Ruth Haines
Airports are a great place to sell your product, especially if it is a gift or souvenir. Airports seek products that appeal to their target demographic: affluent, educated, busy professionals who are health-conscious, aware of the environment, and early adopters of new products. If you have a product that fits this description, there are several ways to get it into airport shops. You can reach out to distributors or jobbers that service airport shops, such as Mr. Checkout, which distributes products to approximately 35,000 independent stores across the country. You can also attend trade shows and gift shows to meet gift store owners directly and showcase your product. Additionally, consider selling your product through gift marts, which are independent showrooms run by sales reps and open to buyers by appointment or during quarterly open houses.
Characteristics and Values of getting your travel product into airport shops
| Characteristics | Values |
|---|---|
| Target Customer | Affluent, educated, busy, professionals who travel often for business or pleasure |
| Product Type | Food, consumer, retail, or restaurant concepts |
| Product Characteristics | Health-conscious, environmentally aware, and appealing to early adopters |
| Business Type | Global brands, local food, and product offerings that represent regional and local flavors |
| Business Ownership | Woman-owned and minority-owned businesses may have access to federally-backed programs |
| Pricing | Prices should be compared with regular retail store prices, including tax-free savings and currency exchange rates |
| Product Availability | Products should be available at multiple retailers within the airport, with potential price disparities |
| Product Characteristics | Unique or hard-to-find items, souvenirs, local specialties, luxury goods, or items with significant tax savings (e.g., tobacco, fragrances, liquor) |
| Customer Behavior | Customers may have time to kill and be susceptible to impulse purchases; they may also compare prices and be price-conscious |
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What You'll Learn
Understanding the airport shopping market
Firstly, it's important to understand the concept of duty-free shopping. Duty-free shops are a staple of airports, allowing travellers to purchase items without paying certain taxes, such as import, value-added, and sales tax. This can result in significant savings for travellers, especially on items that are typically heavily taxed, like tobacco, alcohol, and fragrances. However, it's worth noting that duty-free prices can sometimes be higher than regular retail prices, and the savings may depend on factors like exchange rates and product availability.
The target customers for airport shops are often affluent, educated, busy professionals who travel frequently for business or pleasure. They tend to be health-conscious, environmentally aware, and early adopters of new products. Airports and their concession managers seek out products that appeal to this demographic, including global brands as well as local and regional offerings that provide authenticity.
In addition to duty-free shops, airports also feature a range of regular retail and specialty stores. These stores may offer products that are unique to the airport or difficult to find elsewhere, providing travellers with a sense of the local culture and products. For example, an airport may have shops that showcase local foods, designers, or handicrafts.
Airport shops also cater to travellers with time to kill before their flights. This can include travellers with long layovers or those facing flight delays. In these cases, travellers may indulge in browsing and purchasing luxury goods or souvenirs to pass the time.
Understanding the dynamics of the airport shopping market, including the target customer and the unique features of airport retail, is crucial for businesses looking to enter this market. By offering products that align with the needs and preferences of airport shoppers, businesses can increase their chances of success in this competitive and dynamic environment.
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Target audience
Airports are frequented by a diverse range of individuals, but their target demographic tends to be affluent, educated, busy professionals. These consumers are often health-conscious, environmentally aware, and open to trying new products. They are also likely to be frequent travellers, either for business or pleasure.
When considering the target audience for your travel product, it is important to recognise that airport shoppers are often looking for specific items that are exclusive to their destination or hard to come by elsewhere. This could be local food, drinks, or souvenirs unique to the region. For example, a traveller with a layover in Paris might purchase French pastries, condiments, or designer goods that are either cheaper or unavailable in their home country.
Additionally, airport shoppers may be interested in duty-free items that offer savings on heavily taxed goods like tobacco, fragrances, liquor, cosmetics, electronics, or luxury fashion accessories. These items are often purchased by travellers who want to take advantage of the tax-free prices and exclusive duty-free shopping experience.
