Shopping tourism is a relatively new phenomenon that has emerged in recent years, and it refers to the growing trend of consumers travelling to different destinations specifically for the purpose of shopping.
This trend has significant implications for retailers, as it provides an opportunity to attract customers from beyond their local markets. In this article, we will explore why retailers should care about shopping tourism and provide tactics to leverage this trend.
Why Retailers Should Care About Shopping Tourism
Increased Revenue
Shopping tourism can bring in significant revenue for retailers, as tourists tend to spend more than local shoppers. According to research, tourists spend 30% more on shopping than local residents. This is because tourists are often in a holiday mood and are more willing to splurge on luxury items or souvenirs. Moreover, tourists are often looking for unique products that they cannot find in their home countries, making them more likely to make purchases.
Greater Brand Exposure
Shopping tourism can also provide greater exposure for retailers, as tourists are more likely to share their shopping experiences on social media or recommend stores to their friends and family. This can lead to increased brand recognition and awareness, which can translate into more customers in the long run.
Diversification of Customer Base
Shopping tourism also provides an opportunity for retailers to diversify their customer base. By attracting customers from different countries and cultures, retailers can gain insights into different consumer preferences and behaviours. This can help retailers tailor their products and services to better meet the needs of a wider audience.
Tactics to Leverage Shopping Tourism
Partner with Travel Agencies
One effective way for retailers to leverage shopping tourism is to partner with travel agencies. By offering exclusive discounts or packages for tourists, retailers can incentivise them to visit their stores. Moreover, travel agencies can also provide recommendations to tourists, which can increase foot traffic to retailers’ stores.
Provide Unique Products
As mentioned earlier, tourists are often looking for unique products that they cannot find in their home countries. Retailers can leverage this by offering exclusive or limited edition products that cater to the tastes of tourists. This can make their stores more attractive to tourists and increase the likelihood of them making purchases.
Offer Multilingual Support
Tourists from different countries may not speak the local language, which can be a barrier to making purchases. Retailers can overcome this by offering multilingual support, such as hiring staff who speak multiple languages or providing translation services. This can make it easier for tourists to navigate stores and make purchases.
Create a Seamless Shopping Experience
Tourists are often on a tight schedule and may not have a lot of time to shop. Retailers can create a seamless shopping experience by offering services such as personal shopping or concierge services. This can help tourists find what they are looking for more quickly and efficiently, increasing the likelihood of them making purchases.
Utilise Social Media
As mentioned earlier, tourists are more likely to share their shopping experiences on social media. Retailers can leverage this by creating a strong social media presence and encouraging tourists to share their experiences on their social media accounts. This can increase brand exposure and awareness among a wider audience.
Credits: The Star
Conclusion
Shopping tourism is a growing trend that can benefit retailers in multiple ways, including increased revenue, greater brand exposure, and diversification of their customer base.
By leveraging tactics such as partnering with travel agencies, offering unique products, providing multilingual support, creating a seamless shopping experience, and utilising social media, retailers can tap into this trend and attract tourists to their stores.
As shopping tourism continues to grow in popularity, retailers who to adapt and cater to this trend will have a competitive advantage over those who do not.
It is important for retailers to understand the needs and preferences of tourists, as they may differ from local shoppers. By offering exclusive products and services that cater to the tastes of tourists, retailers can create a unique shopping experience that sets them apart from competitors.
Providing multilingual support and creating a seamless shopping experience can also help retailers overcome language and time barriers, making it easier for tourists to make purchases.
Moreover, partnering with travel agencies can be a powerful way to reach out to tourists and attract them to stores. This can include offering exclusive discounts or packages for tourists, as well as collaborating with travel agencies to provide recommendations to tourists.
In conclusion, shopping tourism is a trend that retailers should pay attention to. By leveraging the tactics outlined in this article, retailers can attract tourists to their stores, increase revenue, and create a unique shopping experience that sets them apart from competitors. As shopping tourism continues to grow, retailers who adapt to this trend will be better positioned to succeed in the retail industry.
30 Frequent Q&A About Shopping Tourism: Why Retailers Should Care
Shopping tourism is a phenomenon where people travel specifically to shop in different cities or countries. It is a growing trend, and retailers need to be aware of its impact on their business. In this article, we will answer 30 of the most frequent questions about shopping tourism and why it matters to retailers.
What is shopping tourism?
Shopping tourism is when people travel to different cities or countries specifically to shop.
Why do people go on shopping tourism trips?
People go on shopping tourism trips to find unique products, take advantage of sales, and experience different shopping cultures.
How popular is shopping tourism?
Shopping tourism is becoming increasingly popular, with more and more people choosing to travel for shopping purposes.
What are the benefits of shopping tourism for retailers?
Shopping tourism can bring in a lot of revenue for retailers, as tourists tend to spend more money than locals.
What are the challenges of shopping tourism for retailers?
