SPECIAL FEATURE: DUBAI DUTY FREE


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Perfumes and cosmetics shop in DDF’s Concourse C which was refurbished in 2018.


in terms of logistics; in terms of fulfilment is far greater than what most travel retailers 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


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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


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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


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“Whether you are in domestic or travel retail, the industry has to accept that certain brands are extremely strong and that certain brands dominate the retail landscape.”


Ramesh Cidambi, Chief Operating Officer, Dubai Duty Free


Dubai Duty Free shopping complex in Concourse D. 82 TOP 10 OPERATORS OCTOBER 2019


that governments have played in stripping the industry of its USPs,


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).


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Governments ‘eroding’ USPs “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


eroding its competitive edge versus online and the High Street. Some believe that the key to


maintaining a ‘competitive edge’ in travel retail is to offer products and brands that are not as widely available in local markets. Small and medium-sized brands regularly ask TRBusiness why retailers continue to ignore proposals or pitches from them, whilst dedicating even more space to juggernaut suppliers, who often fail to tailor their offer to different markets. “Another great question,” said


Cidambi in the TR QT interview. “The answer to which the smaller brands, may or may not like. “We have approximately 2,000


brands in our portfolio at Dubai Duty Free and these 2,000 brands contribute to 90% of our sales, because the balance (10%) is made up by things like gold and other products which are not branded. The top 100 brands contribute to about


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