the international shopping traveler exec summary 2009

Executive SummaryResearch Commissioned by

Taubman Centersand

Shop America Alliance LLC

In partnership withU.S. Department of Commerce

Office of Travel & Tourism Industries

Research Conducted byMandala Research & Consulting

2009

The InternationalShoppingTraveler Study

Taubman Centers, Inc. (NYSE: TCO) is a real estate investment trust engaged in the development

and management of regional and super regional shopping centers. Taubman’s 24 U.S. owned

and/or managed properties, the most productive in the industry, serve major markets from

coast to coast. Chairman, President and CEO Robert Taubman serves on the U.S. Travel &

Tourism Advisory Board with the U.S. Department of Commerce. For more information visit

TaubmanWorldClassShopping.com.

Shop America Alliance LLC (SAA) represents 200 of the premier shopping tourism destinations,

shopping centers, retailers and outlets in North America and 1600 museum stores. Founded in 1999,

the organization serves as the travel and tourism industry’s exclusive resource for Shopping Tourism

information and partnership opportunities. Rosemary McCormick, President of Shop America

Alliance, serves on the Board of Directors/Executive Committee of the U.S. Travel Association and

is co-founder of the U.S. Cultural & Heritage Tourism Marketing Council LLC. For more information

about Shop America Alliance, visit ShopAmericaTours.com.

The International Shopping TravelerExecutive Summary

C O N T E N T S

BACKGROUND .....................................................................................................................................2

KEY FINDINGS ..................................................................................................................................3-5

DEMOGRAPHIC OVERVIEW ..............................................................................................................6

SHOPPING IS A TRAVEL MOTIVATOR ................................................................................................7

BEHAVIOR OF INTERNATIONAL SHOPPING TRAVELERS ............................................................8-9

TOP 25 RANKED RETAIL BRANDS ...................................................................................................10

TOP 25 U.S. SHOPPING CITIES ........................................................................................................10

MARKET SNAPSHOTS:

The CANADIAN SHOPPING TRAVELER ........................................................................................... 11

The GERMAN SHOPPING TRAVELER ..............................................................................................12

The JAPANESE SHOPPING TRAVELER ...........................................................................................13

The MEXICAN SHOPPING TRAVELER .............................................................................................14

The UK SHOPPING TRAVELER .........................................................................................................15

FINAL COMMENTS ............................................................................................................................16

FOR MORE INFORMATION ...............................................................................................................17

B A C K G R O U N D

Shopping, dining and cultural travel are among the top tourism activities in the United States (U.S.). These activities are especially important to international travelers and continue to be so even in these challenging economic times.

The International Shopping Traveler study was commissioned by Taubman Centers and Shop America Alliance LLC in partnership with the U.S. Department of Commerce/Office of Travel & Tourism Industries (DOC/OTTI) and conducted by Mandala Research, to serve as a benchmark of behaviors and psychographics among shopping travelers from the top five inbound tourism markets to the United States.

The International Shopping Traveler study was conducted among approximately 350 travelers in each of the top 5 five inbound markets to the U.S. (Canada, Germany, Japan, Mexico and UK) for a total of 1,760 completes1.

These top five inbound markets surveyed are those tracked by the DOC/OTTI, as producing the largest share of inbound U.S. travelers. These five markets together account for 75% of all U.S. international arrivals.

Each respondent had visited the U.S. in the past 12 months, had spent a minimum of $250 U.S. on shopping and had a minimum household income of $75,000 U.S. Dollars (USD).

• DOC/OTTI tracks shopping spending on gifts and souvenirs through its in-flight survey and reports average spend of approximately $250 per person per trip. The International Shopping Traveler study used this as the baseline spending and only surveyed visitors who had spent at least this amount on shopping per person.

M E T H O DThe data was collected using an international online panel of respondents managed by Global Market Insite (GMI). The surveys were all translated into the appropriate languages. The Canadian survey was provided in English and French. The survey was administered between January 13 and January 27, 2009.

