Andrés Garavito

Dufry · El Dorado · Marketing Leader · Jul 2017 to May 2018 · Bogotá

Launching duty-free at Latin America's busiest airport.

The airport is not a store. Awareness is given; capture rate and ticket have to be earned.

Bogotá Duty Free, main store, El Dorado

At a glance

0

commercial concepts, 50,000 SKUs, 3.77M monthly passengers

+0%

sales, with repurchase rate +17%

Total sales vs prior period, repurchase rate +17%

51% → 47%

promotional pressure in liquor, growing sales at full price

Share of liquor sales sold on promotion

  • Right hand to the Country Manager across marketing, commercial and operations
  • 100+ associates trained to 100% certification before opening
  • Prime retail space negotiated to 100% brand occupancy

Context

In October 2017, Dufry and DFASS opened the first duty-free operation at Bogotá's El Dorado: ten stores across 3,200 square meters at launch, fifteen concepts by January 2018. Beauty, fragrance, spirits, confectionery, eyewear, leather goods, fashion, electronics and Hudson convenience, under one operation and hundreds of prestige houses including LVMH brands, Chanel, Dior, Carolina Herrera, La Mer, La Prairie, Bottega Veneta, Montblanc, Luxottica, Michael Kors, Moët and Absolut.

Challenge

Build a marketing function from nothing for an operation opening store by store while the terminal was still under construction, with global brand standards and a local team new to travel retail. The role grew well beyond marketing.

What we did

Commercial.

Negotiated prime retail space, taking brand occupancy to 100% and bringing in new international brands; supported global brand negotiations. Built the promotional space program, the promotional calendar and the markdown logic for fashion.

Floor and warehouse.

Hands-on operations during the launch: inventory control, replenishment and assortment across 50,000 SKUs and fifteen concepts.

Brand and customer.

Visual merchandising, in-store communication and custom brand furniture across every concept. Thinking Colombia, the program for Colombian products. Red by Dufry, the loyalty program, launched in the market. A floor team of 100+ associates certified before opening.

The airport as a trade area.

There is no neighborhood to walk. The trade area is the flight schedule: sales analysis by airline, flight and destination drove assortment, promotion timing and staffing by time slot.

The airport as a trade area
The airport as a trade area · airline, flight, destination and time slot drive assortment, promotion and staffing
Bogotá Duty Free entrance near gates 13 to 52
Bogotá Duty Free entrance with confectionery displays
El Dorado airport terminal exterior
Red by Dufry loyalty program

The campaign calendar · Dec 2017 to May 2018

Six months, four campaigns and a loyalty launch.

Fifteen concepts opened in December and the calendar never stopped: the opening offers, Dufry's first global promotion of the year localized for Bogotá, the launch of RED by Dufry, the loyalty program, and a signage system for Colombian products. Every implementation was photographed and reported monthly to Division 4 in Miami.

  • Grand Opening Offers at the Main Shop entrance

    Dec 2017

    Grand Opening Offers

    Lightboxes, islands and end caps across Main Shop, North Mall and Hudson

  • Make it Yours island in the Main Shop

    Mar 2018

    Make it Yours

    Dufry's Global Promotion 1, localized: totems, islands and the tasting bar

  • RED by Dufry registration piece

    Apr 2018

    RED by Dufry

    Loyalty program launch: capture points, lightboxes and five registration pieces with QR

  • Colombia corner in the Main Shop

    Apr 2018

    Made in Colombia

    Label and signage system for local coffee, food, liquor and jewelry

Implemented in Main Shop, North Mall, Hudson and the luxury boutiques · reported monthly to Dufry Division 4

Store Guidelines: Main Shop promotional map

Store Guidelines, Division 4

The vendor guidelines for El Dorado: every promotional space in Main Shop and North Mall mapped and specified, from high-profile podiums and tasting bars to lightboxes, video walls and hostess coverage. The document a brand reads before it buys visibility in the store.

RED by Dufry in-store communication system

RED by Dufry, in store

The loyalty program's launch in Bogotá: capture points in Main Shop, Luxury and North Mall, lightboxes, column wraps, the point-of-sale front and the registration pieces, all specified to the millimeter for the printer.

Made in Colombia label system

Made in Colombia

A label and signage system with the flag and the price, so the traveler finds the Colombian assortment at a glance: coffee, confectionery, liquor and jewelry. The seed of the local-products platform planned for the year.

What I learned

In travel retail the sales associate is the only touchpoint the brand controls, which is why training came before anything else. Growth at full price came from negotiating brand-funded activations, gifts with purchase and better displays instead of discounts. And when a role blurs, you can defend the job description or run toward the gap. That year taught me more about operations than any other.

When a role blurs, you can defend the job description or run toward the gap.