Low conversion rates suggest untapped opportunity in P&C

Just over half of beauty shoppers at airports plan their visit to the beauty counter, and a high proportion (seven out of ten) of pre-planners know exactly what they will buy. However a very small proportion of shoppers buy both planned and impulse items, and planned beauty buyers spend more, on average on planned items than impulse items. This points the way to potential to encourage sales via promotions and marketing campaigns aimed at encouraging additional impulse buying alongside the planned purchase, according to TFWA.

Half of beauty shoppers like the idea of the travel retail exclusive, and yet only three in ten notice them in the beauty category. Good value for money is their main appeal and this was cited by nearly two thirds (64%) as a trigger to buy, while just under half (49%) liked the opportunity to own something that wasn’t available anywhere else. Once again, this would suggest potential to boost sales. Promotion of value for money, the convenience and exclusivity of these products will help to raise understanding and awareness, prompting shoppers
to actively look for them.

“Looking for a gift” is one of the key reasons for visiting beauty amongst shoppers (31%), and while six out of ten purchase for themselves only three out of ten buy for a gift. With one in four of shoppers saying that gift solutions would encourage them to buy beauty items in the future, it would appear that offering appropriate gifting solutions and targeted communications will also help to drive footfall and sales in the category.
“While three out of ten airport shoppers visit beauty, just 14% purchase, which means that under half (45%) are converted from browsers into buyers,” says

TFWA President Erik Juul-Mortensen. “This is lower than for alcohol, confectionery or tobacco, demonstrating that there are plenty of opportunities to drive sales in this important category.”

The TFWA Beauty Category Report was compiled by Counter Intelligence Retail. It was based on approximately 1,000 shopper interviews conducted at four key airports across the globe. A minimum of 50% of the sample were duty free buyers.