Page 184 - European Cruise Traveller Duty & Tax Free Retail

Industry Insider:
European Cruise Duty & Tax Free Retail 2016
9.2.2 CHANNEL DIFFERENTIATION
As previously stated, in our cruise research we assess the on-board and on-land Duty / Tax Free retail channels separately due to each driving different shopper experiences and shopper behaviour. This is illustrated by:
 The shopper having a greater degree of time pressure on-land compared to on-board stores
 The price being cheaper than elsewhere being a more prominent purchase driver (26% vs. 23% on-land)
 Souvenir purchasing playing a more important role in gift item suitability; 48% purchase a gift due to it being a good souvenir of the country visited compared to just 14% purchasing a gift for this reason on-board
 Planned purchasing being more prominent on-land than on- board (75% on-land vs 63% on-board)
 A higher incidence of regular brand purchasing being apparent on-land compared to on-board (53% on-land vs. 47% on-board); trading up to more expensive variants is also less prominent at on- land stores (24% trade up at on-land store compared to 33% at on-board stores)
Although priority should be placed on differentiating the on-land channel from the on-board Duty & Tax Free channel in addition to other non-cruise Travel Retail offers the traveller may encounter at other points during their trip, it is also key for on-land operators to differentiate from other on-land stores the traveller will experience during their cruise, both Duty Free and non-Duty Free.
The European region offers numerous cruise ports in locations offering unique identities, heritages and traditions. Store operators should therefore look to reflect this in product ranges and store designs to drive interest and the perception of a ‘never-before-seen’ Travel Retail offer. This should be supported through competitive pricing and promotional activity to drive pricing differentiation with local stores.
Compared to the on- board channel, European travellers are more likely to plan their purchase and buy regular brands when at on- land stores
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