UAE. On Thursday 25 November, Kiehl’s officially opened its new retail area in Dubai International Airport Terminal 3, in partnership with Dubai Duty Free (DDF) – the first airport retailer in the Middle East to carry the brand. Kiehl’s products first went on sale at the location in July, since when the door has rapidly established itself as a regional flagship.
The 17sq m retail area features the signature Kiehl’s elements such as brick walls, customised wood flooring, candelabras and the famous ‘Mr Bones’ skeleton. It is located in the terminal’s central concourse, opposite the main fragrances and cosmetics shop which serves departing and connecting passengers. In its first three months of trading, the store exceeded its sales targets by +20-25%, and has become the number one Kiehl’s door within the Europe-Middle East-Africa travel retail region.
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The new Kiehl’s retail area in Dubai International Airport Terminal 3 is prepared for the official opening |
The official launch ceremony was attended by DDF’s senior management and staff, headed by Deputy Managing Director George Horan. “As a retailer we are constantly looking at ways that differentiate Dubai Duty Free and to offer our customers exclusive brands and opportunities,” noted Horan. “Being the first duty free operation in the region to feature the Kiehl’s brand is an important step in that process and we welcome this new addition to the category.”
To mark the opening – and to underline the brand’s long-standing commitment to supporting the communities that surround it – Division Manager for Lancôme/Kiehl’s Travel Retail Europe, Middle East & Africa Philippe Goldman presented the Dubai Duty Free Foundation with a donation of AED100,000 (US$27,000) – equivalent to a week’s sales at the airport.
“We are delighted to see the success of Kiehl’s at Dubai Duty Free, and believe that this is the start of a long-term partnership with the operation which is recognised as a global brand,” Goldman declared.
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Left: DDF Deputy Managing Director George Horan and Division Manager Kiehl’s Travel Retail EMA Philippe Goldman at the ribbon-cutting ceremony; Right: George Horan receives the donation of AED100,000 for the Dubai Duty Free Foundation | |
The Dubai Duty Free Foundation was founded in 2004 under the auspices of H.H. Sheikh Ahmed bin Saeed al Maktoum, President of Dubai Civil Aviation Authority and Chairman of DDF, with DDF Managing Director Colm McLoughlin as Board Chairman.
In addition to supporting several local charities throughout the UAE, the Foundation provides ongoing support to The Smile Train, a charity set up to provide cleft surgery around the world and Sightsavers, a charity performing cataract and other eye surgery in India and elsewhere.
The appeal of Kiehl’s
DDF Deputy Managing Director George Horan paid tribute to the pioneering nature of the Kiehl’s brand, as he explained to The Moodie Report the reasons behind the new partnership.
“It’s a very innovative, luxury brand,” he noted, “and it’s becoming increasingly well known worldwide. Its business is growing fairly dramatically in Asia – and our passenger numbers to and from Asia are increasing all the time, so we believe it’s definitely something our customers are looking for.”
Horan also acknowledged the importance of the fragrances and cosmetics category in general. “It’s a very important business, accounting for around 20% of our total sales,” he revealed. “Within that, colour cosmetics and skincare is growing about +24% year to date, and I believe the more we develop those categories, the more we can get out of them.”
Click on the icon above to view the new Kiehl’s retail area at Dubai T3 |
He continued: “There’s a growing demand for skincare, and people – both women and men – are more conscious of the importance of looking after their skin. They are becoming more educated about the need to be more pro-active. Fragrance is a harder business to grow, because it’s so dependant on new launches. But skincare products are used daily, and as part of an ongoing process.”
DDF is known worldwide for the breadth and depth of its luxury offer, but the retailer has also devoted valuable space to mid-market brands such as L’Oréal Prestige and Nivea. Looking ahead, does Horan see more opportunities within this price segment?
“Our passenger mix is very diverse; we can’t just target one area and ignore the rest,” he replied. “We try to be everything to everybody, which is very difficult – not least in terms of space. But if we can grow both sides [prestige and mid-market] it’s advantageous for everybody, especially our customer, who is the most important part of what we do. I’d like to think that we are fairly successful at offering people what they want.”
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The Moodie Report’s Rebecca Mann (fourth from right) joins the DDF and Kiehl’s teams at the official opening |
Horan expressed his gratitude regarding the donation made by Kiehl’s to the Dubai Duty Free Foundation. “We are very appreciative of the money given to us by Kiehl’s, a company that has always shown responsibility for society in general,” he noted.
“Our Foundation was started a few years ago, with the aim of helping people who are less fortunate than we are. We’ve raised quite a bit of money since we started, and we’ve worked with charities such as The Smile Train and Sightsavers, and recently we’ve also helped build some new classrooms for schools in the Philippines.”
