The findings are based on data from m1nd-set’s Business 1ntelligence Service (B1S), which marks its tenth anniversary this year. The research indicates that although LIBs represent just 12% of the global Duty Free buyer population, making them the smallest of the five core shopper segments, they outperform several traditionally higher-value segments in both conversion rate and average transaction value.
According to the research, LIBs convert more efficiently than the global average and demonstrate above-average engagement with digital touchpoints, innovation, and sales staff. While they are slightly less likely to enter a store, once inside they show the highest conversion efficiency among all shopper segments.
“Low Income Buyers are often misunderstood in travel retail,” said Dr Peter Mohn, CEO & Owner of m1nd-set. “The data clearly shows that this is not a low-value audience. While they may be slightly less likely to enter a store, once inside they are the most efficient converters, with a higher conversion rate versus the other segments.”
The research identifies LIBs as the most digitally aware shopper segment in global Duty Free. Digital channels are their strongest awareness drivers, outperforming both airport media and inflight channels. More than half of LIBs notice digital touchpoints before travelling, the highest rate across all segments.
Despite strong digital awareness, LIBs are the least planning-oriented shoppers. Around two-thirds plan purchases in advance, resulting in the highest impulse purchase rate of any segment, at 34%. This combination of digital exposure and spontaneity supports higher levels of product discovery and engagement with innovation.
LIBs outperform the global average in first-time purchases and Duty Free exclusives. In total, 65% purchase either a travel retail exclusive or a unique product, underlining strong responsiveness to newness and exclusivity within the channel.
Human interaction is identified as a key driver of performance. More than 55% of LIBs engage with sales staff, the highest interaction rate among all segments. Of these interactions, 75% positively influence purchase decisions, 29% result in a change from the shopper’s original intended product, and 17% indicate that the purchase would not have occurred without staff input.
“The income label masks a very strategic mindset,” Mohn said. “This is a highly selective shopper; their spend reflects quality, usefulness and relevance rather than volume.”
While LIBs purchase the same average number of categories per transaction as the wider shopper base, their performance is driven by a strong appetite for discovery and channel exclusivity. They show a preference for higher-value products across categories including electronics, watches, skincare, alcohol, and souvenirs and gifting.
“Efficient conversion, high-quality spend, digital fluency, and openness to innovation make LIBs a segment that punches well above their weight in driving performance,” Mohn added. “Far from being low-value, LIBs are one of Duty Free’s most underestimated growth drivers.”
Tags: travel retail Dr Peter Mohn, m1nd-set
