The Trinity Forum: CDFG
China Duty Free Group’s grand vision
In one of the early event highlights, China Duty Free Group (CDFG) Executive Vice President Luke Chang outlined the spectacular growth path of the world’s number one travel retailer over the last three years. He assessed the company’s evolving consumer offer and some of its upcoming investment plans.
Chang noted that in recent years, the travel retail industry has faced the enormous challenge of the COVID-19 pandemic, but said that despite this, “CDFG has achieved this remarkable success together with our partners.”
He added that this success is based mainly on three factors: a steady growth in airport sales, the rapid growth of the Hainan offshore duty free market and the development of the CDFG online travel retail business.
On airport sales development, he noted that in 2022, CDFG’s duty free stores in Beijing, Shanghai, Guangzhou and Hong Kong alone generated sales of US$2.8 billion.
Luke Chang: CDFG is building across the pillars of growth at home, including in Hainan, expansion overseas and extended reach in the online space
Chang also underlined CDFG’s desire to build its international footprint, notably winning the duty free contract at the new Siem Reap–Angkor International Airport in Cambodia; securing CDFG’s first store location at Singapore Changi Airport; plus development plans for port duty free in Sri Lanka.
In Hainan, CDFG sales on the island exceeded US$5 billion in 2022, capturing over 80% of the offshore duty free market. CDFG’s various online platforms, meanwhile, served 27 million customers and achieved sales of US$4.5 billion.
In video: CDFG’s vision for the future of travel retail in Hainan
Highlighting future plans, Chang shared that CDFG will be opening China’s first experiential Whiskey Museum, with a surface of over 3,000sq m in the Haikou International Duty Free Shopping Complex. “It’s going to be a whisk(e)y lover’s paradise,” he said.
In the cruise sector, Chang revealed that aboard China’s first home-built cruise ship, Adora, CDFG will introduce a 2,000sq flagship duty free store. “Positioned as a trendy shopping hub, it will showcase renowned designer brands, watches and jewellery, high-end fashion, beauty products and fragrances,” he said. “A dedicated ‘Chinese Trends’ shopping zone will highlight innovative cultural offerings from China.”
“We go beyond retail by including hotels, cultural spaces, art hubs and residential developments”
China Duty Free Group Executive Vice President Luke Chang
Turning his attention to Hainan, Chang referenced CDFG’s strategic initiative, ‘Deeply Rooted in Hainan’ which he said is crucial to the retailer’s corporate vision.
“The main goal is to turn Hainan into a top-notch tourist shopping destination, featuring urban complexes, shopping centres, airport duty free shops, and port duty free shops,” he noted. “We have attracted over 1,000 globally renowned brands. These include luxury labels, designer collections, exquisite timepieces, fine jewellery, high-end fashion, beauty products, fragrances, and emerging Chinese street fashion.
“We go beyond retail by including hotels, cultural spaces, art hubs and residential developments.”
Chang also provided an update on CDFG’s Sanya Haitang Bay project, highlighting the upcoming launch of 78,000sq m of global beauty space, along with the launch of two luxury hotels in Phase 1 of the latest plan.
“For Phases 2 and 3, we’ve formed a strong partnership with Swire Group, undertaking an extensive project spanning 470,000sq m. Upon completing phases 1, 2, and 3, we aim to establish Sanya as the most comprehensive high-end travel retail destination.”
Luke Chang, welcomed to stage by Martin Moodie, led a strong CDFG delegation at the event
Chang also spoke proudly of the Haikou International Duty Free Shopping Complex, which opened last year covering 280,000sq m – making it the world’s largest single duty free shopping complex.
“This remarkable achievement is just the beginning of our grand vision,” he said. “The entire project will eventually span 930,000sq m, transforming it into a world-class leisure and shopping destination. It will feature both duty free and duty paid retail, office space, hotels, and a residential community. This comprehensive development promises a vibrant future.”
He added: “By being strategically located in Hainan, with one development in the north and one in the south, these top-notch tourist shopping destinations guarantee immersive and high-quality shopping experiences for all travellers visiting the island.”
Chang concluded: “Looking ahead, CDFG is confident and eager to foster deeper collaborations and dialogue for the growth and advancement of the entire travel retail industry.”
Partner's message
The Moodie Davitt eZine
Issue 329 | 22 November 2023
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com