GMI’s consumer panels are extensively profiled and their double opt-in screening process ensures high-quality sample. GMI recruits panelists worldwide from more than 500 unique sources, enabling them to provide their clients with a representative sample. GMI continually adheres to the highest standards of panel quality so they can offer pure sample for their client’s research needs. Some of their diverse global panel recruitment methods include: Web advertising, permission-based databases, public relations, partner-recruited panels and alliances with heavily trafficked portals.

During the recruitment process, GMI respondents are profiled on over 500 attributes to put their clients in touch with the opinions of their target consumer, no matter how exacting their specifications may be. This allows clients to target sample based on a number of behaviors and demographics including business travel, leisure travel, spending habits and household income. GMI respondents are incentivized for their participation in surveys with MarketPoints which can be exchanged directly for cash. This incentive strategy encourages high survey response rates.

Sampling error is +/- 2.34 percentage points for the total sample and +/- 5.24 percentage points for the sub samples.

Statistically significant differences that are reported are significant at the 95% confidence interval.

The International Shopping Traveler Study, Copyright 2009 Shop America Alliance LLC and Taubman Centers. All rights reserved.

1359 in Japan and 351 in the United Kingdom

2

K E Y F I N D I N G S

• Shopping is a key travel motivator. For many International Shopping Travelers surveyed shopping opportunities are an important reason for choosing their destination in the U.S. 30% said it was a factor in their choice of destinations, while 23% said it was a key reason for the trip.

• Plan to return and shop soon. Nearly 20% of these travelers say they have already booked their next trip to the U.S. and an additional 50% are very likely to visit and shop in the next 12 months.

• International Shopping Travelers surveyed allocate a sizeable portion of total trip spend to shopping activities. While spending varies by market, the percent of shopping spend reported in the total trip spend was an average of 29%, and as high as 40% with Mexican Shopping Travelers.

• According to the DOC/OTTI, International Shopping Travelers contribute an estimated $38.6 Billion to the U.S. economy annually. The DOC/OTTI in-flight studies have historically captured the amount that departing visitors report spending on “gifts and souvenirs” only, which is an average of $250. The International Shopping Traveler Study, by capturing all shopping spending including apparel, footwear, accessories and electronics as well as gifts and souvenirs, reveals that per person spending from those surveyed, is an average of $1063. The DOC/OTTI also reports that 87% of the 58 million international travelers to the U.S. report shopping as their #1 activity. (2008 data.)

• The most popular brands shopped for by International Shopping Travelers are leading U.S. apparel, footwear, accessory and electronics brands. Brand preferences vary by market.

• Quality, brand selection and value are viewed as the primary points of positive difference in the U.S. shopping experience.

Shopping Spend Total Trip Spend Shopping % of Overall

Average $1063 $3692 29%

Canada $ 757 $2490 30%

Germany $1085 $4127 26%

Japan $1200 $4722 25%

Mexico $1310 $3249 40%

UK $ 968 $3845 25%

3

4

K E Y F I N D I N G S

• Online planning and purchase of travel is widely used by International Shopping Travelers.

• Purpose of travel: 88% of the total sample reported traveling to the U.S. for pleasure, holiday or personal trips in the past 12 months, while 25% reported travel to the U.S. for business in the past 12 months. The overlap accounts for travel combining both business and leisure.

• Cultural and Heritage attractions are important. It is clear that International Shopping Travelers are also cultural travelers—visiting historic sites (48%), museums/art exhibits (39%), concerts/theatres (36%), national parks (48%) and 27% report also shopping at Museum Stores.

• These International Shopping Travelers reported that they sought out unique dining experiences (42%) while visiting the U.S.

• 44% of International Shopping Travelers surveyed said they would be very likely to attend a Shopping Festival and another 29% state they would be somewhat likely to attend, with their choice of destination influenced by a Shopping Festival. Note: International Shopping Festivals are currently very successful tourism and retail drivers in more than ten countries including Dubai, China, Japan, Thailand, India, Singapore and Hong Kong. These events are annual city wide celebrations highlighting culture and shopping.

