Bélmuso Swimwear is one of a list of highly curated niche brands that Duffle hopes will pique the … [+]
E-commerce shopping platform Duffle, a venture between travel retail industry giants Gebr. Heinemann and Avolta (which took a stake in September 2023), has pivoted to focus exclusively on independent, trendy brands to appeal to a younger demographic that is interested in style and artisanal products that reflect the cultural fabric of major cities.
In a radical move, familiar international brands have been dropped from the revised app, first launched in 2022 with a test that focused on a gate-delivery model at Copenhagen Airport, where Heinemann is the main concessionaire. That did not work out and a rethink followed.
Research was undertaken by the startup this year focused on an urban cosmopolitan demographic to look at their pain points and needs. The results showed what many observers might consider apparent: that 90% of travelers look for local brands and try to bring products home that in some way authenticate their trips and experiences.
Since relaunch earlier this month—only via Apple’s app store for now—more than 50 brands have been listed, so far from the app’s home town Berlin, and Lisbon, though ad hoc products from other cities are also online.
Under new CEO, Richy Ugwu—an entrepreneur and co-lead in the business-angel syndicate of collective 2hearts which supports migrant tech founders—Duffle aims to be a ‘cultural insider’ offering up a curated selection of hidden gems—just like magazines like Monocle and Wallpaper* have done over the years. This is something lacking in the travel retail space and an angle that the style crowd might appreciate when they are on the move and looking for items that will uniquely reflect their trips.
“Users can explore local brands and the stories behind them from Europe’s most dynamic cities—without crossing any borders,” explained Ugwu, who replaced Duffle founder Alexander Trieb in January this year. The revamped app also includes videos where users can ‘meet’ the founders of the brands listed, a format that is proven to increase conversion by as much as 20%.
Where does travel and commerce meet?
“You need an app that users care about,” Ugwu told me. “The reason travel retailers have less than 1% online share is not a capabilities problem (but) we cannot build an app that basically just replicates the offline business. The question is: what’s the intersection between travel and commerce?”
Richy Ugwu: “The reason travel retailers have less than 1% online share is not a capabilities … [+]
He quickly worked out that the industry needed to expand its thinking beyond the airport environment where stresses are multiplied. “Our surveys showed that travelers are buying products, but they’re often not doing it at the airport. Shoppers told us this while inside airport shops.” Hence the platform revamp.
Duffle claims to have reviewed hundreds of successful, independent brands that consumers would not generally know because they are not aligned with online marketplaces. Those currently on the app are wide-ranging: from Berlin’s Blankstill hand-painted glass, Lisbon’s Bélmuso Swimwear and Minerva canned fish, to Melyon skincare from Stockholm and Barcelona’s Midnight Cosmetics.
Initially, the platform has Berlin and Lisbon comprehensively covered, with full listings from major tourism and fashion destinations like Barcelona, Paris, Stockholm, and Copenhagen set to follow if the pilot phase goes well.
Building a user base will initially rely on activating the existing Heinemann and Avolta customer base and also reaching out on Instagram and other social media for customer acquisition. In November, for example, there will be a pop-up event in Berlin showcasing different brands from the city, with more to follow. The company is also working with a large community of influencers, opinion leaders, taste-makers, and media.
No passport required
For users, their orders are shipped by the brand—usually direct to the customer’s home. In this way, Duffle acts as a commission-based online marketplace, with fulfilment the sole responsibility of the brands, artisans, or traders listed on the site.
Ugwu said that the travel shopping app’s initial focus on airport gate delivery was a model that “did not make sense” and was also operationally difficult to achieve. Research from the company has confirmed this. “One pain point is luggage constraint. So if a traveler sees some nice ceramics in downtown Lisbon they may not buy it. But through the app, ceramics can be shipped directly to their home,” he said.
Duffle has revamped its app and dropped all international brands.
The CEO added: “Avolta and Heinemann have taken a significant step in digitizing their industry with this joint venture. While travel retail has traditionally been confined to physical stores at airports, Duffle opens up an experience that seamlessly combines travel and shopping.”
How seamless it is remains to be seen. The practicalities—including shipping costs, as well as the customs duties and/or import taxes for example—might make travelers think twice before ordering. However, within the European Union market many of these charges will not apply thanks to uniform customs regulations. Naturally this region will be the test-bed for the new service.
In its new iteration, Duffle has also moved away from being an online extension of the physical airport store because the curated products on its site are unlikely to be found in typical duty-free shops. It does, however, have a strong travel link, and will be eagerly watched by its JV owners, and rival duty-free operators, looking to tap the digital landscape better than they have managed to do so far.
In a statement, Duffle noted: “In recent years, traditional online shopping has lost its charm—it’s cluttered, impersonal, and overwhelming, with too many products and fleeting trends that lack emotional value. Many platforms flood consumers with mass-produced, unsustainable items that fail to inspire. Yet, more than 90% of travelers discover unique local brands while abroad—a magical experience that, until now, could only be enjoyed offline.”
The platform hopes it can bring that magic to armchair travelers too who, without leaving their living rooms, can vicariously journey around Europe and have the best authentic items from those destinations delivered directly to their door.