There is huge opportunity in the China travel retail sector for confectionery, according to new global shopper research by Hershey World Travel Retail.
There is huge opportunity for confectionery in China and in key Chinese destinations, according to new global shopper research by (World Travel Retail).
Conducted in partnership with Counter Intelligence Retail (CIR), the survey will be available at Hershey’s stand at the Tax Free World Association (TWFA) Asia Pacific Exhibition and Conference in Singapore next month.
With findings ranging from average spend, purchasing motivations and buying habits, one of the main stand-outs was conversion rates – Chinese consumers rate considerably higher (57 per cent) than Other Asia (49 per cent) and the Other World (43 per cent).
“Partner these figures with a much higher average spend ($31) compared to $24 in Other Asia and $25 for Other World, and the opportunity for confectionery is huge, both in China and key Chinese destinations,” says Hershey Company Europe director Amy Wilson, who also runs strategy for WTR.
“Conversion rates are significantly higher in Asia than in the rest of the world, but there is still significant room for improvement. It is clear the individual Chinese traveller is willing to spend significantly more on confectionery, but the overall figure of Chinese travellers visiting the confectionery sector is still relatively low — 24 per cent in comparison to 29 per cent Other Asia and 32 per cent Other World.
“Chinese travellers have the capacity for significant spending, but we must find new and unique ways to attract them into the stores.”
Gifting is also important for Chinese travellers, with 67 per cent buying confectionery for a friend or loved one, compared to 62 per cent Other Asia and 59 per cent Other World.
“Insights like this can help Hershey plan better for the future. If a certain region is much more focussed on gifting than self-purchase, then we will focus on providing products that suit those needs,” says Wilson.
Headquartered in Hershey, Pennsylvania, Hershey Company has about 21,000 employees around the world, with more than 80 brands driving more than $7.4 billion in annual revenues.
