Download - 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
Copyright © Counter Intelligence Retail 2012
TFWA Chinese Passenger Shopper Research 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
Copyright © Counter Intelligence Retail 2012
TFWA Chinese Passenger Shopper Research 2012
RESEARCH FINDINGS TAKEN FROM CIR STUDIES & DATA BASE
Global sample of >40,000 Chinese Passengers
Copyright © Counter Intelligence Retail 2012
TFWA Chinese Passenger Shopper Research 2012
• 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
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
• 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
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
BUSINESS LEISURE ORGANSIED LEISURE
THE CHINESE TRAVELLER – TRAVEL PURPOSE
PURPOSE OF TRAVEL
BUYERS %
33%
62%
50%
62%
17%
57%
Source: CIR database 2008-‐2012
SPEND $ $155 $180 $210
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TFWA Chinese Passenger Shopper Research 2012
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
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
ATTITUDES AND PERCEPTIONS
INTERNATIONAL BRANDS
PREMIUM & LUXURY PRODUCTS
TO SELF TREAT
AUTHENTICITY OF PRODUCTS
QUALITY OF PRODUCTS
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
CATEGORY SPECIFIC MISSION
24% 26%
Source: CIR database 2008-‐2012
25%
25%
30% 20% 25%
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY
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TFWA Chinese Passenger Shopper Research 2012
CATEGORY PENETRATION
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY ALL SHOPPERS
Source: CIR database 2008-‐2012
100%
65% 65%
45% 55%
40%
60%
25% 20% 15% 20%
5%
Total passengers Beauty Liquor Tobacco ConfecQonery Luxury Visited Purchased Conversion rate
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TFWA Chinese Passenger Shopper Research 2012
PURCHASE DRIVERS
SELF
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY
50% 65% 60%
55% 60%
20%
GIFT
REQUEST
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
REASON FOR PURCHASE
Planned Purchase
Planned To Brand
Planned Exact Product
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY ALL SHOPPERS
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%
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
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
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TFWA Chinese Passenger Shopper Research 2012
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY
CROSS CATEGORY PURCHASING
Source: CIR database 2008-‐2012
+
+
+ +
+
+
+
+
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TFWA Chinese Passenger Shopper Research 2012
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY ALL SHOPPERS
PRICE & EXPERIENCE
Price PercepQon (No price advantage)
50%
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
The Non Buyer
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TFWA Chinese Passenger Shopper Research 2012
THE NON BUYER
Planned To Buy
70% 30%
BOUGHT DID NOT BUY
AVE SPEND $206 $? LOST SPEND
VALUE AUTHENTIC QUALITY
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
30% 20% 25% 20%
SHOPPERS WHO PLANNED TO BUY BUT DID NOT
35%
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY ALL SHOPPERS
20%
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
BEAUTY LIQUOR TOBACCO CONFECTIONERY LUXURY
KEY REASONS FOR NOT BUYING
TOO EXPENSIVE
NOT INSPIRED
COULD NOT FIND
50%
50%
15%
75%
60%
5%
Source: CIR database 2008-‐2012
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TFWA Chinese Passenger Shopper Research 2012
The Luxury Shopper
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TFWA Chinese Passenger Shopper Research 2012
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
Source: CIR & Various Industry Studies
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TFWA Chinese Passenger Shopper Research 2012
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
Source: CIR & Various Industry Studies
16% of Chinese
travellers visit luxury
Average basket value
$448
Highest cross purchasing with P&C (30%)
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