UAE. “We are a company at the start of our journey. Being in airport retail, and at Dubai International Airport, will help us tell our story and to spread our message far and wide.”
That’s how Mira Duma, Founder of Pangaia, described the significance of the eco-brand’s first stand-alone store at DXB Concourse B, Terminal 3, which was inaugurated on Monday.
As reported earlier, the responsible materials science brand, which is just four years old, revealed a 182sq m store in the concourse in partnership with Lagardère Travel Retail, in space formerly occupied by an Emirates Unaccompanied Minors Lounge, now relocated.
The Moodie Davitt Report was the sole media to attend the inauguration, and spoke to brand owner, retailer and airport company about the significance of the moment.
Duma noted that the brand was born as an online, direct-to-consumer proposition, but that it began to explore opportunities in physical retail as consumers returned post-pandemic. This began with partnerships with selected department stores from London to New York to Paris and Milan, with Dubai International representing a first standalone outlet.
“The idea came from our good friend Talha Al Hashimi of HWH [in Q1 2022, Lagardère Travel Retail struck an agreement to acquire a majority share and controlling interest in Dubai-based HWH Hospitality Investments’ food & beverage operations -Ed], who said we should consider extending our expansion and mission to new platforms.
“We then met Dubai Airports who were also looking for something visionary, and ways to give back. This is what we are trying to combine: a commercially successful business with an Earth-Positive mindset, and to back more than we take from the earth.”
As reported, the store entrance features a striking digital fascia that offers a peek into Pangaia’s ethos, with the interior a more muted, quiet space designed for exploration and discovery. The custom-built terrarium is a central feature that draws the eye while natural soundscapes and an invigorating scent in the fitting rooms emulates the experience of being immersed in a forest.
The store has been mindfully designed around locally sourced finishes, natural materials and energy-efficient LED lighting throughout.
Of the product offer, Duma told us: “It’s premium lifestyle with purpose. We talk about fashion being ‘for a reason not for a season’.
“It’s also universal: a t-shirt is something a three-month-old can wear, or a 90-year-old can wear. The same applies to the ubiquitous hoodie. Then you have shoes made of grape leather, and other ranges that are coming including socks, sleepwear, recycled cashmere – we’re soon launching spider silk cashmere – puffer jackets, scarves, hats, backpacks and wallets made of planet-based leather.
“These are basically essential items that many people in the world have in their wardrobes, that are comfortable, convenient, lifestyle and travel-related.
“We wanted to bring some amazing materials science innovations to a wider audience through products that are for everyday use.
“Since 2020 people have come back to physical retail and they want that interaction. This store is a way for us to keep introducing Pangaia to new people and get them onboard as followers, as customers, as members of our community, as people who will engage with our content, offline or online.”
In related news, Pangaia management announced the creation of a worldwide coalition of organisations to support biodiversity and nature, with Dubai Airports signing a letter of intent to become a partner. The timing is auspicious, with COP 28, the 2023 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, set to take place in Dubai from 30 November to 12 December.
“It’s a story of human connection to nature and biodiversity,” said Pangaia SVP of Impact & Philanthropy Eva Kruse. At the heart of this is our Bee The Change fund, which highlights how bees and pollinators play an integral role in the functioning of the world’s ecosystems and how they are disappearing at an alarming rate.
Kruse said: “Bees sit at the centre of the whole food chain; all life begins with pollination and they are so crucial here, so we have set ourselves a trillion bee target. Bees are the pin-up for this biodiversity and nature agenda. Through sales from this store we’ll also support the Bee The Change initiative.”
“A leap of faith” – the retailer view
Lagardère Travel Retail UAE Chief Executive Vadim Motlik told The Moodie Davitt Report that the company was on the lookout for brands that would interest the changing consumer audience at DXB, and Pangaia also matched its own strong sustainability focus.
“We didn’t know we would end up opening such a large flagship for [Pangaia], which is a leap of faith for brand, retailer and airport.
“We had the opportunity in this prime location, and all of us wanted to do it. It was a very interesting journey. We set ourselves the date of 5 June, World Environment Day, which was even earlier than we had set out in the contract. But all three parties came together to make it happen.
“It’s the beginning of a journey. Pangaia is looking at many opportunities, we’ll take a lot of input from the brand and there is much to optimise and improve. We can do much more in the coming months and years.”
Motlik said that the Earth-Positive message is a compelling one for travellers, with particular resonance for the increasingly young demographic at DXB.
“Pangaia does not highlight the negative, they highlight the positive impact that we can have. I like this idea and I feel there are many people who travel though airports, who love travelling, but who feel a little guilty about it. It shows that we can do good things for the world that are inspiring. And we were happy that Pangaia was willing to come into this environment that is not always considered the most sustainable.
“If you look at Concourse B, the majority of passengers are Gen Z or Millennials. These people are interested in different things including sustainable products, experiential retail that ranges from the scent in the fitting room to the natural soundtrack that makes it sounds like an oasis. It fits with this demographic.”
The project also chimes with trends across the retailer’s network. “We see in our stores, for example in travel essentials, that we have highlighted sections where people can find sustainable products. People in particular in their 20s who we need to appeal to. It’s a strong trend.”
