China Duty Free Group confirms Kunming arrivals award

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China Duty Free Group (CDFG) has confirmed to DFNIonline it has been awarded the 489sq m Kunming airport arrivals duty-free contract. The airport handled 37.7 million passengers in 2015, an increase of  16.8% on 2014.

The award follows China National Service Corporation for Personnel Working Abroad’s (CNSC) recent capture of the five-year Chongqing airport arrivals contract spanning 572 sq m.

Speaking in the Cannes issue of DFNI last year, CDFG chairman Peng Hui said: “In recent years, the Chinese have undoubtedly been the main force for luxury spend. Maintaining high-end consumption at home is a key part of the government’s strategy. The opportunities in inbound shops are in response to this national strategy.”

News of the government’s plan to open arrivals duty-free shops in Chinese airports and seaports to boost the domestic economy was first revealed in 2015. The motive was to encourage domestic consumption and deter Chinese consumers was purchasing duty-free products overseas. Duty-free arrivals shops are already operational at Beijing Capital and Shanghai Pudong and Hongqiao International airports. But in February 2016 the government announced it will be extended to 13 other airports and six border port locations as previous reported.

The full list of those Chinese airports comprise: Guangzhou Baiyun, Hangzhou Xiaoshan, Changdu Shuangliu, Nanjing Lukou, Shenzhen Bao’an, Kunming Changshui, Chongqing Jiangbei, Tianjin Binhai, Dalian Zhoushuizi, Shenyang Taoxian, Xi’an Xianyang, Urumqi Diwopu and Qingdao Liuting International airports. Four border ports are located in Shenzhen (Futian, Huanggang, Shatoujiao and Wenjindu) with the others located in Zhalou (Zhuhai) and Heihe (Heilongjiang).

The situation further developed last November with the announcement CDFG, CNSC, Shenzhen Duty Free and Zhuhai Duty Free had been named as qualified bidders for the licenses.

All contract awards are expected to be awarded by March or April, according to CNSC deputy general manager Duty Free Department Jacky Yan, who told DFNIonline during a visit to Beijing last year: “All winners should be revealed by March or April after the airports have registered results through the Ministry of Finance.”


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