Page 10 - TFWA World Exhibit 2022 Special Edition

INSIDER

Mohn added: “Although a sizeable
proportion of the Gen Z consumer
generation is still below 18 and whose
purchasing power barely surpasses their
parents’ allowance, the potential among this
generation – both as future customers and
disruptors – is not to be underestimated.”

Socially conscious
“Both Millennials and Gen Zs have
a strong tendency to favor sustainable
practices when shopping in Travel Retail,”
Mohn continued. “While they are keen on
championing brands with a strong social
and environmental impact and story, they
are equally intent on shouting out on social
media about less virtuous brands and will
be quick to name shame companies and
brands which do not demonstrate ethical
and environmentally friendly practices.
This is particularly true among Gen Zs,”
Mohn concluded.

Planned vs impulse
m1nd-set also reveals that Millennials
are more apt to plan their purchase in
Travel Retail (79% vs 64% for Gen Zs),
but more Gen Zs purchase on impulse
Spending trends One of the major differences is the (36% of Gen Zs compared to 21% among
Average spend is another area where overall spend among both age groups. Millennials and 18% among all age
m1nd-set reports considerable differences Whether in domestic or Travel Retail, groups).
between Millennials and Gen Z consumers Millennials represent a higher proportion Gen Zs are also keener to enter
in Travel Retail. Spend among both age of the overall consumer spend. Both the physical store, says m1nd-set (49%
segments is significantly lower than the generations combined currently represent compared to 38% among Millennials and
average among all age groups which is just over 30% of total retail spend, but this 44% of all passengers). Once in the stores
US$101. share is set to increase to 48% by the end however, Millennials tend to purchase
For Millennials, average spend is $70, of the decade. more; 23% of Millennials purchased
with the highest spend allocated to the In Travel Retail, the spend is currently compared to 17% of Gen Z shoppers and
Electronics category at $124, followed by 6% among Gen Z consumers and 25% 22% of total passengers, generating a
Jewellery & Watches at $118 and Fashion among Millennials. According to m1nd- conversion rate of 61% for Millennials,
& Accessories at $98. set the Millennials’ share of spend in 35% among Gen Zs and 50% for all
Average spend in Travel Retail among Travel Retail will increase by only a few passengers.
Gen Z shoppers is considerably lower at percentage points by the end of the decade More information on m1nd-set’s
$44, with the highest spend being allocated while the growth in spend by 2030 among research and consultancy services can
to Perfumes at $111, Electronics, $103 and Gen Zs consumers is expected to be more be obtained from m1nd-set by writing to
Alcohol, $61. than threefold. info@m1nd-set.com.

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