TR Consumer Forum 2025: Spotlight on Asia Pacific’s rebalancing act

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By Naomi Chadderton

Published June 6, 2025

The panel featured Anna Marchesini, Head of Business Development at m1nd-set; Subbu Bhatt, CEO and Founder of China Trading Desk; Tabea Palmer, Vice President of Retail Marketing at Fraport Group; and Lilly Choi-Lee, Executive General Manager at TravConsult.

Anna Marchesini opened the session by sharing key m1nd-set insights into traffic trends and shopper behaviour.

While regional traffic has fully recovered, she noted that “international has only just started to recover, particularly compared to Europe and the Americas”.

Singapore remains the leading airport by air traffic, followed by South Korea and Hong Kong.

A shift in demographic power is also clear. Gen Z shoppers in Asia are now the most likely to browse duty free stores, convert into buyers and spend more than other age groups.

China: Cautious Return, Evolving Priorities

Millennials visit less often but show high conversion and spend when they do. Still, Marchesini cautioned that even though Asia Pacific outperforms global averages on spend, conversion and purchase rates have dropped slightly post-Covid.

She also pointed to rising purchasing power among women and younger travellers, with experience now overtaking value as the key driver of in-store purchases.

“Interaction with staff beyond the payment has increased massively post-pandemic,” she said, although that number has started to decline year by year. Meanwhile, more shoppers are buying products to share, either during or after their trips.

China, long the engine room of Asia Pacific travel retail, is recovering slowly. Domestic travel has fully rebounded and continues to grow, but the international recovery is unlikely before late 2026, forecasts m1nd-set.

Chinese travellers still overwhelmingly choose intra-Asian destinations, followed by Europe and North America, but they’re waiting for better safety, stronger economic signals and simplified travel logistics before fully returning.

“Chinese travellers are more selective now,” said Marchesini. “There are fewer duty free visits, particularly from older generations, but those who do go are more likely to convert and spend.”

Despite this, trust in duty free’s value proposition has declined in favour of domestic retail and online channels.

Beauty remains a top category, though it’s declining; alcohol, meanwhile, is gaining ground. What’s holding back recovery, explained Marchesini, are shifting consumer priorities — from rising costs and strong domestic retail to an increasingly experience-led lifestyle among travellers.

South Korea: Performance rebounds, habits evolve

South Korea presents a slightly more optimistic picture, with international travel recovering more quickly than domestic. By 2025, outbound international travel is expected to surpass 2019 levels by 10%, with further growth projected through to 2030.

South Koreans continue to favour intra-Asian destinations, followed by North America and Europe. While the country’s travellers once outperformed the global average across the board, that lead has narrowed. Gen Z shows strong footfall and conversion, but lower average spend compared to older groups.

Self-purchasing is now on the rise, eclipsing gifting across all age brackets. “Shopping habits are changing,” said Marchesini. “Boomers plan their purchases carefully, while younger generations are more spontaneous. But for all age groups, price advantage and staff interaction still matter deeply.”

India is one of the few markets where domestic and international air traffic have fully recovered.

Domestic numbers hit pre-pandemic levels in 2023 and are expected to reach 202 million passengers in 2025. The Middle East remains the top international destination, followed by Asia.

Millennials lead the way in India’s travel retail performance, showing high footfall, conversion, and spend. Gen Z, while highly engaged, as a group is less likely to convert. Indian shoppers are also more intentional: more than a third arrive at duty free knowing exactly which brand or sku they plan to buy.

“Younger travellers are more spontaneous,” Marchesini noted. “But older generations show a much stronger tendency to plan.”

Across all ages, however, experience is gaining ground over value, with trendiness, exclusivity and self-indulgence becoming key motivators. Staff interaction continues to play a vital role in boosting conversion and spend.

On the Ground: Market Perspectives

Turning to the panel, Barras-Hill first asked Tabea Palmer about Chinese and Indian travellers arriving in Europe. “Frankfurt has fully recovered in terms of international traffic,” she said. “Asia now makes up 10% of that traffic, but it accounts for 25% of our retail revenue, with China, Vietnam, India, UAE and South Korea leading the way.”

She highlighted a strong male presence among Indian travellers to Frankfurt and noted that the airport has recently expanded its personal shopping services to include Indian nationals, alongside Chinese, Vietnamese and South Korean guests.

When asked about the importance of religious festivals, Palmer shared highlights from a recent ‘Festival of Colors’ activation that brought Diwali and Holi to life at the airport.

Collaborating with duty free and F&B operators, the campaign offered traditional dancers, a Holi-themed photobooth, whisky tastings and curated gifting products. “It was a first trial,” she said, “to see how we could engage more deeply with this group.”

Lilly Choi-Lee then shared her perspective following a recent visit to India. “There’s been an incredible shift,” she said. “Clean streets, visible wealth and a clear appetite for luxury.”

She emphasised how deeply local customs impact retail behaviour. “During Diwali, they drink golden yellow spirits; during Holi, they prefer a white spirit. These cultural nuances really matter.”

Turning to Vietnam, Choi-Lee was emphatic: “The first step to success is to realise Vietnam is a country, not a war.”

With a booming middle class and GDP rising 1.7 times faster than the global average, Vietnam is becoming a travel retail force.

Luxury, she explained, is more than indulgence, it’s about status, family, and legacy. “Yes, they like discounts, but what they really need is connection. Friendly, happy service is what makes them buy.”

Regional differences also play a role: the south of the country, for instance, is highly influenced by the western world and prioritises fast service and limited editions.

“The rising tiger in Asia has to be Vietnam,” she said.

Understanding China’s Consumer Archetypes

Subbu Bhatt of China Trading Desk closed the session with fresh insights from one of the largest ongoing surveys of Chinese travellers.

“In 2019, Chinese outbound travellers numbered 155 million,” he said. “That’s expected to hit 160 million this year, and only 18% of Chinese citizens even have passports. There’s a 10% annual growth in new passports being issued, so this is definitely something to pay attention too.”

Average luxury spend per trip has increased to US$3,900 – a 9.5% rise from 2019 – with Gen Z females driving the majority of spend. “Two-thirds of all travel retail spending is now by Gen Z women,” he noted.

Subbu outlined four key Chinese traveller personas: Gen Z travellers who book last-minute, love flash sales and seek Instagrammable moments; first-time travellers from lower-tier cities, who are price-sensitive and prefer semi-guided tours; family-oriented frequent travellers, focused on resorts and multi-generational experiences; and luxury HNWIs who book late, avoid social media and rely on concierge services and peer recommendations.

“Travel retail is no longer a pitstop,” he concluded. “It’s a curated, content-led journey.”