Retailers may need to adapt to the specific needs of tourists, such as language barriers or cultural differences.
How can retailers attract shopping tourists?
Retailers can attract shopping tourists by offering unique products, providing multilingual services, and offering tax-free shopping.
What are some popular destinations for shopping tourism?
Popular destinations for shopping tourism include London, Paris, Milan, New York, and Tokyo.
What are some popular types of shopping tourism?
Popular types of shopping tourism include luxury shopping, outlet shopping, and vintage shopping.
How do shopping tourism trips affect local economies?
Shopping tourism can have a positive impact on local economies, as it brings in money and creates jobs.
What are some of the downsides of shopping tourism?
Some of the downsides of shopping tourism include overcrowding, environmental impact, and the exploitation of workers in developing countries.
How can retailers balance the benefits of shopping tourism with the potential downsides?
Retailers can balance the benefits of shopping tourism by being mindful of their environmental impact, sourcing products ethically, and providing fair wages to their employees.
What are some of the cultural differences that retailers need to be aware of when catering to shopping tourists?
Retailers need to be aware of different customs and beliefs when catering to shopping tourists. For example, in some cultures, bargaining is expected, while in others, it is considered rude.
How can retailers provide multilingual services to shopping tourists?
Retailers can provide multilingual services by hiring staff who speak different languages, providing translation services, and offering signage in multiple languages.
How can retailers make their stores more appealing to shopping tourists?
Retailers can make their stores more appealing to shopping tourists by creating an attractive and welcoming environment, offering unique products, and providing high-quality customer service.
What is tax-free shopping, and how does it benefit shopping tourists?
Tax-free shopping is when tourists are exempt from paying local taxes on their purchases. This can save shopping tourists a significant amount of money.
What are some of the challenges of offering tax-free shopping to tourists?
The main challenge of offering tax-free shopping is complying with local tax laws and regulations.
How can retailers ensure that their tax-free shopping policies are legal and ethical?
Retailers can ensure that their tax-free shopping policies are legal and ethical by following local tax laws and regulations and being transparent with customers about the process.
What are some of the most common types of products that shopping tourists buy?
The most common types of products that shopping tourists buy include clothing, accessories, cosmetics, and electronics.
How can retailers promote their products to shopping tourists?
Retailers can promote their products to shopping tourists by advertising in travel guides and online, offering discounts, and creating unique shopping experiences.
What are some of the most popular luxury brands for shopping tourists?
Some of the most popular luxury brands for shopping tourists include Chanel, Gucci, Louis Vuitton, and Prada.
How can retailers cater to luxury shopping tourists?
Retailers can cater to luxury shopping tourists by providing high-end products, offering personalized services, and creating exclusive shopping experiences.
What are some of the most popular outlet shopping destinations?
Some of the most popular outlet shopping destinations include Woodbury Common in New York, Bicester Village in London, and La Vallée Village in Paris.
How can retailers cater to outlet shopping tourists?
Retailers can cater to outlet shopping tourists by providing discounted products, offering a wide range of products, and creating a convenient and attractive shopping environment.
What is vintage shopping, and why is it popular among shopping tourists?
Vintage shopping is the act of buying second-hand or vintage clothing and accessories. It is popular among shopping tourists because it offers unique and one-of-a-kind items.
How can retailers cater to vintage shopping tourists?
Retailers can cater to vintage shopping tourists by offering a wide selection of vintage and second-hand products, providing expert advice, and creating a vintage-inspired shopping environment.
How important is social media for shopping tourism?
Social media is becoming increasingly important for shopping tourism, as it allows tourists to research and share their shopping experiences.
How can retailers use social media to attract shopping tourists?
Retailers can use social media to attract shopping tourists by sharing photos and information about their products and stores, offering special promotions and discounts to social media followers, and engaging with customers through social media platforms.
What are some of the most popular shopping tourism destinations in the world?
Some of the most popular shopping tourism destinations in the world include New York, Paris, London, Tokyo, Dubai, and Hong Kong.
How can retailers stay competitive in the global shopping tourism market?
Retailers can stay competitive in the global shopping tourism market by offering unique products, providing excellent customer service, creating memorable shopping experiences, and adapting to new trends and technologies.
What is the future of shopping tourism?
The future of shopping tourism is likely to be shaped by advances in technology, changing consumer preferences, and the impact of global events such as the COVID-19 pandemic. However, it is clear that shopping tourism will continue to be a significant driver of economic activity and a popular activity for travellers around the world.
Conclusion
Shopping tourism is an important and growing trend in the travel industry, with millions of people travelling each year specifically for the purpose of shopping.
As such, retailers need to be aware of the unique needs and expectations of shopping tourists and adapt their strategies accordingly.
By offering unique products, providing excellent customer service, and creating memorable shopping experiences, retailers can tap into the huge potential of the shopping tourism market and drive economic growth in their local communities.
