Page 47 - IAADFS 2022 hi-res

INSIDER

to partner with them and is able to deploy
them in this channel,” he continues.
Although starting as a distributor—
which still makes up the majority of its
business -- Dobry knew that at some point
DFD would transition from selling goods
and change from being a “wholesale
distributor of products to become a
developer of brand concepts.”
This is the direction in which Duty
Free Dynamics is heading, he notes. DFD’s
new Master Plan has two main focuses: its
new approach to the trade channel and its
gradual globalization process.
Self-sustainable Brand Development
The company will be focusing on
brands within its existing portfolio that
Dobry believes can be self-sustainable
under a brand concept shop, he says. of forms, says Dobry; it could either be a achieve a substantial return per square feet.
“We started discussing this idea a few joint venture or a model where each party This format has already been tested both
years ago with some of our brands and are contributes with their best values. domestically, and within an interesting
now in the final stages of our agreements. “Selling apparel or footwear, for number of duty free locations opened
We are also in talks with brands not example, demands extensive knowledge of worldwide, with phenomenal results.”
currently in the portfolio. Our focus will be sizes and inventory management, which due “We are also developing the F (Focus)
in developing mono brand retail concepts to limited space in an airport store location model with Anne Klein. We started with
throughout the world in the travel retail entails quick replenishment. We have that Anne Klein watches around two years
channel. We already started this new operational infrastructure in place. ago, then incorporated handbags and small
approach in the Americas.” “In order to stay competitive today, leather goods, working directly with the
Internally, Dobry calls these brands you need to make an airport more like a Anne Klein brand owner (Steve Madden),
which have the potential to support a shopping mall and for that the industry with whom we are jointly creating a new
branded boutique the “F Model,” for needs to broaden its product offering. In visual merchandising format for concept
“Focus.” order to properly diversify, you need to shops, and shop-in-shops that will carry
“This year we will gradually enter the develop the non-core categories and make Anne Klein accessories, namely handbags
EMEA market. For this purpose we have them become a substantial part of your and small leather goods, as well as the
opened our new global / commercial HQ business,” he says, adding “demand for the watches. We will be adding on new licenses
in Barcelona, Spain, and in 2023, we plan core categories is mostly saturated. There is in categories like sunglasses, and maybe
to start in APAC. We are planning to open very little room for growth.” footwear in the future. We are jointly
an office in Hong Kong towards the end of DFD has been in discussions with using the travel retail channel as a proof of
this year.” some partners to expand its coverage into concept.”
the EMEA region for more than a year, but At the same time, Duty Free
Local partnerships Dobry says that the pandemic and current Dynamics will continue to develop the
The retail side of DFD’s business situation in Eastern Europe may slow distribution-based model it is currently
model calls for local partnerships, says down the progress but not alter his plans using, which is still the biggest part of the
Dobry. to globalize: “We are going ahead with the business. But within the next 3-5 years
“While we are focusing on brands expansion, but it is more like a soft landing Dobry sees the “Focus” model gradually
that could be self-sustainable in their now instead of the final approach,” he becoming the main part of DFD´s business.
own mono-brand retail outlet, we are quipped. “We had a clear vision of where we
partnering with our solid network of global Dobry said DFD will announce the were in 2015 and where we wanted to go.
and regional operators or local investors, new brands and locations where it will be Despite all the obstacles during the past
depending on the strategy that we envision working before the end of this year, but few years, we are consistent to that vision.
for each market or sub-region, with the revealed that DFD already has three major We are still on the path,” concludes Dobry.
aim to use their proven expertise. We brands that meet its “F” (focus) model “We received lots of proposals with
bring them the content (the brands, the within the existing portfolio: Champion, different opportunities, but we thought
operational manuals, and our experience in New Era and Anne Klein. they would have distorted our focus. We
developing sustainable economic models “Champion is probably one of the are sticking to our initial target of where
within the world of non-core categories). hottest sports/apparel brands with a global we saw ourselves going from 2015 to 10
They bring their operations knowledge and appeal. The same with New Era, whose years ahead. It might take us a little longer
expertise, and together we develop these caps and hoodies are exploding. For New to reach our original 2025 target, but
business concepts.” Era, the requirements are minimal: a small regardless of the challenges of the past few
The partnerships can take a variety shop of 250-300 feet, thus allowing to years, we are still going the same way.”

47 April 2022 Summit of the Americas