It is also worth noting that some airport shoppers are simply looking for ways to pass the time before their flight. These individuals may be more inclined to browse luxury goods or make impulse purchases to entertain themselves while waiting for their departure.
Understanding the needs and preferences of your target audience is crucial when positioning your travel product in airport shops. By considering the unique characteristics and behaviours of airport shoppers, you can tailor your product offerings, pricing, and marketing strategies to effectively reach and appeal to your desired customers.
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Product pricing
When it comes to product pricing for airport shops, there are a few key factors to consider. Firstly, it's important to understand that airport shops often have higher operating costs than regular retail spaces due to factors such as high commercial rent, supplier price-gouging, staff turnover, and employee parking. These additional costs are typically reflected in the prices of the goods and services offered in airport shops.
Another factor that influences product pricing in airport shops is the concept of "street pricing" or "street price". Many airports have restrictions on product pricing to ensure that vendors do not charge excessively high prices for their products. This is often done by setting a maximum price that is a certain percentage higher than the price of the same product sold outside the airport. However, it is worth noting that this percentage can vary, and some airports may have more lenient policies, allowing vendors to set higher prices.
The type of product you are selling can also impact your pricing strategy. For example, duty-free shops at airports often sell products such as alcohol, cigarettes, perfumes, cosmetics, electronics, and watches. These products may be exempt from certain taxes and duties, which can make them more affordable for customers. However, it's important to note that duty-free prices may not always be the cheapest, especially when compared to local stores outside the airport. Additionally, factors such as freight and transportation charges can also impact the final price of duty-free goods.
When determining the price of your travel product, it is crucial to consider your target audience and their purchasing power. Airport shops often cater to a diverse range of customers, including business travelers, tourists, and locals. Understanding the demographics and spending habits of your target customers can help you set prices that are perceived as reasonable and competitive.
Finally, it is essential to stay informed about your competitors' pricing strategies and the overall market trends in the travel retail industry. Analyzing the prices of similar products offered by other brands in airport shops can provide valuable insights. This competitive analysis will help you position your product appropriately and ensure that your pricing strategy aligns with customer expectations and market demands.
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Product placement
Understand the Airport Retail Landscape
Firstly, it is essential to recognize that airports cater to a diverse range of travellers, from business professionals to families on vacation. Understanding your target audience within this spectrum is crucial for effective product placement. Airports also have distinct retail zones, including pre-security, duty-free, and gate-side areas, each with its own customer demographics and purchasing behaviours. For instance, passengers in the gate-side area are more likely to be impulse buyers, seeking last-minute purchases before boarding their flights.
Collaborate with Airport Retailers
Building relationships with airport retailers is pivotal for successful product placement. Reach out to the relevant buyers and pitch your product, highlighting its uniqueness, popularity, and relevance to travellers. Provide compelling reasons why your product should be stocked, such as high demand, positive reviews, or a niche that it fills in the market. Collaborating with retailers also involves negotiating terms, including pricing, margins, and potential promotions or discounts.
Strategic Product Placement
Once your product is stocked, work with the airport retailers to ensure optimal placement on shelves or displays. Strategically place your product in high-traffic areas with good visibility, such as near payment counters or in promotional zones. Ensure that your product packaging is eye-catching and effectively communicates its benefits to travellers. Additionally, consider offering samples or demonstrations to engage travellers and boost product trials.
Leverage Duty-Free Opportunities
Airports have a unique duty-free shopping environment, which can be advantageous for certain products. Understand the duty-free regulations and pricing strategies to determine if your product could benefit from being included in this category. Duty-free shops often attract travellers seeking to purchase items that are heavily taxed outside of the airport, such as cigarettes, alcohol, or luxury goods.
Target Last-Minute Shoppers
Many travellers make impulse purchases at airport shops, especially those looking for last-minute gifts or souvenirs. Ensure your product is well-stocked and strategically placed to capture the attention of these last-minute shoppers. Additionally, consider offering travel-sized or gift-wrapped versions of your product to appeal to travellers seeking convenient options.
