China Duty Free Group (CDFG) has announced Sunrise Duty Free, in which it holds a 51% share, has won a tender to operate duty-free across Shanghai Hongqiao International Airport and Shanghai Pudong International Airport for a seven-year period.
The tender was issued by Shanghai Airport (Group) Co., Ltd., Shanghai International Airport Co., Ltd. and the tendering agency Shanghai International Tendering Co., Ltd.
The retailer hailed the competition for the tender as “fierce”. CDFG understands the existing duty-free operation at Hongqiao Airport spans 1,500sqm, which will increase to 2,088sqm with the new contract.
The duty-free operation at Pudong Airport will increase from 6,600sqm before the tender to 16,915sqm. Sunrise has been operating at Shanghai Pudong International Airport for nearly 20 years.
CDFG President Charles (Guoqiang) Chen said: “The [addition] of Shanghai Hongqiao International Airport and Pudong International Airport duty-free business is another important milestone in the development of CDFG. From winning the bid for Hong Kong International Airport and Beijing Capital International Airport in 2017 to winning the bid for Macau Airport and Shanghai airports this year, CDFG has experienced a remarkable leap-forward in its development.”
In 2017, Hongqiao International Airport reached 41.88 million passengers. It is located 40km away from Pudong Airport and 13km from the city centre.
CDFG described Shanghai Hongqiao as a “convenient airport and an important part of Shanghai’s Dahongqiao Business District, hailing its “unique geographical advantages” as having great commercial potential.
One of the three major international airports in China, Shanghai Pudong International Airport exceeded 70 million passengers in 2017 – ranking ninth largest airport in terms of passenger numbers in the world.
The airport is undergoing development to eventually become a large-scale composite hub integrating local capacity distribution hub functions, portal hub functions, and domestic and international transit hub functions.
Pudong aims to eventually become an important tourist hub within the global aviation network, therefore the standard of its airport retail is very important, CDFG underlined.
In an effort to boost Shanghai’s profile as a destination, CDFG will actively cooperate with Shanghai Airport (Group) Co., Ltd. and Shanghai International Airport Co., Ltd to enhance and enrich the shopping environment and product offer. The company’s vision is to position Shanghai’s two major airports as a window to “Shanghai’s Shopping”.
In terms of products, CDFG will leverage its partnership with Sunrise to improve the product offer and enrich the portfolio with more brands. The line-up of brands will include international names that are popular with Chinese people.
“In terms of price, we continue to maintain the price advantage of value for money, providing more attractive commodity prices for tourists at home and abroad. In terms of service, we pursue excellence and create a more luxurious and convenient tax-free shopping experience for consumers,” CDFG said in a statement.
Chen added that winning the duty-free tender at Shanghai Hongqiao and Pudong International Airport proves the successful partnership of CDFG and Sunrise Duty Free. The companies have significantly strengthened following their integration, he stated.
“I believe that through the continuous improvement of market share, enhancement of our procurement and operation capabilities, and deepening strategic partnerships with brands, we will ultimately benefit the development of China’s duty-free industry, the development of airport duty-free businesses and increase the number of consumers.
“As the largest duty-free enterprise in China, CDFG will continue to expand in China’s duty-free industry to become stronger and better. Our goal is to attract overseas consumption and improve China’s duty-free business – as the industry’s international competitiveness continues to improve.”