CHINA. In a big boost to its fast-expanding network, China Duty Free Group (CDFG) has been awarded the duty free arrivals shop contract at Kunming Changshui International Airport.
We also understand that Shenzhen State-Owned Duty Free Commodity Group Co. Ltd (known as Shenzhen Duty Free) has been awarded the arrivals duty free concession at Xi’an Xianyang International Airport, serving Xi’an, capital of China’s Shaanxi Province.
Confirming the award, CDFG told The Moodie Davitt Report that it will open a 489sq m store later this year at the airport, which serves as the main gateway to the city of Kunming, capital of Yunnan Province.
The award follows the central government’s 2016 decision to authorise bids for arrivals shops licences at 19 nominated inbound locations, including airports and seaports (see list below). The contracts are being contested by CDFG, CNSC, Shenzhen Duty Free and Zhuhai Duty Free.
All contract awards are expected by the end of April. We’ll bring you news on other results soon.
Kunming Changshui handled nearly 42 million passengers in 2016, making it China’s fifth-busiest airport behind Beijing Capital, Shanghai Pudong, Guangzhou Baiyun and Chengdu Shuangliu.
The news is a timely fillip for CDFG as it presents joint-venture bids with powerful French company Lagardère Travel Retail this week for the beauty & accessories and liquor & tobacco concessions at Hong Kong International Airport – an alliance revealed by The Moodie Davitt Report on 2 February [bidders are making presentations on their technical offers today and tomorrow to Airport Authority Hong Kong].
In December CDFG announced the appointment of the much-respected Charles Chen as President, signalling its determination to expand at home and abroad. That followed hot on the heels of the experienced former DFS, Valiram and Lagardère Travel Retail executive CC Lee being named Chief Operating Officer
CDFG’s expansion aspirations were further underlined last October when its parent company China International Travel Service voted at board level to create a joint venture business with fast-growing Hainan Duty Free. The registered share capital will be RMB100 million (US$14 million), with Hainan Duty Free contributing RMB51 million for a 51% share, and China Duty Free Group investing RMB49 million for the remaining 49% holding.
Two months earlier CDFG opened its third Cambodian downtown store in Phnom Penh.
AIRPORTS APPROVED FOR DUTY FREE ARRIVALS SHOPS
– Guangzhou Baiyun International Airport
– Hangzhou Xiaoshan International Airport
– Chengdu Shuangliu International Airport
– Qingdao Liuting International Airport
– Nanjing Lukou International Airport
– Shenzhen Bao’an International Airport
– Kunming Changshui International Airport – awarded to CDFG
– Chongqing Jiangbei International Airport – awarded to CNSC
– Tianjin Binhai International Airport
– Dalian Zhoushuizi International Airport
– Shenyang Taoxian International Airport
– Xi’an Xianyang International Airport – awarded to Shenzhen Duty Free
– Ürümqi Diwopu International Airport
PORTS APPROVED FOR DUTY FREE ARRIVALS SHOPS
– Futian, Huanggang, Shatoujiao and Wenjindu (all Shenzhen)
– Zhuhai Zhakou
– Heihe
Source: The Moodie Davitt Report
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