CNSC hails ‘golden period’ for China duty free as further openings loom

By Andrew Pentol |

CNSC is planning to open a revamped downtown store in Qingdao.

The China National Service Corporation for Chinese personnel working abroad (CNSC) has described recent developments on Hainan Island and the awarding of duty free licenses across the country as the ‘golden period for development’.

As reported, the new game-changing offshore duty free shopping policy on Hainan Island was implemented on 1 July 2020. The new regulations, include the tripling of the purchasing quota from RMB30,000 to RMB100,000 (no limit on the number of store visits) and an expanded duty free category list.

Sales from offshore duty free shops in Hainan have exceeded RMB12.01 billion/$1.81 billion in the period from 1 July to 31 October 2020.

A CNSC Spokesperson told TRBusiness: “The central government has introduced several policies to strongly support the development of China’s duty free industry. CNSC will grasp this opportunity to seek greater breakthroughs.”

On the prospect of opening a new duty free store in Hainan — further duty free stores are expected to open on the island by the end of the year — the Spokesperson commented: “We are striving to promote the project in Sanya now.”


CNSC is also edging closer to opening its new 1,800sq m Beijing downtown duty free store. The store will be located in the Beijing Fun district, just 100 metres from Tiananmen Square and adjacent to the Palace Museum, National Museum of China and other famous cultural sites.

“We are currently heading towards the final stretch of preparation work. Under the company’s plan, the Beijing Fun store will open for business by year-end,” the Spokesperson confirmed.

One store which has already opened is the company’s new Hangzhou downtown duty free store (pictured above) on 28 August. The new-look outlet provides a wealth of post-arrivals shopping options and a much-enhanced shopping experience, which is generally welcomes by customers, according to CNSC.

“The two-storey store features a wide array of popular brands and categories, including cosmetics, fragrances, sunglasses, leathergoods, fashion and accessories, jewellery, food and confectionery, handicrafts, consumer technology and household appliances,” revealed the Spokesperson.

The tendered duty free space (marked in red) at Nanjing International Airport Terminal 2 spans 1,500sq m.

Meanwhile, CNSC, which has refurbished a number of its downtown stores in several cities and is planning to open revamped stores in Qingdao and Chongqing has been named preferred bidder for the 1,500 Nanjing International Airport Terminal 2 duty free concession. China Duty Free Group was the second highest bidder.

The guaranteed annual rent is RMB55.35 million and the commission ratio against monthly sales is 28.44%. The eight-year contract will be effective from the date the agreement is signed. Business categories include tobacco, alcohol, food, fragrance, fashion& Accessories, and health products.

Last year, the annual passenger throughout at Nanjing Airport was 30.582 million. The inbound and outbound passenger flow was 3.64 million. The capacity of Terminal 2 is 18 million passengers annually.





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