As the need for duty-free shopping skyrockets, it is essential for companies to conduct intensive market research.
By analyzing consumer behavior, tastes, and spending habits as well as recognizing fresh trends and potential areas of growth through insightful market analysis, businesses are able to take advantage of this rapidly growing industry.
What is duty free market research?
By conducting thorough duty-free market research, companies can understand consumer behavior and trends within the industry as well as gain insight into their competition. Using this valuable data, companies can make informed decisions about product development and marketing strategies that will enable them to stay ahead of their competitors and achieve success.
A deep understanding of consumer behavior and preferences is pivotal to improve products and services, develop effective marketing strategies, identify opportunities for growth within the industry, and anticipate changes in customer needs.
Importance of duty free market research
- With duty free market research, companies gain a holistic understanding of customer behavior and desires, including demographics, buying habits, and product preferences. By taking advantage of this knowledge, organizations can create new products or services that align with their customer’s needs, leading to greater sales levels as well as consumer loyalty.
- Through duty free market research, businesses can identify changes in consumer preferences and new technologies before anyone else. Companies can stay ahead of their competition by offering products and services that meet modern demands.
- With the right competitive intelligence, businesses can gain valuable knowledge of their market conditions and discover lucrative opportunities for growth. Market research provides critical information on industry players, including their respective share in the market and strategic practices.
- Leveraging data and insights from duty free market research can provide companies with a competitive edge when making decisions such as product development, marketing campaigns, or expansion plans. By utilizing this method of informed decision-making, businesses can create strategies that respond to consumer needs and track emerging trends in the marketplace for greater success.
Key insights from duty free market research
Duty free market research can be a beneficial resource for companies that specialize in the duty-free industry. With this invaluable tool, businesses are able to uncover an array of insights and strategies, including:
- Consumer demographics: Companies can gain valuable insights into the composition of their duty free customers. Market research provides invaluable information on age, gender, nationality, and income level, allowing companies to tailor their product selection and marketing tactics to meet customer needs in the most effective way.
- What products are in high demand among duty free shoppers: Companies can understand the upcoming trends in categories such as beauty, fashion, and electronics. This valuable data allows businesses to craft product development and marketing plans that keep them ahead of their competitors.
- Understanding of shopping behaviors: Decision makers can gain a deeper understanding of how much consumers are likely to spend, what influences their decisions when purchasing, and where they tend to shop. This knowledge can be used by companies so that they may modify both their retail space and marketing campaigns in order to maximize sales.
- Spot potential growth opportunities and devise strategies for standing out: By examining key players, assessing current market share percentages, and observing competitors’ tactics to formulate effective marketing campaigns that will set a business apart from its competition.
- Anticipate emerging trends in duty free markets: Businesses can discover developing technologies, shifting consumer tastes and preferences, and fluctuating regulatory environments. By being aware of these current developments, firms can modify their product range and promotional strategies to suit customer requirements, giving them a competitive edge over other players in the industry.
Driving Growth for a Duty-Free Retailer at a European Airport
The airport retail landscape has changed significantly in the last years, with a growing importance of luxury. Having seen an increase in American investments in the country, the airport of one of the most vibrant European capital wanted to understand behavior and requirements of travelers from the United States to better cater their needs.
Case Study
SIS International Research conducted an 8-week research to uncover the motivations, needs, and triggers that drive American international passengers to make purchases during business and leisure trips – with a focus on the purchases that travelers make in airports, including food, cultural items, and duty free products.
Key Intelligence Topics
Types of Consumers
SIS evaluation of two distinct groups of consumer buying behavior in airports
Consumer Behavior
SIS comparison of the buying habits of these two groups in airports
Consumer Preferences
SIS identification of international consumer preferences
Key Findings
Future growth prospects of duty free market research
- With the surge of international travel, duty free market research is becoming an increasingly popular option. This trend is most apparent in emerging markets, where disposable incomes are on the rise and leading to a substantial increase in outbound journeys.
- The scope of duty-free retail is widening with more airports and shopping spaces sprouting all over the world. This provides travelers with easier access to a variety of goods that are free from taxes and duties, creating an opportunity for shoppers to save money while they travel.
- The duty-free shopping experience is continuously being transformed by modern technology and digital platforms, making it easier for those on the go to conveniently shop for their desired items. As time goes on, retailers in this industry will likely keep up with these changes to ensure that customers are receiving satisfactory service.
Future outlook of duty free market research
The duty free market research industry has a vibrant future with projections of continuing expansion and innovation in the years to come. A few key trends that will guide the evolution of this sector include:
- The use of big data and artificial intelligence: Duty free market researcher experts can utilize data analytics to gain a deeper understanding of consumer habits, product trends, and industry shifts. With this information at hand, companies now have an advantage over their competition by making informed decisions that are backed by reliable research and data that could be updated daily, or even hourly.
- A customized shopping experience: Companies must prioritize providing customers with a highly personalized and satisfying experience, as modern consumers have become more selective in their shopping habits. Thus, if companies seek to keep up with the ever-changing market trends, they must focus on customer research that reveals the wants and desires of their target audience. With this information, businesses can gain insight into what products or services should be offered to meet customers’ exact needs while also crafting marketing campaigns tailored precisely for them.
- A changing regulatory environment: The duty-free market will likely come under increasing regulatory oversight The laws may vary depending on the countries in which the company operates, as well as the global conditions and new technologies implemented. Market research is pivotal in aiding companies to comprehend and adhere to evolving laws as well as devising tactics for confronting these issues before they become an issue.
SIS International offers Quantitative, Qualitative, and Strategy Research. We provide data, tools, strategies, reports and insights for decision-making. We conduct interviews, surveys, focus groups and many other Market Research methods and approaches. Contact us for your next Market Research project.
