Sponsored by
can provide.” Cidambi said these external
competitors are questioning the basic DF&TR model and the ability of travel retailers to meet the demands of the customer. He said the situation is exacerbated
by the fact that there is greater consolidation among suppliers, which are becoming more and more powerful. “This also puts more pressure on
independent retailers like us who have a single location, and even though we are the biggest airport retailer in a single location, you are dealing with entities which are getting bigger and bigger,” he said. However, Dubai Airport continues
to see 90 million passengers exposed to its shops and assortment of products every year. Unsurprisingly, he says the answer lies in better communication, something every retailer is currently focusing on and something that is not easily achieved. “So we cannot just roll over and
allow the online retailers to dominate the landscape, but at the same time we have to be realistic in terms of what they have achieved: customer insight, customer convenience and assortment,” he said. “The pressure mounts relentlessly on margins to bring prices down, which is not helped by the fact that even internally the brands struggle to match the prices available in domestic markets (in certain categories). “And in categories like fashion,
where you have constraints in terms of availability of product, the brands are looking to minimise any differences between domestic and DF&TR, which then further erodes the exclusivity and the unique selling proposition of the travel retail market.” This is not to mention the role
that governments have played in stripping the industry of its USPs, eroding its competitive edge versus online and the High Street.
Question 2, as voted for by the industry:
What is DDF’s approach to giving smaller, upcoming brands – who perhaps have an interesting story to tell but not a big budget – an opportunity to shine within your
JUNE 2019
airport offering? “It would be a bit presumptuous
for us to say that we are unique and different from other travel retailers,” said Cidambi. “We aim to provide a first-class service to passengers and we would like to promote Dubai Airport and Dubai Duty Free, which is the core mission. “One of the things Colm
McLoughlin, our EVC and CEO has emphasised from day one is we always want passengers to feel like they are in Dubai Duty Free. So if I were to pick one element in terms of what is unique about us, it is that we try our best to give you the feeling that you are shopping at DDF and not in a random collection of brand outlets or different shops which don’t have a particular unifying team around them.” At the same time Cidambi said that
DDF does its best to allow brands to express themselves in the way that they feel is best; both to enhance the end-consumer’s experience and ultimately increase revenue for Dubai Duty Free and for the brands. “So in 2019 we will continue to
strengthen and develop the Dubai Duty Free brand and at the same time, in certain areas such as fashion for example, we are renovating our fashion offer, especially in Concourse B. We are opening a new Chanel boutique in the summer of this year and we opened a new Gucci boutique towards the end of last year.” Concourse B represents 33% of
DDF’s business and is just over 10 years old. In 2019, DDF will continue to upscale the retail offer; renovating, refurbishing, but also adding entirely new shops. “For example last year we opened
25 shops of different sizes and we will continue to do that,” said Cidambi. “We’ll continue to focus on our
team and their customer service training. The experience that the passengers have with our staff remains extremely important. Digital development, of course, also remains important. “It will be a year of what we have
been trying to do, but doing it better and using that to maintain growth in an environment which is going to be
TRBUSINESS 23
TRAVEL RETAIL QUESTION TIME
Ramesh Cidambi became Chief Operating Officer of Dubai Duty Free in 2016.
“We cannot just roll over and allow the online retailers to dominate the landscape, but at the same time we have to be realistic in terms of what they have achieved: customer insight, customer convenience and assortment. The pressure mounts relentlessly on margins to bring prices down…”
Ramesh Cidambi, Dubai Duty Free
quite challenging.” Dubai Airport was impacted
significantly by the necessary runway closure this year. “Passenger numbers are expected
to drop and the currency situation continues to be tough, so we need to continue to keep pushing [uphill] and execute the simple things properly in 2019,” added Cidambi. «
See the full interview on the video channel at
www.trbusiness.com. Part 2 of this summary will appear in the July issue.
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