LEADING ASPAC OPERATORS: CHINA DUTY FREE GROUP
Charles Chen: ‘The purchasing power of the Chinese consumer is still there’
China Duty Free Group President Charles Chen tells Charlotte Turner that as more Chinese travellers emerge from quarantine, their strong propensity to spend remains. With ‘Labor Day’ approaching, the company hopes that its Haitang Bay store will once again become a shopping haven for Chinese residents choosing to holiday at home in the wake of Covid-19.
Above: CDFG is in conversations with its airport partners to negotiate rent agreements. Pictured is the CDFG store at Hangzhou Airport.
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n February, China Duty Free Group (CDFG) made the bold decision to reopen its sprawling
Haitang Bay store in China’s premier holiday destination of Sanya on Hainan Island, sending a clear message to the global duty free and travel retail industry that a recovery is possible. “It’s true that gradually we are
attracting more and more people into our Haitang Bay store,” CDFG President Charles Chen tells TRBusiness. “For the whole of Hainan Island it’s fair to say that more people are removing their masks to go out and they are eating out in restaurants. “The people of China have been in lockdown for so long, they just want
“In May not much will have changed for international traffic, but in June if other countries can control the virus, maybe gradually the [Chinese] government will permit more flights again.”
Charles Chen, President, CDFG
36 TRBUSINESS
to go somewhere where they can feel relaxed and enjoy themselves. In our store alone, people are feeling relaxed and are starting to buy again.” Chen is adamant that a recovery is
on the horizon, but concedes that a rebound in international traffic will take much longer. “I think a lot of people will want
to stay in China [for their holidays],” he says. One of the destinations which is already well-established among Mainlanders is the island of Hainan and in particular, Sanya, home to CDFG’s luxury duty free Haitang Bay complex. As reported by TRBusiness, Hainan recently announced that it has created thousands of jobs to foster development of its pilot free trade zone (FTZ) project. The government, alongside public sector, state-owned and private enterprises in the Southern Chinese island, will offer more than 30,000 positions associated with the tourism, technology and service industries. “Thankfully, the local government
in Sanya is offering the tourism industry a lot of support,” confirms Chen. “I think in the second half of this year Hainan and Sanya will once
again become popular, with many Chinese choosing to spend their holidays there.” China is indeed approaching an
important holiday period, beginning in May, prompting Chinese duty free retailers to kickstart promotions. “We have been planning a lot of
promotions, which will start in May,” continues Chen. “As you know, in May it’s an important holiday period for the tourism industry in China [celebrations for ‘Labor Day’/May Day take place]. Also in June and July, it is a holiday period for students.” The Dragon Boat Festival is due to take place on 25–27 June this year.
Negotiations with airports Chen says: “I think by mid-May we will be seeing a lot more people travelling between provinces across China.” While Chinese residents are
feeling more comfortable travelling within the country, the dearth of international passengers at the country’s airports is seriously worrying for CDFG. “It’s very bad in the airports in
China,” Chen insists. “I’m worried about the airport business. All our arriving stores are closed and very
MAY 2020
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