market history recent developments achievements...

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52 MARKET Dubai Duty Free, which celebrated its 32nd anniversary in 2015, has grown into one of the biggest travel retail operators in the world, competes with airports both far from and within the Arabian Gulf region as well as the low-duty domestic retail environment in Dubai. Dubai Duty Free expands on all fronts; it has a wide range of merchandise and is a modern success story. With strong marketing and a series of innovative promotions to help drive business, Dubai Duty Free also maintains a high profile through a range of sponsorships, which focus mainly on sporting events. It has become a major player in Dubai’s economy in becoming a word- class tourist, business and shopping haven. ACHIEVEMENTS Based on 2015 sales figures of $1.888 billion Dubai Duty Free is now ranked as the No.1 single airport retail operation in the world. Dubai Duty Free has received more than 500 industry awards presented by international, regional and local entities, which bear testimony to its retail success. In 2015 alone, Dubai Duty Free was presented with 27 awards including the Frontier Award for “Best Marketing Campaign of the Year by a Retailer”, US Global Traveler Award for “Best Duty Free Shop”, “Best Employer Brand” at the 2nd GCC Best Employer Brand Awards, the UK World Branding Awards ‘Brand of the Year” in Retail (Duty Free),”Superbrands” Awards ME and the Business Traveller ME Award “Best Airport For Duty Free Shopping”, among others. Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free, also added personal accolades including the Best Business Leader in Retail in December 2015. HISTORY Dubai Duty Free began when the Dubai Government commissioned Irish airport operator, Aer Rianta, to set up a duty free at Dubai International Airport. In July 1983 a ten-man team from Aer Rianta came to Dubai. Their brief was “to develop the best-ever duty free shops in the industry” and on December 20th 1983, Dubai Duty Free opened for business. From the original Aer Rianta team of ten, three stayed on to manage the new operation. These were Colm McLoughlin, who is now the Executive Vice Chairman of Dubai Duty Free, George Horan, now the President of Dubai Duty Free and John Sutcliffe who remained in Dubai for seven years before going back to work for Aer Rianta in Moscow and latterly in Bahrain. Barely two years after it began operation, Dubai Duty Free was named “Airport Duty Free Operator of the Year” in 1985 at the Frontier Awards in France. Dubai Duty Free enjoyed an impressive sales of $1.888 billion and 27 million transactions in 2015, and has emerged as the No. 1 single airport retailer in the world. PRODUCT Dubai Duty Free’s wide range of products satisfies the needs of even the most demanding of travellers. In 2015, Dubai Duty Free recorded almost 27 million sales transactions, which is an average of almost 74,000 sales transactions per day across both Dubai International and Al Maktoum International. Category wise, Perfumes continued to be the highest selling category with annual sales topping US$311.58 million which represents 16.50% of total annual sales. Liquor and Cigarettes followed, with sales of US$293 million and US$161.55 million respectively. Confectionery came in fourth place with sales amounting to US$152.37 million followed by Gold with US$150.50 million. RECENT DEVELOPMENTS With the opening of Concourse D in February 2016, Dubai Duty Free now operates around 34,000 square metres of retail space at Dubai International Airport. The new concourse is a modern, state-of-the-art airside facility that will serve up to 100 international airlines and eighteen million passengers annually and is reached via an elevated rail system. Concourse D takes Dubai Duty Free to an all new level, with a bright and spacious customer-friendly retail space centrally located close to a range of restaurants and the departure gates. The new retail offer covers 7,000 square metres and introduced new brands including Tiffany & Co., Burberry and Tory Burch. As a major category, Gold and Precious Stones is situated ‘centre stage’ as the passengers enter the departure lounge. Arranged as two circular counter islands and covering 350 square meters, the stylish layout encourages passengers to pause as they move through the department. Dubai Duty Free’s first major push into online retailing is going well, a dedicated Web Shop has been centrally positioned for customers picking up items they reserved on the DDF online service. Meanwhile, at Al Maktoum International, the operation of 2,500 square metres will grow in line with the massive development plans of Dubai South, which ultimately cover some 80,000 square metres of retail. Meanwhile, Dubai Duty Free’s Leisure Division which includes The Irish Village, The Century Village and the Dubai Duty Free Tennis Stadium, home to the Dubai Duty Free Tennis Championships, continue to do well. Located on the same site in Garhoud, the Jumeirah Creekside Hotel, which encompasses the Aviation Club and Akaru Spa, is owned and developed by Dubai Duty Free and is managed by the Jumeirah Group. The hotel, which opened in 2012 has proven to be a popular business and leisure property. In close proximity to Dubai’s international airport it is a five star hotel of international standards. There are 292 spacious rooms and suites offering guests a refreshing interpretation of luxury and an authentic experience