TOP 10 OPERATORS 2018 8: CHINA DUTY FREE GROUP
“With the explosive growth of cruise tourism, China has become the fastest growing emerging market in the global cruise tourism industry. In recent years, the tax free cruise industry has become a key strategic project for China Duty Free Group.”
China Duty Free Group
Looking for the un-blocked version?
only continue to increase. “There a lot of Chinese travellers
coming through HKIA and it’s still a popular place for them to visit so I think they will only increase in the coming years.” However, high pax numbers have
not always translated into strong sales at HKIA – or other airports for that matter – as TRBusiness pointed out to Chen. When asked if he was confident
that the high numbers of Chinese passengers would actually be enticed into the stores, instead of passing them by, he said. “Yes [I am confident]. Obviously we
introduced a lot of promotions for the grand opening, but we also have others in the pipeline for the year ahead. But I know we will manage these stores properly and I feel very confident that these stores will perform well.” Chen is also keen to point out that
it’s not only the Chinese customers who they are catering too and insists
CDFG officially inaugurated eight new Duty Zero stores at HKIA in July this year.
that stores have been designed with an ‘East meets West’ feel, which should encourage foreign visitors to shop from what Chen believes is a ‘great variety’ of products. “They will know they are in Hong
Kong, but there is also a great variety of brands on offer,” adds Chen. “This is why I feel very confident that these stores will do well.”
SUBSCRIBER ONLY CONTENT CDF/Lagardère aims to refine offer in year one at HKIA
CDF-Lagardère, the joint-venture comprising China Duty Free Group (CDFG) and Lagardère Travel Retail is looking to refine its assortment and deliver good value for money in the first year of trading at Hong Kong International Airport (HKIA).
20th Anniversary Edition Official Partner
Success in Shanghai With little time to dwell on the successful opening of the HKIA stores, later on in July, CDFG announced that Sunrise had secured the seven-year duty free contract at Shanghai Pudong and Hongqiao Airports following a competitive tender. The group will now operate an enlarged, 2,088sq m area at Hongqiao
(up from 1,500sq m) and 16,915sq m at Pudong (up from 6,600sq m). TRBusiness spoke to Bloomberg
Intelligence Asia Infrastructure Analyst Denise Wong, in the August Top 10 Airports issue, about the terms of this contract and the one in Beijing and how successful she thought the new retailers might be. “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.” It is understood that the Shanghai
Airport Authority will take no more than an estimated 25% of sales from its merchants under the current agreement. Wong added: “Shanghai
This follows the unveiling of eight liquor and tobacco duty free stores under the Duty Zero by CDF branding. Speaking to Andrew Pentol directly
Subscribe to TRBusiness magazine to receive a digital copy of the TRBusiness Top 10 International Operators 2018.
Contact:
janice@trbusiness.com
after leaving the shop floor on the day the shops opened, Lagardère Travel Retail Head of Liquor Category Management Scott Hamilton said: “In terms of our first-year objective, we want to refine our assortment and ensure it is a good working and broad one for all consumers. “We also want to ensure we give
good value for money on our pricing throughout the region when customers pass through.” He added: “We have a great joint-
CDF-Lagardère will be updating its offer at HKIA in the first year of trading.
66 TOP 10 OPERATORS
venture [with CDFG in the group] and are looking forward to great results by the
end of the year.” Regarding the liquor assortment in
particular, this has come a long way since the joint-venture took over the contract at HKIA. “When we took on the range it was a very limited one. We have since expanded it to bring in a wider range of cognacs and single malts. We have also focused on targeting global exclusive products through our key worldwide vendor partnerships.” The wine assortment has also
developed since November, emphasised Hamilton. “This has grown rapidly and widely. We now have a very good range of our Grand Cru Chateau and a diversified and extensive range of New World wine from countries such as Chile, Australia and Argentina.”
OCTOBER 2018
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
