1. Chinese
Passenger
Shopper
Research
2012
Garry
Stasiulevicuis
Counter
Intelligence
Retail
Ltd
Singapore
Show
Monday
14th
May
2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

2. COUNTER
INTELLIGENCE
RETAIL
UK
based
dedicated
TR
agency…
•
Category
development
and
market
intelligence
•
150,000
interviews
in
last
18
months
•
200,000
shopper
observaQons
•
Intelligence
from
more
than
40
naQonaliQes
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

3. RESEARCH
FINDINGS
TAKEN
FROM
CIR
STUDIES
&
DATA
BASE
Global
sample
of
>40,000
Chinese
Passengers
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

4. 2011/12
RESEARCH
TOPICS
•
AXtudes
and
behaviours
during
the
airport
experience
•
PercepQons
towards
the
key
categories
•
MoQvaQons,
triggers
and
barriers
to
purchase
•
Cross
category
relaQonships
•
Key
category
metrics
including
penetraQon
and
conversion
•
Key
needs
and
requirements
of
the
traveller
•
In
bound
and
outbound
travellers
•
Comparisons
to
the
Global
traveller
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

5. AN
ECONOMIC
POWERHOUSE
Against
a
backdrop
of
Global
unrest………
•
High
spending
power
•
High
net
worth
travellers
•
Strong
giing
culture
•
Significant
contribuQon
to
TR
growth
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

6. THE
CHINESE
and
TRAVEL
RETAIL
65m
100m
2011
2020
China
is
home
to
the
world's
Chinese
sales
in
travel
retail
Chinese
are
in
the
top
5
fastest
growing
travel
market,
has
increased
significantly
–
highest
spending
naQonaliQes
with
72
new
airports
being
built
63%
increased
in
spending
in
in
China
by
2015
the
last
year
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012
Sources
–Trendwatching
2012,
Moodie
Report
2012,
ISWR
Forecast
Report
2011-­‐2016,
Mail
online
2.1.2012

7. PRE
TRAVEL
BEHAVIOUR
-­‐
IMPACTORS
•
Chinese
travellers
are
technology
savvy….
•
Research
brands
online
before
travel
•
Using
social
media
or
new
portals
•
High
awareness
of
key
brands
and
prices
•
Awareness
of
product
offer
and
latest
trends
•
Travellers
draw
up
a
shopping
list
prior
to
travelling……
•
Request
purchasing
is
a
key
behaviour
Source:
Moodie
Report
2012.
TNS
China’s
Luxury
Consumers
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

8. MORE
THAN
65M
CHINESE
TRAVELLERS
100%
Chinese
PAX
40%
Visit
DF
Retail/ 25%
Purchase
DF/
Luxury
Luxury
Clear
opportunity
to
drive
more
traffic
and
more
conversion
to
purchase
Source:
CIR
&
Various
Industry
Studies
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

9. THE
CHINESE
TRAVELLER
Chinese
Traveller
Global
Traveller
Male
56%
Male
56%
Female
44%
Female
44%
Business
33%
Business
19%
Leisure
67%
Leisure
81%
1-­‐3
Flights
85%
1-­‐3
Flights
47%
3
+
Flights
15%
3
+
Flights
53%
26-­‐45
66%
26-­‐45
60%
Chinese
Buyer
Global
Buyer
Ave
spend
$177
Ave
spend
$102
Categories
visited
1.5
Categories
visited
1.3
Items
purchased
1.8
Items
bought
1.8
Buy
almost
/
every
trip
29%
Buy
almost
/
every
trip
30%
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

10. THE
CHINESE
TRAVELLER
–
TRAVEL
PURPOSE
BUSINESS
LEISURE
ORGANSIED
LEISURE
PURPOSE
33%
50%
17%
OF
TRAVEL
BUYERS
%
62%
62%
57%
SPEND
$
$155
$180
$210
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

11. HIGH
LEVELS
OF
VISITING
DF
BUT
OPPORTUNITY
TO
INCREASE
CONVERSION
TO
PURCHASE
VISIT
DUTY
FREE
10%
30%
60%
WHEN
TRAVELLING
PURCHASE
FROM
DUTY
FREE
30%
40%
30%
WHEN
TRAVELLING
NEVER
OR
RARELY
OCCASIONALLY
MOST
OR
EVERYTIME
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

12. ATTITUDES
AND
PERCEPTIONS
INTERNATIONAL
PREMIUM
&
TO
SELF
BRANDS
LUXURY
PRODUCTS
TREAT
AUTHENTICITY
OF
QUALITY
OF
PRODUCTS
PRODUCTS
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