of Dubai. Charitable Organisation In October 2004, Dubai Duty Free launched the Dubai Duty Free Foundation, a charitable body founded under the patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, and with Colm McLoughlin as Chairman of the board. The Foundation, which aims to raise funds for worthy causes with a particular emphasis on causes that directly benefit children, has since donated funds to several charities, both at home and abroad. Among the many charitable initiatives the operation has supported over the years include the funding of one village to build 32 houses in Binotong Alangalang, Leyte following the devastating typhoon that struck the province of Leyte in the Philippines in November 2013. The Foundation also assisted to restore eyesight to 800,868 people in India and has also built houses for those affected by the 2004 Indian Ocean tsunami. Meanwhile, as part of its Corporate Social Responsibility programme, Dubai Duty Free also encourage its over 6,000 staff members to recycle plastic waste and turn it into useful products through its Plastic Recycling Drive, and therefore collectively focusing on the 4R’s: Reduce, Re-use, Reinvent and Recycle. To date, the Foundation has supported 34 local and 51 overseas charities, a clear manifestation of Dubai Duty Free’s ongoing commitment to the community. In August 2015, Dubai Duty Free won top awards at the CMO Fifth Asia Best Corporate Social Responsibility Awards and First Asia Green Future Leaders Awards held at Singapore. The Best Corporate Social Responsibility Practices was presented to DDF for demonstrating its outstanding commitment to Health and Safety, Environment in the community and for sustaining stronger relationships with its employees, customers, suppliers and other stakeholders. The “Best Green Organisation of the Year” was also awarded for DDF’s environmental commitment through its people, processes and facilities. PROMOTION Dubai Duty Free runs innovative and successful promotions: including the world famous Finest Surprise Luxury Car draw, which began as a one-off in 1989 and continues to capture the public’s imagination. To date, more than 1,620 travellers from 72 different countries have now driven away with a luxury car following their purchase of a Dhs500 (US$139 approx.) ticket, which on average, draws are held once a week. It is also amazing to note there has been 22 double winners in the finest surprise promotion. The success of the Finest Surprise led to the launch, in 1999, of the Millennium Millionaire promotion to win US$1 million, which has captured the imagination of travellers around the globe. Tickets are priced at Dhs1,000 (US$278 approx.) each and limited to 5,000 ticket holders. As with the Finest Surprise draw, the Millennium Millionaire promotion has also seen six winners winning it more than once. To-date, DDF has awarded 215 winners of US$1 million. Tickets are available at dedicated Dubai Duty Free Finest Surprise counters across Terminals 1, 2 and 3, Al Maktoum International, Jumeirah Creekside Hotel, The Irish Village Shop and online at www.dubaidutyfree.com. Dubai Duty Free is highly committed to promoting Dubai through a series of high level sporting events such as the Dubai Duty Free Tennis Championships, which continues to draw some of the top players in the world including Novak Djokovic, Stan Wawrinka, Tomas Bercych, Anna Ivanovic, Petra Kavitova and Simona Halep among others. The 2015 Dubai Duty Free WTA tournament was named the ‘Premier 5 Tournament of the Year’ at the annual WTA Year- End Awards held in December. Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the tournament carries a prize pot of $4.6 million. 2016 saw Sara Errani overwhelm Barbora Strycova 6-0 6-2 to win the Dubai Duty Free Tennis Championships. In the ATP event, Stan Wawrinka held off a valiant challenge from Marcos Baghdatis to win 6-4 7-6 (13) and claims his first Dubai Duty Free Tennis Championships title. Much awareness is also created by the operation’s involvement in racing. Dubai Duty Free regularly flies the red and yellow flag overseas. Each April and September, the operation sees the running of two raceday weekends at the historical Newbury Racecourse in England and at Ascot Racecourse in August for the Dubai Duty Free Shergar Cup, and at the Dubai Duty Free Irish Derby in Curragh, Ireland each June. In May 2015, Dubai Duty Free became a title sponsor of the 2015 Irish Open Hosted by The Rory Foundation which took place at Royal County Down Golf Club. The 2016 tournament is to be staged at the K Club in County Kildare, Ireland. By supporting so many events at the highest level and all around the globe, Dubai Duty Free is effectively promoting Dubai as a sporting, leisure and business destination which is second to none. BRAND VALUES Dubai Duty Free’s reputation has been built on five business principles that were established from the outset: to offer value for money, quality of products, range of products, quality of service and ambience. The operation’s reputation for success, style and innovation suggests that it lives by these principles. www.dubaidutyfree.com l Dubai Duty Free sold 3,061,978 bottles of perfumes in 2015. l Dubai Duty Free sold 3,392 kilograms of Gold in 2015. l Dubai Duty Free sold 2,327 tonnes of Chocolates in 2015. l Dubai Duty Free recorded almost 27 million sales transactions in 2015, which average at 74,000 sales transactions per day. THINGS YOU DIDN’T KNOW ABOUT DUBAI DUTY FREE

