FTBs, followed by the possibility of purchasing a product not available in the home market. Products that are suitable for gifting and souvenirs are also among the main purchase drivers for FTBs.
“The differentiation aspect – the unique nature of duty free shopping – is one of the main defining criteria of first time buyers in duty free,” shares Peter Mohn, m1nd-set, Owner and CEO. “This means it’s important to ensure they are aware of the unique and exclusive nature of shopping in the channel. These unique values can be demonstrated and promoted not only through the travel retail exclusives, but also through elements such as special packaging, different duty free sizes or formats, and in particular aspects such as local touch to enhance the souvenir and gifting suitability of the products,” he adds. “Value for money, promotions, exclusives and gifting opportunities should all be communicated consistently across all touch points.”