January 29 2019  |  Industry News

Report reveals millennial shopper behavior trends

By Hibah Noor

In its latest global shopper behavior report, Swiss research agency m1nd-set reveals significant differences in the shopper behavior of millennial travelers from around the globe.

The study examines the behavior of shoppers from eight different nationalities: British, French, German, Chinese, Japanese, American, Brazilian and Russian, based on interviews with over 8,000 international travelers from m1nd’set Business 1ntelligence Service (B1S) insights tool.

A key finding is the difference in conversion rates between millennials and all other age groups. The report reveals the conversion rate is lower among millennial shoppers compared to all age groups across all nationalities, except the Chinese, where there is only a one point difference.

The largest gap is among German shoppers, followed by the Japanese and then French shoppers.

The analysis of conversion rates among millennials from each market shows that German shoppers have the lowest conversion rate: only 14% of all German visitors to the airport duty free shops made a purchase.

The conversion rate among Chinese shoppers is much greater, however, the highest among all nationalities surveyed. Over half of Chinese travelers visit the duty free shops, of which 52% made a purchase, according to the report.

Chinese millennials also visit and purchase in more categories than other nationalities. Footfall and purchase rates among the other nationalities of millennials vary, with conversion rates ranging from the low 40s to the high 60s.

The report also looks at overall shopping behavior, including both the shopping planning and purchase planning behavior, as well as aspects such as price comparison, the impact of communications touch points, and the effectiveness of employees and staff interaction with millennial shoppers.

The report concludes with recommendations on marketing to millennial travelers based on both the consumer insights and qualitative research from m1nd-set’s brand and retailer consultancy team.

Pablo Saez Gil, B1S director at m1nd-set, said of the report’s conclusions: “Today’s millennials have a greater tendency to adopt new technology and new formats of sharing and engaging, so it is paramount that brands, retailers and marketers in travel retail keep up with the times and converse in the right register with the millennial consumer.

“Customization, consistency, experiential and engagement are key when marketing to millennial shoppers in travel retail. They are generally more demanding than other age groups, so it is vital to engage and converse with millennials to convey the brand story or unique retail experience.

“It is equally important that this conversation and the brand message is consistent across all touch points and media, from the mobile phone to the billboards, or the digital touch-screen in-store.”

* For information on m1nd-set’s shopper reports, contact info@m1nd-set.

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