SUMMIT OF THE AMERICAS 2018


emphasised Díaz, who highlighted the need to develop joint commercial concepts that facilitate engagement with millennials. “We need to invent something else


in terms of product and services – something specific, tailored towards this new generation of customers,” he argued.


Gustavo Fagundes, Dufry Group General Manager Brazil and Bolivia, delivered positive news on the Brazilian land border DF situation at the Summit of the Americas.


“This is a very important change from an industry point of view. It opens several opportunities for operators and suppliers,”


Gustavo Fagundes, Dufry Group General Manager Brazil and Bolivia


specific presentations for DF&TR. In summing up, he said the last


15 years had drastically changed the way we travel and spend time shopping. He suggested that combining digital and physical experiences is paramount, but there needs to be reliance on working together to build excitement around the industry. “We are a great channel for


launching and testing new products,” he said. “If you suppliers don’t react to this specific point, it will be too late.” A complete omnichannel strategy is required in order to do so,


Maximising the digital space


AOE Founder and CEO Kian Gould was part of a strong speaker line-up across the three Executive Conference Sessions during last month’s Summit of the Americas.


Gould, whose company launched an omni-channel digital platform to transform Frankfurt Airport into an


20 TRBUSINESS


e-commerce marketplace in 2016, spoke passionately on how TR can evolve digitally. He said: “Digital will not replace


physical, but the former is where future growth lies. “We believe the airport has to become


a true digital marketplace and not just a physical marketplace. Everything has to be mobile and at our finger-tips.” Another speaker was Portland Design


Director of Environments Lewis Allen, who suggested the Internet will not kill


shops but liberate them. He added: “In our line of work, it is very


important to focus on the customer side. “Sales of time saving services and


devices have increased 22%. Time saving is a key opportunity particularly on an airport journey.” Other speakers included m1nd-set


CEO Peter Mohn, Duty Free World Council President Frank O’Connell and Carnival Corporation Senior Vice President Guest Commerce Gustavo Antorcha.


APRIL 2018


Border breakthrough Meanwhile, fellow Dufry executive Gustavo Fagundes, General Manager Brazil and Bolivia, delivered significant news regarding the border situation on Brazil’s side. Speaking during the first Executive


Session on 19 March, The ASUTIL president confirmed regulation had finally been permitted to begin opening land border duty free stores. This followed the passing of a bill by the Brazilian government back in 2012, which had suffered notable delays due to a combination of political and economic challenges. As reported in the March edition


of TRBusiness, customs has already laid out guidelines for the regulation of Brazil’s long-awaited land border shop business. This took place during a meeting of key South American DF&TR stakeholders towards the end of last year. The meeting was convened by the National Union of State Legislators in the presence of the Receita Federal (Brazil’s federal revenue service). Under the approved guidelines, border stores can be established in any of the 32 border twin cities. These include Colombia, Venezuela, Argentina, Paraguay, Bolivia


and Peru. Contrary to speculation the


new border duty free stores could begin trading in August, José Luis Donagaray, Secretary General, ASUTIL previously told TRBusiness this was more likely to happen by the end of the year. Fagundes said: “This is a very important change from an industry point of view. It opens several opportunities for operators and suppliers. We have been working a long time to get this act issued and believe its open structure makes it very challenging. It represents an important learning curve for everyone. The industry must maximise this opportunity in a united manner and do so as successfully as possible.”


Allowances benefit Once the border stores finally open, Brazilians can purchase up to $300 per month without having to prove they have travelled. Additionally, they are also not obliged to buy all items in one place or on the same day. A 50% tariff will apply to imported products exceeding $300 (although there are limitations on quantities for alcohol and tobacco). Importantly, Brazilians will still be able to take advantage of a $300 allowance to purchase in duty free shops in neighbouring countries under the rules. However, a document seen by TRBusiness outlines Receita’s intention to reduce this threshold to $150 unless a global Mercosur agreement is struck. «


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