ABU DHABI DUTY FREE PRICE COMPARISON WITH RETAILER X* LOCAL MARKET PRICES | |||
| PRODUCT | ADDF Price | Local Market Retailer X* | Local Market Retailer X* |
in UAE Dirhams | 12 July in UAE Dirhams | 31 August in UAE Dirhams | |
| ESTEE LAUDER EDP SPRAY 100 ML | 215.00 | 155.00 | 160.00 |
| CLINIQUE HAPPY HEART PERFUME SPRAY 100 ML | 235.00 | 165.00 | 150.00 |
| ARDENBEAUTY EDP SPRAY 100 ML | 305.00 | 75.00 | 65.00 |
| DAVIDOFF COOL WATER EDT 125 ML SPRAY | 170.00 | 95.00 | 90.00 |
| BOSS HUGO EDT SPRAY 150 ML | 150.00 | 100.00 | 95.00 |
| J’ADORE EDP SPRAY 100 ML | 275.00 | 165.00 | 160.00 |
| DIOR HIGHER ENERGY EDT SPRAY 100 ML | 200.00 | 145.00 | 130.00 |
| KENZO PARFUM D’ETE SPRAY 100 ML | 245.00 | 100.00 | 105.00 |
| GUERLAIN L’INSTANT EDP 80 ML | 275.00 | 145.00 | 135.00 |
| CK TRUTH EDP 100 ML | 210.00 | 75.00 | (NOT PURCHASED) 105.00 |
| GIVENCHY POUR HOMME EDT 100 ML | 185.00 | 100.00 | 90.00 |
| YSL OPIUM EDT 100 ML | 315.00 | 160.00 | 150.00 |
| GUCCI EDP II 50 ML | 180.00 | 130.00 | 130.00 |
| LANCOME MIRACLE EDP 100 ML | 230.00 | 170.00 | 180.00 |
| CARTIER DECLARATION 100 ML | 190.00 | 115.00 | 120.00 |
| CH 212 MEN EDT 100 ML | 180.00 | 115.00 | 120.00 |
| Total Basket | 12 July | 31 August | |
16 Products | 15 Products | 15 Products | |
| ADDF | 3,560.00 | 3,350.00 | 3,350.00 |
Retailer X* | 2,010.00 | 1,935.00 | 1,880.00 |
| UAE Dirhams difference | 1,550.00 | 1,415.00 | 1,470.00 |
UAE. Abu Dhabi Duty Free (ADDF) Managing Director Mohamed Mounib says that the retailer has received an official response from the Chamber of Commerce in respect of what ADDF claims is “suspected grey market infiltration” into the domestic market.
As previously revealed, ADDF asked the Chamber of Commerce to investigate pricing anomalies in the UAE market that have meant “˜domestic’ prices in downtown perfumery stores are cheaper than the duty free price at the airport.
ADDF said the Chamber of Commerce’s response focuses on the two retail chains in question selling products that are clearly marked not for sale (i.e. Testers) and a range of brands at retail prices that are significantly below both ADDF retail and the official agent’s outlets within the domestic market (based on the suppliers’ published retail price lists).
Mounib said that ADDF has passed on all correspondence it has had with suppliers stating that the two retail operations in question are not being supplied officially by their appointed agents and distributors.
The Chamber of Commerce is understood to have arranged meetings with the domestic retailers to establish the source of the products and to seek a suitable explanation why products are being sold that are clearly marked not for resale.
ADDF said the Chamber has acknowledged that the pricing situation in the domestic market “is clearly damaging both duty free retail and official domestic retail credibility”.
It added: “Once the source has been established the Chamber will then advise what actions to take.”
Deputy Managing Director Dan Cappell said he was delighted with the Chamber of Commerce’s response and actions. He reiterated ADDF’s position that the retailer “will not sit back and do nothing”.
He said: “We will continue to take whatever steps we have to resolve this issue. Our credibility as a value for money duty free retailer is still being questioned every day. Since we made our first contact with suppliers about this issue on 13 July, we have met only one company at a senior level which has been very open and transparent with specific data and is now working with us to seek a solution.
“Otherwise no actions have been taken by any supplier to address the issue or place any real focus on finding a mutually-balanced solution.”
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MD Mohamed Mounib says ADDF has received an official response from the Chamber of Commerce regarding the “suspected grey market infiltration” into the domestic markets |
Cappell continued: “Unless suppliers start to acknowledge that this is not something that we are raising once and then letting go of, we will consider reducing our retail prices in the airport to the same level as the domestic market and promote this in the press – both travel retail and local.
“I suspect that we would be inundated with visits if we approached the issue in this manner with the fragrance sector’s objective then being to solve the duty free retail pricing issues, rather ironic when one thinks about it,” Cappell concluded. “But this is an option that we are seriously considering.”
MORE STORIES ON THE ABU DHABI PRICING ISSUE
Abu Dhabi Duty Free calls for beauty houses to get perfume pricing under control – 15/09/04