Used %

Booked directly on a travel provider website(s) (owned by airline, hotel, car-rental company, cruiseline, travel or accommodations provider)

Booked with an online travel website (e.g., Expedia, Orbitz, Travelocity) 22%

Booked directly with the travel provider via the telephone or in person 18%

Booked with a full-service travel agency via the telephone or in person 11%

Booked directly with a tour operator 8%

Did not book trip 8%

Booked with a full-service travel agency via the Internet (e.g., American Express, Carlson Wagonlit) 7%

Booked with an online corporate booking tool (e.g., Expedia Corporate Travel, GetThere, Orbitz for Business, etc) 7%

Booked with a corporate travel department 6%

Other 5%

Other online sites (e.g., ShopAmericaTours.com, DiscoverAmerica.com) 2%

25%

How they booked

• The majority of International Shopping Travelers surveyed are repeat visitors to U.S. destinations.

• After rental cars, taxis are the most frequent mode of transportation these travelers use to get to their shopping destinations.

Plan to visit destination againNumber of times visited destination

Plan not to return,

4% Not sure,9%

Yes, within 1 year,

46%Yes,

1-2 years from now,

28%

Yes, 2+ years from now,

14%

16+, 6%

11-15, 4%

10,5%

6-97%

5, 6%

4, 6%

3, 14% 2, 22%

1, 33%

K E Y F I N D I N G SFrequency

Note: Total is over 100% due to rounding.

Transportation

4%4%

7%9%9%10%

16%17%

32%30%

22%

RENTAL CAR TAXI WALK CITY BUS PRIVATE OR HOTEL SHUTTLE MALL SHUTTLE TRAIN OTHER PUBLIC MOTOR COACH OTHER COMPANY BUS BUS TRANSPORTATION (AS PART OF VEHICLE A TOUR)

5

6

D E M O G R A P H I C O V E R V I E W The International Shopping Traveler

The following charts and graphs provide a demographic overview of the 1760 survey participants from Canada, Germany, Japan, Mexico and UK.

Household Income

Minimum household income to participate in the survey was $75,000 USD.

Snapshot

Gender %

Male 53

Female 47

Marital Status %

Married 53

Living with partner/sig other 24

Single, never married 19

Divorced/Separated 3

Rather not say 1

Widowed 0

Living with friends 0

Length of Stay %

Day Trip 2

½ Days/1 overnight 6

3-4 days 22

5-6 days 24

7-10 days 24

11-14 days 12

15+ days 9

Median 5.5

Age %

18-30 27

31-40 31

41-50 25

51-65 17

Lodging Respondents with overnight stay %

Hotel/Motel/Resort 70

Family/Friends 16

Bed & Breakfast 10

Rental home/condo etc. 8

Owned home/condo etc. 5

Recreational Vehicle 1More than one response allowed.

Note: Total is under 100% due to rounding.

Livin$200,000+

$125,000-$199,000

$100,000-$124,000

$75,000-$99,000

Not sure/rather not say

4%

9%

10%4%

26%

25%32%

29%

24%

21%13%

23%

22%

10%

16%16%

7%

11%

16%

21%28%

25%

28%

CanadaGermanyJapanMexicoUK

36%

46%

S H O P P I N GI S A T R A V E L M O T I V A T O R

They come to shopOver half of all International Shopping Travelers in the five top inbound markets surveyed say that shopping was either a key reason for the trip or was a factor in their choice of destinations.

% Who agree... %

Shopping helped me choose between potential destinations 30

Shopping was the key reason I chose to take the trip 23

I sought out shopping opportunities, but they were not a factor in choosing between destinations 58

