What does value actually mean in Duty Free?

Value has always been a big part of the Duty Free proposition, and traditionally that conversation has been dominated by price and promotions. Basically, travellers enter the store and expect to save money compared to other channels, such as domestic.

However, the way in which shoppers are perceiving value is constantly evolving, and as more and more emphasis gets placed on aspects such as sense of place, activations & experience, as well as staff service, the definition of value is also becoming multi-faceted.

We’ve been distilling some of the insights from our Global Shopper Database over the past few days and believe that ‘value’ is now defined by the following four key areas:

• Price: There’s no doubt about it, price is still key here and its impossible to talk value within our sector and not have price as a centre point. A genuine saving, a strong promotion or a larger format can give shoppers an obvious reason to buy.
• Exclusivity & differentiation: Having something you can’t easily get at home adds real value to both a purchase and an experience. Even though shoppers will not buy an exclusive every time, we often see upwards of 80% stating that the availability of exclusives is important to their shopping experience.
• Service: Staff are the front line and a key factor driving value perceptions. An informed staff presence can introduce shoppers to something new, explain the difference between products and give shoppers confidence in their decision, and also make them
• Experience: Trying something, seeing an activation or discovering a product you weren’t expecting to find all adds something to the experience. It gives shoppers something they simply don’t get from adding a product to an online basket.

And all of these areas can work together to make a ‘value’ proposition and also offset one-another if a certain aspect is weaker.  For example, an item doesn’t necessarily need to be the cheapest if it’s exclusive, feels special, or is difficult to find elsewhere.

Today’s shopper is no longer purely focusing on “How much am I saving?”, they’re thinking “What extra am I getting by buying it here?”