CHINA. Hainan Duty Free Haikou Meilan Airport Duty Free Store, a subsidiary of Hainan Provincial Duty Free Co (HNDF) has struck a wide-ranging cooperation agreement with China Duty Free Group (CDFG).
The deal, effective from 30 July, 2018, supersedes a long-standing supply agreement between Hong Kong-based DFS Group and HNDF which expires on 19 January 2019 and will not be renewed.
Under the terms of the new alliance – anticipated by The Moodie Davitt Report in our special e-Zine last week on CDFG’s Duty Zero by cdf partnership at Hong Kong International Airport, CDFG will lead the buying and merchandising function for the Haikou Meilan Airport duty free operation on Hainan Island. The merchandising teams at CDFG and HNDF are being reorganised and consolidated into a unified team. HNDF remains the sole duty free licence holder at the airport.
“It was not widely reported but in October 2016 CDFG’s parent, China International Travel Service, voted to create a joint venture with Hainan Duty Free. While there have been no statements since on the deal, it seems highly likely that CDFG will become involved in Hainan Duty Free’s thriving operation at Haikou Meilan International Airport.” – How The Moodie Davitt Report anticipated the Haikou alliance in our special e-Zine on Duty Zero by cdf.
The lead merchants and key vendor contacts for each business category are as follows:
Fashion, watches, jewellery and sunglasses – Lee Meili, Qing Li
Perfume & cosmetics – Luke Chang, Joanna Zhong
Confectionery and travel accessories – Luke Chang, Yao Ding
Following the announcement, all commercial contracts for Meilan Airport Duty Free Store are being written and signed by CDFG and all merchandising, procurement and payment settlement also handled by CDFG.
Hainan Duty Free Haikou Meilan Airport Duty Free Store provides offshore (domestic) and international duty free shopping over some 30,546sq m at the airport’s East, Central and West wings and a further 18,000sq m at the adjacent Airport Tourism Complex. It opened on 21 December 2011 in line with the introduction of China’s far-sighted offshore duty free shopping programme, which has since proven to be a phenomenal success. In December 2016, the company celebrated its fifth anniversary at a memorable event reported on exclusively by The Moodie Davitt Report.
The deal consolidates CDFG’s already strong presence on Hainan. The Chinese travel retail powerhouse also operates the acclaimed and hugely successful Sanya International Duty Free Shopping Complex at Haitang Bay (pictured below).