Promotions and Partnerships
Collaborate with airport retailers to run promotions or special offers exclusively available at the airport. This could include discounts, bundle deals, or gift-with-purchase promotions. You can also explore partnerships with complementary brands to cross-promote your products and increase visibility. For instance, if your travel product is a skincare line, partner with a suncare brand to offer travellers a comprehensive holiday prep kit.
By implementing these strategies, you can effectively navigate the airport retail landscape and increase the chances of successful product placement and sales within this competitive environment.
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Marketing and sales
To effectively market and sell your product to airport shops, consider the following strategies:
- Understand the Airport Retail Industry: Familiarize yourself with the unique characteristics of the airport retail industry. Research the types of products typically sold in airport shops, the pricing strategies used, and the specific needs and preferences of airport shoppers. This will help you tailor your product and marketing approach accordingly.
- Develop a Strong Value Proposition: Clearly articulate the benefits and features of your product that make it a compelling offering for airport shops and their customers. Highlight any unique or innovative aspects of your product, and explain how it can enhance the travel experience of busy professionals.
- Build Relationships with Airport Concessions Managers: Airport concessions managers play a crucial role in deciding which products are offered in airport shops. Reach out to these decision-makers, introduce yourself and your product, and build relationships that can increase your chances of getting your product into airport retail spaces.
- Leverage Federally-Backed Programs: If your business is woman-owned or minority-owned, you may be eligible for federally-backed programs designed to help disadvantaged businesses access airport concessions. Take advantage of these programs to gain support and increase your chances of success.
- Create a Compelling Brand Story: Develop a brand story that resonates with the values and interests of your target audience. Highlight any aspects of your product that are locally sourced, environmentally friendly, or innovative. This will help your product stand out and appeal to the values of your target demographic.
- Utilize Effective Marketing Collateral: Create professional and visually appealing marketing materials that showcase your product in the best light. This can include high-quality product images, brochures, and videos that highlight the features and benefits of your product. Ensure your marketing collateral is tailored to the airport retail environment and emphasizes the value your product brings to travelers.
- Offer Samples and Demonstrations: Depending on your product, consider offering samples or demonstrations to airport concessions managers and potential customers. This can be an effective way to build excitement and showcase the unique aspects of your product.
- Leverage Social Media and Online Presence: Build an online presence for your product, including a user-friendly website and active social media profiles. Utilize social media platforms to showcase your product, engage with potential customers, and generate buzz around your brand. This can increase brand awareness and create a community of supporters even before your product hits the airport shelves.
- Understand Duty-Free Shopping Dynamics: If your product is relevant for duty-free shopping, ensure you understand the dynamics of duty-free pricing and regulations. Research the duty-free shopping behavior of your target audience, and position your product accordingly. Highlight any savings or benefits that your product offers in the duty-free context.
- Collaborate with Influencers: Identify influencers or celebrities who align with your target audience and reach out to them. Collaborating with influencers can help increase brand awareness, credibility, and desirability among your target demographic. Their endorsements can be powerful in influencing purchasing decisions, especially in the airport setting where travelers are often looking for premium or unique products.
By implementing these marketing and sales strategies, you can effectively position your travel product for success in airport shops. Remember to tailor your approach to the specific needs and preferences of the airport retail industry and your target audience to increase your chances of a successful placement.
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Frequently asked questions
Contact the airport's retail team and pitch your product.
You will need to provide information on your product, including pricing, target audience, and how it will benefit the airport's customers.
Yes, there are often restrictions on the types of products that can be sold in airport shops, such as no liquids or sharp objects.
There may be costs associated with renting shelf space and a percentage of sales may go to the airport.
Airport shops have a captive audience of travellers who may be looking for last-minute gifts or souvenirs, increasing your product's exposure to potential customers.
