LEADING ASIA PACIFIC OPERATORS: CHINA DUTY FREE GROUP


CDFG bolsters its ‘tourism retail ecosystem’ for the future


While China Duty Free Group confirms it is working with e-commerce giant Alibaba on its new Fliggy Buy shopping platform, it is also cementing plans for a number of bricks & mortar stores in China, both at the airport and downtown. Charlotte Turner reports.


C


hina Duty Free Group (CDFG) appears to be heading off threats from


e-commerce giants by working with them, such is the case in its ‘strategic cooperation’ with the Chinese conglomerate Alibaba. The agreement, which was


originally signed in November 2018, kickstarted a long-term plan to build a new ‘tourism retail ecosystem’ that aims to ‘enhance the duty and tax free shopping experience’. At the signing itself, Peng


Hui, General Manager, China International Travel Service Co Ltd (CDFG’s parent company) said the strategic cooperation was not only a strong alliance and marketing decision for resource sharing, but a strategic move to transform and upgrade the purchasing experience for tourists. He said: “The signing of


the strategic agreement fully demonstrates the desire and sincerity of mutual cooperation. I hope this will be an opportunity to further promote a deeper and higher level of cooperation with Alibaba.” Fast-forward to March 2019 and


MAY 2019


we begin to see the some interesting developments from this partnership, with the launch of Alibaba’s Fliggy Buy shopping service for Chinese travellers. As reported, this offers overseas


merchants – including international duty free and tax free retailers – ‘a new solution to capture opportunities presented by the growing purchasing power of Chinese outbound travellers’.


Fliggy Buy tracking DF&TR CDFG was one of the first DF&TR operators to sign up – we imagine that this coincided with the aforementioned agreement signing in November last year – as the company confirmed to TRBusiness recently. But this is just one facet of the new relationship that the two very powerful entities have formed and we are yet to understand the full benefits that the two will gain, or how the industry may be impacted. However, CDFG is not the only


DF&TR operator that has made the decision to partner with Alibaba. Furla Hong Kong and Laox of Japan


have also joined the Fliggy Buy platform and more merchants are expected to follow suit. At this stage, Alibaba Group


was unable to reveal to TRBusiness any additional names of any duty free & travel retail merchants it was in talks with or who it was specifically targeting. “Duty free and tax free stores are


“Duty free and tax free stores are our focus during the first phase of rollout, as they are the most visited shopping and consumption venues amongst Chinese outbound tourists.”


Roman Zhu, Head of Fliggy Buy at Fliggy


Above: CDFG Haitang Bay Sanya exterior.


Fliggy Buy Alibaba Group screenshot. TRBUSINESS 47


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