MIDDLE EAST/AFRICA. Swiss research agency m1nd-set has released a regional report detailing shopping behaviour in the Middle East & African duty free markets.
The report, produced with data from m1nd-set’s Business 1ntelligence Service (B1S), looks firstly at the context for growth in the region. M1nd-set said this focuses on the macro trends underpinning the region’s potential for development: population growth, geographical location and changing demographics.
Using data sourced from B1S-IATA DDS Database, which combines global airline ticket sales, as well as data from airlines, travel agents, government statistics and airports, the report projects strong growth for the region. Air traffic is projected to grow +5.4% for the 12 months to November 2020; growth nearly four times higher than the global average of +1.4%.
The report has found that 44% of passengers in the region visit the duty free stores and 70% of these make a purchase, compared to the global average of 60%. Similarly, shoppers in the region buy perfumes more than those from other regions (43% compared to the global average of 28%).
M1nd-set added the main reasons to visit the shops and purchase are: gifting, price advantage and browsing around.
Commenting on the report, m1nd-set Owner & CEO Peter Mohn said: “While the region has traditionally catered to mostly business and leisure travellers from developed economies, the future demographic profile of international travellers will inevitably be significantly more diverse, both in terms of age and culture.
“This latest regional report provides excellent material for frontline duty free sales staff to better understand the shoppers’ mindset and adapt their sales approach. Airport-specific insights we have conducted for certain clients enable the store associates to understand the various segments – both demographics and m1nd-set’s unique customer segments – and how they shop at the very stores they work in.”
The release of the report coincides with m1nd-set producing an exclusive study solely on African travellers for the Tax Free World Association (TFWA). The headline figures from this report were presented at the MEADFA Conference in Muscat, Oman last week.