The Trinity Forum – CDFG
Charting the evolving China travel retail market
China Duty Free Group (CDFG) Assistant General Manager Michelle Sun outlined how the travel retailer’s latest big initiatives are designed to boost consumer loyalty and spend in the context of the China market’s stern challenges.
Sun said: “While China’s overall travel market is undergoing a rapid recovery and domestic consumption is growing, consumer demand has not yet rebounded as strongly as expected.”
Key takeaways included the fast-emerging CDFG focus on China brands, loyalty programmes and delivering new experiences.
CDFG is investing in growing its China Chic offer to capitalise on increasing demand for local brands, said Michelle Sun
Sun presented the retailer’s ‘China Chic’ approach covering beauty, athleisure, digital products and jewellery.
“Despite the challenging market environment marked by a slowing domestic consumption and waning consumer sentiment, we have witnessed a remarkable emergence of China Chic brands,” Sun said.
“These brands have captured the hearts of young consumers. Gen Z consumers account for 74% of total local brand consumption, making them the primary driving force behind this trend.”
CDFG is offering strong portfolio of C-beauty brands, offering dedicated spaces, alongside jewellery and other categories. In the first three quarters of this year, CDFG has introduced 165 new brands across various categories, with more than 40% from China.
Key takeaways from the CDFG presentation included the emphasis on recovery, Chinese brands and introducing new consumer experiences
Sun illustrated CDFG’s consumer-centric approach to innovation and highlighted the CDFG Membership programme as a case study. “Our membership base has grown to nearly 37 million, with over 10 million active members each with an average annual spend of more than US$571. Among them over 300,000 high-tier Platinum and Diamond members have an even higher annual spend exceeding US$7,100.”
She described the recent launch of Malt & More Whisky by cdf, a strong case study illustrating how CDFG is innovating in terms of retail experiences. The magnificent 3,000sq m whisky emporium houses a curated assortment of more than 1,400 whiskies, including over 400 ultra-premium, rare or exclusive products.
Sun said: “This innovative and immersive whisky experience centre features five distinct zones: whisky culture and appreciation, brand personalisation, whisky knowledge, retail sales and interactive experiences. With a size of over 3,000sq m, the store aims to provide consumers with a more engaging experience to foster a broader whisky market.”
Sun also highlighted The Beauty Concierge and L’OCCITANE Hotel animation at the cdf Sanya International Duty Free Shopping Complex as two other excellent examples of CDFG’s omnichannel and experience-led innovation strategy.
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The Moodie Davitt eZine
Issue 341 | 4 December 2024
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