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Page 1: MARKET HISTORY RECENT DEVELOPMENTS ACHIEVEMENTS …uae.superbrandsmena.com/pdf/pdffile1466925774.pdf · Millionaire promotion has also seen six winners winning it more than once

52

MARKETDubai Duty Free, which celebrated its 32nd anniversary in 2015, has grown into one of the biggest travel retail operators in the world, competes with airports both far from and within the Arabian Gulf region as well as the low-duty domestic retail environment in Dubai.

Dubai Duty Free expands on all fronts; it has a wide range of merchandise and is a modern success story. With strong marketing and a series of innovative promotions to help drive business, Dubai Duty Free also maintains a high profile through a range of sponsorships, which focus mainly on sporting events. It has become a major player in Dubai’s economy in becoming a word-class tourist, business and shopping haven.

ACHIEVEMENTSBased on 2015 sales figures of $1.888 billion Dubai Duty Free is now ranked as the No.1 single airport retail operation in the world.

Dubai Duty Free has received more than 500 industry awards presented by international, regional and local entities, which bear testimony to its retail success. In 2015 alone, Dubai Duty Free was presented with 27 awards including the Frontier Award for “Best Marketing Campaign of the Year by a Retailer”, US Global Traveler Award for “Best Duty Free Shop”, “Best Employer Brand” at the 2nd GCC Best Employer Brand Awards, the UK World Branding Awards ‘Brand of the Year” in Retail (Duty Free),”Superbrands” Awards ME and the Business Traveller ME Award “Best Airport For Duty Free Shopping”, among others.

Colm McLoughlin, Executive Vice Chairman of Dubai Duty Free, also added personal accolades including the Best Business Leader in Retail in December 2015.

HISTORYDubai Duty Free began when the Dubai Government commissioned Irish airport operator, Aer Rianta, to set up a duty free at Dubai International Airport. In July 1983 a ten-man team from Aer Rianta came to Dubai. Their brief was “to develop the best-ever duty free shops in the industry” and on December 20th 1983, Dubai Duty Free opened for business.