13. PLANNING
LEVELS
ARE
LOWER
THAN
THOSE
SEEN
ON
A
GLOBAL
BASIS……..
Visit
DF
Retail
GLOBAL
AVE
PLANNED
IMPULSE
GLOBAL
AVE
70%
55%
45%
30%
2006
(Packaged
40%
60%
Tours
only)
Source:
CIR
&
Various
Industry
Studies
Figures
are
rounded
for
purpose
of
presentaQon
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

14. BROWSING
&
BARGAIN
HUNTING
ARE
KEY
MISSIONS
To
browse
to
To
look
for
a
To
buy
a
To
browse
and
To
buy
a
gi
pass
Qme
bargain
specific
item
maybe
buy
30%
25%
20%
15%
10%
Source:
CIR
&
Various
Industry
Studies
Arrows
indicate
global
average
as
higher
or
lower
than
Chinese
Passenger
Base
data
Figures
are
rounded
for
purpose
of
presentaQon
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

15. CATEGORY
SPECIFIC
MISSION
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
30%
20%
25%
24%
26%
25%
25%
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

16. CATEGORY
PENETRATION
ALL
SHOPPERS
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
100%
65%
65%
60%
55%
45%
40%
25%
20%
20%
15%
5%
Total
passengers
Beauty
Liquor
Tobacco
ConfecQonery
Luxury
Source:
CIR
database
2008-­‐2012
Visited
Purchased
Conversion
rate
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

17. PURCHASE
DRIVERS
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
SELF
50%
65%
60%
GIFT
55%
60%
REQUEST
20%
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

18. REASON
FOR
PURCHASE
ALL
SHOPPERS
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
Planned
Purchase
70%
70%
70%
80%
55%
90%
Planned
To
Brand
45%
50%
50%
45%
35%
55%
Planned
Exact
Product
40%
40%
35%
40%
30%
35%
Impulse
Purchase
30%
30%
30%
20%
45%
10%
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

19. HIGH
SPEND
AMONG
THOSE
TRAVELLING
ON
AN
ORGANISED
LEISURE
TRIP
BUSINESS
LEISURE
ORGANSIED
LEISURE
BEAUTY
$210
$225
$245
LIQUOR
$170
$180
$215
TOBACCO
$145
$160
$140
CONFECTIONERY
$130
$140
$165
LUXURY
TFWA
$355
Passenger
Shopper
Research
2012
Chinese
$475
$545
Copyright
©
Counter
Intelligence
Retail
2012

20. CROSS
CATEGORY
PURCHASING
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
+
+
+
+
+
+
+
+
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

21. PRICE
&
EXPERIENCE
ALL
SHOPPERS
CONFECTIONERY
LUXURY
BEAUTY
LIQUOR
TOBACCO
Price
PercepQon
50%
(No
price
advantage)
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

22. The
Non
Buyer
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

23. THE
NON
BUYER
Planned
To
Buy
BOUGHT
DID
NOT
BUY
70%
30%
VALUE
AUTHENTIC
QUALITY
$206
AVE
SPEND
$?
LOST
SPEND
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

24. SHOPPERS
WHO
PLANNED
TO
BUY
BUT
DID
NOT
ALL
SHOPPERS
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
30%
25%
20%
20%
20%
35%
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

25. KEY
REASONS
FOR
NOT
BUYING
BEAUTY
LIQUOR
TOBACCO
CONFECTIONERY
LUXURY
50%
75%
TOO
EXPENSIVE
50%
60%
NOT
INSPIRED
15%
5%
COULD
NOT
FIND
Source:
CIR
database
2008-­‐2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

26. The
Luxury
Shopper
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

27. THE
LUXURY
MARKET
• China
will
be
the
world’s
biggest
luxury
goods
market
by
2020
• Over
the
next
decade,
Chinese
consumers
will
account
for
44%
of
global
spending
• TransiQoning
from
a
saving
to
spending
culture
• China
will
account
for
half
of
Luxury
goods
companies
forecasted
global
growth
over
next
10
years
Source:
CIR
&
Various
Industry
Studies
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

28. THE
LUXURY
SHOPPER
• Due
to
high
Luxury
goods
taxes
overseas
shopping
is
very
popular
amongst
Chinese
tourists
• Chinese
naQonals’
spending
on
luxury
goods
overseas’
is
said
to
be
four
Qmes
greater
than
purchasing
levels
within
China
• Watches
&
Designer
clothing
account
for
50%
of
luxury
spend
16%
of
Highest
cross
Average
Chinese
purchasing
travellers
visit
basket
value
with
P&C
luxury
$448
(30%)
Source:
CIR
&
Various
Industry
Studies
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012

29. Chinese
Passenger
Shopper
Research
2012
Garry
Stasiulevicuis
Counter
Intelligence
Retail
Ltd
Singapore
Show
Monday
14th
May
2012
TFWA
Chinese
Passenger
Shopper
Research
2012
Copyright
©
Counter
Intelligence
Retail
2012