m1nd-set research reveals Latin American shoppers' taste for novelties and exclusives
The latest shopper research from travel research agency m1nd-set reveals that Latin American shoppers have a strong tendency to purchase new products they had never yet purchased in travel retail previously.
The research, which was conducted among over 2000 shoppers from across the region in April this year and presented at the ASUTIL conference in Buenos Aires earlier this month, highlights the above-average tendency of Latin Americans to purchase new products and brands in duty free and travel retail shops, when compared to the global average. 79% of shoppers from the region said they purchased a product never previously purchased, which is considerably higher than the global average.
“Just under half (48%) of shoppers from the region said they purchased a new product in the duty free shops from brands they had already purchased from and 26% said they purchased a product they had heard of but never tried and 5% purchased a brand they had never heard of before," said Anna Marchesini, Head of Business Development at m1nd-set. "The exclusive factor is a key influencer for Latin American shoppers, as 60% say they purchased a unique or travel retail exclusive product, which, interestingly, is even more than those who purchased a product because of a promotion (56%).”
The research explores both travel and shopping behavior, analyzing the demographics and travel purpose, as well as the importance of shopping for the ‘new Latin American traveler.' Shopper demographics and segment composition are also a major part of the analysis, focusing on the categories, purchase drivers, in store behavior and key reasons why non-shoppers refrain from purchasing. An important part of the research is also the evolution of air traffic across the region and the forecast for the next two years, the latest traveler trends and key destinations for Latin American travelers. The research reveals that pre-COVID traffic levels will be reached by 2024, and that 14 of the top 15 destinations for Latin American travelers are within the Americas region.
The shopper behavior analysis reveals that 67% of travelers from the region say they will travel again in the next six months. Just under half of Latin American travelers say they visit the shops on every trip while only 17% say they purchase on every trip. Of those who shop, a significant majority – 84% – say that shopping is either a very or an extremely important activity when traveling. Encouragingly, the research also reveals that over a third (34%) of shoppers from the region say they plan to shop more than before.
58% of visitors to the duty free and travel retail shops from Latin America on their last trip made a purchase, according to the m1nd-set research. Perfumes, Food & Confectionery and Alcohol are the top three categories in terms of footfall among Latin Americans and it is Food & Confectionery that sees the highest conversion rate, at 55%. The largest share of Latin American travelers’ wallet is spent on Perfumes, which accounts for 22% of spend, followed by Alcohol with 17% and Skincare, 12%. The research also underlines the fact that Latin American shoppers are more likely to assign a higher share of their spending to Alcohol, Confectionery and Fashion compared to global travelers.
Among the USPs of the m1nd-set shopper research is the analysis of what influences shoppers to purchase, looking at touch points prior to traveling as well as on the way to and while at the airport as well as other influencing factors such as the sales staff. According to m1nd-set, travelers from the region have a strong tendency to notice marketing messages about the duty free and travel retail offer. 44% of shoppers from the region say they noticed touch points before shopping, which is higher than the global average. Latin American shoppers have a higher tendency than global travelers to be exposed to touch points both in the duty free shops and online also. Sales staff are also influential in impacting the shoppers’ decision to purchase, according to m1nd-set. Just over half of Latin American shoppers say they interacted with the sales staff and of those, 61% said they were impacted positively, the research explains.
“As with all world regions, it’s increasingly important for retailers to ensure they have a more sustainable product mix, whether through sustainable packaging, or with environmentally friendly ingredients and production processes,” said Marchesini.
“This will become increasingly important also, as the Gen Z generation ages and becomes the more dominant shopper age-segment over the coming years. These conscious consumers will be influential in driving the change in terms of both the product mix and will also require changes to the marketing mix. In Latin America, already six out of 10 shoppers say it’s important for them to find a sustainable product selection in the duty free shops.”
Marchesini also highlighted some key action points travel retail stakeholders need to consider to improve the efficacy of their marketing to travelers from the Latin American region.
“Firstly, it’s vital that airports, brands and retailers take into account the evolution of the age of the traveling population and the implications this will have on the product mix and marketing mix. We believe it will be increasingly important to digitalize communications about the duty free offer, including the unique value assets and selling points and promotions to reach the younger digital native traveling consumers where they can be found. It will also be effective to focus communications on the travel retail new and exclusive collections, given the high percentage of Latin Americans who purchase exclusives and products they have not purchased before and of course, to communicate more about the sustainable values of products, whether the packaging, production process of composition.”
