Driving Brand Equity Through Global Customer Engagement
Dufry is the largest truly global travel retailer offering suppliers the unique opportunity to personally engage with customer to present them with their novelties, exclusive products through a variety of off- and online shop concepts and thus drive both sales as well as brand equity.
Through its network of over 2,300 shops across 66 countries, Dufry can serve the needs of both domestic and international travelers with dedicated duty-paid and duty-free retail formats. This means that under normal travel conditions – free from travel restrictions – Dufry offers brand partners a potential of over one billion personal customer contacts.
Personally meeting customers in a resilient retail channel
Along 2021, the travel recovery phase has evidenced and confirmed the propensity of our society to travel and to enjoy the attractive assortments of travel retail. This is not only true for the immediate take-up of travel as soon as restrictions are lifted but also through the aboveaverage spending behavior seen across most locations as compared to pre-pandemic location-by-location levels. This also confirms the longstanding USP of travel retail to have access to a captive and affluent audience forming a unique face-to-face engagement platform in a safe environment. The over-proportional share of dutypaid sales seen along 2021 relates to the earlier recovery of domestic and intra-regional flights such as within the US or the EU, but duty-free sales are expected to recover their full share along with the easing of travel restrictions and the uptake of international travel.
Exclusivities, novelties and sustainable products are key sales drivers
Market research conducted on a regular basis through online surveys amongst our customers in 2021 confirmed that customers continue to search for experiences, novelties, travel exclusives and unique promotions, while they increasingly also want to buy sustainable products. This is also valid for the Dufry-exclusive products increasingly developed by brand partners in recent years, which considerably augment and differentiate the customers’ shopping experience.
Besides the proven collaboration with its brand partners through strategic initiatives, marketing campaigns, global promotions or product launches, Dufry is also revising its shop design strategy, to allow for a more flexible assortment renewal within the sales areas as well as to include sustainability aspects into its shop development. More than ever, the recovery phase has proven the need to provide customers with a renewed shopping experience inviting them to discover attractive offers in a dynamically changing environment. This expectation can only be satisfied by close collaboration with the brand partners and the joint ability to innovate. The increased spend-per-passenger seen along 2021 confirms the willingness of customers to shop in the travel retail channel and is an additional incentive for retailers and suppliers to increasingly consider and further accelerate product innovation.
Brand partners benefit from improved procurement and logistics processes
Along 2021, Dufry has further improved and simplified the procurement platform and streamlined the related processes, allowing both Dufry and the suppliers to generate efficiencies along the centralized procurement process covering the entire supply chain. Through our centralized procurement and logistic functions, we have considerably simplified the entire supply chain.
Our Global Category Managers act as key relationship managers for brands and coordinate activities with suppliers, by defining individual brand plans and agreeing on contractual parameters. They are supported by our centralized ordering process, which aggregates the orders of the different retail operations and sends a consolidated order to suppliers. Our well-proven logistics organization with three distribution centers in Uruguay, Switzerland and Hong Kong, which operate additional warehouses in Hong Kong, Runnymede (UK), Barcelona (Spain) and Miami (US), provides timely shipping of goods to our operations. The process benefits both Dufry and suppliers as it allows to order and ship larger volumes to the distribution centers, thus increasing flexibility in product allocation by shop and maximizing product availability.
Increased ESG collaboration
Dufry has further increased its ESG engagement with suppliers with several initiatives in 2021. Dufry has executed the re-certification of the Dufry Code of Conduct within its supplier community and has launched the Sustainable Product Identification Initiative (for more information on these subjects, see ESG Report) allowing customers to shop considerately.
Dufry will be attending the conferences and exhibitions relating to the travel retail industry listed below. We look forward to seeing you there!
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