DFS
price, discount and purchases. Maturity naturally is the ability to appreciate the quality behind brands—the craftsmanship and heritage.”
“It's clear to DFS that the experiential elements must be enhanced and developed massively, both at the airport stores and downtown retail stores.”
One size doesn't fit all Once DFS was aware of the vast and increasing number of Chinese travelers, the retailer soon came to understand that although luxury will always exist and thrive, bespoke service and luxury products are not enough. What was needed more than ever was a more personalized experience for consumers. "It's clear to DFS that the experiential elements must be enhanced and developed massively, both at the airport stores and downtown retail stores," says Schaus. "This is if we are to maintain a high level engagement for our customers in this high paced, short attention-spanned world." In order to provide a more personalized experience, DFS needed to further understand the Chinese consumer profile, which is highly diverse and far from uniform. "China probably has the highest diversity of customers of any country in the world," says Schaus. "When you look at the PSC (DFS’ Platinum Services Club) customer, one size doesn't fit all—you have to be flexible. It's about sophistication." Part of being sophisticated as a retailer, according to Schaus, is maintaining sophisticated marketing campaigns and events, which is why DFS has organized events for its customers around the world, including Asia and China specifically. Recently, DFS held an event in Macau, its fourth "Masterpieces of Time" exhibition, showcasing 31 of the world’s preeminent luxury and watchmaker watch brands, which
The retail component, which opens end of the year will total 10,000 square meters and will include 21 retail categories of duty free commodities
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ASIA DUTY FREE & TRAVEL RETAILING MAY 2013
Philippe Schaus, Chief Executive Officer, DFS Group attracted customers from all over Asia and provided them with "a strong element of energy, discovery and learning." Schaus says the event wasn't about selling watches; it was about creating sophistication, educating the customer and creating a personal experience. "It's about bringing in visual merchandising concepts which are powerful," says Schaus. "We have a concept right now called ‘Passage to Paradise’ in our stores which is very powerful. Then it's about how we train our staff, and we have been putting in enormous effort for the last three years into moving from transaction mode into relationship mode."
Coming home In addition to the realization that the Chinese consumer requires a personalized and sophisticated shopping experience, DFS also recognized the need to bring the Chinese consumer home. With a large portion of Chinese consumers spending overseas, DFS felt there needed to be a significant focus on driving international travel retail into China from abroad. "We know from recent reports that China will become one of the world's
three international travel destinations by 2020," says Schaus. "Let's offer these international travelers a sophisticated shopping and entertainment experience in China." This goal led DFS to work together with Hainan Provincial Duty Free Company Ltd (HNDF) and Mission Hills Tourism Town Center in Haikou, China to build an off-airport store. Set to open by December 2013, the new downtown retail space not only marks a major milestone for the offshore duty free retailer, but also an expansion of its partnership with DFS. "We're a big believer in offshore duty free in providing great value to the consumer as well as keeping the shopping at home, so allowing the Chinese to travel within China and get the same value they would get from traveling abroad," says Michael Shriver, COO DFS. "A significant