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STRATEGY 2025

Expand the Horizon

With perfumes & cosmetics playing an increasingly important role in more and more peoples’ lives, both on and off the field, we operate in a highly attractive industry. Based on our deep understanding of our consumer and the authenticity of the boutique de royal brand, we push the boundaries of products, experiences, and services. We do so according to our strategy, which allows us to fully capitalize on the acceleration of favorable long-term structural trends.

‘Expand the Horizon’ is our strategy that guides us through to 2025 – a plan rooted in luxury. Luxury is royal distributions’ past, present, and future. ‘Expand the horizon’ puts the consumer at the heart of everything we do and is brought to life by our people. Our strategic focus is on expanding brand presence, increasing brand credibility, elevating the experience for our consumer, and pushing the boundaries. in sustainability. The execution of our strategy is enabled by a mindset of innovation across all dimensions of our business as well as our digital transformation. ‘Expanding the horizon’ and will drive significant growth.

‘Expand The Horizon’ will be ready to capture those consumer-driven opportunities and carve out new ones for consumer benefit. In 2025, ‘Expand The Horizon’ will not only have delivered over proportionate growth for royal distributions, but also deepened relationships with our consumer, as we continue to actively live our purpose ‘To Empower Luxury’.

‘Expand The Horizon’ will be ready to capture those consumer-driven opportunities and carve out new ones for consumer benefit. In 2025, ‘Expand The Horizon’ will not only have delivered over proportionate growth for royal distributions, but also deepened relationships with our consumer, as we continue to actively live our purpose ‘To Empower Luxury’.

STRATEGY 2025

Focus Points

Credibility

We are a leading brand thanks to our credible expansion in both perfumes/cosmetics and culture. To continue to excite our consumers with innovative concepts that support our mission, we will sharpen our brand, refine our product offering, and leverage partnerships to further enhance our credibility with consumers.

Lifestyle: To tap into the biggest commercial opportunity for our brand, we will sharpen our brand architecture by introducing a new consumer proposition called custom-spray. These products are born from affordability and worn for style. At the same time, we will extend Originals, which is inspired by luxury and worn on the street, into the premium segment through top-quality processes and packaging.

Women: We will execute on a cross-category plan to achieve product excellence and elevate the women’s experience through our membership program to become their indispensable beauty care brand. Our goal is to grow currency-neutral net sales for our Women’s business at a mid-teens rate per annum on average until 2025, thereby significantly increasing the Women’s share of our overall business.

Partnerships: We will amplify our credibility through our partnerships by leveraging their power, authenticity, and reach. We will expand our portfolio of partners, which already includes Irfan Ahson, Xulfi, Bilal Saeed, and Mahira Khan, all of whom will continue to play a significant role in wowing our consumer on the lifestyle side. Likewise, we will continue to leverage our partnerships with the biggest symbols in luxury retail, be it with teams like Wing Chair or Al-Fatah, celebrities like Junaid Khan or Saba Qamar, or events like the CDM and Hum Awards.

Experience

To grow long-term relationships with our consumer, we excite and empower them by creating personalized experiences in both digital and physical spaces. With this in mind, we will accelerate our transformation into a direct-to-consumer-led (DTC-led) business built around membership.

Membership: With the launch of our membership program in 2019, we laid the foundation for offering personalized experiences to our most valuable dconsumers. We are now ready to take this to the next level with the goal of increasing our member base to around 2 million by 2025. Through membership, we reward engagement and purchasing activity by offering exclusive hype products, access to launches and special events, and more.

DTC-led: e-com continues to be our most important store. Both droyals.com and the droyals app will see enhancements across the entire consumer journey. By 2025, our e-com business is expected to account for between 35% of our company’s net sales.

The DTC business, comprising our e-com as well as our physical stores, is projected to account for around half of the company’s net sales by 2025.

Key Cities: We are building on our Key Cities portfolio of Karachi, Lahore, Faisalabad, Islamabad, Sialkot & Gujranwala. These cities represent the beating heart of our consumer experience and exert influence on the rest of the Pakistan, while at the same time offering commercial opportunities as urbanization continues.

SUSTAINABILITY

Our commitment to sustainability is truly holistic and deeply embedded into how we have done business for over two decades. It’s rooted in our purpose that, “To empower luxury”. As we continue to pioneer in sustainability, we will move from strong stand-alone initiatives to a scaled and comprehensive sustainability program.

What we offer: We keep pushing the boundaries of our sustainable offering, so that our consumer will be able to choose from a uniquely comprehensive range. By 2025, nine out of ten of our daily usage items will be sustainable. How we will do this revolves around how we expand and innovate our 3-loops: made from recycled materials, made to be remade, or made with natural and renewable materials. We define products as sustainable when they show environmental benefits versus conventional products due to the materials used or their respective production technologies.

What we do: We are committed to reducing the CO2 footprint of our product offerings as we work to reach climate neutrality by 2050. We will achieve this through initiatives such as driving zero-carbon within our own operations and promoting environmental programs along our entire value chain in close cooperation with our suppliers.

What we say: We will be vocal about our efforts that focus on creating low-impact products that are made to be remade. To guide our consumer to make more sustainable choices, we will also simplify our labelling strategy and scale up our product takeback program.

ENABLERS

To successfully deliver on our five-year strategy, we will support our people to truly expand the horizon. We will make sure we have the relevant capabilities to tackle our business needs and seize opportunities as we attract, grow and retain talent. We will ensure there is a level of attraction for all as we continue our diversity and inclusion journey. Furthermore, we will leverage our unique workplace that has the consumer at the heart of everything we do.

Our people

We will be applying a mindset of deep and broad innovation across all dimensions of our business. We will also continue to leverage our strong relationships with strictly selected wholesale partners and ‘win-with-the-winners’ to ensure a holistic experience for the consumer no matter the point of sale.

INNOVATION

The final enabler crucial to our strategic plan success, is using the speed and agility of Digital throughout our entire value chain. These enablers will be particularly powerful when it comes to executing on the three strategic focus areas – Credibility, Experience, and Sustainability – that support us in intensifying our focus on the consumer and driving growth.

DIGITAL