Page 114 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
6.2.2.5 UP-TRADE OPPORTUNITIES: ON-LAND
Of those purchasing their main Duty & Tax Free item on-land, around a quarter (24%) trade up to a more expensive variant than they usually purchase at home.
Although this illustrates an openness to more premium products among a fairly high proportion of on-land shoppers, this is a lower level of up-trading than experienced at on-board stores, potentially highlighting how shoppers are less comfortable trading up to more expensive variants from on-land stores compared to those on-board the ship.
Figure 27: Purchase Behaviour: Up-trade Opportunities On-land
Up-trading significantly more common among Italian travellers
Never Traded bought up
item kind 24% before
13%
Cheaper brand 7%
Usual brand 56%
Therefore, in addition to driving up-trading through more traditional means, such as promotional activity and product sampling, on-land retailers must drive greater levels of purchase reassurance among shoppers, particularly with more luxury items.
Potential exists to drive this through practices such as providing certificates of authenticity, celebrity endorsements or information booklets . A clear returns policy should also be communicated in luxury categories, such as Watches & Jewellery and Fashion.
Up-trading more prominent among male buyers
Younger buyers more likely to trade up than older buyers
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