China Duty Free Group (CDFG) says it will pursue ‘innovation-driven growth’ in the airport business as it prepares to open its Terminal 2 and Terminal 3 stores at Beijing Capital International Airport (BCIA) tomorrow (11 Feb).

Operated by CDFG and subsidiary Sunrise Duty Free (China) Co. Ltd, the eight-year lease covers a total area of 15,000sq m including perfume and cosmetics, tobacco, wine and international boutique brands.

CDFG says a broad merchandise mix and attractive prices are said to meet the needs of domestic and foreign shoppers.

“The commissioning of the two duty free stores at Beijing Capital International Airport will […] give full play to CDFG’s expertise in branding, operations, funds, management and membership to build these two duty free stores into world-class ones and achieve innovation-driven growth of airport business,” said CDFG in a statement.

PROMOTIONAL EVENT

Coinciding with the opening will be a large marketing fixture entitled: ‘Spring Fair Celebration – Duty Free Members New Year’s Shopping Festival’, which will be held during the stores’ opening period (11 Feb-2 March).

This will highlight a series of promotions to shoppers, including a ‘New Year Prelude’; New Year shopping souvenirs for customers spending more than RMB 3,800 ($603) in the inbound pickup store; a Lantern Festival coupon that includes bonus points and gift packs for shoppers; plus an online raffle for eligible shoppers.

CDFG says it intends to place a strong focus on studying transformations in tourist trends and consumption habits, as it looks to improve the airport’s service sector.

The company says 122m Chinese collectively spent $109bn abroad in 2016. Per capita consumption totalled approximately $900, more than half of which was spent on shopping and luxury goods.

Speaking to TRBusiness exclusively earlier this year, CDFG President Charles Chen said: “We expect the global tourism industry to continue growing rapidly.

“Meanwhile, we expect new tourist destinations to emerge successively, by virtue of the [Chinese] Belt and Road initiative, bringing the industry and operators more opportunities for growth.

“We expect airport authorities to work with travel retailers in a more open manner to provide higher-quality commodities and prices to consumers.”

‘GREATER ACHIEVEMENTS’ PLANNED

As well-reported by TRBusiness, CDFG made a number of important contract breakthroughs last year, not least its snaring of the liquor and tobacco concession at Hong Kong International Airport in partnership with Lagardère Travel Retail (CDF-Lagardere), which began operating in November.

At the time CDFG captured the Beijing contract last year, it was quick to praise Beijing Capital Airport Commercial & Trading Co. Ltd.

CDFG’s Chen said at the time of the announcement that the decision to award the contract to CDFG was ‘another exciting milestone’ for the business.

The China duty free business had earlier moved to acquire 51% of Sunrise Duty Free [from the Boyu Capital private equity company] as reported exclusively by TRBusiness last year.

The merger has created a formidable market force spanning operations at Beijing and Hong Kong airports and downtown duty free operations in Cambodia and Haitang Bay (Sanya), leveraged further by the merger between CDFG’s parent company CITSC and the China National Travel Service Group.

Significantly, the partnership with Sunrise consolidates the Group’s purchasing power across core duty free (tobacco, wines & spirits) as well as perfumes & cosmetics and international boutique fashion brands.

In addition to the wins in Beijing and Hong Kong, CDFG landed arrivals contracts at airports in Guangzhou, Chengdu, Kunming, Nanjing, Qingdao and Ürümqi in 2017.

“In 2018, we expect to have greater achievements in large international airports and overseas market development,” Chen added.