F R E Q U E N C Y A N D P U R P O S E O F T R A V E L

Total Canada Germany Japan Mexico UK

Base total response per sub-group n=1,760 n=347 n=349 n=356 n=348 n=350

Average # of internationaltrips in the past 12 months

# For Pleasure 1.7 2.3 1.0 1.2 2.6 1.3

# For Business 0.5 0.6 0.4 0.4 0.7 0.5

# Combination 0.4 0.3 0.3 0.1 1.0 0.4

2.6 3.1 1.7 1.7 4.4 2.3

Number of trips in the last 12 months

7

Trip expenditures (mean)Time Spent

Shopping29%

Other expenditures71%

Shopping33%

Other activities48%

Dining19%

Form of payment used for shopping

71%

45%

27%

3% 2% 1%

VISA AMERICAN MASTER CARD JTB OTHER DISCOVER EXPRESS

Type of credit card used

CREDIT CARD

CASH

DEBIT CARDS

TRAVELER’S CHECKS

GIFT CARDS

OTHER

83%

21%

61%

14%

2%

0%

B E H A V I O R O FI N T E R N A T I O N A L

S H O P P I N G T R A V E L E R S

A. They make time to shopShopping accounts for a third of these International Shopping Travelers’ time when in the U.S. and is nearly a third of their total trip expenditures.

B. Use credit cards and cash While credit cards are the dominant form of payment for shopping, cash is also used by almost two-thirds of international shoppers surveyed.

8

B E H A V I O R O FI N T E R N A T I O N A L

S H O P P I N G T R A V E L E R S

C. What they shop for • APPAREL LEADS. International Shopping Travelers surveyed most frequently purchased apparel.

• OTHER POPULAR CATEGORIES. Footwear (47%), food/candy (47%) and souvenirs (47%), fashion accessories (39%) and cosmetics/beauty products (39%) were key categories purchased by the International Shopping Traveler.

• SHOPPED FOR SELF AND FAMILY. 84% made purchases for themselves followed by spouse/significant other (68%) and children (44%).

D. Motivators: value and selectionGood value and a wide selection of brands are most often cited as important elements of the shopping experience.

56%

48%

41%

35%

35%

34%

30%

29%

28%

26%

23%

22%

57%

64%

17%

13%

9%

8%

1%

Good value for price paid

A wide selection of types of products

A wide selection of brands to choose from

Outlet mall

Helpful and friendly sales associates

Convenient transportation to and from

Availability of luxury brands

Large variety of dining options

An upscale mall environment

Availability of fine dining restaurants

Sales associates/mall personnel able to

Special discounts for travelers

Shopping environment that reflects

Have directions, maps, and signage

Ability to check product availability

Shopping tours that take me to the

Shipping service

Availability of day spas and salons

Other

the shopping area

communicate with me

the local culture

on store’s website before I shop

available in my native language

best areas for shopping

9

T O P R A N K I N G R E T A I L B R A N D S

These International Shopping Travelers are brand savvy shoppers. Brand preferences vary by inbound market. This brand list was provided through respondent write-in, with strong and consistent results, given the unaided recall. The top 25 brands* shopped for overall are:

1. Nike

2. Levi’s

3. Gap

4. Polo Ralph Lauren and Tommy Hilfiger

5. Abercrombie & Fitch

*Duplicate names on the same line indicate that the same percentage of International Shopping Travelers surveyed, selected those brands.

T O P R A N K I N G C I T I E S

Destination preferences vary by inbound market but the leading destinations for travel are well defined. The top 25 cities** visited and shopped by International Shopping Travelers surveyed overall in the last 12 months were as follows. Multiple responses were allowed:

1. New York, NY

2. Los Angeles, CA

3. Las Vegas, NV

4. Orlando, FL

5. San Francisco, CA

6. Honolulu, HI

7. Miami-Fort Lauderdale, FL

8. Chicago, IL

9. San Diego, CA and Washington, DC

10. Houston, TX

11. Boston, MA

12. Buffalo, NY

**Duplicate destinations on the same line indicate that the same percentage of International Shopping Travelers surveyed, selected those cities.

The “Other” category was selected by 14.1% of respondents, indicating that the destination where they shopped in the United States was not in a major metropolitan area. Respondents listed more than 175 other cities shopped. This finding highlights that international shoppers shop in areas outside of major metropolitan areas, which can be economically beneficial to small and mid-size cities and communities throughout the United States.

