A recent study conducted by m1nd-set, a Swiss-based research agency, has shed light on key consumer segments driving luxury shopping in the global travel retail sector. The research indicates that males, younger shoppers, particularly from the Asia Pacific region, are playing significant roles in shaping shopping patterns and preferences across various luxury categories.
The study reveals that more than half (57%) of luxury shoppers are under the age of 35, with Millennials comprising 42% and Gen Zs 15% of the demographic. Interestingly, Gen Zs are shown to initiate luxury purchases earlier than Millennials. Among Gen Z luxury shoppers in travel retail, men are notably more inclined to make luxury purchases compared to women, constituting 62% of luxury shoppers versus 38%.
In terms of regional trends, Asia Pacific travelers exhibit the highest propensity for luxury shopping in travel retail, with 47% indicating purchases of luxury goods during their last international trips. Following closely, the Middle East & Africa stands at 40%, Europe at 38%, and the Americas at 35%.
Furthermore, the study delves into category-specific analysis, revealing that luxury shoppers exhibit a higher inclination towards purchasing premium categories compared to non-luxury shoppers. Perfumes top the list with 42% of luxury shoppers, followed by Fashion & Accessories at 38%. Notable differences are observed in the Skincare and Jewellery & Watches categories, where luxury shoppers show a 20% higher tendency to purchase.
The research also highlights the desire for differentiation and exclusivity among luxury shoppers, with over two-thirds expressing a preference for purchasing items different from their usual choices. Additionally, factors such as destination purchases, brand familiarity, and travel retail exclusives significantly influence luxury shopping behavior.
Dr. Peter Mohn, owner and CEO of m1nd-set, underscores the importance of luxury shoppers for the travel retail sector, noting their higher conversion rates and propensity to visit and shop in-store. He emphasizes the impact of sales staff interactions and social media influencers on luxury shoppers’ purchase decisions, as well as the growing importance of sustainability and social responsibility considerations among this demographic.
As the travel retail landscape evolves, retailers are expected to cater to the increasing demand for sustainable luxury and adapt to changing consumer preferences.
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