Among the key messages so far, said Motlik, is that what sells downtown and at airports can be different.
“We have had to replenish fast on some goods before peak season, which begins with Eid at the end of this week. For instance t-shirts are doing very well, as are Pangaia best sellers such as hoodies. So we have had to rebalance the mix a little. We have some items that are still missing but will come, such as a fully sustainable Pangaia bottle, or a number of accessories.
“What is also interesting is the conversation with the brand about items that are maybe a little more personalised and localised, or having a limited range of sustainable travel accessories.”
On the potential for further development of the concept between Pangaia and Lagardère Travel Retail, Motlik added: “I hope it will be an international partnership. We have a lot of eyes from across our group on us to see that we hit our targets, which we are doing so far. I am confident there is a future in other airports.”
He also said that the first two weeks of trading since 5 June (World Environment Day) had been ahead of budget, noting that regardless of the concept, it had to meet its financial targets.
“We want to offer an experience that is enjoyable, but we believe there is no conflict between that and driving a successful economic outcome,” said Motlik.
“At an airport like DXB, it is vast but it has peaks and downtimes like anywhere else. People have three, four, five hours often after they arrive here and they want to discover something new. You have time to engage people with a brand like Pangaia, on the technology behind the products, on why they are unique and how Pangaia makes a difference. So there is a great opportunity to carry the message of the brand to a wider audience.”
“We will learn with the brand” – the airport view
Dubai Airports EVP Commercial Eugene Barry hailed the opening, and outlined how the partnership took shape from an airport company perspective.
“Through the pandemic we supported all our partners equally and through that process gained a strong understanding of their strategic intent and where they were going.
“As an outcome of that, Lagardère Travel Retail proposed Pangaia to us and it ticked so many boxes in developing and evolving our existing approach to leisurewear through H&M, adidas or Pink by Victoria’s Secret, for example.
“We were looking for the next evolution of that and Pangaia offered a different kind of lifestyle brand with sustainability credentials. And those credentials will drive interest in the store alongside the design and the product.”
He also acknowledged that the concept had to prove itself as a commercial addition to the airport portfolio.
“Pangaia is operating as a concession. It has a business plan to meet and early indicators are that it is meeting that business plan. It’s always a managed risk when you dedicate space to a particular brand, especially for the first time, but we really believe in the brand and its potential. And it represents a great opportunity.
“We are not a landlord that sits back and has a conversation once a year. We are active in design, contract management, store audits, business improvement opportunities, and have ongoing conversations around all of these each day. We will learn with the brand.”
Barry added the introduction of Pangaia came at a significant moment in the commercial and consumer development of the airport, as travel returned.
“After all that has happened in the world over the past couple of years we have placed a big focus on the guest experience. People’s expectations have changed around essentials, around personal wellness, alongside a deeper interest in the environment, how products are sourced, in food but also in retail.
“As Dubai Airports we are committed to the environment strategy that every airport is, and that is especially the case in the Year of Sustainability here, and with COP28 taking place later this year.
“There’s also a focus on the resurgence of travel, and in Dubai as we were an early beneficiary of that return, and as a crossroads of travel, we can see how consumer tastes changed.
“We also invested through the pandemic with our partners, investment that had been planned all the way before COVID. With Pangaia this initiative came post that period, and it reflects our new thinking. That thinking is around what new products we want to put into the spaces we adapt or create and it showcases the new direction we are going in.”
He said that by working closely with the brand owner, as well as the retailer, Dubai Airports was able to “learn more about the brand than maybe we would in more conventional ways of managing spaces at airports, and come to a position where the design of the store and the product offer would reflect the aspirations we had from a guest experience and a sustainability point of view.”
He added: “Guest experience, sustainability and service, reinforced by revenue potential, are going to be big drivers of success for us going forward and will reflect our direction as an airport.”
Sustainability as a driver of business, even as a category in its own right, is certainly here to stay, said Barry.
“It is embedded in everything we do. In 2015 we were first airport in the region to reach Level 2 Carbon Accreditation with ACI. 60% of our landfill this year is diverted and 40% of our food waste is compostable. We are showing commitment in many areas such as this or in how we responsibly manage resources such as water.
“Working with a science-based brand that is sustainable is our first step to choosing partners that have these credentials from the beginning. People consume in more conscious ways, they are interested in source materials and many of our growing base of younger travellers are thinking this way, as are older travellers in their choices of what brands to support.”
Concluding, Barry offered an upbeat assessment of commercial prospects at DXB for the year.
“We are seeing higher average transaction values in shopping, eating, lounge access and other areas than 2019, with new demographics playing their part.
“We have over 70 projects with new or changing spaces and tenders for new operators and brands, among these space conversion projects such as the Pangaia store. We will have a lot of interesting projects to talk about later this year.
“We revised our passenger forecast for this year and are expecting 83-85 million passengers, compared to our high of 88 million in 2019. In the first five months traffic was at 95% of 2019 levels, and our commercial performance will exceed 2019 with almost the same traffic. We are very happy with that.” ✈