6. Calvin Klein and Coach

7. Adidas, Chanel and Gucci

8. Armani, Banana Republic, Louis Vuitton and Sony

9. Apple, Prada and Victoria’s Secret

10. American Eagle, Diesel, DKNY, Dolce &

Gabbana, Hollister, Hugo Boss and Old Navy

13. Atlanta, GA

14. Phoenix, AZ

15. Dallas-Fort Worth, TX and Seattle, WA

16. Tampa, FL

17. Philadelphia, PA

18. Detroit, MI

19. Fort Myers-Naples, FL

20. West Palm Beach, FL

21. Denver, CO

22. Portland, OR

23. Baltimore, MD

10

More than one response allowed.

11

Market Snapshot:T H E C A N A D I A N S H O P P I N G

T R A V E L E R • Nearly half of Canadian Travelers surveyed said that shopping was either a key reason for their trip to the U.S., or was a factor in their choice of destinations.

• Las Vegas and New York are the top destinations for Canadian Shopping Travelers, both 19%, followed by Los Angeles (11%).

• The average Canadian Shopping Traveler spent $2490 USD on their trip to the U.S., with nearly a third ($757) on shopping.

• Apparel is the most frequently purchased item by Canadian Shopping Travelers.

• Over 20% of Canadians say they have already booked their next trip to the U.S. and plan to do some shopping, and more than half say they are likely to visit in the next 12 months.

Length of Stay %

Day Trip 6


3-4 days 29

5-6 days 21

7-10 days 19

11-14 days 9

15+ days 5

Median 6

Gender %

Male 39

Female 61

Marital Status %

Married 67




Rather not say 0

Widowed 1


Age %

18-30 18

31-40 32

41-50 26

51-65 24

Household Income %

$75,000-$99,000 16

$100,000-$124,000 24

$125, 000-$199,000 46

$200,000+ 10

Not sure/rather not say 4



Family/Friends 14

Bed & Breakfast 3



Recreational Vehicle 1




12

Market Snapshot:T H E G E R M A N S H O P P I N G

T R A V E L E R• Over 50% of all German Travelers surveyed say that shopping was either a key reason for the trip or a factor in their choice of destinations.

• 88% of German Travelers predominately shopped for themselves.

• German Travelers spent an average of $4127 per traveler on their trip, and $1085 of that was on shopping.

• Levi’s and Nike were the top two most shopped brands by German Shopping Travelers.

• Nearly 20% of German Travelers say they have already booked their next trip to the U.S. in the next year.

Gender %

Male 59

Female 41

Marital Status %

Married 45




Rather not say 1

Widowed 1


Age %

18-30 29

31-40 33

41-50 24

51-65 14

Length of Stay %

Day Trip 1


3-4 days 16

5-6 days 19

7-10 days 29

11-14 days 16

15+ days 16

Median 9

Household Income %

$75,000-$99,000 36

$100,000-$124,000 23

$125, 000-$199,000 25

$200,000+ 7




Family/Friends 15

Bed & Breakfast 14




13

Market Snapshot:T H E J A P A N E S E S H O P P I N G

T R A V E L E R• Over half of all Japanese Travelers surveyed say that shopping was either a key reason for the trip or a factor in their choice of destinations.

• Honolulu is the top destination for Japanese Shopping Travelers (30%), followed by New York (29%) and Los Angeles (24%).

• Japanese Shopping Travelers spent an average of $4722 per traveler on their trip, with $1200 of that total on shopping.

• For Japanese Shopping Travelers, convenient transportation to the shopping area and wide selection of products are the most important elements of the shopping experience.

• Top five brands shopped by Japanese Shopping Travelers include Coach, Louis Vuitton, Gucci, Chanel and Prada.

Gender %

Male 54

Female 46

Marital Status %

Married 47




Rather not say 0

Widowed 0


Age %

18-30 16

31-40 32

41-50 34

51-65 19

Length of Stay %

Day Trip 1


3-4 days 22

5-6 days 35

7-10 days 25

11-14 days 6

15+ days 4

Median 6



Family/Friends 10

Bed & Breakfast 21




Household Income %

$75,000-$99,000 32

$100,000-$124,000 21

$125, 000-$199,000 28

$200,000+ 16








14

Market Snapshot:T H E M E X I C A N S H O P P I N G

T R A V E L E R• Over 40% of Mexicans say that shopping was the key reason they chose to take the trip to the U.S.

