TOP 10 OPERATORS 2018 8: CHINA DUTY FREE GROUP
the concession at the start of this year before the expiry of the previous concession in 2019. This prompted a duty free tender
to be issued covering 1,130sq m located at the South Departure level. The tender comprised four stores
totalling 891sq m offering liquor and tobacco, candies and souvenirs, general merchandising, international fashion brands and perfumes and cosmetics. Four perfumes and cosmetics
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overseas [airport] project for us so it’s very exciting. “Everyone that has had a part to
play in the building of these stores is very, very happy. Our shelves our beautiful and the design of our stores is very beautiful. Of course in the future I hope our sales will also be very good.” When asked if the company had
kiosks spanning 239sq m also formed part of the package.
Well-connected in China Victory in Macau completed a run of key tender triumphs for CDFG, which now runs 249 duty free outlets in China and overseas. At the time, Chen said: “With our
network and expertise of serving the Chinese traveller, we are confident we will be able to provide MIA, our supplier partners and, most importantly, the MIA customer, with an outstanding retail experience. “The partnership with KPM
adds tremendous value to our bid, as the company has long-term experience and knowledge of the business at MIA. “With this understanding
plus their international reach as part of King Power Group (Hong Kong), we consider them to be valuable partners.” As he mentions, Chen and CDFG
believes that the company has been able to secure these key contracts due to one of its biggest strengths; its understanding of Chinese travellers. He told TRBusiness earlier this
year that CDFG’s huge resource of information on Chinese travellers – powered in part by parent company CITS, the ‘no 1 travel company in China’ – fills him with confidence that CDFG’s new stores, particularly at Hong Kong Airport, will perform well. Speaking of HKIA, when CDF-
Lagardère officially inaugurated is eight stores there this July, he reiterated to TRBusiness just how important this particular contract was to the company. “Hong Kong Airport is very
been able to raise the bar, after incumbent travel retailer DFS Group bowed out of the tender race for the liquor & tobacco tender last year, Chen was reticent to compare operations. “I always respect our competitors
and I think DFS has done well in past years at Hong Kong Airport, but I think we are in an excellent position to thrive. “CDFG is a typical Chinese
company and we are lucky that we know the Chinese travellers very well. We have studied their behaviour and we hold a lot of information on their behaviour. We know their shopping habits, by age, by gender, so we are lucky…we know the Chinese travellers so we are in a position where we can select the best products for them. “We are lucky because not only
are the Chinese customers looking for international brands, but they are also looking at Chinese liquor and tobacco products, so as a Chinese company we have direct connections with these Chinese brands so its good for them and us. “For me personally I respect DFS because they do very well, but
CDFG, which acquired 51% of Sunrise Duty Free, will shortly be working on new stores at Shanghai Pudong Airport where it won the retail tender in July.
perhaps they were not so lucky [here, in previous years].” As is well-known, CDFG’s parent
company China International Travel Service Corporation Limited (CITS) is a dominant force within the travel and tourism sector in Asia. “Our parent company is the no 1
travel company in China, maybe in Asia. So we have a lot of information at our disposal through our group, through our travel agency and through the hotels,” adds Chen. Chen is not worried about
passenger traffic at HKIA and believes that Chinese travellers will
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“The contract terms are more favourable in Beijing [where the airport is believed to take as much as 47.5% from shops at its terminals-Ed] than previously so the expectation is that they will be at least as favourable in Shanghai.”
Denise Wong,
Infrastructure Analyst, Bloomberg Intelligence Asia
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Contact:
janice@trbusiness.com
important for China Duty Free Group because it is the first
OCTOBER 2018 China Duty Free Group President, Charles Chen. TOP 10 OPERATORS 65
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