Counter Intelligence Retail Ltd
Singapore Show Monday 14th May 2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
RESEARCH FINDINGS TAKEN FROM CIR STUDIES & DATA BASE
Global sample of >40,000 Chinese Passengers
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
2011/12 RESEARCH TOPICS • 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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
THE CHINESE and TRAVEL RETAIL
65m
100m
2011
2020
China is home to the world's fastest growing travel market, with 72 new airports being built in China by 2015
Chinese sales in travel retail has increased significantly – 63% increased in spending in the last year
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
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
PRE TRAVEL BEHAVIOUR -‐ IMPACTORS
• 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
Source: Moodie Report 2012. TNS China’s Luxury Consumers
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
THE CHINESE TRAVELLER Chinese Traveller
Global Traveller
Male
Female
56%
44%
Male
Female
56%
44%
Business
Leisure
33%
67%
Business
Leisure
19%
81%
1-‐3 Flights
3 + Flights
85%
15%
1-‐3 Flights
3 + Flights
47%
53%
26-‐45
66%
26-‐45
60%
Chinese Buyer
Global Buyer
Ave spend
$177
Ave spend
$102
Categories visited
1.5
Categories visited
1.3
Items purchased
1.8
Items bought
1.8
Buy almost / every trip
29%
Buy almost / every trip 30%
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
THE CHINESE TRAVELLER – TRAVEL PURPOSE
BUSINESS
LEISURE
ORGANSIED LEISURE
PURPOSE OF TRAVEL
33%
50%
17%
BUYERS %
62%
62%
57%
SPEND $
$155
$180
$210
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
HIGH LEVELS OF VISITING DF BUT OPPORTUNITY TO INCREASE CONVERSION TO PURCHASE
VISIT DUTY FREE WHEN TRAVELLING
PURCHASE FROM DUTY FREE WHEN TRAVELLING
30%
10%
30%
NEVER OR RARELY
60%
40%
OCCASIONALLY
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
30%
MOST OR EVERYTIME
ATTITUDES AND PERCEPTIONS
INTERNATIONAL BRANDS
PREMIUM & LUXURY PRODUCTS
AUTHENTICITY OF PRODUCTS
QUALITY OF PRODUCTS
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
TO SELF TREAT
PLANNING LEVELS ARE LOWER THAN THOSE SEEN ON A GLOBAL BASIS……..
Visit DF Retail
GLOBAL AVE
70%
2006 (Packaged Tours only)
PLANNED
IMPULSE
GLOBAL AVE
55%
45%
30%
40%
60%
Source: CIR & Various Industry Studies Figures are rounded for purpose of presentaQon
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
BROWSING & BARGAIN HUNTING ARE KEY MISSIONS
Source: CIR & Various Industry Studies Figures are rounded for purpose of presentaQon
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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
CATEGORY SPECIFIC MISSION
BEAUTY
LIQUOR
30%
20%
TOBACCO
24%
CONFECTIONERY
LUXURY
25%
26%
25%
25% Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
CATEGORY PENETRATION
ALL SHOPPERS
BEAUTY
TOBACCO
LIQUOR
CONFECTIONERY
LUXURY
100%
60%
65%
65%
55% 45%
25%
Total passengers
Source: CIR database 2008-‐2012
Beauty
20%
Liquor
Visited
40% 20%
15%
Tobacco
Purchased
5% ConfecQonery
Conversion rate
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
Luxury
PURCHASE DRIVERS
BEAUTY
SELF
GIFT
REQUEST
LIQUOR
TOBACCO
50%
65%
55%
CONFECTIONERY
60%
60%
20%
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
LUXURY
REASON FOR PURCHASE
ALL SHOPPERS
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
Planned Purchase
70%
70%
70%
80%
55%
90%
Planned To Brand
45%
50%
50%
45%
35%
55%
Planned Exact Product
40%
40%
35%
40%
30%
35%
30%
30%
30%
20%
45%
10%
Impulse Purchase
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
LUXURY
HIGH SPEND AMONG THOSE TRAVELLING ON AN ORGANISED LEISURE TRIP
BUSINESS
LEISURE
ORGANSIED LEISURE
BEAUTY
$210
$225
$245
LIQUOR
$170
$180
$215
TOBACCO
$145
$160
$140
$130
$140
$165
$475
$545
CONFECTIONERY
LUXURY
TFWA $355 Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
CROSS CATEGORY PURCHASING
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
+
+
+
+
+
+
+
+
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
PRICE & EXPERIENCE
ALL SHOPPERS
Price PercepQon
(No price advantage)
BEAUTY
LIQUOR
TOBACCO
50%
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
CONFECTIONERY
LUXURY
The Non Buyer
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
THE NON BUYER Planned To Buy
BOUGHT
DID NOT BUY
70%
30%
$206
AVE SPEND
$?
VALUE AUTHENTIC QUALITY LOST SPEND
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
SHOPPERS WHO PLANNED TO BUY BUT DID NOT
ALL SHOPPERS
BEAUTY
LIQUOR
TOBACCO
30%
25%
20%
20%
CONFECTIONERY
Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
20%
LUXURY
35%
KEY REASONS FOR NOT BUYING
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
50%
75%
50%
60%
15%
5%
TOO EXPENSIVE
NOT INSPIRED
COULD NOT FIND Source: CIR database 2008-‐2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
The Luxury Shopper
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 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
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 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 16% of Chinese travellers visit luxury
Average basket value $448
Highest cross purchasing with P&C (30%)
Source: CIR & Various Industry Studies
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
Chinese Passenger Shopper Research 2012 Garry Stasiulevicuis
Counter Intelligence Retail Ltd
Singapore Show Monday 14th May 2012
TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012
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