Page 10 - IAADFS Summit of the Americas 2024 Special Edition

INSIDER

DFWC 2023 KPI Monitor unveils shifts in shopping information sources

The Duty Free World Council has
released a full-year comparison between
2023 and 2022, revealing marked changes
in where global shoppers source their
information about duty free shopping.
The full-year comparison details the
traffic evolution across world regions as
well as some of the main shopper behavior
themes such as drivers and barriers
to purchase, planning and purpose of
purchase, touch points and staff interaction
and impact. The KPI Monitor is produced
by leading industry research agency m1nd-
set and published on a quarterly basis.
Notable changes in shopper behavior,
according to the DFWC Monitor, are
seen across all the touch points where
consumers source their information about
the duty- and tax-free shopping offer, as
well as how shoppers engage with retail
staff inside the stores.
DFWC President, Sarah Branquinho
explained: “The quarterly DFWC KPI
Monitor is an excellent tool to gauge
how shopper behavior is evolving from touch points saw a decline in the percentage The full-year DFWC KPI Monitor
one season to the next. The full-year of shoppers noticing information about the also reviews the changes in global air
analysis enables us to take a step back, offer between 2022 and 2023. Billboard traffic, as well as the rankings for top
assess longer-term trends, and identify advertising saw a decline from 24% to airports and nationalities for international
opportunities for the industry to adapt to 15% in 2023, brands’ website fell from departures. The Asia Pacific region saw the
shopper behavior and consider different 19% to 12%, duty free retailers’ websites most significant increase in international
approaches to consumer marketing plummeted from 21% to 11% and online departures in 2023 compared to a year
strategies.” advertising fell from 18% to 10%. earlier. Border re-openings and the lifting
In 2023, less than half of global Peter Mohn, CEO and owner at m1nd- of international travel restrictions across
shoppers engaged with the sales staff inside set added: “The decline in engagement the region were implemented later in Asia
duty- and tax-free stores according to the with touch points can be explained by Pacific compared to other world regions
DFWC KPI Monitor, while in 2022, almost the fact that the pandemic effect has now which had already seen significant traffic
two-thirds of shoppers (65%) engaged ended, and that people tend to go back to recovery in 2022. In 2023, traffic in Asia
with staff. The impact of staff engagement their pre-Covid behavior; this means they Pacific air traffic grew by 244% on 2022
has also declined year on year, albeit less are doing less online research about the figures, compared to the global average of
dramatically. 71% of shoppers said that travel retail shopping offer. It may also be 137%.
staff interaction had positively influenced interpreted by the fact that the shoppers There was moderate change among
their decision to purchase in 2023, are less excited about traveling compared the top ten airport rankings between 2022
compared to 78% the previous year. to immediately after the pandemic. There and 2023. Dubai, London Heathrow,
Branquinho continues, “Only one third seems to be a trend towards normalization Paris Charles De Gaulle, and Amsterdam
of shoppers say they were exposed to touch again.” retained the top four positions. Singapore
points in 2023 compared to just less than The overall purchase planning trend ascended from tenth to fifth position and
half of shoppers the previous year which also declined between 2022 and 2023 Seoul Incheon Airport climbed into the top
suggests the industry should reassess how according to the DFWC KPI monitor. ten in seventh place, while Doha’s Hamad
we are communicating with travelers and In 2022, 79% of shoppers planned their International fell out of the top ten ranking.
seek to improve on generating awareness purchases either specifically or with no Frankfurt, Istanbul, Madrid, and JFK
about the duty- and tax-free retail offer.” particular brand or product in mind, with comprised the other top ten rankings with a
The full-year DFWC Monitor also just over one in five purchasing on impulse. slight change in order year to year. The top
reveals that internet search, at 16%, was the In 2023, just less than three-quarters of ten nationalities for international departures
most popular means of seeking information shoppers say they planned their duty free remained unchanged except for tenth
about the duty- and tax-free offer in 2023, shopping purchases generally with 26% of placed Canada in 2022 yielding its position
up from 11% a year earlier. All other top shoppers purchasing on impulse. to South Korea in 2023.

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