The Trinity Forum: DFS Group
DFS Group – Towards an integrated travel retail world
DFS Group Chairman and CEO Benjamin Vuchot offered a glimpse into the future of luxury travel retail in a fascinating conversation with The Moodie Davitt Report Founder & Chairman Martin Moodie to begin day two at The Trinity Forum.
Vuchot began with a call-out to the industry community. “The future is now and we have to embrace the change that has happened over the past three years.”
Despite macro-economic and geopolitical uncertainties, Vuchot said he remains confident about the prospects for travel retail. He said: “As the world goes through unprecedented change, travel retail is poised for growth and we are confident of the positive growth forecasts. And we have not yet even seen the full recovery of Chinese passengers. We will see new frontiers opening up for this customer.”
Vuchot said the pandemic offered a chance to reassess DFS’ business, while taking into account that the customer has changed.
“The team and I were really keen to reinvest and reinvent,” he said. “We didn’t stand still during the crisis but introduced new imagination wherever we reopened.”
Benjamin Vuchot (speaking to Martin Moodie): Developing ‘destinations within destinations’ a key DFS strength
This approach has translated into significant investment in the channel, particularly across DFS Group’s stores in Hawaii, Hong Kong and Macau, among other locations.
Innovation has been high on the agenda, said Vuchot, with the drive to create ‘destinations within destinations’ and creatively fusing the best of local and international in the retailer’s new and upgraded stores.
Central to its latest investments is the building of integrated travel retail environments that go beyond just shopping.
DFS Yalong Bay will become Sanya’s premier destination for luxury shopping, world-class accommodation, dining, and entertainment, serving international and domestic tourists with innovative, renowned luxury brands and experiences, the company has pledged. Vuchot hailed the “world-class, seven-star luxury retail and entertainment space” as a transformational project for DFS Group, across a 128,000sq m site.
Vuchot said: “This will be one of what we call our integrated destinations. We need to understand that the customer is not just looking for price or product. They want an experience, but to create an experience you also need entertainment, you also need to cater to families, you need to ensure dwell times increase.
“Here, the brands have also been incredible as they too want to bring a new way of delivering retail in this amazing market. Everybody has responded positively to this challenge, It will be an amazing achievement for the community of travel retail, all with the end consumer in mind. It really is travel retail-plus-plus.”
Other examples of this integrated include a new downtown duty free location in Brisbane, set to open next year. Vuchot said. “This opens a new frontier for us in a fast-growing city and one that will host the Olympic Games in 2032.”
Vuchot also reiterated DFS’ commitment to airports, underlined by its recent luxury openings at Chongqing Jiangbei Airport.
Other factors that will drive a transformed future will be technology – Vuchot cited the importance of the retailer’s relaunched loyalty programme, DFS Circle – which should engage even more deeply with members.
“We must understand that the consumer will shop wherever, whenever and however they want”
DFS Group Chairman and CEO Benjamin Vuchot
“Technology is an enabler, We must understand that the consumer will shop wherever, whenever and however they want. AI is a way for us to stay connected, via our new chatbot, and that can help us keep up the pace of our innovation. We take technology and experience seriously and this shows us how we can do that.
“We also need to bring content and make shopping more personal for shoppers. That’s what our Masters series can do, and what our DFS Circle programme can do.”
Differentiation must be a signature of travel retail environments, added Vuchot. “Sense of Place, having the right product in the right setting, and connecting with the traveller as early as possible is key. We also need to involve other partners whether it’s for payment or bookings, to create a gateway to customers to discover the world of luxury shopping. That sense of community and partnership is incredibly important for the future of the Trinity.”
In a closing message, Vuchot said: “I want to convey a strong sense of optimism. We have this amazing group of travelling customers that is only growing. We should celebrate the great partnerships we have in travel retail and the great innovation we can do together. The future is bright and positive.”
Benjamin Vuchot with Martin Moodie on stage at the Regala Hotel venue for Trinity 2023
Partner's message
The Moodie Davitt eZine
Issue 329 | 22 November 2023
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com