Horan continued: “We have hopes to do something really big one day – perhaps build a hospital, or something along those lines. We don’t yet know exactly what, but we would like to do something that will make a dramatic difference to many people’s lives.”
Horan concluded by confirming that DDF was on track for another record-breaking year. “It’s looking really good,” he said. “We’re very happy with our performance in the past nine months. At year-end we’re looking to be +14-15% up on last year, which is no mean achievement considering we had sales of US$1.1 billion in 2009.
“It’s hard to maintain such a high level of growth, but we are fortunate that the airport is getting busier. And just as the passenger numbers keep growing, we should be able to keep growing too.”
Horan added: “We are lucky to have such a great team here. The whole staff is so committed, it’s a pleasure to work with them. The sales team are so enthusiastic. You can see that spirit throughout the airport and it helps turn the shopping experience into something special.”
Doing things differently
The Kiehl’s journey to Dubai began a year ago, when L’Oréal CEO Jean-Paul Agon earmarked the location as a priority for the brand. Despite being a relative newcomer to the channel, its expansion to date has been swift but sure, with more openings planned for 2011.
“Within our region, the first travel retail opening – at Copenhagen in 2007 – was a risk in more than one way, because at that time Kiehl’s was not even available on the Danish domestic market,” noted Kiehl’s Brand Manager Travel Retail Europe, Middle East and Africa Nicolas Pic. “Nonetheless, the shop was a big success, and is still growing massively year-on-year.”
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Service with a smile: knowing how to keep the customer happy is a key element of the Kiehl’s success story to date |
Service has been key to this success, although as Goldman points out, it is not always easy to deliver in an airport. “We tried to make it simple,” he explains, “and how we sample is an important element of this. We echo what is done on the local market, where 4-5% of sales, a massive amount, is dedicated to sampling. We are happy to give travellers samples to try, even if they don’t buy. And where possible, we tailor those samples to suit the customer, as opposed to giving them something that is totally random.”
“Education is also important,” added Pic. “We hold regular staff trainings – and not just about product – but about the values and appeal of Kiehl’s, and even how to decorate the retail space.”
He added: “It’s all about retail-tainment and surprising people. Here in Dubai, when travellers see Mr Bones the skeleton, for example, they stop to look. Our good location helps, but we capitalise on that with a warm, welcoming space that is full of interesting things.”
Ringing the changes to keep the space fresh is another priority. To celebrate Halloween, for example, Mr Bones sports a witch’s hat. And on Kiehl’s Day, every 12 November, all stores are decorated with pears and offer customers K-shaped cookies.
“On 12 November 2003, Kiehl’s replanted a pear tree in front of its New York flagship, which used to be known as “˜Pear Tree Corner’,” explained Goldman. “In recognition of this, and its other community commitments, New York City Mayor Michael Bloomberg officially proclaimed the date “Kiehl’s Day,” and so on that date every year we celebrate our history, heritage and customers.”
He continued: “Such events are important, particularly in Dubai Airport, which is like a small city. If you don’t entertain and do things a little differently, you just won’t be noticed.”
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Dubai Duty Free’s management team and staff with senior Kiehl’s officials at the formal brand launch in Dubai T3 |
Doing things differently seems to be a core part of the brand’s strategy, particularly with regard to Corporate Social Responsibility, which Kiehl’s was practicing long before the term existed. But what prompted the donation to the Dubai Duty Free Foundation?
“Doing things for different charities is a huge part of the brand equity, but before this everything had been done via the domestic market,” Goldman replied. “We thought that travel retail should benefit too, so we looked at the retailers who already had charities set up, and Dubai Duty Free was one of them. So it seemed appropriate to make a donation, especially as many of the Foundation’s activities benefit children in particular, and Kiehl’s already partners with children’s charities around the world.”
Goldman continued: “Looking ahead, we will also discuss with our other travel retail partners, such as Gebr Heinemann and Autogrill, what other charitable opportunities there might be.”
Meanwhile, the brand is committed to expanding its travel retail presence. “We have six shops in the channel, and are looking to at least double that for next year,” Goldman declared. “Kiehl’s and travel retail have only just begun. I’m not saying we want to be in 100 doors, but in the short-term, 30 at least is the goal. And we aim to support that by maintaining good growth in all the existing stores.”
In short, both Goldman and Pic maintain, the potential for Kiehl’s within travel retail is nothing short of excellent. “More and more retailers are looking to introduce new brands, in order to entice the traveller with something a little different,” Goldman underlined. “Also, the number of Asian passengers is definitely going to increase – and Asians love skincare in general, and this brand in particular.”
He concluded: “Asia is already the number one continent for Kiehl’s, and we are determined to build on that success. Both domestically and in travel retail, Kiehl’s is very important for the L’Oréal group.”
