CDFG strengthens retail footprint with Qingdao downtown duty-free soft launch

CDFG’s Qingdao opening reinforces its growth strategy, while invigorating Shandong’s retail landscape {Images: CDFG}

CHINA. China Duty Free Group (CDFG) yesterday (20 May) announced the soft opening of its renovated Qingdao downtown duty-free store, marking a key step in its broader expansion plans for Shandong Province.

Located on the first floor of Zhuoyue Li Mall Block 2 in Qingdao’s Central Business District, the soft opening allows the company to assess customer response to its extensive selection of over 100 international luxury brands, including cosmetics, fragrances, spirits and accessories.

The store features a balanced mix of prestige and popular brands, catering to a wide range of consumers

Key brands include Estée Lauder, Lancôme, Shiseido, Salvatore Ferragamo, Coach, Versace, Ray-Ban and premium spirits such as Moutai, Wuliangye, The Macallan and Dalmore.

To celebrate the opening, the retailer is offering limited-time promotions, including a 666 Coupon Pack for members, ten-times membership points, flash sales, lucky draws and tiered discounts.

The store features an immersive brand experience area and interactive zones designed to boost engagement. Exclusive member events will also be held to enhance the shopping experience.

During the soft opening, the retailer will evaluate the performance of these innovative features, while optimising the downtown duty-free buy-and-pickup logistics model.

Under this system, all duty-free purchases are sealed in-store before being transported to designated pickup points at Qingdao Jiaodong International Airport or other ports, where departing travellers can collect their goods upon presentation of valid travel documents.

As its first downtown duty-free store in Shandong province, the opening will bolster Qingdao’s status as a regional consumption hub while providing CDFG with valuable operational data ahead of a potential full-scale official launch, the retailer said.

This pilot run follows China’s latest industry policy changes revealed in August last year, aimed at stimulating domestic spending by expanding downtown duty-free retail.

As reported, the measure implemented on 1 October 2024 extends duty-free shopping privileges at more than 19 downtown stores to all outbound travellers, not just foreign nationals as previously required. This includes Chinese nationals scheduled to depart the Chinese mainland by air or international cruise within 60 days.

Looking to the future, CDFG pledges to continuously transform domestic duty-free retail and promote Chinese brands and products through the use of innovative technology and cultural collaborations.

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