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(Dubai) – Dubai Duty Free (DFF) reported sales of $1.93 bn for 2017, a 5.6% increase on the figures for 2016. Observers attribute this to a record-breaking December sales figure which saw a new monthly sales figure of over $219 m.
Cosmetic sales rose in the overall rankings to fourth place; increasing by 17% to achieve $172m for the year. Last year DFF, as part of its plans for growth and expansion, opened new areas for cosmetics and perfumes in Concourse C.
These figures are good news. But are some beauty brands and retailers still missing out on opportunities because they are not optimising for a significant sector of their audience?
Swiss research agency M1nd-set has recently released a report on the findings of an analysis focused on digital marketing opportunities with Millennial consumers, using data taken from interviews with 50k travellers in face to face interviews at departure gates, plus DDS, the International Air Transport Association’s traffic analysis and forecasting tool.
The report has identified two significant trends in recent months; Millennials as a shopper segment and the development of the digital marketing landscape which, it states, has reached a much-awaited tipping point.
It also reveals that the barriers to reaching passengers while travelling have been broken and airlines no longer have exclusive access to information about when and where a traveller is going or at what times they will be in a particular airport.
“Sixty-seven per cent of the Millennials in our shopper research say they expect and want the industry to adopt a more coherent and comprehensive approach to marketing” – Dr.Peter Mohn, M1nd-set CEO
Analysis suggests that there are compelling opportunities for retailers and brands to reach out to Millennials in real time.
According to the Swiss research company “Millennials are seeking more personalisation in the marketing from duty-free stakeholders…8 out of 10 Millennials say they are used to receiving personalised communications from domestic retailers, but only 10% claim the same for the duty-free channel”… “More than 75% of Millennials, when asked, said they would be prepared to provide personal data in exchange for ‘relevant, personalised offers and promotions from duty-free stakeholders.” More significantly, for brands and retailers, M1nd-set goes on to say the report demonstrates that such personalised, relevant communications can potentially lead to revenue growth of over 40%.
Multi-channel retail and marketing technology is widely available to brands and retailers alike, but requires constant monitoring and adjustment to deliver the optimum marketing effectiveness. M1nd-set goes on to say that data analytical tools are another under-utilised industry resource.
Clara Perez, Travel Research Director at m1nd-set comments: “Analytics tools today have simplified the process of calculating important values, such as the ROI of specific campaigns, or the lifetime value of a customer.”
Retailers will need to merge their online and offline retail offerings in addition to between domestic and duty free to provide a seamless experience for the consumer.
M1nd-set CEO, Dr.Peter Mohn, says this is what Millennials are looking for; “Sixty-seven per cent of the Millennials in our shopper research say they expect and want the industry to adopt a more coherent and comprehensive approach to marketing, linking the consumer’s offline and online experiences, so they are recognised as one and the same individual.”
Integrated POS and CRM systems, i-beacon technology, way-finding solutions and omni-channel commerce solution providers have made it easier than ever for retailers and brands to reach out and interact with the consumer whenever they are in the vicinity of the airport, or duty free shop.
Millennials, as early adopters of new technology, not only accept brands and retailers reaching out to them; they welcome it.