CDF-Lagardère Company Limited (CDF-Lagardère), the joint-venture comprising China Duty Free Group (CDFG) and Lagardère Travel Retail, unveiled eight liquor and tobacco duty-free stores – Duty Zero by cdf— at Hong Kong International Airport (HKIA) today (12 July).

According to CDF-Lagardère, the two companies present a new milestone in the development of the global duty-free industry by leveraging their unique strengths.

Guests attending today’s launch included Wan Min, Chairman of the Board of Directors of China National Travel Service Group, Li Gang, Deputy General Manager of China National Travel Service Group Corporation Limited (China Travel Service (Holdings) Hong Kong Limited), Charles Chen, President of China Duty Free Group, who spoke to TRBusiness earlier today and Lee Charn Cheng, Chief Operating Officer of CDFG.

Also in attendance was Dag Inge Rasmussen, Chairman, Chief Executive Officer of Lagardère Travel Retail, Emmanuel de Place, Chief Operating Officer of Lagardère Asia Pacific, Eudes Fabre, Chief Executive Officer of Lagardère Travel Retail Greater China, Fred Lam Tin Fuk, Chief Executive Officer of Airport Authority Hong Kong  and Eddie Tsai, General Manager of CDF-Lagardère Company Limited.

ROBUST SALES

Min said: “Sales at Duty Zero by cdf have been robust since the soft-opening in November last year. Within eight months of commencing business, our sales revenue has already exceeded projections, giving us huge encouragement.

“Duty Zero by cdf is the fruit of the collaboration between China Duty Free Group and Lagardère Travel Retail as we put into service the four advantages (see below) we enjoy as the world’s major travel retail companies. By offering a wide array of product collections, new pricing model, an engaging interactive experience and quality customer service, we offer travellers a brand new shopping experience at HKIA.

“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.”

Rasmussen added: “Our successful partnership is rooted in a shared passion for excellence and innovation, a vision based on trust and openness. We believe that by bringing complementary expertise, we are able to do extraordinary things. We have combined China Duty Free Group’s unparalleled experience of Chinese consumers with Lagardère Travel Retail’s international experience and global understanding of travellers.”

Airport Authority Hong Kong’s Lam says the, “brand new Duty Zero by cdf concepts and services are in line with HKIA’s vision to enhance the airport experience for passengers. He commented: “Coinciding with HKIA’s 20^th anniversary, I am looking forward to the premium duty free products and travel retail experiences brought by Duty Zero by cdf, which help strengthen the status of HKIA as a leading international aviation hub.”

COMPEITIVE ADVANTAGES

The four competitive advantages, which enhance the airport experience include the world’s largest selection of wines and gourmet foods. Speaking to TRBusiness earlier today, Lagardère Travel Retail Head of Liquor Category Management Scott Hamilton says the liquor offer has come a long way since the joint-venture took over the contract in November 2017.

According to the company, Duty Zero by cdf explores the world for the most coveted spirits and presents the widest selection of single malt whiskies across Asia-Pacific airports. It also offers ‘the world’s most comprehensive’ Chinese liquor and tobacco corner and ‘world’s first’ Asian liquor shop-in-shop.

Products come from 427 different brands, 33 of which are new labels, while 228 of these products are some of the latest releases. They include Duty Zero by cdf’s exclusive Oga Shuzo Daiginjo Chikushino, Yanghe Mengzhilan Series M3/M6 International Edition, Macallan Fine & Rare Vintage Edition, Hennessy Edition Particuliere and Vintage Moutai (50/30/15yo).

The House of Hennessy in-store offers a full range of Hennessy’s cognac, along with limited editions and exclusive products, such as Hennessy XXO Hors d’Âge. The boutique also offers Hennessy rarities. These include Hennessy X.O Mathusalem, Edition Particulière and Hennessy Perfect Serve.  In addition, the Hong Kong Gourmet section presents distinctive local food including Old Hong Kong’s tangerine cookies gift-box sold exclusively at HKIA.

INTERACTIVE EXPERIENCE ZONES

The second competitive advantage is the 11 Duty Zero by cdf interactive experience zones. These feature product knowledge, product appreciation and entertainment, including the showcase of craftsmanship used in making cognac, whisky and Asian liquors. They also include multimedia counters featuring particular wines.

Some experience zones have a different theme for different travelling seasons, while others are permanent offerings. An example of the former is the world’s first ever airport digital bartender, which allows brand ambassadors to introduce products and share their tasting experience while serving the the drinks produced by the digital bartender.

The latter includes the ‘Taxi Interactive Zone’, where travellers can take videos of themselves in front of a red taxi set against the backdrop of iconic Hong Kong destinations. These include the Big Buddha, trams on Hong Kong Island, Victoria Harbour and street scenes of Mong Kok.

CUSTOMER SERVICE FOCUS

Thirdly, the joint-venture has implemented an in-store VIP lounge providing VIP members with one-on-one shopping advice and an opportunity to preview limited-edition premium products. There are also in-store information centres offering travellers, members and VIPs comprehensive customer services. These include booking services, product pick-ups and consultations.

Duty Zero by cdf also plans to launch a mobile application allowing members to order products before boarding flights and to pick them up at HKIA.

Moreover, Duty Zero by cdf is understood to be the world’s first liquor and tobacco airport duty free store to launch the Mobile Point-of-Sale system. This assists members in enquiring about the status of their accrued points and membership promotion requirements.

It also supports electronic payment methods such as WeChat Pay and Alipay. This allows customers to complete a transaction in only a few seconds and makes the shopping experience more convenient and efficient.

‘DOUBLE THE DIFFERENCE’ PLEDGE

The final competitive advantage is the joint-venture’s ‘highly competitive’ pricing strategy and ‘double the difference’ pledge. If a customer buying a regular-priced item finds a lower price at other major Asia-Pacific Airports such as Beijing Capital, Seoul Incheon or Tokyo Narita within 30 days of purchase, Duty Zero by cdf will offer a refund amounting to double the price difference.

Meanwhile, Duty Zero by cdf is offering customers ‘a wide range of delights’ until 1 August in celebration of its grand opening and airport’s 20th anniversary. Customers registering as a member or making one single purchase of HK1,000 ($127) or more during the campaign period are eligible for a single entry in the lucky draw. Each person is eligible for a maximum of 10 entries per day. Customers purchasing tobacco will receive no discount and be unable enter the lucky draw

Participants have the chance to win a Hong Kong-Macau helicopter ride and three-day/two-night stay at The Ritz Carlton, Macau (or equivalent) for two people. Other prizes include a Macallan M Whisky Decanter, 10,000 Duty Zero by cdf membership points, a Lu Zhou Lao Jiao 24K gold plated Chinese zodiac glass set, HK$500 ($64) Union Pay free spending credits and an Old Hong Kong’s tangerine cookies gift box.

Some shoppers can also participate in the ultimate lucky draw where the winner will collect first-class return air tickets to Europe and eight-day/six-night accommodation for two.

SERIES OF DISCOUNTS

In addition, Duty Zero by cdf is collaborating with Union Pay and WeChat Pay to offer a series of discounts. Single purchases of HK$4,000 or more at any store via Union Pay will receive an HK$600 discount. Any single purchase of RMB500 or more via WeChat Pay will be offered an RMB30 cash coupon.

During the campaign period, a pop-up store will be set up on Terminal 1 (Level 7). Customers taking pictures at the on-site digital panel may register as members by using the QR code on the printed pictures.

They can participate in instant lucky draws and immerse themselves in the interactive experience zones. There, they can earn a maximum of 110 membership points by completing simple tasks. Membership points accrued can be used as cash.