Page 46 - IAADFS 2022 hi-res

INSIDER

Duty Free Dynamics’ “added-value” concept eyes global expansion

Nicolas Dobry spoke at length with TMI’s Lois Pasternak about the latest evolution of his fast growing company, Duty Free Dynamics,
and how he sees bringing non-core categories will deliver much needed opportunity, value and excitement to the travel retail channel.

Duty Free Dynamics (DFD) began two years, and then expanded to North
operating in the travel retail channel in America. We knew it was necessary to
2015, distributing Guess watches in Latin begin with a conservative approach with
America and the Caribbean, establishing a streamlined focus. But this business is
Guess as a leader in the fashion watch called WTR – World Travel Retail – and
category in the channel. Following this there is a reason for the ‘W’, right?”
achievement, DFD added more brands to Dobry argues that there are three
the watch portfolio to cover all segments reasons why his global view is critical for
from entry level Timex to luxury Oris and future growth.
Frederique Constant. 1. Audience. “Travel retail works with
But DFD founder Nicolas Dobry a global client regardless of the location
envisioned a broader path forward for the where the shop is. Maybe the mix of
company, one that focused on what he calls nationalities can change from one location
“non-core”-- products outside of the main to another, but it is a global audience.
beauty, liquor and confectionery categories. Whether the airport is in Buenos Aires, Sao
By the time Cannes came around in 2019, Paulo, Vancouver, LAX or even Narita,
the company had expanded into footwear, Toyko, the passenger mix is global. The
apparel, outwear and travel gear, handbags mix might be more American in one place,
& small leather goods, writing & arts, toys, Nicolas Dobry more European or Asian in other places,
and electronics, in addition to its high and but it is still a global consumer.”
mid-range fashion watches; and now has 2. Operators. “The operators are also
added some wellness products to the mix. plans since the very beginning. When we global. A large proportion of the business is
Looking to provide added value to started DFD back in 2015 we knew we done by global operators who have a global
both his brand partners and the retailers were going to begin at one level but in presence.”
with whom they work, Dobry also realized order to move forward we knew we would 3. Brands. “And a brand’s vision, with
that DFD needed to take a more hands- need to upgrade, to gradually globalize our regards to the world travel retail business,
on approach to help the brands get closer reach,” Dobry tells TMI. is global. Many of the top players within
to the final consumer. To this end the Saying that he saw a gap in the market the core categories consider travel retail as
company developed a model to develop a for a company providing added value the sixth continent. It needs to be handled
range of retail concepts, from full mono- service in the travel retail industry, and as its own entity, as its own continent, with
brand stores to premium shop-in-shops, opportunity in the non-core categories, a global vision.”
and pre-COVID had begun opening some Dobry knew that nevertheless he had to “So from the beginning, we knew that
interesting concepts in airports, border develop the business step by step, and learn somewhere along the line we would need
shops and cruise ships. what he could along the way. to globalize,” stressed Dobry.
Dobry has now unveiled a new plan “The non-core categories were Even when operating as a distributor
that focuses on further developing these unexploited or non-existent. There under “the old-fashioned wholesale
non-core category retail concepts and were some non-core categories that model,” Dobry realized that his brand
expanding them into the global travel were commercialized in the channel but and manufacturer partners wanted to be
retail marketplace, first within its current they were not properly handled. Other closer to the end consumer, and needed the
home market (The Americas), followed categories were not present at all in the most accurate, fast, reliable and efficient
by EMEA (starting this year) and to channel. information, “big data,” in order to do so.
complement its globalization process with “This is where we envisioned the “To reach the end consumer directly
its landing in APAC (planned for beginning opportunity to be, but we needed to start gives you a lot of leverage. We live in a
of 2023). somewhere and began with developing very competitive world, and the ability to
“Expanding Duty Free Dynamics Guess watches throughout Latin America be closer to the consumer can give you
to EMEA and APAC has been part of the and the Caribbean. But our game plan huge leverage,” explained Dobry.
was to expand into many other categories “But in most cases non-core brands,
within these non-core products. We started especially, do not have a department
in Latam and the Caribbean, and went dedicated to or proficient in travel retail.
through the learning curve for one or They need an expert like DFD that wants

Summit of the Americas April 2022 46