DFS Group

Last updated
DFS Group
Company type Subsidiary
Industry Travel retail
Founded7 November 1960;63 years ago (1960-11-07), in Hong Kong
Founders
Headquarters15/F, One Taikoo Place, 979 King's Road,,
Quarry Bay, Hong Kong, Hong Kong
,
China
Area served
Worldwide
Key people
  • Benjamin Vuchot [1]
    (Chairman and CEO)
Products Consumer goods
Number of employees
9000+
Parent LVMH
Website www.dfs.com
www.tgalleria.com
DFS T Galleria in City of Dreams, Macau City of Dreams Macau DFS T Galleria Macau 201606.jpg
DFS T Galleria in City of Dreams, Macau
DFS T Galleria in Tsim Sha Tsui, Hong Kong T Galleria in Tsim Sha Tsui 2014.jpg
DFS T Galleria in Tsim Sha Tsui, Hong Kong

DFS Group (DFS) is a Hong Kong-based travel retailer of luxury products. Established in 1960, its network consists of over 420 locations, including duty-free stores in 12 major airports and 23 downtown Galleria stores, as well as affiliate and resort locations. [2] [3] It is privately held and majority owned by the luxury conglomerate Moët Hennessy Louis Vuitton (LVMH), alongside DFS co-founder and shareholder Robert Warren Miller. As of January 11, 1997, DFS Group operates as a subsidiary of LVMH. [4]

Contents

DFS is headquartered in Hong Kong SAR and has offices in Australia, Cambodia, mainland China, France, Indonesia, Italy, Japan, Macau, New Zealand, Singapore, United Arab Emirates, United States of America and Vietnam. DFS Group employs over 5,000 people, operating in 14 countries worldwide. In 2017, nearly 160 million travelers visited DFS stores. [5]

History

Beginnings

In 1960, American entrepreneurs Charles Feeney [6] and Robert Warren Miller [7] founded Tourists International, which later became Duty Free Shoppers (DFS), in Hong Kong. Minority owners included Alan Parker with a 20% stake, [8] and Anthony M. Pilaro who held 2.5%. [8] The entrepreneurs anticipated the growing spending power of military servicemen as well as the rise of international travelers from Asia, following vast improvements in international air travel after World War II. In 1962, two DFS stores were opened at the international airports in Hong Kong and Honolulu, the first duty-free shop in the United States. [9]

Expansion and re-branding

In the 1960s and 1970s DFS Group significantly expanded their operation in Eurasia and North America. DFS capitalized on the rising wave of Asian tourists who began to travel further overseas, opening stores in international airports and later in downtown locations where travelers have their purchases delivered before departure. [10] In 1968, DFS opened its first downtown duty-free store in Kowloon, Hong Kong, followed shortly thereafter by Honolulu and eventually expanding to 14 locations all over the world. [11] In 2005, branded halls opened in Okinawa, Japan, launching a new shop-in-shop concept for DFS Gallerias. [12] In 2010, "DFS University" was established for its sales associates.

In 2013 DFS reached 420 locations worldwide and undertook a major branding initiative setting the stage for the next generation of expansion. It re-branded its downtown Galleria Stores “T Galleria” and moved to a strategy of localization for airports, working with local suppliers to increase its mix of “destination” products. [13] [2] In 2015 DFS opened its first transformational wines and spirits duplex store at Singapore Changi Airport, including a Long Bar by Raffles. [14] In the same year, it also launched T Galleria Beauty by DFS, a standalone beauty concept store in Hong Kong and Macau. [15]

In 2016 DFS expanded its operations, opening T Galleria Angkor in Siem Reap, Cambodia, a significantly extended space at T Galleria by DFS, City of Dreams in Macau, [16] [17] and its first European store, T Fondaco dei Tedeschi in Venice, Italy. [18] In 2017 it announced plans to open in Paris in 2020 within the renovated La Samaritaine complex. [19]

In January 2021, Benjamin Vuchot returned to DFS as chairman and CEO after three years as President of Sephora Asia. [20] Both DFS and Sephora are businesses under LVMH's Selective Retailing division. [21]

In January 2021, DFS opened its first downtown duty-free store in Hainan Island, China, in partnership with Shenzhen Duty Free Group. [22]

Within a few months, DFS also announced that it would open two new Galleria stores in Oceania by the end of 2022: one in Brisbane, Australia, [23] and another in Queenstown, New Zealand. [24]

In June 2021, despite the tourism downturn caused by the COVID-19 pandemic, DFS opened its most significant and ambitious store to date, Samaritaine Paris Pont-Neuf in the heart of the French capital. [25] The 150-year-old building, which was meticulously restored over 16 years, was inaugurated on June 21 by French President Emmanuel Macron and LVMH Group head Bernard Arnault. [26]

Acquisition

In 1996, LVMH acquired the majority share of DFS Group, [27] buying out partners Feeney, Parker, and Pilaro and setting a new focus on the combined elements of travel and luxury. [28] It developed a merchandising strategy based around five core “pillars” – Beauty and Fragrances; Fashion and Accessories; Watches and Jewelry; Spirits, Wine and Tobacco; and Food and Gifts – and a new tagline, “The Traveler's Luxury Department Store”. It also created an annual “Masters Series”, showcasing the best products across all its categories and convening leading brand representatives, top customers, media and industry analysts in a celebration of luxury. In 2004, the company moved its headquarters to Hong Kong from San Francisco, California as part of a corporate restructure.

