BW Confidential - Issue #8 - October/December 2011 - (Page 78)

Travel retail Passenger habits Who’s buying what? Paris-based consultancy JMG Research carried out a study on how passengers of 15 nationalities act and shop in duty-free airport stores. We bring you some key findings of the research European passengers The penetration rate for European passengers in the women’s fragrance category stands at 44%. The French are most attracted to the category in the region, with a 51% penetration rate, followed by the Spanish with 47%. Some 51% of European passengers say they plan their purchases of women’s fragrances in travel retail; around 67% of Norwegians plan these purchases and only 37% of Italians do so. Penetration & conversion rates for women’s fragrance in duty-free Nationality Penetration* Conversion** Europe Asia China South Korea Japan Russia Brazil US World 44% 32% 44% 38% 15% 46% 49% 22% 40% 47% 66% 69% 66% 55% 72% 74% 37% 55% Planned Spontaneous purchase purchase 51% 74% 75% 75% 63% 62% 70% 67% 60% 49% 26% 25% 25% 37% 38% 30% 33% 40% Asian passengers Fragrance penetration is low among Asians in travel retail and duty free at 32%, which is not surprising given the weight of skincare in the region. The Chinese penetration rate in the category is nonetheless on a par with that of European consumers at 44%, but this drops to 15% for the Japanese and 38% for South Koreans. The Chinese also have a high conversion rate of 69%. Some 75% of South Koreans and Chinese plan their fragrance purchases in travel retail. *% of visitors for the category among total number of PAX **% of buyers among category shop visitors Product usage for fragrance goods bought in airports Russian passengers Some 46% of Russian passengers visit the fragrance offer in duty free and travel retail, but this group has a conversion rate of 72%. More than half of Russians buy fragrance for their own use, but 10% also buy as a result of a request for a product from friends or family, one of the highest ‘request’ percentages of the nationalities covered in the study. Nationality Own use Europe Asia China South Korea Japan Russia Brazil US World 68% 47% 42% 53% 42% 56% 65% 42% 61% Gift 28% 47% 50% 40% 54% 32% 27% 55% 32% Request 3% 6% 8% 7% 4% 10% 8% 3% 7% Trip use 1% 0% 0% 0% 0% 2% 0% 0% 0% Source: JMG Research, Fieldwork carried out end 2010, released Feb. 2011 Brazilian passengers Brazilians are big fragrance consumers and are travelling more, which explains the relatively high penetration rate for this nationality in the category—49%. The conversion rate was also the highest of the nationalities studied at 74%. Brazilians buy fragrances mainly for themselves—65% say women’s fragrances are for their own use. Duty-free shops & new brands Nationality Europe Asia China South Korea Japan Russia Brazil US World Duty-free shops are a chance to try new brands “very important & quite important“ 43% 51% 77% 40% 34% 57% 65% 42% 47% American passengers Given the relatively underdeveloped duty-free market in the US, the penetration rate for women’s fragrances for American passengers is only 22%. Americans also buy these items mostly for gifts, around 55% say they buy for others, while 42% buy for themselves. Passengers on price Most passengers still think that duty-free prices are ‘much cheaper or slightly cheaper’ than the local market. This is especially the case in Scandinavian countries, where 82% of Norwegians and 75% of Swedes think prices are more advantageous in travel retail. This also holds true for some Asian nationalities: 75% of South Koreans and 67% of Chinese travelers feel they get better prices in duty free. n 78 JMG Research will add new nationalities to its travel-retail study in 2012. For more information: contact@JMG-Research.com. October-December 2011 - N°8 - BW Confidential

Table of Contents for the Digital Edition of BW Confidential - Issue #8 - October/December 2011

Cover
Comment
Contents
Update
- Brand & retail news recap
- Companies on the move
Take note
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
Launches
- The latest in fragrance, skincare & make-up
Interview
- Estée Lauder Companies group president international Cédric Prouvé
Insight: Fragrance
- Category overview
- Retailer roundtable
- Retailing strategies
- Rare fragrance brands
- Launch roundup
Wellness
- Spa chains
- Spa case studies
Retail
- E-commerce
- Store concepts
Travel retail
- Sector analysis
- Hainan & China Duty Free Group
- Retail concepts
- Passenger habits
Digital
- Industry experts on harnassing the power of social networks
Radar
- Six up-and-coming beauty brands
Market watch: Russia
- Country overview
- Prestige retailing
- Industry viewpoint
Packaging
- Market outlook
- Sustainabilty
- Trends
Last word
- Buyology Inc president & co-founder Donna Sturgess

BW Confidential - Issue #8 - October/December 2011