NEWS/ANALYSIS
CDFG/Lagardère and Shilla DF set out retail vision for HKIA
As reported by TRBusiness in early April, the newly formed Lagardère TR and CDFG partnership (CDF-Lagardère Company Limited) won the duty free liquor and tobacco contract at Hong Kong International Airport (HKIA), while Shilla Travel Retail Hong Kong Limited (Shilla) was awarded the perfume & sosmetics and fashion accessories shops.
initiatives, including new ideas to deepen customer engagement through digital initiatives. Interactive zones with virtual
reality (VR), interactive and digital devices, together with iBeacon technology are also to be installed inside shops to enhance in-store navigation and real-time promotional offers. In terms of the Lagardére/CDFG
Luke Barras-Hill reports. T
Above: 'New Generation' P&C and F&A zone, to be operated by Shilla.
he results of the hotly contested Hong Kong International Airport (HKIA)
duty free tender were announced in April, with details of the ambitious retail vision from the victors quick to follow. Shilla alone is promising to deliver
almost 100 brands that will be new to HKIA, along with a dedicated zone for ‘male-specific products’, as well as a ‘new generation zone’ providing a platform for emerging Korean and Japanese brands. Both new concessionaires –
Shilla and Lagardère TR and CDFG partnership,
CDF-Lagardère
Company Limited – have also promised to deliver omni-retailing
“Leveraging on the combined strength of CDFG and Lagardère Travel Retail, our merchandise offer will be exciting and unique, including the world’s largest Chinese Liquor and Tobacco corner; a House of Single Malt plus an exclusive Asian Liquor concept store and a dedicated Hong Kong Gourmet section, to name a few.”
Lee Charn Cheng, Chief Operating Officer, CDFG 22 TRBUSINESS
L&T contract, the JV partnership will now open eight stores totalling 3,400sqm which were made available under this tender, with the handover from incumbent DFS Group set to see the new operation begin from the end of this year.
‘Significant milestone’ Charles Chen, President, CDFG stated: “This is a significant milestone for CDFG to grow
globally...CDFG in partnership with Lagardère Travel Retail, shall deliver a world class duty free shopping experience at HKIA”. Dag Rasmussen, Chairman and
CEO, Lagardère TR commented: “The award of the Liquor and Tobacco licence at HKIA to Lagardère Travel Retail’s joint venture with CDFG is a recognition of our mutual category leadership and respective operational expertise.” CDFG Chief Operating Officer
Lee Charn Cheng added: “We will introduce customer interactive zones that include showcasing the manufacturing process of products, VR shopping, and tasting bars. “Leveraging on the combined
strength of CDFG and Lagardère Travel Retail, our merchandise offer will be exciting and unique, including the world’s largest Chinese Liquor and Tobacco corner; a House of Single Malt plus an exclusive Asian
Liquor concept store and a dedicated Hong Kong Gourmet section, to name a few.” Today, CDFG claims to be the
leading duty free operator in China with 248 duty free stores across mainland China, Hong Kong, Macau, Taiwan and South East Asia. Besides operating the world’s
largest single duty free shop at Sanya International Duty Free Shopping Complex, CDFG’s parent company China National Travel Service Group, is China’s largest tourism group, following the strategic merger of CTS Group and the CITS Group last year. Turning to the perfume and
cosmetics and fashion concessions, Roberto Graziani, President, Hotel Shilla Travel Retail was similarly upbeat. He said: “This highly competitive win is attributed to our teams’ innovative category insights, our deep understanding of customer needs, as well as our long-standing operational excellence. “We...look forward to warrant to
our customers and all stakeholders, offers, services, and operational performances which will stay abreast of trends and changes in the consumers’ preferences, always maintaining a strong competitive edge throughout the length of the concession.” The L&T, P&C and fashion
concessions are currently all run by DFS Group which declined to take up its extension options on these businesses, effectively triggering Airport Authority Hong Kong’s new tender processes. Both of these new concessions are
now expected to open for business from November and December 2017 respectively. [Additional reporting from Doug Newhouse]. «
MAY 2017
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