Why Travel Retail is the Global Shop Window

Travel Retail is often described as a “shop window” due to its ability to give brands the opportunity to put their products in front of an ever changing, diverse mix of consumers in a single place.

At Pi Insight, we have conducted a huge amount of consumer research into the true role of Travel Retail and how it can act as more than just a revenue generator, and it is often the case what whilst those in the industry understand its potential, those in the domestic channel sometimes underestimate the true value Travel Retail can have in brand building.

Here’s a few benefits our research often highlights that support the notion of Travel Retail being that shop window:

👀 Building brand awareness

Airports create huge levels of exposure and even if a traveller doesn’t purchase on that occasion, they may see a brand, interact with an activation, notice a new product or simply become more familiar with the name or logo. For example, if a traveller sees a brand at Heathrow, Dubai or Singapore for the first and then encounters it again when they return home, Travel Retail has already played a role in moving that brand away from unknown

🛍️ Encouraging brand trial

Consumers are often more open to discovering something new & treating themselves while travelling (both these areas act as top 5 purchase drivers). Add in sampling, exclusives, new launches, promotions and staff recommendations, and the airport becomes a powerful environment for encouraging trial.

🔄 Recruiting consumers into brands

A purchase in an airport can be the starting point of a much longer relationship with a brand. A traveller might discover a fragrance, whisky, skincare product or confectionery brand while travelling, buy it for the first time, and subsequently look for that brand again, either on their next trip or in their domestic market.  Based on our most recent research, around 7%-8% of buyers are purchasing a brand for the first time.

🌍 Reaching consumers beyond the domestic audience

The international nature of Travel Retail also gives brands access to consumer groups they may struggle to reach through traditional domestic distribution.  A single airport store can expose a brand to British, Chinese, Indian, American and Middle Eastern shoppers all within the space of a few hours.  This provides initial exposure to new groups and can then build a basis for domestic launches or future purchase intent when travelling abroad.