• Los Angeles and New York are the top destinations for Mexican Shopping Travelers, both 27%, followed by Houston at 23%.

• 85% of Mexican Shopping Travelers shop for themselves. • The average Mexican Shopping Traveler spent $3249 USD on their trip to the U.S., and $1310 of that is on shopping.

• 51% of Mexican travelers state that they used friends and family as a source of travel information.

Household Income %

$75,000-$99,000 25

$100,000-$124,000 13

$125, 000-$199,000 21

$200,000+ 16

Not sure/rather not say 26Gender %

Male 60

Female 40

Marital Status %

Married 45




Rather not say 1

Widowed 0


Age %

18-30 45

31-40 24

41-50 18

51-65 13

Length of Stay %

Day Trip 2


3-4 days 25

5-6 days 25

7-10 days 25

11-14 days 7

15+ days 11

Median 6



Family/Friends 28

Bed & Breakfast 2







15

Market Snapshot: T H E U K S H O P P I N G

T R A V E L E R• Almost 50% of all British Shopping Travelers surveyed say that shopping was either the key reason for their most recent U.S. trip or was a factor in their choice of destinations.

• New York City is the top destination for British Shopping Travelers (39%), followed by Orlando (20%) and Las Vegas (14%).

• The majority of British Shopping Travelers are repeat visitors to U.S. destinations. • Good value and variety are most often cited as the important elements of their shopping experience.

• British travelers use a diverse set of travel planning tools, with search engines used nearly as often as friends and family as a source of travel information.

Gender %

Male 56

Female 44

Marital Status %

Married 59




Rather not say 0

Widowed 0


Age %

18-30 28

31-40 37

41-50 21

51-65 14



Family/Friends 15

Bed & Breakfast 8




Household Income %

$75,000-$99,000 36

$100,000-$124,000 23

$125, 000-$199,000 25

$200,000+ 7


Length of Stay %

Day Trip 1


3-4 days 15

5-6 days 23

7-10 days 23

11-14 days 25

15+ days 11

Median 9

16

F I N A L C O M M E N T S

“Travel and Tourism is an important economic contributor to the retail sector, as we see in our tourism shopping centers. The results from this study are positive for the U.S. travel and shopping industries and for the country overall.” Robert S. Taubman Chairman, President and CEO, Taubman Centers Board Member, United States Travel and Tourism Advisory Board

“The International Shopping Traveler study will help retailers, destinations and travel companies better understand and attract the shopping traveler. This can go a long way in boosting tourism. Shopping certainly spurs visitation to and spending in destinations all across the United States, which, in turn, has a positive impact on the employment and economic health of those areas.”

Helen Marano Director, Office of Travel and Tourism Industries U.S. Department of Commerce

“Shop America Alliance is very excited to share the results of this study. This data supports the excellent Shopping Tourism and Cultural Travel marketing that many of our successful members use to drive their sales, and pinpoints several new opportunities for partnerships and development.”

Rosemary McCormick President, Shop America Alliance

17

F O R M O R E I N F O R M A T I O N

TAUBMAN CENTERSKaren Mac Donald, Director, Communications 248.258.7469KMacDonald@taubman.comwww.TaubmanWorldClassShopping.com

SHOP AMERICA ALLIANCE LLCRosemary McCormick, President707.224.3795ShopAmericaTours@aol.comwww.ShopAmericaTours.com

U.S. DEPARTMENT OF COMMERCEOffice of Travel and Tourism IndustriesHelen Marano, Director, Office of Travel and Tourism IndustriesU.S. Department of Commerce202.482.4752Helen.Marano@mail.doc.govwww.Tinet.ita.doc.gov

MANDALA RESEARCH Laura MandalaManaging DirectorMandala Research, [email protected]

the international shopping traveler exec summary 2009

Technology

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