CHINA UPDATE
Chinese spend has not been too significant and told delegates during a Q&A session at the China conference that the company was still experiencing high double- digit growth. “If you talk to many of the brands
here, you will discover that they are actually very happy with their sales [with CDFG at least]…Beauty sales have increased more than 30% at our Beijing and Shanghai airport stores in the last three years.” During the latter part of the TFWA
President’s presentation, he said that Chinese outbound travel was continuing to accelerate in 2019. This is even more encouraging
CDFG’s Liquor and Tobacco store at Sanya Airport.
China’s duty free sales reached RMB 39.49bn ($5.9bn) in 2018, according to CDFG’s Chen, which was an increase of 27.3% year-on-year, with offshore duty free shops – such as those in Hainan – becoming increasingly popular among the Chinese.
TRBusiness
economy ticking over’. “The rise in China’s GDP has moderated since then, raising
concerns that progress of only 6.6% in 2018, might be a sign of serious problems,” said Maingreaud. “However, China today is growing
from a much larger base…I think it’s important to keep a sense of proportion…” To bolster his argument, he
pointed out that duty free & travel retail sales in Asia Pacific grew 14.7% in the first nine months of 2018; outpacing global growth of 9.9%. CDFG President, Charles Chen, also believes the slowdown in
Sixty percent of Asian cruisers are from China
The massive potential of the cruise market in Asia Pacific was once again emphasised at the China’s Century Conference in Hainan in March, where it was revealed that 10.4% of the world’s cruise passengers originate from the Asia Pacific region of which 60% are Chinese. However, only 0.2% of China’s 1.4bn
population currently take cruises, highlighting the opportunity for increasing penetration in the region. By 2020, China’s Ministry of Transport
expects the number of Chinese cruise travellers to reach 4.5m. More and more Chinese tourists are
opting to cruise to destinations in Asia, and capacity is growing rapidly to meet the demand. Rajshree Dugar, Associate Director, Corporate Strategy & Business
74 TRBUSINESS
Development Heinemann Asia Pacific Pte Ltd (pictured below) surprised audience members at the recent China’s Century Conference when she revealed that cruise customers have been known to spend up to $10,000 on a single purchase, such as a watch. This should prompt concessionaires to focus
more keenly on the range of fashion, accessories and jewellery products, which are typically more popular on cruises. Higher spend per purchase is driven by the long dwell time in stores which also allows for cross-selling and up-selling opportunities. Dugar pointed out that retailtainment
is crucially important on cruise ships, which is why promotions or new launches are often event-driven. Personalisation and customisation are also important, she said. Concurring with Dugar, MSC Cruises
Head of Retail, Adrian Pittaway – who immediately followed Dugar’s presentation on stage at the China’s Century Conference – was also keen to point out: “Cruise retail is not travel retail. Cruise retail is experience retail.”
MAY 2019
when we know for a fact that Chinese outbound travellers spend more than anyone else, with $257.7bn recorded in 2017, according to figures provided by the World Tourism Organisation. This is almost twice the figure spent by the next highest-spending nationality (American travellers).
Daigou: ‘mixed blessing’ Of course, as Maingreaud conceded, a significant part of overseas spending relates to the Daigou phenomenon of traders buying duty free goods for resale back in China. “This activity is something of a
mixed blessing,” he said. “On the plus side, Daigou has certainly driven sales in some markets, such
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150