From the original Aer Rianta team of ten, three stayed on to manage the new operation. These were Colm McLoughlin, who is now the Executive Vice Chairman of Dubai Duty Free, George Horan, now the President of Dubai Duty Free and John Sutcliffe who remained in Dubai for seven years before going back to work for Aer Rianta in Moscow and latterly in Bahrain. Barely two years after it began operation, Dubai Duty Free was named “Airport Duty Free Operator of the Year” in 1985 at the Frontier Awards in France. Dubai Duty Free enjoyed an impressive sales of $1.888 billion and 27 million transactions in 2015, and has emerged as the No. 1 single airport retailer in the world.

PRODUCTDubai Duty Free’s wide range of products satisfies the needs of even the most demanding of travellers.

In 2015, Dubai Duty Free recorded almost 27 million sales transactions, which is an average of almost 74,000 sales transactions per day across both Dubai International and Al Maktoum International.

Category wise, Perfumes continued to be the highest selling category with annual sales topping US$311.58 million which represents 16.50% of total annual sales. Liquor and Cigarettes followed,

with sales of US$293 million and US$161.55 million respectively. Confectionery came in fourth place with sales amounting to US$152.37 million followed by Gold with US$150.50 million.

RECENT DEVELOPMENTSWith the opening of Concourse D in February 2016, Dubai Duty Free now operates around 34,000 square metres of retail space at Dubai International Airport. The new concourse is a modern, state-of-the-art airside facility that will serve up to 100 international airlines and eighteen million passengers annually and is reached via an elevated rail system. Concourse D takes Dubai Duty Free to an all new level, with a bright and spacious customer-friendly retail space centrally located close to a range of restaurants and the departure gates. The new retail offer covers 7,000 square metres and introduced new brands including Tiffany & Co., Burberry and Tory Burch.As a major category, Gold and Precious Stones is situated ‘centre stage’ as the passengers enter the departure lounge. Arranged as two circular counter islands and covering 350 square meters, the stylish layout encourages passengers to pause as they move through the department.

Dubai Duty Free’s first major push into online retailing is going well, a dedicated Web Shop has been centrally positioned for customers picking up items they reserved on the DDF online service.

Meanwhile, at Al Maktoum International, the operation of 2,500 square metres will grow in line with the massive development plans of Dubai South, which ultimately cover some 80,000 square metres of retail.

Meanwhile, Dubai Duty Free’s Leisure Division which includes The Irish Village, The Century Village and the Dubai Duty Free Tennis Stadium, home to the Dubai Duty Free Tennis Championships, continue to do well. Located on the same site in Garhoud, the Jumeirah Creekside Hotel, which encompasses the Aviation Club and Akaru Spa, is owned and developed by Dubai Duty Free and is managed by the Jumeirah Group. The hotel, which opened in 2012 has proven to be a popular business and leisure property. In close proximity to Dubai’s international airport it is a five star hotel of international standards. There are 292 spacious rooms and suites offering guests a refreshing interpretation of luxury and an authentic experience of Dubai.Charitable OrganisationIn October 2004, Dubai Duty Free launched the Dubai Duty Free Foundation, a charitable body founded under the patronage of His Highness Sheikh Ahmed Bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Duty Free, and with Colm McLoughlin as Chairman of the board. The Foundation, which aims to raise funds for worthy causes with a particular emphasis on causes that directly benefit children, has since donated funds to several charities, both at home and abroad.

Among the many charitable initiatives the operation has supported over the years include the funding of one village to build 32 houses

in Binotong Alangalang, Leyte following the devastating typhoon that struck the province of Leyte in the Philippines in November 2013. The Foundation also assisted to restore eyesight to 800,868 people in India and has also built houses for those affected by the 2004 Indian Ocean tsunami.

Meanwhile, as part of its Corporate Social Responsibility programme, Dubai Duty Free also encourage its over 6,000 staff members to recycle plastic waste and turn it into useful products through its Plastic Recycling Drive, and therefore collectively focusing on the 4R’s: Reduce, Re-use, Reinvent and Recycle.

