SUMMIT OF THE AMERICAS 2018


Dufry CEO Julián Díaz addresses changing digital face of DF&TR


A


standout presentation from Dufry Group CEO Julián Díaz was among the highlights of


the Executive Conference sessions at the inaugural Duty Free and Travel Retail Summit of the Americas. His presentation during the second


Session on 20 March followed the announcement of the company’s full-year 2017 results five days earlier. As reported, the company announced revenue growth of +7% to CHF8,377.4m ($8.8bn) in a strong full-year 2017 performance. Díaz, who began by outlining the evolution of TR in a changing world, said online and travel retail would remain the main growth centres in the future. He also said passenger


demographics, motivations and expectations continue to progress. “If we can identify where we


are and where the customers are evolving, we will obviously be in a position to succeed,” he stated.


Dufry perspective Putting the growth of the company, which reported a +8.6% gross profit increase in FY2017, into perspective, Díaz explained the focus was predominantly on ‘processes’ five to 10 years ago. He added that a developmental shift has resulted in industry stakeholders being consolidated, professional and firmly focused on customers. “This is also creating a


transparency in terms of pricing policies, assortment and promotions we didn’t have in the past,” he went on to say. As with many global DF&TR conferences, Díaz said millennials remained a strong focus. He indicated this was merely indicative of an ‘attitude’ towards the changing retailing landscape; how to make contact with the group is an entirely different matter. Evidently, the most important opportunity lies in connecting with the customer,


APRIL 2018


Spread across three Executive Conference sessions, speakers discussed and debated a number of key issues including the contribution of the cruise sector to global travel retail. Andrew Pentol reports.


but Díaz warned: “If we don’t react in time, we are not reaching all customer goals. “We need to generate end value for


retailers, suppliers and stakeholders. The problem is how to do it.”


Digital debate Moving on to digital, another hotly debated topic across the DF&TR spectrum, Díaz explained how digital disruption is shaping new ways of consumer purchasing in an environment tailored towards convenience and rich, personalised experiences. He warned that investment in research will not pay off if stakeholders do not interact with consumers. With that in mind, Díaz shared Dufry’s new streamlined approach to physical and digital travel retail engagement – E-Motion. This relies on utilising a 360-degree experience through loyalty programmes,


social media, staff, digitalisation, immersive TRBUSINESS 19


communication and reserve and collect services. The aim is to fuse digital and physical retail plays. Utilising new technologies to improve the customer journey should not be a Dufry exercise, but a market one, he stated. Invariably, the aim is to elevate industry standards by aligning key stakeholders, customers, airports and suppliers. Díaz explained: “How are you going to increase penetration and spend per ticket? That is the question.” Addressing an enthralled audience, he said the industry excels in creating new assortments, products and


“If we can identify where we are and where the customers are evolving, we will obviously be in a position to succeed.”


Julian Díaz, CEO, Dufry Group


Above: Julián Díaz is questioned by Moodie Davitt Report Founder and Chairman Martin Moodie.


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