Dubai Duty Free: Best Practice Case in Global Report on Innovation
The Global Competitiveness Summit 2012: Advancing Prosperity Through Innovation, entered its second day of debate with the release of GFCC’s global investigation into exemplary innovation The ‘Best Practice Report’ Innovation Capacity: Best Practices in Competitiveness Strategy, is a series of case studies from GFCC member countries detailing strategies at the company-level and country-level for innovating and leading to higher value added growth for the country.
The report captures the best-in-class from GFCC member states, with Dubai Duty Free (DDF), the world’s number one travel retail operator, with an innovative business model, showcased as a representative example of the UAE’s established position as an innovation-driven economy.
Since its formation in December 1983, DDF has grown into a robust and globally competitive enterprise, achieving one of the largest volumes of sales among airport retailers, high levels of customer satisfaction and sales per square meter of retail space twice that of the global average.
“Dubai Duty Free is proud to be included in this year’s GFCC best practice report. Since our inception in 1983 we have worked hard to move beyond the established travel retail model, adopting and disseminating the existing approach to create our own indigenous innovations and best practices,” said Colm McLoughlin, Executive Vice Chairman, Dubai Duty Free. “Our successes stand today as the contemporary example for all duty free operations worldwide to emulate, plus hopefully provide other UAE companies and entities with inspiration to innovative and become globally competitiveness being successfully deployed.”
“We place a strong emphasis on staff retention through multiple options for staff to improve their skills and qualifications, by offering numerous in-house or third-party training programs. We have clear success in this respect, out of the 100 employees that made up our original workforce in 1983, 47 employees are still working for the company,” added McLoughlin.
Pursuing a policy built on competing through innovation is a key pillar of UAE Vision 2021, leading to enhancing the UAE’s economic and social well-being and prosperity. DDF is profiled as a UAE example of best practice alongside other leading countries such as United States, United Kingdom and Brazil. The report is one of many examples of knowledge transfer taking place throughout the three day summit, consisting of delegates, policy makers, academia and other thought leaders debating regional and national competitiveness.
Responding to the launch of the report Abdullah Lootah, Secretary General of the Emirates Competitiveness Council (ECC), said: “The ECC welcomes the publication of the GFCC Best Practice Report. It will provide tangible insight and perspective on how other GFCC members are addressing innovation. Sharing best practices is vital for ECC’s role as a catalyst for progressing the UAE’s knowledge-driven economy. It is for such reasons we have stived to ensure the UAE is an active member of the GFCC and also host for this year’s summit.”
Significant developments in business efficiency, productivity and economic performance have already resulted in the UAE rising through the world rankings, on many independent reports and performance indices. The UAE has business environment that welcomes innovation with an increasing number of companies and organizations that nchave set world benchmarks for performance and innovation, including Dubai Trade and DUBAL in Dubai, and Masdar Institute in Abu Dhabi
Dubai Duty Free received special recognition to feature in this year’s report. The resounding success of DDF is underpinned by its role as a customer-centric enterprise and its process of continuously introducing a series of innovations to the basic duty free business model along all segments and functions of the value chain.
Commenting on the launch of the report, the Honorable Deborah L. Wince-Smith, President, Global Federation Competitiveness Council, said: “The Federation is vital for the promotion of dialogue between the various participating countries and as a vehicle for strengthening their ties and expanding opportunities for cooperation. UAE and has had a very important role in the creation of GFCC. The fact that the country will be hosting the 3rd Annual Meeting in the UAE and launching this important best practice report consolidates this significant role,"
“The Global Best Practice Report is a tangible representation of the combined strength the GFCC members bring to promoting competitiveness internationally. These initiatives continue to provide exchange platforms, networks and valuable lessons from which governments and businesses can drive prosperity and meet the challenges of a transforming and increasingly competitive global economy.”
Innovation has contributed to commercial success for DDF, with sales growth continually outperforming Dubai International Airport’s average 10.3% year-on-year passenger growth (1984-2011), with its own average of 17.2% growth per year for the same period.
While DDF had a the largest turnover of any duty free operator worldwide, with 2011 figures showing a USD1.46 billion return, DDF has shown its competitiveness beyond just sales growth. With a business model that has long been focused on innovations that allow it to maintain a dedicated focus on its customers, DDF has been at the forefront of introducing new concepts and innovation to the airport and duty free retailing industry.
The Global Competitiveness Summit: Advancing Prosperity Through Innovation, is the first such meeting to be held in the Middle East. The summit boasts an array of leading voices in the landscape of global innovation, presenting delegates with thought leadership debate and sharing of best practices on national competitiveness.
Emirate: Dubai
Date: Nov 28, 2012
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