m1nd-set says consumer priority shifts from price to experience
A new study by leading travel retail research agency m1nd-set reveals a significant change in consumer behavior within the global travel retail sector. Shoppers are increasingly valuing experiential aspects over price when making purchasing decisions.
The research indicates that while price has traditionally been a major factor in travelers’ buying choices, it is no longer the primary consideration. Instead, consumers are placing more importance on the overall shopping experience. Factors such as convenience, product exclusivity and unique location-specific items are becoming more influential in driving purchases.
Travel retail consumers are now seeking experiences and products that offer value beyond cost savings. There is a growing demand for distinctive and immersive shopping experiences, reflecting a broader trend where emotional and experiential aspects of shopping outweigh price considerations.
The incorporation of technology and customized services in travel retail has contributed to this shift, with consumers favoring seamless omnichannel experiences and personalized options over mere cost savings.
Clara Susset, COO of m1nd-set, stated, “Experiential retail is becoming a major trend, with consumers placing greater emphasis on the experiences associated with shopping rather than just the products themselves. Quality and sustainability are also becoming key drivers of consumer choices. Travel retail consumers, particularly among the younger generations, are becoming more discerning and willing to pay a premium for products that are ethically produced and made from sustainable materials, shifting the focus away from price alone, the research reveals.”
The study shows that the importance of price advantage as a reason to visit duty-free shops has decreased significantly, from 26% in 2019 to 17% in 2024. Price advantage is no longer among the top five drivers for shop visits. Instead, there’s an increased desire to browse and discover new products, as well as a growing appreciation for the attractiveness of the duty-free environment.
In-store experiences have become increasingly important purchase drivers in travel retail. On average, 45% of shoppers now cite the in-store experience as a key factor in their decision to buy, with Generation Z and Millennials leading this trend at 49% and 48% respectively. The in-store experience encompasses various elements, including attractive packaging, special activations, product testing opportunities, appealing displays and themed events.
Anna Marchesini, Head of Business Development at m1nd-set, explained: “The perception of value in travel retail is undergoing a decisive transformation. While competitive pricing is still relevant, it is no longer the primary determinant of consumer choice. Instead, the focus is shifting towards creating memorable, immersive shopping experiences that engage customers on an emotional level. We are observing a distinct trend where the emotional and experiential value of the shopping experience has clearly started to outweigh the importance of price in the decision-making process.”
Marchesini added: “The research findings underscore the need for brands and retailers to adapt to this changing landscape. This shift will inevitably force brands and retailers in travel retail to rethink the way they operate and focus on aspects that create more long-lasting customer engagement.”
m1nd-set and event partners Blueprint will present detailed insights on the importance of experiential retail in travel retail at the EX.CEL Experiential Retail Workshop in Cannes on September 29, 2024.
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