TOP 10 OPERATORS 4: CHINA DUTY FREE GROUP
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China Duty Free Group ascends ranking with $5.2bn in sales
China Duty Free Group secured pivotal new contracts once again in 2018 and 2019, including a 10-year agreement to operate stores at the new Beijing Daxing International Airport. It also opened new downtown stores in mainland China and Hong Kong, with more to follow, as Charlotte Turner reports.
ollowing a very successful year in 2017, China Duty Free Group placed in a very respectable
eighth, according to last year’s Top 10 International Operators ranking. However, following a slew of new contract wins and store openings, CDFG climbed into fourth position in this year’s Top 10 International Operators table (based on revenue recorded by the group in the full 2018 calendar year). In a 145-page financial report
obtained by TRBusiness from CDFG parent company China International Travel Services (CITS), it was reported that CDFG’s duty free sales reached CNY34,481,414,611.32 in 2018, which equates to around $5.2bn (based on a yearly average exchange rate for 2018) representing a staggering rise of around +120% year-on-year. Of course, this is in part due to an
advantageous currency exchange rate in 2018; something which it may not benefit from in 2019. Its rapid growth, allowing it to
climb from eighth to fourth position in our table, is down to an impressive number of tender victories, new store openings through its subsidiary
OCTOBER 2019
Sunrise Duty Free (at Beijing Airport, as well Shanghai’s Hongqiao and Pudong airports), in addition to its JV at HKIA. Kicking off the year on a positive
note, CDFG began 2018 with the unveiling of its new stores in Terminal 2 and 3 at Beijing Capital International Airport (February 2018). Operated by CDFG and subsidiary
Sunrise Duty Free [in which CDFG holds a 51% share], the eight-year lease covers a total area of 15,000sq m including perfume and cosmetics, tobacco, wine and international boutique brands.
Valuable JV partner in KPM In May 2018 the company reported that it had won the strategic Macau Airport duty free contract in a joint venture partnership with King Power Macau (KPM). The victory in Macau completed
a trio of key tender triumphs for CDFG – including the liquor and tobacco concession (in partnership with Lagardère Travel Retail) at HKIA won in 2017 and the eight-year duty free contract (with Sunrise Duty Free) at Beijing Airport – which was then running 249 duty free outlets in
China and overseas. The partnership with KPM – who
had been operating at the airport for 23 years by that point – added ‘tremendous value’ to the bid, so said the CDFG at the time. Later on in the year, CDFG
showered praise on another tremendously valuable joint venture partner, Lagardère Travel Retail, when both companies officially unveiled its eight liquor and tobacco duty free stores, under the Duty Zero by cdf branding, at Hong Kong International Airport. CDF-Lagardère, heralded the eight
new stores as a ‘new milestone in the development of the global duty free industry by leveraging their
“We believe that in the near future, Duty Zero by cdf will extend its brand and operations to many more international airports and become the premier liquor and tobacco choice for travellers from China and around the globe.”
Wan Min,
Chairman of the Board of Directors of China National Travel Service Group
TOP 10 OPERATORS 31
Above: CDFG believes it is ‘imperative’ for it to have a downtown duty free store in Shanghai.
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