The China Duty Free Group Co has formally thanked Beijing Capital Airport Commercial & Trading Co., Ltd for its ‘faith’ in selecting the company as China’s first competitive winning bidder for its eight-year duty free contract covering both terminals two and three [https://www.trbusiness.com/regional-news/asia-pacific/cdfg-confirms-bcia-win-51-sunrise-acquisition/122684].

 

This follows yet further confirmation of TRBusiness’ exclusive story last March that CDFG had acquired 51% of Sunrise Duty Free (from the Boyu Capital private equity company) after operating as the long-time incumbent duty free operator at Beijing Airport – and also that CDFG President Charles Chen had been linked with a position on the board.

 

CDFG THANKS BEIJING AIRPORT

Quite separately, Sunrise Duty Free also operates the duty free airport concessions and specialist shops at both Shanghai Pudong and Hongqiao airports. [https://www.trbusiness.com/regional-news/asia-pacific/sunrise-df-sells-51-share-to-china-duty-free-group/117348].

 

 

In this latest statement related to winning the Beijing duty free tender, CDFG said it would like to express its thanks to Beijing Capital Airport for selecting and trusting in its ability to operate the business, at what it terms effectively as China’s national gateway airport.

 

As such, the China Duty Free Group said in its statement that it recognises and feels ‘a heavy responsibility’ following this important contract award.

 

SCALE AND OPERATIONAL DEVELOPMENT

The company said: “In the past years, CDFG has achieved great development in both operation scale and operation capacity. We firmly believe that we are capable of providing the domestic and overseas tourists with [a] richer commodity portfolio and more attractive commerce price [pricing] and will bring higher quality service and [a] more splendid shopping experience to tourists.

 

 

“Winning the bid of Capital International Airport is another exciting milestone after winning the bid of Hong Kong International Airport.

 

“As the leader undertaking the mission of making the duty free industry of China stronger and greater, CDFG has the responsibilities and obligations to make active contributions to attract the overseas consumption to flow back and provide more convenient duty free shopping service to the tourists – especially the Chinese tourists.

 

‘RELYING ON THE DOMESTIC MARKET’

“Winning the bid of Capital International Airport lays a solid foundation for us to further set sail relying on the domestic market. We’d like to thank again the friends who concern the development of Chinese duty free industry and CDFG, and also we’d like to express our thanks to the brand owners for fully supporting us in the bid invitation.

 

 

“In the future, the duty free store of Capital International Airport will become a new landmark with our efforts and cooperation and CDFG will also deliver a good report to Capital International Airport and tourists by combining the operation advantages of our own and Sunrise.”

 

HUGE DUTY FREE FORCE

As reported, the ‘merger’ between CDFG and Sunrise Duty Free (China) Co., Ltd will obviously create a huge duty free force, with coverage at Beijing Airport, Hong Kong International Airport (when its JV stores open), its downtown duty free business in Cambodia, plus the huge Sanya downtown store.

 

Then there is the extensive China-wide 230-strong network of duty free and specialist stores run by CDFG at airports, land borders and seaports throughout throughout the huge country.

 

As already documented by TRBusiness, CDFG has also benefitted hugely from last year’s merger of its parent CITSC with the China National Travel Service Group, which effectively created a RMB120bn ($19.2bn) giant player in the marketplace.