SOUTH AMERICA. Top Brands International has officially opened its much-anticipated downtown duty-free operation in Foz do Iguaçu.
The store, branded as Luryx Duty Free, features 2,700sq m of retail space across two levels and was inaugurated on 13 March.
As reported, the retailer last year signed an exclusive contract to open a duty-free store at Dreams Park, a key tourism location in the region, close to the borders of Argentina and Paraguay.
Designing the experience
The store soft-opened to the public on 9 January with around 65% of the product range available across categories.
Neutral by Luryx CEO Marcelo Montico said, “We have now reached 100% of our product offering, and the store looks incredible.”
Luryx was motivated by a clear principle when designing the store, said Montico – ‘If it doesn’t inspire, it doesn’t work’.
He added: “From the outset, our vision was for the store to blend seamlessly with the jungle and natural surroundings of Foz do Iguaçu. As a result, the shopping experience becomes an extension of the region’s recreational tourism, allowing visitors to feel that Luryx Foz is truly part of the Falls.”
The look and feel blends soft, natural tones with greenery and vegetation, while the product mix has been curated to drive a higher average purchase value.
The entrance level features an 8m-high ceiling, enhanced by large LED screens displaying live footage of the nearby waterfalls.
Click above for a video tour of the Luryx Duty Free space
This level showcases a broad, diverse beauty assortment, combining the category’s core brands with an emphasis on innovation both in brand selection and in presentation, said the company.
In addition, this floor offers accessories, eyewear, watches & jewellery, destination products, travel gear, hair care, a dedicated Korean cosmetics area, a section focused on a wellness lifestyle philosophy, as well as leading clothing and sporting goods brands.
Via escalators or elevator, guests can access the lower level, which features an extensive whisky selection, with a special focus on exclusive single malts. This floor also includes regional and international wines, beers and a comprehensive assortment of the most popular beverages.
An open bar, where customers can sample new product launches in an immersive setting, lies at the heart of this space. A 3m-high LED screen can be either synchronised with the content on the upper floor or operated independently to showcase visuals illustrating the production processes of selected spirits. In addition, this level offers toys, food, confectionery and technology products.
Assessing how Luryx Duty Free has tailored its mix and retail experience to evolving shopper expectations, Montico said a core reflection from the beginning was to excite the target consumer.
“We designed a space that is luxurious yet approachable – not intimidating – featuring furnishings and layouts tailored to a leisure tourism audience, along with a selection of exclusive brands more commonly found in airport retail environments.
“From a portfolio perspective, and to give a concrete example, our value proposition includes bespoke furniture pieces designed by niche fragrance houses themselves, allowing customers to explore and experience different olfactory families in an immersive and engaging way.”
Foz de Iguazú attracted close to 6 million visitors last year, with the Iguazú Falls one of the natural wonders of the world. It features over 275 waterfalls surrounded by lush tropical rainforest.
Dream Park welcomes around 1 million visitors per year, with plans to increase this to 5 million in the coming years. Dream Park is located 20 minutes from the Iguazú Falls and 15 minutes from the airport. The complex blends entertainment with museums, restaurants, a five-star hotel, a water park, plus attractions such as the Jurassic Park, the Ice Bar and more.
On the choice of location, Montico said Foz do Iguaçu’s status as Brazil’s second-most-visited tourist destination, after Rio de Janeiro, was a key factor.
“This is clearly reflected in the city’s ongoing hotel development and overall growth, both in leisure tourism and in the business and convention segments.”
Many visitors stay for three to four days, drawn by the attractions of the waterfalls and Foz do Iguaçu National Park, but many are also seeking to enrich their experience with other activities.
Montico said: “It was at this point that we saw the opportunity to create powerful synergies by positioning ourselves in a high-traffic area, while also being part of a broader and more comprehensive value proposition. This vision ultimately led to the decision to become part of Dreams Park.”
Creating awareness and appeal
The retailer’s marketing strategy focuses on maximising average ticket value from Dreams Park visitors, while reaching the remaining nearly 5 million tourists within a 10 square kilometre radius.
Montico said: “We have secured what is arguably the best possible location in Foz do Iguaçu. Our store is situated directly on the road leading to the entrance of the waterfalls park, providing unparalleled visibility and access – without requiring entry into the park itself.
“For visitors to Dreams, Luryx becomes one of the main attractions, achieving a conversion rate of nearly 40%. At the same time, travellers who are not visiting the park can easily spot the store from the road and stop in to shop, potentially even before continuing on to the park. No other location in the city offers a comparable opportunity to reach such a large and diverse pool of potential customers.”
Coordinated packages in partnership with Dreams Park to drive traffic across its attractions is very much part of the marketing strategy too.
