‘Community of destiny’: China Duty Free Group and Maison Martell in pioneering Hainan partnership

How will you promote the boutique, both online and offline?

On 28 January we held the opening ceremony online and offline together with Pernod Ricard Global Travel Retail. That allowed millions of fans from the livestreaming platform of CDFG and CDF Sanya international Duty Free Complex, as well as all consumers who could not attend the opening ceremony in person, to experience it at first hand.

CDFG has 10 million high-end members covering major cities in China, and we have established the largest member big data platform in China’s duty free industry. Our next step will be to leverage the unique digital retail experience provided by the Martell boutique, and we will work together with Pernod Ricard to develop marketing activations tailor-made for Chinese consumers.

Through the application of digital technology, we will jointly promote online and offline to provide consumers with the best products and services and deliver the brand value and innovative ideas advocated by Martell to consumers.

At the same time, CDFG has been committed to continuous and in-depth research on China’s duty free market and travel retail consumer groups. With our years of experience in retail operation and service, we are confident that the Martell boutique will become a benchmark of the imported liquor category in Hainan and even in China’s wider travel retail industry.

Pernod Ricard is a long-term strategic partner of CDFG. Based on this partnership, the cooperation between our two companies has been very harmonious. The opening of the Martell boutique shows that the strategic cooperation has risen to a new level. So I would like to express my gratitude to Pernod Ricard for opening its first duty free Martell boutique with us in Sanya.

‘Win-win cooperation’ has always been the cornerstone of our strategic partnership. With the continuous development of CDFG’s business, the cooperation between our two companies will continue to progress in the future, from ‘cooperation community’ to ‘community of destiny’.

At the same time, I would also like to take this opportunity to appeal to all suppliers again.

We welcome international brands to jointly develop the duty free market of Hainan Island with CDFG. China is ushering in a new era, and each of us has many opportunities that we can’t miss. If you miss China, you will miss the future!

Talking more broadly, how important was the addition of spirits and wines to the offshore duty free category to CDFG?

Against the backdrop of a new development pattern with domestic circulation as a priority, combined with domestic and international dual circulations, the Chinese government announced new duty free policies for Hainan Island in early July 2020 and expanded product categories on sale. We are very glad that the imported liquor and wine category has been included.

We are also very pleased to see that since the first day of the implementation of the new policy, newly-added duty free goods such as liquor and mobile phones have been highly sought-after and have become a highlight in consumer shopping. We expect this trend to continue growing.

With China’s introduction of a series of policies to encourage domestic consumption and the recovery of China’s domestic tourism industry, China Duty Free Group and our duty free business in Hainan Island has become the ‘lighthouse’ of the global travel retail market, the focal point of duty free channels all over the world.

In recent years, the sales of imported liquor in China have been increasing year on year. Young Chinese consumers, especially millennials, are increasingly accustomed to drinking and consuming imported liquor. China Duty Free Group has established direct cooperative relations with major global liquor and wine companies.

We are committed to providing Chinese consumers more diverse liquor products and better shopping environments, improving their shopping experience, and attracting more consumers to our duty free shops on Hainan Island.

We will further explore the incorporation of duty free shopping and policy, and adjust product and brand structures. We plan to carry out deeper cooperation with brands, optimise operation and management, and serve the demand of Chinese consumers for duty free shopping to the greatest extent possible. We also expect to rapidly increase China Duty Free Group’s market share within the international duty free market, and play an increasingly important role in terms of international competition.

Can you offer any insight to how sales of spirits and wine have been faring since last July?

Considering data sensitivity for a listed company, I cannot disclose specific turnover data. However, with the increasing attention of brands for the Hainan Island duty free market, allied to sufficient stock and the development of various themed promotional activities, the attraction and influence of duty free imported liquor to consumers will grow accordingly.

Since the implementation of the new policy, sales of spirits and wines have exceeded our expectations, especially the demand for high-value and super-premium products. In terms of categories, we have also noticed that young consumers are pursuing single malt whisky, Japanese whisky, Champagne and liqueurs.

In general, Chinese consumers have a deeper understanding of imported liquor and their demand is diverse. We expect that this will be a very promising category. I can reveal that in December, sales had increased by +700% compared to early July when the new policy was introduced. 

*More on this joint project plus further comment from CDFG and Pernod Ricard Global Travel Retail will feature in The Moodie Davitt Magazine for February, out shortly.