The last three years has seen a decline in travel retail gift purchases, according to the latest research by travel retail research experts m1nd-set. The research also indicated an upturn in self-consumption, increasing by 7% from pre-pandemic levels.
The report analysed shopper behaviour in travel retail, comparing the post-pandemic period between 2021 to Q1 2023 with the pre-pandemic era from 2017 until Q1 2020. Results found that gift purchasing has fallen 13 points from 40% of shoppers buying gifts prior to the pandemic, compared with 27% in Q1 2023. Self-consumption has increased, rising from 46% pre-pandemic to 53% in Q1 2023.
“Consumer communications need to focus on reworking the message to capture shoppers’ attention with other more impactful and motivating incentives to drive them into the duty free stores,” said Peter Mohn, Owner and CEO, m1nd-set. “The role of gifting as a driver both to visit the duty free and travel retail shops and purchase in store, has declined significantly.”
The pace of the decline has depended on location, according to the research, with Europe and the Americas seeing a more severe decline of gift shopping in travel retail, falling to 20% and 26%, respectively. This decline has not yet revived, unlike in the Middle East, Africa and Asia-Pacific, where this has started to recovery, rising to 34% in the Middle East and 34% in Asia-Pacific.
“Value for money, convenience, brand loyalty, price advantage and differentiation remain the key purchase drivers in travel retail today,” added Mohn. “Travel retail needs to rethink its positioning around the gift-purchasing opportunities. The pandemic has brought about a shift towards altruism and greater attention to people and the planet. Consumers now tend to look how to give back more, and many new ideas for more meaningful long-distance gifting have emerged.”
Charts: m1nd-set
