J u n e 2 0 2 0

Customer Experience: Attitudes & Expectations

Pre and Post COVID-19

METHODOLOGY

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ONLINE INTERVIEWS

Conducted between May 15-20,

2020 with m1nd-set’s database of

international travellers recruited at

over 60 airports worldwide.

TARGET GROUP SAMPLE SIZES

A total sample size of N= 1.500,

including flying for business and

leisure, as well as frequent and

occasional travellers, covering all

age groups.

International travellers from all

continents, who have flown at least

twice in the last 12 months, and

visited a travel retail shop at least

once during this time period.

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EXAMPLE 1. EXAMPLE 2. EXAMPLE 3.

m1nd-set research of the last years has proven the importance ofexperiential retail in engaging with increasingly demanding customers

In-store experience will become a “must-have” in order to compete against other channels, especially online which has gained relevance due to the Covid-19 outbreak.

Concerns and fears grown with the Covid-19 pandemic will make technology, digitalizationand virtual / augmented innovations become THE way forward to attract and engage with travellers.

Planning level of purchase and in-store engagement

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Specific planning

22%

General Planning

53%

Impulse25%

UNDECIDED SHOPPERS

There was a substantial opportunity to

engage undecided TR shoppers with

in-store elements thus boosting

conversion.

78%

Significantly higher for:

Souvenirs & Gift items

88%

Confectionery 84%

Jewellery & Watches

83%

Fashion & Accessories

81%

Role of experiential retail in driving purchases

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22%

29%

38%

51%

52%

58%

67%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Recommendations

Stock-up

Convenience

Exclusivity / Differentiation

Gifts / Souvenirs

Experience in the store

Value / promotions

#1 Sampling / testing / free trials 21%

#2 Attractive displays / digital screens

16%

#3 Pop-up stores 12%

#4 Contest / in-store brand activations 12%

Impact of experiential retail on footfall and conversion

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21%

of TR visitors went to Duty Free / Travel Retail shops because they

enjoyed the experience

56%

of TR non-visitors would have been more willing to visit Duty Free /

Travel Retail shops if they were to find experiential retail

Role of sales staff in engaging customers (1/2)

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51%

29%

21%

INTERACTION WITH SALES

STAFF

Approached the sales staff

Approached by the sales staff

No interaction

50%

49%

7%

15%

29%

INFLUENCE OF SALES STAFF

The staff helped choosing

Bought something different advised by the staff

Wouldn't have purchased anything without advice

No influence

57%

55%

51%

INTERACTION

INFLUENCE

59%

58%

Role of sales staff in engaging customers (2/2)

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74%

OF DF BUYERS WHO INTERACT THOUGHT THE SALES STAFF PROVIDED HELPFUL

INFORMATION§ Personalized advice about products suitable for me /

gifting

§ New / different products

§ Information about the product/ brand

§ Price / Value advantage (vs downtown / online)

§ Samples / Testers

41%

OF DF BUYERS WHO INTERACTED THOUGHT THAT THE SALES STAFF CONTRIBUTED TO PROVIDE A

SPECIAL EXPERIENCE§ Bespoke advice

§ Excellent service attitude (polite…)

§ Personal interaction: friendly, warm, talkative

§ Highly knowledgeable about products

§ Helped find products quickly / efficiently

§ Helpful in general (e.g. carrying products to the cashier)

#3 Sampling / testing

What contributed to provide a pleasant shopping experience

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69% were purchasing items which stand out on the shelf /

display / counter

91%

Key elements of attraction

#1 Brand signage / signs

#5 Posters / digital screens

#4 Activations / gondolas / pop-up stores

#2 Packaging

48%

Touched / looked at / read information on the product in the DF shop before deciding to purchase

Tried / tasted products in the DF shop before deciding to purchase

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EXAMPLE 1. EXAMPLE 2. EXAMPLE 3.

m1nd-set research of the last years has proven the importance ofexperiential retail in engaging with increasingly demanding customers

In-store experience will become a “must-have” in order to compete against other channels, especially online which has gained relevance due to the Covid-19 outbreak.

Concerns and fears grown with the Covid-19 pandemic will make technology, digitalizationand virtual / augmented innovations become THE way forward to attract and engage with travellers.

1.

Covid-19 impact on the online channel

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plan to shop more onlinethan before the crisis

36%

average online spending than before the crisis

+23%

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EXAMPLE 1. EXAMPLE 2. EXAMPLE 3.

m1nd-set research of the last years has proven the importance ofexperiential retail in engaging with increasingly demanding customers

In-store experience will become a “must-have” in order to compete against other channels, especially online which has gained relevance due to the Covid-19 outbreak.

Concerns and fears grown with the Covid-19 pandemic will make technology, digitalizationand virtual / augmented innovations become THE way forward to attract and engage with travellers.

1.

