I can’t think of any retail environment in the world where there is such a diversity of shoppers than in an airport travel-retail store.
At any one time there will be many different nationalities with different reasons for travel and different reasons why they would consider purchasing a bottle of liquor. To satisfy these diverse needs, brand owners and retailers need to put the shopper at the heart of their plans and understand the different purchase motivations they have.
As a start point, here are six main reasons why someone will purchase a spirits brand in an airport store.
Value for money: Making a saving versus the price in a traveller’s home country remains a key reason for many travellers making a purchase; they are looking for value for money. This is particularly the case for travellers who live in high duty and tax markets. Travellers from India flying internationally are a good example of a group for whom this need is high on their agenda. Due to the high duties and taxes in the India domestic market big savings can be made purchasing spirits brands in airport stores.
Generally, shoppers who are buying to save money will be looking for brands they know and that have a known value to them. Communication in-store showing the savings that can be made compared to a home market can be an effective way of encouraging a purchase.
Discovery: Discovery is part and parcel of a traveller’s experience and therefore it is no surprise that it also plays a role in why some travellers choose to make a purchase. Being able to take home a bottle of a special spirit that you can’t buy in your domestic market, a limited-edition or travel-retail exclusive product can be a big reason to make a purchase. It could be about finding a new expression of a brand you like or discovering something completely new.
Discovery could also include travellers buying brands from categories they haven’t considered before, for example, whisky drinkers buying a bottle of rum or reposado tequila. Travellers who are buying for discovery reasons want to know the stories and provenance behind the brands so they can feel more engaged with them and when they are entertaining at home tell their guests what makes them special.
Therefore, it is important these are clearly communicated at all shopper touchpoints. The discovery purchase need represents a premiumisation and incremental opportunity for brand owners and retailers.
Memories: Like discovery, creating memories is synonymous with travel. Travellers might have tried a local spirit on their trip and want to have a bottle to take home to keep the memories of their trip alive. Or it might simply be that a traveller wants to take home a souvenir of where they have been in the form of bottles of the local spirit.
On a recent trip to Tenerife, I brought home a bottle of local rum and a gin. Local products were well displayed in the travel-retail store and there was a promoter giving samples and explaining the difference between brands, which helped me to make a purchase decision. It was the memories purchase motivation that led to my decision to purchase.
Self-treat: Imagine a business traveller who has had a busy week of meetings, is flying back home and wants to wind down and reward themselves. This is where the self-treat or self-gifting purchase motivation plays a role. They might be looking to take home a special bottle of whisky to reward themselves or trade up to a more premium expression of a favourite brand.
Travellers who are purchasing for self-treat reasons will often be prepared to spend more money, will be looking for nice packaging and products that are unique or different to what they can find at home. For some business travellers, the travel-retail store may be one of a few stores they go to as they may not have time when at home and therefore it is a fantastic opportunity to expose them to new brands.
Gifting: Purchasing a gift for others is a significant reason why travellers purchase spirits brands in travel retail. Gifting takes place throughout the year, so is not limited to a specific occasion. For brands to benefit from this purchase motivation, gift packaging plays a critical role.
I often think spirits brands can learn from fragrance brands in the way they gift wrap their products and make the purchase and gifting experience special. Another opportunity here for spirits brands is bottle or packaging personalisation. Some have used bottle engraving and personalised labels to enhance the experience and take advantage of this shopper need.
Convenience: The need for convenience shouldn’t be underestimated in its importance for some travellers. It might be the need to pick up a bottle of wine as you pass the arrivals store on your way home, or to replenish a bottle of whisky running low in your home bar.
There is also a convenience aspect as a traveller is departing for a leisure or business trip. The leisure traveller may be looking for something special to drink on their holiday that is easy to serve; ready to drink cocktails could play a role to satisfy this need. Weekend city breakers may not want to pay hotel bar prices and instead choose to purchase a bottle in the travel retail store. For this group of travellers, smaller bottles could play a role due to the shorter length of the trip. Also, smaller sized bottles offer the possibility of buying from two categories: a gin and whisky, for example.
Business travellers who do not have the luxury of corporate expense budgets may also be looking for smaller sized bottles to consume while away. These purchase motivations will vary in importance depending on the location of the airport and the nationalities flying through it. However, they are all important when putting together portfolio and marketing plans for global travel retail.
Spirits brand owners and retailers should put consumer needs at the heart of their plans. The more they understand these and communicate how what they offer satisfies these needs at various touchpoints, the happier everyone will be — especially the shopper!
Global travel-retail veteran and emerging markets spirits business specialist Tim Young heads a beverage consultancy in London called Young Spirit Consulting. Email [email protected]
