LEADING ASIA PACIFIC OPERATORS: CHINA DUTY FREE GROUP
our focus during the first phase of rollout, as they are the most visited shopping and consumption venues among Chinese outbound tourists,” said Roman Zhu, Head of Fliggy Buy at Fliggy. So how does it work? While CDFG
has yet to share the exact details of the process with TRBusiness directly, we do know that customers of Japanese duty free operator, Laox – which officially opened its tax-free reservation store on Fliggy Buy on 20 March – can reserve and purchase tax free products before they travel to Japan and pick them up from Laox’s physical stores on their arrival. The customer must designate
a date and time at which they will pick up their goods and this must be between three and thirty days after reservation/purchase. Laox’s motivation for opening the new store is to save travellers ‘precious time’ on their holidays, by allowing them to browse and shop for products from the comfort of their own home. In essence, the new Fliggy Buy
shopping channel will enable Chinese travellers to browse and buy goods before reaching their destination, picking them up in stores after they arrive. While keeping their e-commerce
competitors close, CDFG continues to strengthen its position as the leading duty free operator in Chinese airports with its latest contract win for the new Beijing Daxing Airport, slated to open in September this year. The 10-year agreement covers
liquor, tobacco & food, and fashion & beauty operations.
The beauty floor at CDFG’s Haitang Bay store.
In a statement obtained by TRBusiness, Chen thanked Capital International Airport Group, for its trust and recognition in CDFG’s winning bid. “Daxing International Airport
is the new capital of Beijing,” he said. “Positioned as a large international aviation hub, it is a new source of power for the country’s development. “It
is a comprehensive
transportation hub for the Beijing- Tianjin-Hebei region that supports the construction of the Xiong’an New District.” Chen continued by paying
gratitude towards supportive domestic and foreign brands ‘who have been paying attention to the development of China’s tax free industry’.
Downtown momentum The new airport is expected to handle 45m passengers in 2021 and
Duty free outpaces growth of downtown shopping
According to CDFG President Charles Chen citing ‘Speech Values and Thoughts on China’s Outbound Travel’, authored by Dai Bin, President, China Tourism Academy, the spending mix of China’s outbound travellers showed that spending in shopping has decreased from 34.34% in 2017, to 16.48% in 2018. However, there has been a “rapid
increase in spending in catering, cultural, recreational, accommodation activities,” he said during the presentation he made in Hainan at the recent TFWA China’s
MAY 2019
Century Conference. “[There has been a] drastic drop in
entrusted purchase, gift purchase and impulsive purchase, as well as ‘whistle- stop’ tours in popular scenic spots.” He also said that duty free shopping in
China has become more convenient as the industry has matured. This comes as a result of the diversification of channels in addition to a rise in allowances. He reinforced to delegates that duty
Charles Chen doesn't believe the slowdown in Chinese spend has been too significant so far. Source: Close Shoot.
free and travel retail shops can now be found in airport departures, arrivals, on cruises, online and via pre-order for pick up at the airport.
TRBUSINESS 49
72m by 2025. CDFG’s win further entrenches
its position in China’s burgeoning duty free and tax free market and bolsters an already expansive airport presence. This includes at Beijing Capital
International Terminals 2 and 3; Shanghai Pudong and Hongqiao (CDFG/Sunrise Duty Free); Guangzhou Baiyun Terminals 1 and 2; Macau; and Hong Kong International Airport (CDF-Lagardère) among others. Of course, the company is not
“Daxing International Airport is the new capital of Beijing. Positioned as a large international aviation hub, it is a new source of power for the country’s development.”
Charles Chen, President, CDFG
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