‘Sales boom’ at Duty Zero as CDF reports good results

By Doug Newhouse |


DUTY ZERO by cdf has had a good start, according to the joint-venture operation.

After just ten days of operations, sales are said to be ‘booming’ at the new Zero Duty by cdf duty free liquor and tobacco operation at Hong Kong International Airport, with ‘more revenue than expected’, according to the company.


At present, the new joint venture company comprising China Duty Free Group (CDFG) and Lagardère Travel Retail is operating out of a total of six stores over 1,631sq m, with this aforementioned good sales performance said to be thanks to DUTY ZERO by cdf – plus the combined purchasing strength of CDFG and Lagardère Travel Retail.



This has also been complimented by the wide range of products in both the Chinese domestic tobacco and liquor ranges and the imported liquor and wine collections, providing consumers with broader choices.



The new stores have been received very well, according to the China Duty Free Group.



At the same time, CDFG claims to be offering ‘the most competitive pricing strategy in Asia Pacific’ by benchmarking its products against other key airports in the Asia Pacific region.


CDFG claims its prices for identical products are now between 15% to 30% lower than the prior prices offered at HKIA.



The China Duty Free Group says it has brought in its most experienced managers to help with the opening.


CDFG said it is therefore not surprising that these prices have been received well, as the operation is also benefiting from the company’s decision to put in its best international management and operational teams to make sure that the new operation ran smoothly from the start.



This also included full support on this and all other initiatives from its parent company with its powerful resource and support functions.


The company said that both CDFG and Lagardère Travel Retail have also provided combined support and assurance to HKIA in terms of the product mix, supply of goods, pricing strategy and personnel support.



The wines and spirits offer is clearly very comprehensive.


The China Duty Free Group also admits that it has been considerably helped by the synergistic financial boost provided to both purchasing and pricing levels provided after it won the Beijing International Airport duty free business.


At the same time, CDFG said that the largest travel service provider in China – the China National Travel Service Group – [CDFG’s parent company-Ed] has also provided generous support and cooperation in terms of both the direction of passenger flows and integrating all of the marketing functions.



China National Travel Service Group Vice General Manager Li Gang emphasized when interviewed by the press that ‘the operation of HKIA represents both a milestone and touchstone for the development of China’s duty free industry’.


Charles Chen Guoqiang, the President of CDFG also ‘vowed’ to deliver a satisfactory result for HKIA and its customers after the bid.



Tobacco continues to be a very strong customer draw.


At the same time, the company says that its post-opening performance of CDFG’s HKIA duty free tobacco and liquor stores has been so good that that it has also helped to inject new confidence and expectation in the international development of China’s duty free companies.



This has also translated into the most recent development today (November 28) with a new leading store opening north of the main East Hall shop opening. This is obviously very important since it targets domestic airlines such as Air China, while the west lobby outlet appeals to Hong Kong, European and American passengers.


The retailer also emphasises that there are still eight more tobacco and liquor stores covering a total sales and operating area of 3,400sq m to open, with these including what CDFG describes as the ‘Most Complete Single Malt Whisky Mix among Asia Pacific airports’, and ‘the most complete Asian alcohol and beverage product mix among global airports’.


Then there is a special standalone ‘Hennessy Counter’ for the Cognac industry’s leading brand, plus a store selling Hong Kong afternoon tea and food.



China Duty Free and Lagardère Travel Retail are now preparing for the opening of the remaining shops.


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