Bahrain Duty Free
Lighting the way for luxury at Bahrain Duty Free
Bahrain Duty Free has placed a strong emphasis on an expanded luxury offer since the new Bahrain International Airport terminal opened in January 2021. In this feature Head of Purchasing Richard Wilkinson assesses the strategy and latest developments.
Fashion & accessories represents around 15% of Bahrain Duty Free sales, a figure that Head of Purchasing Richard Wilkinson says can rise higher with the continued strong focus on the category.
Luxury is already an anchor within the 4,700sq m Bahrain Duty Free retail arena at Bahrain International Airport, with impressive zones for fashion, sunglasses and jewellery, among others.
Wilkinson says that the offer is tailored to the expectations of consumers for high-end global brands.
“Our passengers are used to seeing these luxury brands in the top European department stores and the aim for us is to bring them closer to those passengers. We know that the Middle East luxury market is set to double by 2030 so there is real opportunity for growth. We also see a significant growth in our premium fragrance category which we believe would translate well to luxury on many brands.”
The luxury offer at Bahrain Duty Free spans multiple sub-categories and price points
Working with brand partners on merchandising and best practice, the company can match the retailing standards that consumers see elsewhere, he adds.
“We have been working very hard on ensuring the offer follows the seasonal demands and that our communication ties in with this in store and on social media. We have also recently launched our new ecommerce platform which we are very proud of, and we want to continue to engage with shoppers across more channels in a consistent manner. We are always on the look out for newness from existing and potential new partners.”
Those partners contribute much to the quality of the offer by providing insights and guiding selections, alongside standards of retail excellence, says Wilkinson.
“Where we feel that there could be room for improvement is by extending some of the domestic campaigns into travel retail or by replicating the kinds of installations that you see domestically for seasonal periods. We recognise that this often requires engagement from different stakeholders and can take time. I feel it is something that is improving but it could go further.”
A haven for watches, fashion brands and sunglasses
In terms of trends, Bahrain Duty Free is seeing increased demand for established brands in luxury and a propensity among consumers to spend more on luxury goods. “There are, of course, always new brands that become very sought after but most of the requests we see are from established brands.”
As to emerging sub-categories within luxury, the company singles out leather accessories, sunglasses and luxury jewellery as high-potential areas for the business.
“We have seen a real shift with customers prepared to invest in luxury accessories across these categories,” notes Wilkinson.
All of this leads to opportunity across the luxury sector, even if the retailer cannot fulfil the demands of brand owners every time.
Alongside classic luxury, beauty can play a role in elevating the experience, says the retailer
“There are often significant requirements for the space required for individual luxury goods brands which we fully understand from brand perspective. This can be a challenge sometimes and can limit the ability to introduce brands as the investment from all parties is significant.
“Finding more inventive ways to enter stores through shorter term installations even with limited categories may allow everyone a little more comfort. We have seen growth in our luxury fragrance business. There could be opportunities to invest in cross-category store concepts with brands such as fragrances, sunglasses and accessories together.”
On how Bahrain Duty Free can tap into the appetite for luxury among a new generation, he concludes: “There is real opportunity with younger shoppers in the region. I believe we have some 60% of the regional population under 25. They are extremely aware of international brands and the latest trends, they know where and how to shop and they value premium shopping and experiences.”
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The Moodie Davitt eZine
Issue 327 | 29 September 2023
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