On December 27th, 2012, the 29th China Duty-Free Industry Annual Conference was held in Beijing. Leaders from relevant ministries of the State council, local governments and ports, CITS Group Corporation and CITS Corporation Limited, Tax Free World Association (TFWA) and China Duty Free Group attended the conference. Leaders from the Ministry of Finance, the General Administration of Customs and other ministries and commissions, as well as CITS Corporation Limited made important speeches at the conference. Mr. Lu Lu, President of CDFG, gave a work report on the duty-free industry in which he comprehensively reviewed the development situation of the national duty-free industry last year, analyzed in detail the difficulties and challenges to be faced in the process of future industrial development and made specific arrangements for the work in 2013. Furthermore, Mr. Alain Maingreaud, executive director of TRWA, delivered a keynote speech on the burgeoning duty-free market in China. Nearly 300 representatives from China’s duty-free industry participated in the conference.
Accelerating growth in the scale and efficiency of the business, and promoting the development of the industry using internal and external motivation
2012 is a critical year for the “12th Five Year Plan”, which serves as a link between the past and the future. In both the 18th National Congress of the Communist Party of China and the recently concluded Central Economic Working Conference, national policies were issued to continuously promote tourism and the duty-free industry, which created favorable conditions for the vigorous development and growth of the industry. When the global economic growth of the duty-free industry became sluggish, the China duty-free industry seized China’s favorable conditions of steady economic development, firmly relied on the introduction of the “12th Five-year Plan”, the “sustainable growth, domestic demand expansion and economic restructuring” policy and other favorable policies, and exploited the Chinese purchasing-potential of duty-free goods. The favorable adjustment of the Hannan Offshore Duty-free Policy, in particular, provides a broader space for industrial development and creates a new situation for the China duty-free industry.
Focusing on, and exploiting the potential of, target markets, CDFG promotes innovation and development in the duty-free industry.
As the leading enterprise in the industry, CDFG achieved another record high performance in 2012 and promoted innovation and development in China’s duty-free industry. This year, CDFG ranked among the top 500 of China’s service enterprises for the fourth successive year and it ranked 60 higher places this year than last. Its strength is continuously growing and its brand influence is expanding.
In 2012, focusing on industrial development, CDFG carried out various pieces of research into policy leading to some policy barrier breakthroughs that were beneficial to the entire industry. Relevant research results were recognized and supported by the Ministry of Finance, the Ministry of Commerce, China National Tourism Administration and relevant local governments. After more than one-year’s development, CDFD Sanya Duty Free Store became an example for the China duty-free industry. During that time, Sanya Duty Free Store constantly optimized the brand structure in accordance with Chinese consumption habits, expanded its business area and improved its overall operational capability and service level, which were appreciated by the government and the customers. In addition, the performance of large-scale CDFD duty free stores in Guangzhou Airport, Hangzhou Airport, Xiamen Airport, Shenyang Airport, Qingdao Airport, Heihe Port and Ruili Port this year also hit record highs.
As for the layout of travel retail and overseas business expansion, CDFD won spots in the commercial sections in the domestic departures areas of Shenzhen Airport, Hangzhou Airport and other airports in provincial capitals, won the bid for a place on the departure floor of Shanghai Hongqiao Railway Station with an area of 6,000 square meters, and achieved a new breakthrough in travel retail business.
Meanwhile, CDFG sped up the overseas business expansion and internationalization process. In April, Jinmen Golden Palais International Duty Free Shop in Taiwan was opened, which represented CDFG’s overseas business entering a new stage. In December, Macau Outer Harbour Ferry Terminal Duty Free Shop, the first overseas passenger station duty free shop, was officially opened. Furthermore, CDFG reached an all-round cooperation deal with Star Cruises, the world’s 3rd largest cruise line. This would add a ninth category of duty free shop, a cruise duty free shop, in China’s duty free industry, which injected new content and vitality into the development of the industry.
Writing a new chapter for development
In the work report, the president of CDFD clearly pointed out that we should stick to the general idea of one overall development guideline, two development goals, three kinds of developmental awareness, four developmental tasks and five specific work aspects in order to develop the national duty-free industry and travel retail business in 2013.
As a good example of comprehensive strength and core competence in the duty-free industry, CDFG will follow the guidelines of the 18th National Congress of the Communist Party of China in the upcoming year, that is, relying on the modern service industry and considering the emerging strategic industries as the driving force of policy adjustment. On the one hand, it will continue undertaking the obligations it has to ensure with regard to industrial guidance and management. On the other hand, it will carry out continuous exploration and innovation to improve its development speed and the quality of China’s duty free industry, and make every effort to widen its vision, explore new ideas and create a new pattern of development in the industry.