CHINA. Sunday, 11 February will be a red-letter day for China Duty Free Group (CDFG) and its Beijing subsidiary Sunrise Duty Free (China) Co Ltd (Sunrise China) as the two retailers open their duty free stores at Beijing Capital International Airport T2 and T3, respectively.
As revealed by The Moodie Davitt Report, CDFG and Sunrise were awarded the T2 and T3 duty free contracts in June 2017 after a highly competitive tender. As reported, the dual award cleared the way for CDFG to complete its 51% stake in Sunrise’s Beijing operation revealed earlier in the year. Until now, Sunrise Duty Free has been the sole duty free retailer at T2 and T3.
CDFG will manage 3,186sq m of space in T2’s international terminal departures area and 417sq m in arrivals. Sunrise China will operate 9,461sq m of departures space at T3 and a big 1,939sq m arrivals space. Categories covered by the contract include perfume & cosmetics, tobacco & liquor, confectionery, international luxury, fashion and accessories, watches and jewellery.
CDFG said that the T2 and T3 stores will offer an increased product mix and more attractive prices for foreign and Chinese shoppers.
The company noted that some 122 million Chinese people spent around RMB739.4 billion (US$117 billion) abroad in 2016, with a per capita consumption of US$900.
“More than half of that was spent on shopping, especially luxury goods,” said CDFG. “Duty free shopping has become an indispensable part of Chinese people’s overseas travel. China National Tourism Administration predicts that over 200 million Chinese people will travel abroad by 2020, +63.9% more than 2016. Against such a background, airport duty free stores will become a new growth point for travel shopping.”
Plenty of opening incentives
To celebrate the opening, the two retailers will run an ambitious series of promotions from 11 February until 2 March. ‘Spring Festival Celebration – Duty Free Members New Year’s Shopping Festival’.
The campaign will feature a series of promotional events, including ‘New Year Prelude’ (offering attractive shopping membership prices), and a New Year shopping incentive with complimentary souvenirs for those who spend more than RMB3800 (US$602) in the arrivals stores.
A Lantern Festival coupon (available for the retailer’s shopping scheme members) offers a combination of bonus points and gift packs; while an online raffle for eligible members features attractive prizes.
Major airport breakthroughs for CDFG
CDFG noted that “as the leading player on a mission to make China’s duty free industry bigger and stronger”, the group has been active in international competition over recent years, achieving several business development breakthroughs.
As revealed by The Moodie Davitt Report, CDFG was awarded the liquor, tobacco and packaged foods concession at Hong Kong International Airport (in a partnership with Lagardère Travel Retail called CDF-Lagardère Company Limited). The company’s follow-up triumph at Beijing Capital International Airport, a long sought-after prize for CDFG, further bolstered its international standing, the company commented.
Since acquiring a 51% shareholding in Sunrise China for “synergistic effects”, CDFG said that it has fully integrated the purchasing advantages of the two companies in the key perfume & cosmetics, local and imported tobacco, liquor and wine categories at Beijing Capital International Airport.
The combined power of the two companies means more popular and trendy international brands can be brought to the airport, with CDFG leveraging its international luxury and fashion experience at the company’s acclaimed Sanya International Duty Free Shopping Complex in Hainan.
CDFG commented: “The commissioning of the two duty free stores at Beijing Capital International Airport will facilitate an upgrading of consumer service at the airport. We will keep abreast of changing consumer and tourist consumption trends and satisfy people’s ever-growing needs for a better life.
“The openings will also offer full play to CDFG’s expertise in branding, operations, funding, management and membership schemes to build these two duty free stores into world-class operations and achieve strong, innovation-driven growth of the airport business.”