DFS Chairman and CEO, Philippe Schaus has told TRBusiness that beauty is a ‘key pillar’ for the group and will continue to represent ‘a significant portion’ of its total sales in the next few years.

 

The company has already invested heavily in three T Galleria Beauty by DFS stores, which are opening in phases in Macau and Hysan Bay. In an exclusive interview with TRBusiness, he also says that he believes that beauty is one of travel retail’s most resilient categories.

 

As previously reported, on 27 May DFS Group opened an 11,133sq ft T Galleria Beauty by DFS store at the Galaxy Macau, to add to the retailer’s two existing store presences at the Four Seasons and City of Dreams.

 

The retailer opened its second standalone 18,000sq ft Beauty by DFS store in Hysan Place, Causeway Bay at the end of June and will open a third store at Studio City in Macau this September.

 

“T Galleria Beauty by DFS is a new beauty hall concept – a standalone luxury beauty store, focused purely on cosmetics, skincare and fragrances, and, contrary to most stores of this type, developed with a unique design approach,” Schaus told TRBusiness.

 

“We provide our customers with a whole new level of choice and excitement, offering luxury and accessibility at the same time. Indeed we offer a mix of luxury and trend products in a single space, encouraging shoppers to mix and match, experiment, have fun, and ‘play’ with looks and products before they make a purchase. We’ve also added more travel essentials and sample sizes in a bright and welcoming environment that stimulates the senses.”

 

As with DFS Group’s other projects, such as its Masters Series, which progressed from one category to another, it seems natural to assume that the group might open T Galleria Wine & Spirits or T Galleria Watches and Jewellery stores in the future. TRBusiness asked Schaus if he thinks these are viable retail concepts and where we might see them.

 

“Our strategy is simple – to serve our customers. To serve them, we need to listen to them – to ask them what they want, and then respond. So that as their needs shift or change, we can develop new concepts and product offerings to meet their needs.

 

“Beauty is one of travel retail’s most resilient categories, primarily because personal grooming isn’t considered a ‘nice to have’, it’s an essential part of modern day living. So right now it makes sense to offer a standalone beauty store to our customers. If we see similar demand in other categories in the future, of course we would need to consider how best to respond.”

 

Beauty is clearly a big strategic focus for DFS – it is understood that the category represents about 50% of its total business – taking into account the new Beauty Galleria and a major beauty promotion it is running in 19 of its key stores. ‘The largest beauty promotional programme in the world for the traveller’ takes place in seven countries between July 1-31.

Besides discounts in some locations, DFS says this will focus on product exclusives, events and tutorials from leading skincare and makeup experts in the world’s largest beauty promotional programme.

 

TRBusiness asked Schaus if the category is still considered a growth area for the group and if it is more protected from lower spend per pax. “Beauty is a key pillar of our business and it will continue to represent a significant – and indeed very resilient – portion of our sales.”

 

The new T Galleria Beauty by DFS store in Macau has been designed by French luxury retail design firm Malherbe to reflect an ‘experiential world’ and will also feature the first Hermès Parfums and Hermès Le Bain stand-alone fragrance boutique in Macau.

 

A total of 22 world-renowned beauty brands will be on show, including Dior, Estée Lauder, Guerlain, Hermès, La Mer, La Prairie, and Lancôme. The retailer adds that DFS exclusives will also include Clé de Peau’s Radiance Trio Set and L’Occitane’s Perfect 10 Hand Cream Set.

 

“Our customers are on a constant quest for quality, regardless of price, and they are as excited by high–end luxury as they are by more fun, trendy items,” adds Schaus.

 

Read the full-length interview with Philippe Schaus in the August issue of TRBusiness magazine.