Duty Free World Council emphasizes global advocacy and education at ASUTIL
Gustavo Fagundes, CEO Brazil at Avolta (left), moderates a discussion with Sarah Branquinho, President of the Duty Free World Council (center), and Ricardo Oliveira, DFWC External Senior Counsel (right), during the DFWC panel at the ASUTIL Conference in Lima, Peru
Speaking at the ASUTIL conference in Peru, DFWC President Sarah Branquinho outlined the organization’s strategic priorities and emphasized the critical importance of regional organizations like ASUTIL in supporting the industry’s collective voice.
Branquinho explained that the DFWC’s primary mission extends far beyond traditional industry support. “The point of the Duty Free World Council is to try and elevate our industry at global level to make sure we have a voice,” she stated. “Unless we can explain to the authorities worldwide what the purpose of our industry is other than selling goods, we don’t have a voice at the table and that’s just so important.”
Communication before advocacy
The DFWC president emphasized that effective communication must precede advocacy efforts. The organization focuses on explaining to various institutions and governments that the travel retail industry represents far more than simple product sales to passengers.
“The money that we generate then for the infrastructure worldwide, whether that’s the aviation ecosystem or maritime, is really critical,” Branquinho noted. She pointed out that while airport operators and cruise lines focus on operational concerns like landing rights when communicating with governments, they need to equally emphasize the retail component of their business.
The financial impact is substantial, with retail generating 45-50% of revenue in some cases. “It’s the retail side that is driving a lot,” Branquinho explained, stressing the need for infrastructure operators to give the same support in explaining why they need the retail side of the business.
Preparing for technological changes
Looking toward future challenges, Branquinho highlighted emerging technological developments that could impact the industry. She specifically mentioned the increasing use of biometrics and questioned how this might affect traditional passenger identification and tracking methods.
“We’re beginning to see increasing use of biometrics in our industry. What do we all use to identify our passengers and where they’re traveling to? What do we use right now? Boarding passes. What happens then when you have an eyeball? An eyeball might give you permission to buy, but will it give us the information ourselves to work out what’s being sold to passengers going to different destinations to help drive our businesses?” she asked.
Working with international organizations
The DFWC maintains relationships with key international aviation and maritime organizations to protect industry interests. Branquinho mentioned ongoing work with ACI World, ACI LAC, the OECD, IATA, and ICAO, noting the historical importance of these relationships.
She referenced the critical support received from ICAO after 9/11, which helped preserve the industry during a challenging period. “The International Civil Aviation Organisation, who were actually the body who agreed with us in the end to give us the use of the steps. Without that we would have been a dead industry.”
The DFWC operates through regular coordination with regional organizations, meeting virtually once a month to discuss regional developments, mutual support opportunities, and emerging issues requiring aligned responses.
Academy and education initiatives
A significant component of the DFWC’s work involves education and training through its Academy program. Branquinho emphasized that demonstrating industry responsibility requires comprehensive training programs for retail staff.
“We need to explain as part of our advocacy that we are a responsible industry and part of that is to have a series of training programs,” she stated. The Academy offers basic training programs covering responsible retailing of alcohol and confectionery, with a responsible retailing of tobacco program launching soon.
These programs are available in both English and Spanish at no cost. However, Branquinho stressed the need for greater participation, noting that while 12,000 staff members have completed the training, the goal is significantly higher. She mentions the number 100,000. “I’m very much on hitting numbers because when we’re communicating with all these institutions, unless you have a big number, they don’t really consider it.”
The Academy also offers a certificate training course in duty free for management-level staff new to the industry, providing comprehensive understanding of worldwide origins, operational principles, and industry structure, adding that there is a fee for this training.
Trusted, Transparent, Secure
Branquinho outlined another major DFWC initiative focused on combating counterfeit products and maintaining industry integrity. The “Trusted, Transparent, Secure” charter addresses the proliferation of fake duty free shops and counterfeit products worldwide.
“As we know, everywhere you travel in the world, even in the High Street, you can see shops which say duty free and they’re not duty free. They are people masquerading for duty free,” she said. Many companies, including those present at ASUTIL, spend significant resources destroying counterfeit products bearing their branding.
The charter emphasizes that authentic travel retail channels only sell genuine products. Branquinho cited Delhi airport as an example, where banners prominently state that “Delhi Duty Free only sells authentic products” specifically because of the prevalence of counterfeit goods outside the airport.
The DFWC has created this charter as part of its communication strategy to establish the industry as a reliable partner, asking both retailers and brands to sign on to the commitment.
Regional coordination importance
Throughout the discussion, Branquinho emphasized the critical role of regional organizations like ASUTIL in the DFWC’s overall strategy. “It’s not about me and the global main Duty Free World Council. It’s about you, members of ASUTIL,” she stated.
She praised ASUTIL’s effectiveness and stressed that membership in regional organizations provides the foundation for global advocacy efforts. The regional approach ensures that global initiatives reflect local market realities and challenges while maintaining consistent messaging across different markets.
When asked about current focus areas, Branquinho mentioned ongoing challenges including tobacco regulation, labeling requirements, and potential changes to duty-free allowances, while noting that these issues often originate at the regional level before requiring global coordination.
