The World’s Top Travel Retailers (continued)
China Duty Free Group
2022 Sales (million)
€7,357
2022 Rank
1
Movement
▷0
Having achieved leadership status among the world’s travel retailers in 2020, China Duty Free Group cemented its number one position for a third straight year in 2022. This was despite a slowdown in sales caused by store closures and lower than usual travel numbers in key periods, due to COVID-19 restrictions in China.
Parent company China Tourism Group Duty Free Corp (China Tourism Group) reported turnover of RMB54.433 billion, or €7,357 million at 31 December exchange rates. The group also reported a -47.95% decline year-on-year in net profit.
The bigger picture – especially now that travel restrictions have eased since January 2023 – is strongly positive for the leading travel retailer, which continued to invest at scale throughout the pandemic.
Highlights of 2022 included opening the world’s largest single duty free destination, cdf Haikou International Duty Free Shopping Complex, last October. CDFG also announced a major partnership with Swire Properties to build the third phase of the Sanya International Duty Free Shopping Complex as a world-class tourist resort.
The opening last October of cdf Haikou International Duty Free Shopping Complex delivered a further powerful boost to CDFG's fortunes in Hainan
The progress of its online and ecommerce business, which has become a critical platform, has also advanced rapidly, with CDFG membership exceeding 26 million by year-end in 2022.
Another intriguing development that will shape CDFG’s fortunes is the anticipated introduction of Korean-style downtown duty free shops in China, potentially allowing Chinese international travellers to shop pre-departure.
As reported, CTG is to acquire a 49% holding in the Sinopharm-owned Chinese travel retailer China National Service Corporation (CNSC). CNSC’s long-established downtown network is the big prize within that deal. It will have been particularly attractive to CDFG given the likely imminent introduction of the new pre-departure downtown duty free channel.
Overseas expansion is also on the agenda, with the company closely examining some high-profile opportunities to enter new markets via tenders or partnerships.
*Full commentary appears in our July/August Magazine, out soon.
cdf Mall at Sanya International Duty Free Shopping Complex remains a critical location for the retailer
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The Moodie Davitt eZine
Issue 325 | 2 August 2023
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