Page 40 - Asian Cruise Traveller Duty & Tax Free Retail

Asian travellers visiting Duty / Tax Free Retail outlets during their trip are broadly positive about the range on offer. Our evidence shows that travellers are wanting more choice in all categories. Chinese Mainland travellers in particular would like to see a wider product selection, with this being particularly the case within the Fashion & Accessories category.
Industry Insider:
Asian Cruise Traveller Duty & Tax Free Retail
3.3.1.1 PRODUCT RANGE DEVELOPMENT
Figure 6: On-board Product Range Perceptions: Product Range Preference
Fashion & Accessories Confectionery Souvenirs Jewellery & Watches Travel Accessories & Electronics Beauty Alcohol Tobacco
8% 6% 8%
8% 7%
10% 11%
47% 44%
43% 42% 41%
41% 38%
30%
Expanded Reduced
22%
Tobacco is the main category where the Asian travellers would like to see product range reduction.
Tobacco is a challenging category to offer in Travel Retail, and the cruise channel is no exception. However, Tobacco remains a key part of the Duty & Tax Free offer in all channels despite its appeal being limited to smokers and those who buy Tobacco as gifts/requests.
This being said, smokers are more prevalent amongst Asian nationalities, particularly Chinese, and this is reflected by almost a third of Asian Cruise travellers wishing to see the Tobacco category expanded.
It is clear that Tobacco is a special case and requires different treatment to the other categories; non-smokers would prefer the
space to be used for more generally appealing products, whilst smokers would like a wider product range to choose from.
Therefore, operators should look to alternative methods of displaying the Tobacco category. For example, Tobacco could be positioned in a distinct area, away from the other Duty Free offer, with clear signposting for those who need to access it.
Alternatively, each Tobacco brand could be only provided with a single facing, thus allowing for the range to be expanded, but overall space to be reduced.
Another option would be to have a catalogue based service, removing Tobacco’s physical presence from the store, but providing the option to significantly increase the available offer.
© Counter Intelligence Retail Ltd www.counterintelligenceretail.com 40