How Covid-19 has changed our customers (1/2)

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ANXIOUS AND EMOTIONAL SOCIETY

claim the lockdown caused anxiety and stress

25%

31%

are worried about having less disposable money

IMPORTANCE OF TECHNOLOGY AND DIGITALIZATION

OVERALL TRUST ON BRANDS SPENDING AND PURCHASE CHANNEL

DIGITAL CONNECTIVITY HABITS AND LIFE APPRECIATION

61% doubt about brands / companies’ concrete engagement during the crisis and overall in social initiatives

will allocate less budget to shoppingthan before the crisis

61%

89%expect more digitalization andtechnology offers when shopping, eating out, using public transportation etc.

39% claim to “re-start”appreciating simple andvaluable things of daily life

58% are willing to use digital devices more frequently, e.g. to chat,

check assortment, pay, virtually try products, order, etc.

How Covid-19 has changed our customers (2/2)

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will refrain from being in proximity with retail

ambassadors / sales staff in the Duty Free shop

62%will refrain from testing /

trying products in the Duty Free shop

45%will refrain from

unnecessarily touching products in the Duty Free

shop

51%will be more likely to shop online and collect items

upon boarding / in arrivals

12%

L E A R N I N G S F R O M P R E V I O U S S U R V E Y

Most voted digital, technological and virtual innovations (1/10)

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#1APP AND QR CODE ON SMARTPHONE TO FIND OUT MORE ABOUT A PRODUCT/BRAND AND FOR FINAL PAYMENT

84%

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#2ROBOT / MACHINE WHICH SPRAYS FRAGRANCES WHEN BOTH THE BRAND AND PRODUCT NAMES ARE REQUESTED AND CORRECTLY PRONOUNCED

80%

Most voted digital, technological and virtual innovations (3/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#3DIGITAL SCREENS DISPLAYING AN ONGOING TRAILER ABOUT BRAND/PRODUCT’S HISTORY, ORIGIN, INGREDIENTS, USAGE, ETC.

78%

Most voted digital, technological and virtual innovations (6/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#4VIRTUAL MIRROR OR APP WHICH, VIA A SELFIE, ALLOWS CUSTOMERS TO VIRTUALLY TRY ON MAKE-UP AND PROVIDES ADVICE BASED ON THEIR FACIAL SKIN COLOUR, SHAPE, ETC.

72%

Most voted digital, technological and virtual innovations (4/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#5AR/VR EXPERIENCE TO PICTURE THE PRODUCT USAGE IN REAL LIFE, E.G. ALCOHOLIC BEVERAGE CONSUMPTION DURING A PARTY OR CHOCOLATE GIFT FOR CHILDREN

70%

Most voted digital, technological and virtual innovations (5/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#6A DEVICE WHICH PHOTOGRAPHS OR SCANS THE SKIN AND PROVIDES RECOMMENDATIONS ON THE BEST/MOST SUITABLE BEAUTY PRODUCTS TO BUY

69%

Most voted digital, technological and virtual innovations (7/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#7

AR/VR SCREENS WHICH BY ANSWERING A FEW PROFILING QUESTIONS (E.G. MOMENT OF CONSUMPTION, PURCHASE MISSION, ETC.) PROVIDE ADVICE ABOUT THE MOST SUITABLE PRODUCTS

65%

Most voted digital, technological and virtual innovations (9/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#8AR/VR SCREENS PROMOTING PRODUCTS/BRANDS USING ONE-TIME-USAGE 3D GLASSES FOR A MORE ENTERTAINING AND IMMERSIVE EXPERIENCE

64%

Most voted digital, technological and virtual innovations (2/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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#9

SMART SHOPPING CART ON THE MOBILE PHONE WHICH, BY FOLLOWING CUSTOMERS AROUND THE STORE, DETECTS WHEN AN ITEM IS SELECTED AND THEN DISPLAYS INFORMATION ABOUT THE PRODUCT

53%

Most voted digital, technological and virtual innovations (8/10)

T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

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T O P 1 0 T R A V E L L E R S ’ M O S T - W A N T E D L I S T F O R A M O R E E N G A G I N G P O S T - C O V I D - 1 9 A I R P O R T S H O P P I N G E X P E R I E N C E

#10APP WHICH ALLOWS CUSTOMERS TO CUSTOMIZE / PERSONALIZE THE PACKAGING OR WRAPPING OF THE PRODUCT IN STORE

47%

Most voted digital, technological and virtual innovations (10/10)

About m1nd-set

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m1nd-set is perceived as the leading research agency in the area of air travel, with the special strength of providing their clients with tailor-made research, analysis, actionable results and recommendations.

With airside access to over 60 airports worldwide, m1nd-set can easily reach international air travellers.

We have conducted more than 2 Mio interviews over the last 10 years with travellers at airports around the globe.

Among other projects, m1nd-set runs the Airs@t survey (in partnership with IATA) which is recognized as the industry benchmark for air passenger satisfaction.

m1nd-set is the worldwide leading agency in travel research, based in Switzerland. Our key sector of activity is airline, aircraft manufacturer, airport and travel retail research & consulting.

m1nd-set has been conducting thousands of qualitative and quantitative research studies around the world over the last decade, and has successfully provided marketing intelligence to numerous Fortune 500 companies.

info@m1nd-set.com