Luryx Duty Free plans to launch a joint activation in which every Luryx purchase receipt will feature a surprise QR code providing exclusive benefits to consumers across the park’s attractions.
The QR code will be scanned at the entrance of each attraction and may grant complimentary access, discounts of up to -50%, or even a free lunch or dinner at one of Dreams Park’s four restaurants. In turn, each attraction will implement the same initiative for its visitors, driving incremental traffic back to the store.
Further local partnerships are being established to take advantage of the Foz do Iguaçu tourism eco-system.
The retailer will soon launch a complimentary shuttle service in collaboration with Dreams Park, which will pick up visitors at the exit of the Falls Park and transport them directly to the store at no cost.
Montico also addressed how Luryx Duty Free can create a point of difference from other duty-free locations in the region or those close by in Paraguay or Argentina.
“Luryx’s value proposition places the emphasis not on the transaction itself, but on the experience – this is the core of our differentiation,” said Montico.
“We invite customers to engage in a multisensory journey, enriched by unexpected moments, immersive environmental technology and a curated selection of international brands that are not necessarily present in the other stores.
“As a result, while value and savings are fundamental in our industry, they are not the primary motivation for visiting Luryx. Instead, the purchase becomes a natural outcome of the overall experience we deliver.”
A further element is that Luryx is the only store in the region conceived as part of a complete family outing designed to engage all generations – this positioning comes via the Dreams Park partnership.
Communicating the benefits
Brazilians represent a vital segment of the shopper audience and are highly aware of the purchasing regulations, with Luryx Duty Free reinforcing that knowledge with targeted signage.
“Given Brazil’s historically high tax burden on these product categories, the savings compared to the local market are consistently very attractive. In our store, we have even installed in-store signage highlighting that purchases made with a specific Brazilian-issued credit card can be paid in up to 12 interest-free instalments.”
“The addition of Luryx Foz is fully aligned with the company’s regional strategy, as it provides exceptional brand exposure to the type of consumer we aim to attract – namely, leisure tourists rather than purely shopping-driven visitors.”
– Neutral by Luryx CEO Marcelo Montico
Local customers show strong interest in these payment options and understand the system’s limits – for example, a maximum 12 litres of whisky per person, up to two cartons of cigarettes and purchases capped at US$500 per person per month.
For foreign visitors – who represent a significant share of Foz’s traffic – Luryx provides clear signage at the checkouts and throughout the store featuring a QR code titled ‘Learn about the purchasing options and restrictions in this store.’
“We do not foresee any barriers to understanding the shopping system for either local or international customers,” said Montico. “The concept of duty free is globally recognised and culturally universal, which naturally facilitates operations in a destination that welcomes visitors from a wide range of nationalities.”
The company also has to work within a duty-free regime that emphasises strict control over every product entering the country’s duty-free channels. Montico acknowledges that while this ensures oversight, it also can result in added bureaucracy, extended lead times, and logistical as well as financial inefficiencies for all companies.
In response, Luryx has adjusted its timelines and working capital parameters to ensure that the end consumer does not bear the impact of these constraints.
Under this regime, in addition to the commercial invoice, operators are required to submit a detailed spreadsheet with supplementary information for each SKU, including unit weight, raw materials, brand country of origin, country of manufacture, factory address, and the manufacturer’s contact email address, among other details.
“As a consequence, one of the key parameters we have had to revise is inventory coverage,” said Montico. “Given the risk of delays in product arrivals at the store, we have increased stock levels for several categories in order to avoid out-of-stocks on our best-selling items,” he added.
The opening fits neatly into the group’s wider plans for expansion in Latin America, which features store development across key tourism markets.
Montico said, “The addition of Luryx Foz is fully aligned with the company’s regional strategy, as it provides exceptional brand exposure to the type of consumer we aim to attract – namely, leisure tourists rather than purely shopping-driven visitors.”
This is highly relevant as of the near 6 million tourists who visit Foz do Iguaçu each year, close to 1 million are European, with the remainder coming primarily from Latin America and the USA – markets in which Top Brands International already has a presence across 17 countries.
“This store therefore serves as the benchmark for the new Luryx standard, ensuring that all future operations reflect a consistent corporate identity, both in terms of infrastructure and furnishings.
“Consumer behaviour studies throughout Latin America consistently show that access to duty-free products and shopping opportunities is an integral part of the travel and entertainment experience. Accordingly, we want Luryx to be remembered as an essential component of a memorable journey.
“Looking ahead, it is highly likely that we will continue to develop retail operations in close synergy with entertainment and leisure destinations that further enhance the attractiveness and value proposition we offer to our customers.”
