CHINA. The duty free retail area at the Beijing Capital International Airport will be redesigned and the product offer widened when Sunrise Duty Free takes over the operation of the airport’s duty free area.
The company also wants to increase the speed at which latest products become available to consumers.
Sunrise Assistant General Manager James Zhang told The Moodie Report: “If a particular new product is sold at Singapore Changi or if a new release is available at Hong Kong airport, then we should have these products also.”
Sunrise had offered 190 million yuan (US$23.4 million) as a minimum annual guarantee, beating three other companies to win a 10-year concession for the entire duty free retail operation at Beijing Airport.
The next closest bids came from China Duty Free Group at 168 million yuan, and Orient King Power which offered 120 million yuan. Sales last year are estimated at 250 million yuan (US$30.8 million). The retailer is confident it can grow revenues to 400 million yuan (US$49.3 million).
Zhang believes that his company’s experience in running duty free at Shanghai Pudong Airport also aided the company in securing the bid.
“Sunrise is experienced in sourcing for products and operating retail. Beijing is a major gateway to China, you can rest assure that we’ll try our best to bring Beijing airport’s offer up to the international standard,” he said.
The company is now preparing working groups to meet with the airport’s counterparts to discuss the takeover process of operations at the airport. Discussions between the two parties will begin in the second week of August and issues including takeover date, category offers and design of the area will be sorted out.
MORE STORIES ON BEIJING INTERNATIONAL AIRPORT
Sunrise Duty Free makes clean sweep of retail tender at Beijing International Airport – 27/07/05
Four companies bid to run travel retail at Beijing Capital International Airport – 20/07/05
Beijing International Airport issues duty free tender – 04/07/05
Beijing passenger numbers rise +26% in May – 16/06/05
Beijing Capital Airport April passengers up +11% year-on-year; Air China pax up +10.5% – 13/05/05
