Enjoying a Unique Opportunity for Global Brand Positioning
Dufry is the largest global travel retailer and offers suppliers a unique opportunity to position their brands worldwide across a variety of shop concepts. This includes a network of over 2,300 shops across more than 430 locations in 64 countries on 6 continents.
As Dufry operates duty-paid and duty-free areas alike, the company can serve both domestic and international travelers equally interested in convenience products and luxury shopping experiences. In a normal, pre-pandemic environment, over one billion passengers regularly passed through locations where Dufry operates shops, making us the perfect partner and ambassador for global brands.
Personally engaging with customers in a fast growing channel
Travel retail is a growing channel with a captive, affluent audience, which allows brands to personally engage with customers in an exclusive setting. This makes travel retail a highly attractive and Dufry a preferred partner for global and regional brands. A tight collaboration, leveraging our global network, our superior execution and our strong customer service forms a comprehensive offer for our brand partners.
We increasingly partner with global brands on strategic initiatives, marketing campaigns, global promotions or product launches, that contribute to increase income for us and the brands. In this context, we offer each brand a customized approach to create common goals for the supplier and for Dufry on specific actions and distinctive campaigns to be implemented on an individual basis. Both parties establish clear targets and evaluate the effectiveness of their joint initiatives. In 2020, various initiatives were implemented to support re-openings and bring attractive offerings to customers. The attractiveness of our joint offerings became prevalent in a higher spend per passenger in the second half 2020 once travel resumed. It also shows that customers feel comfortable in our stores, which fulfill the new safety measures and security protocols, while still providing a unique experience.
Taking customer experience to the next level
In recent years, a growing number of brand partners have developed Dufry-exclusive products, which together with novelties, limited editions and travel exclusives, considerably augment and differentiate the customers’ shopping experience. Internal research also shows that personally engaging with customers in the shop substantially increases spend per ticket – and what could be a better topic on which to base that more personal engagement, than an exclusive or a newly launched product?
Centralized procurement and logistics
With a focus on generating efficiencies, Dufry is permanently streamlining its key processes. 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. They define brand plans with suppliers and negotiate all contractual parameters. Dufry has also centralized and simplified the ordering process, by internally aggregating the orders from the different retail operations and sending a consolidated order to suppliers. Accordingly, we have adapted our 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 (USA) and provide the timely shipping of goods to our operations. The process benefits both Dufry and suppliers, as it allows us to order and ship larger volumes to the distribution centers, thus increasing flexibility in product allocation by shop and maximize product availability.
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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More about Dufry
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