CHINA. Beijing Capital International Airport has ratified the award of eight-year duty free contracts to China Duty Free Group (CDFG) and Sunrise Duty Free at terminals 2 and 3 respectively.
CDFG has hailed the result, saying it plans to raise the standard of duty free shopping and service, and combine with Sunrise Duty Free to deliver a more compelling offer to tourists.
Crucially, Sunrise Duty Free’s successful bid for the T3 duty free concession (it operated in both terminals until now) has cleared the way for CDFG to finalise its previously conditional 51% acquisition of Sunrise*.
A new Chinese travel retail superforce is born. – The Moodie Davitt Report
Upon receiving notice of the result from Beijing Capital Airport Commercial &Trading Co., Ltd, CDFG issued a statement expressing its thanks for the airport company’s trust.
The company said: “Capital International Airport is the ‘national gate’ of China and we feel a heavy responsibility. In the past years, CDFG has achieved great development in both operational scale and capacity.
“We firmly believe that we are capable of providing domestic and overseas tourists with a richer product portfolio and more attractive prices. We will bring a higher-quality service and a splendid shopping experience to tourists. Winning the Beijing Capital International Airport bid is another exciting milestone after winning the Hong Kong International Airport bid.”
CDFG noted that, as the “leader” in China’s duty free business, its mission is to make the travel retail industry stronger, with a further responsibility to attract overseas consumption among Chinese tourists back to China.
It noted: “Winning the bid at Capital International Airport lays a solid foundation for us to further set sail, relying on the domestic market. We would like to thank again the friends [involved in] the development of the Chinese duty free industry and we would like to express our thanks to the brand owners for fully supporting us in the bid invitation.
“In the future, the Capital International Airport duty free store will become a new landmark with our efforts and cooperation. CDFG will also deliver a good [service] to Capital International Airport and tourists by combining the operational advantages of our own and Sunrise.”
The contracts cover:
1) T2: international terminal departures area – 3,186sq m; arrivals zone – 417sq m
2) T3: outbound international – 9,461sq m; arrivals 1,939sq m
Categories to be sold include perfume & cosmetics, tobacco & liquor, confectionery, fashion and accessories, watches, jewellery and other items.
Beijing Capital International Airport handled 94,393,000 passengers in 2016 (domestic and international), up +5% year-on-year.
*With the awards ratified, it paves the way for CDFG to close its previously conditional 51% acquisition of Sunrise Duty Free China revealed earlier this year. It has done that by buying (initially on a conditional basis) the full 50% stake in Sunrise Duty Free China held by Sunrise Shanghai and a further 1% from the 50% holding of Sunrise Duty Free Group. Click here for our earlier story with CDFG reaction.
**Footnote: CDFG President Charles Chen will deliver a major speech at this year’s Trinity Forum in Bangkok (1-3 November).
NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@TheMoodieReport.com.
We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.
Similarly The Moodie Davitt Report is the only international business intelligence service and industry media to cover all airport consumer services, revenue generating and otherwise. We embrace all airport non-aeronautical revenues, including property, passenger lounges, car parking, hotels, hospital and other medical facilities, the Internet, advertising and related revenue streams.
Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.
All such stories are consolidated in our popular Tender News section (see home page dropdown menu) that has been running since 2003.