To date, the Foundation has supported 34 local and 51 overseas charities, a clear manifestation of Dubai Duty Free’s ongoing commitment to the community.

In August 2015, Dubai Duty Free won top awards at the CMO Fifth Asia Best Corporate Social Responsibility Awards and First Asia Green Future Leaders Awards held at Singapore. The Best Corporate Social Responsibility Practices was presented to DDF for demonstrating its outstanding commitment to Health and Safety, Environment in the community and for sustaining stronger relationships with its employees, customers, suppliers and other stakeholders. The “Best Green Organisation of the Year” was also awarded for DDF’s environmental commitment through its people, processes and facilities.

PROMOTIONDubai Duty Free runs innovative and successful promotions: including the world famous Finest Surprise Luxury Car draw, which began as a one-off in 1989 and continues to capture the public’s imagination. To date, more than 1,620 travellers from 72 different countries have now driven away with a luxury car following their purchase of a Dhs500 (US$139 approx.) ticket, which on average, draws are held once a week. It is also amazing to note there has been 22 double winners in the finest surprise promotion.

The success of the Finest Surprise led to the launch, in 1999, of the Millennium Millionaire promotion to win US$1 million, which has captured the imagination of travellers around the globe. Tickets are priced at Dhs1,000 (US$278 approx.) each and limited to 5,000 ticket holders. As with the Finest Surprise draw, the Millennium Millionaire promotion has also seen six winners winning it more than once. To-date, DDF has awarded 215 winners of US$1 million.

Tickets are available at dedicated Dubai Duty

Free Finest Surprise counters across Terminals 1, 2 and 3, Al Maktoum International, Jumeirah Creekside Hotel, The Irish Village Shop and online at www.dubaidutyfree.com.

Dubai Duty Free is highly committed to promoting Dubai through a series of high level sporting events such as the Dubai Duty Free Tennis Championships, which continues to draw some of the top players in the world including Novak Djokovic, Stan Wawrinka, Tomas Bercych, Anna Ivanovic, Petra Kavitova and Simona Halep among others. The 2015 Dubai Duty Free WTA tournament was named the ‘Premier 5 Tournament of the Year’ at the annual WTA Year-End Awards held in December. Held under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the tournament carries a prize pot of $4.6 million.

2016 saw Sara Errani overwhelm Barbora Strycova 6-0 6-2 to win the Dubai Duty Free Tennis Championships. In the ATP event, Stan Wawrinka held off a valiant challenge from Marcos Baghdatis to win 6-4 7-6 (13) and claims his first Dubai Duty Free Tennis Championships title.

Much awareness is also created by the operation’s involvement in racing. Dubai Duty Free regularly flies the red and yellow flag overseas. Each April and September, the operation sees the running of two raceday weekends at the historical Newbury Racecourse in England and at Ascot Racecourse in August for the Dubai Duty Free Shergar Cup, and at the Dubai Duty Free Irish Derby in Curragh, Ireland each June.

In May 2015, Dubai Duty Free became a title sponsor of the 2015 Irish Open Hosted by The Rory Foundation which took place at Royal County Down Golf Club. The 2016 tournament is to be staged at the K Club in County Kildare, Ireland.

By supporting so many events at the highest level and all around the globe, Dubai Duty Free is effectively promoting Dubai as a sporting, leisure and business destination which is second to none.

BRAND VALUESDubai Duty Free’s reputation has been built on five business principles that were established from the outset: to offer value for money, quality of products, range of products, quality of service and ambience. The operation’s reputation for success, style and innovation suggests that it lives by these principles.

www.dubaidutyfree.com

l Dubai Duty Free sold 3,061,978 bottles of perfumes in 2015.l Dubai Duty Free sold 3,392 kilograms of Gold in 2015.l Dubai Duty Free sold 2,327 tonnes of Chocolates in 2015.l Dubai Duty Free recorded almost 27 million sales transactions in 2015, which average at 74,000 sales transactions per day.

THINGS YOU DIDN’T KNOW ABOUTDUBAI DUTY FREE