Locations

DFS Group operates approximately 420 duty-free boutiques at 12 international airports, 23 downtown Galleria stores and several resort locations around the world. [29] [30]

Greater China

Japan

Asia (Other)

South Pacific

North America

Australia and New Zealand

Europe

Middle East

Awards and recognition

In 2015, DFS Group was awarded "Best Technology Platform" under the Best Treasury and Finance Strategies in Asia Pacific category at The Corporate Treasurer Awards. [34] In 2017 it received the 19th Duty-Free News International (DFNI) Asia/Pacific Awards for Travel-Retail Excellence. [35]

See also

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References

  1. ↑ https://hk.linkedin.com/in/benjamin-vuchot-a489887 [ self-published source ]
  2. 1 2 "DFS Group launches "T Galleria", its new store concept for international travellers". 2013-11-01. Archived from the original on 2016-08-21. Retrieved 2016-07-08.
  3. ↑ "Shop DFS – Premium Tax Free". Archived from the original on 2016-10-01. Retrieved 2016-09-28.
  4. ↑ "History of DFS Group Ltd. – FundingUniverse". www.fundinguniverse.com. Retrieved 2016-07-08.
  5. ↑ Dave Johnston (26 September 2013). "20 best franchises for travelers – CNN.com". CNN. Retrieved 2016-07-08.
  6. ↑ Bertoni, Steven. "Chuck Feeney: The Billionaire Who Is Trying To Go Broke". Forbes . Archived from the original on 2018-06-26. Retrieved 2016-07-08.
  7. ↑ "Robert Miller Profile | Hong Kong Tatler". Hong Kong Tatler. Retrieved 2016-07-08.
  8. 1 2 Nordheimer, Jon (1997-03-12). "Millions of Dollars Couldn't Keep DFS Group Together". The New York Times. ISSN   0362-4331 . Retrieved 2020-04-02.
  9. ↑ "DFS History | Robert Miller | Charles Feeney | DFS Group Ltd". www.dfsgroup.com. Archived from the original on 2016-05-29. Retrieved 2016-07-08.
  10. ↑ "History of DFS Group Ltd" . Retrieved September 16, 2016.
  11. ↑ "Philippe Schaus of DFS on Tapping the Growing Travel Retail Market". The Business of Fashion. December 12, 2013. Retrieved September 16, 2016.
  12. ↑ "DFS extends T Galleria roll-out to Okinawa". DFNI. April 23, 2014. Retrieved September 16, 2016.
  13. ↑ "LVMH-Owned DFS Group Unveils T Galleria Hong Kong | Jing Daily". 2013-11-05. Retrieved 2016-07-08.
  14. ↑ "DFS Group announces ground-breaking move into Europe in historic Venice". Moodie Davitt Report. September 14, 2014. Retrieved September 16, 2016.
  15. ↑ "DFS Group goes experiential with beauty". September 18, 2014. Retrieved September 16, 2016.
  16. ↑ "DFS opens T Galleria in historical Angkor Wat". DFNI. March 22, 2016. Retrieved September 16, 2016.
  17. ↑ "City of Dreams and DFS Group Present the Most Unique, Eye-Opening Luxury Retail Experience in Macau". Yahoo Finance. June 24, 2016. Retrieved September 16, 2016.[ permanent dead link ]
  18. ↑ "'Interaction, engagement, experience': DFS Group unveils second Singapore Changi Airport Wines and Spirits Duplex". Moodie Davitt Report. July 27, 2016. Retrieved September 16, 2016.
  19. ↑ DFS boost as LVMH gains ‘definitive’ approval for La Samaritaine renovation - The Moodie Davitt Report - The Moodie Davitt Report
  20. ↑ "WWD". September 28, 2020.
  21. ↑ "LVMH Selective Retailing". LVMH Group.
  22. ↑ "Travel Retail Business". January 4, 2021.
  23. ↑ "Business of Fashion". February 10, 2021.
  24. ↑ "WWD". March 30, 2021.
  25. ↑ "The Moodie-Davitt Report". June 21, 2021.
  26. ↑ "WWD". June 21, 2021.
  27. ↑ Strom, Stephanie (1996-10-30). "LVMH to Buy Duty-Free Empire for $2.47 Billion". The New York Times. ISSN   0362-4331 . Retrieved 2016-07-08.
  28. ↑ Nordheimer, Jon (March 12, 1997). "Millions of Dollars Couldn't Keep DFS Group Together". The New York Times. Retrieved September 16, 2016.
  29. ↑ "T Galleria | DFS Galleria | DFS Group Ltd". www.dfsgroup.com. Archived from the original on 2016-08-16. Retrieved 2016-07-08.
  30. ↑ "DFS Airport | DFS Group Ltd". www.dfsgroup.com. Archived from the original on 2016-08-16. Retrieved 2016-07-08.
  31. ↑ "Furla teams up with DFS to open store at Siem Reap T Galleria – The Moodie Davitt Report". 2016-07-07. Retrieved 2016-07-08.
  32. ↑ "The Moodie-Davitt Report". June 21, 2020.
  33. ↑ Chan, Vinicy (28 October 2013). "LVMH's DFS Group Plans To Open First Europe Shop in 2016". Bloomberg.com. Retrieved 2016-07-08.
  34. ↑ "Thomson Reuters and DFS Group Recognized at Corporate Treasurer Awards 2015". March 16, 2016. Retrieved September 16, 2016.
  35. ↑ "DFS Group awarded top prizes at DFNI Asia-Pacific Awards". May 11, 2016. Retrieved September 16, 2016.
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