The China Duty Free Group (CDFG) has confirmed today that it has signed a new agreement to operate the eight-year duty free departure shops contract when it begins in 2018 at Guangzhou Baiyun Airport Terminal 2.

 

The CDFG company has been operating all the duty free departures shops and boutiques in Guangzhou Baiyuan Airport since 2008 and more recently it was also awarded the arrivals business. When Terminal 2 opens next year it will also be capable of handling an additional annual 45m passengers when finally completed.

 

CDFG IS CHINA’S LEADING DUTY FREE OPERATOR

Currently, the company operates duty free arrivals and departures shops at six key airport locations, including Guangzhou, Kunming, Nanjing, Qingdao, Chengdu and Urumqi and says this enables it to obtain significant advantages from suppliers and customers, thanks to the scale of this operation.

 

Guangzhou Baiyun Airport is now the third-largest airport in Mainland China and it is little realised that in 2016 its passenger traffic exceeded that of Singapore Changi and New York JFK airports.

 

In addition to being the home base for the fast-growing China Southern Airlines, Guangzhou Airport is also an important hub for Air China, Shenzhen Airlines, China East Airlines and Hainan Airlines.

 

A HUGE NEW DEVELOPMENT

Terminal 2 is also a very important development, which will cover 660,000sq m when it is finally completed, including 35,000sq m of commercial space, of which 3,000sq m is expected to be duty free shopping area.

 

Last year, Baiyan Airport ranked 15th in the world with passenger numbers reaching 59.73m (+8.2%) and this total made it Mainland China’s third largest airport behind Beijing Capital Airport (94.39m) and Shanghai Pudong International Airport (66m).

 

As a result, CDFG management says the potential at this location ‘is huge’ in a year when the retailer has won significant new business, with the duty free contract at Hong Kong International Airport, more business in Beijing, plus the rights to operate at another six domestic airports.

 

SIGNIFICANT POTENTIAL FUTURE BUSINESS

The CDFG company also adds that the new Guangzhou Baiyun Airport T2 business also comes at the same time as further improvements in the commercial layout of the larger airports. The retailer says that the future of the group’s strategic planning attaches great importance to potential business at Guangzhou Baiyun Airport – as a large-scale hub airport.

 

It also adds that all of these improvements within the airport’s management team help to enhance the overall competitiveness and international status of China’s tax-free industry.

 

CDFG said: “Through these comprehensive capabilities, the Group will make better use of the advantages of resources, feedback to the airport authorities and consumers, to create the best commercial value for the airport and provide consumers with a richer choice and a price advantage with their duty-free goods.”

 

The China Duty Free Group is a leading enterprise in China’s tax-free industry and is the only company in China that operates major tax-free and duty-free shops. The CDFG company operates in Mainland China, Hong Kong, Macao and Southeast Asia and has 248 retail stores – including the world’s biggest downtown off airport shop on Hainan Island in Sanya.