CHINA. China Duty Free Group (CDFG) has been officially confirmed as the dual winner of the two duty free concessions at Beijing Daxing International Airport.

The bidding agency of Beijing Daxing International Airport formally announced the result on 13 May, with CDFG capturing the respective ten-year contracts for liquor tobacco and food/confectionery; plus beauty and fashion.

As revealed by The Moodie Davitt Report and our Chinese partner Duty Free Expert last Friday, CDFG was the highest bidder for both the concessions (see tables below), heading off rival qualifying offers from Zhuhai Duty Free and Shenzhen Duty Free.

The capital city’s spectacular new airport is due to be completed on 30 June and opened by the end of September.

These artist’s renderings of the liquor & tobacco (above) and perfumes & cosmetics and fashion/accessories offers (below) underline the ambitious way in which China Duty Free Group plans to complement the new airport’s architectural majesty.

CDFG President Charles Chen said: “I would like to thank Beijing Capital Airport Commercial & Trading Co for its trust and recognition. Daxing International Airport is the new capital airport of Beijing. Positioned as a large international aviation hub, it will serve as a new source of energy for the development of the country.

CDFG President Charles Chen (seen speaking at TFWA’s China’s Century Conference in Hainan earlier this month) pledged that the new stores at Beijing Daxing International Airport will play a key role in reinforcing the image of both airport and country – and help drive tourism. [Photo credit: Close_Shoot]

“The airport is a comprehensive transportation hub for the Beijing-Tianjin-Hebei region that supports the construction of the Xiong’an New District. It will also be a new development driver for our group. I am especially grateful for the support of international and domestic brands, who have been monitoring the development of the duty free industry closely.

Speaking at The Trinity Forum in Shanghai last October, Charles Chen told Martin Moodie during an onstage interview that China Duty Free Group would expand its retail footprint inside and outside the Chinese Mainland. He is certainly delivering on that promise.

“We will actively participate in the construction of this important project, in order to add spice to an optimised national image. We believe that with the joint efforts of all parties, our duty free shops will play an important role at Daxing International Airport.”

This overhead rendering outlines the passenger flow into the core duty free retail offer.

Maximising domestic consumption

CDFG said that in recent years it has heeded the call to encourage duty free consumption within China and therefore played its part in accelerating domestic and international tourism through an enhanced retail offer. It cited recent big contract gains at Hong Kong International Airport, Beijing Capital International Airport, Shanghai Pudong and Hongqiao airports, Guangzhou Baiyun International Airport, Macau International Airport, among others.

The Chinese travel retail giant added that the winning bid will “further increase CDF’s market share and the continuous improvement of our international competitiveness”.  It will also result in a higher-quality, value-driven offer for consumers and opens up a “new upside” for China’s duty free business, CDFG said.

Beijing Daxing International is positioned as a major aviation hub serving the Chinese capital, with Air China among the core airline users. By 2021, passenger throughput is expected to hit 45 million, rising to 72 million by 2025.

Source: The Moodie Davitt Report; Duty Free Expert; Love Duty Free Love China (The Moodie Davitt Report/Duty Free Expert); Note: Figures in CNY; rankings based on overall

The spectacular new airport will rank as one of the world’s largest. Eventually its capacity will exceed 100 million passengers per year. [Images: Methanoia © Zaha Hadid Architects]

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