CHINA. China Duty Free Group (CDFG) today reopened its main duty free stores on Hainan Island, including the flagship CDF Mall in Sanya, at 11am.
As reported, the CDF Mall, the epicentre of Hainan’s offshore duty free industry, and one of the world’s most important duty free locations, has been closed since 27 January due to the COVID-19 crisis.
In a phone interview, CDFG President Charles Chen confirmed to The Moodie Davitt Report that the CDF Mall and other key Hainan locations were open and safe for employees and customers.
As well as the CDF Mall, CDFG operates the Haikou Riyue Plaza Duty Free and Qionghai Bo’ao Duty Free stores on the island.
Chen told The Moodie Davitt Report: “We have done a lot of work with the local government and we have promised them that we will guarantee the safety of the people. People are the first priority.
“This year it may be difficult for Chinese people travelling overseas. Many people will stay within China but they will still want to consume beauty and other items and spend money. So we can really do a lot of things in Hainan in the coming months.” – Charles Chen
“Today the sales may be not as high as before, but I told the General Manager in Haitang Bay that people must remain the first priority and we must guarantee the safety of staff and customers. We will control the traffic so not so many people gather in the store. Its reopening is very important because of the confidence it gives to people that everything is safe.”
Chen also noted that the CDF airport stores in Beijing, Shanghai, Beijing and elsewhere are still open and trading.
“Gradually the main stores are reopening and we are very happy about that,” he said.
All CDFG stores are undertaking strict measures to prevent the spread of the coronavirus. This includes the regular disinfection of stores and ensuring a safe distance is kept between employees and customers.
The retailer added that it was looking to extend the pickup period for online reservations, saying the proportion of pick-up sales had increased fivefold year-on-year at Beijing, Shanghai and Guangzhou airports in recent days.
Chen said that CDFG is already planning ahead for when the crisis passes. “I feel very confident for the future. The purchasing power of the Chinese people will remain and they will continue to want to buy beauty products and other items.
“This year it may be difficult for Chinese people travelling overseas. So, I think that many people will stay within China but they will still want to consume beauty and other items and spend money. So we can really do a lot of things in Hainan in the coming months – we are preparing for that and we will do a lot of promotions.
“We’re lucky in that we’re getting a lot of support from our suppliers – we are already talking with the various vendors about the promotions for later this year. We still believe that we can reach our target within this year… although it all depends on the situation.
“We have been talking with some of the hotels in Hainan to do a lot of promotions. So I think that within China we can really do a lot this year.”
Comment: The importance of the CDF Mall reopening cannot be overstated, writes Martin Moodie. Besides its huge value in revenue terms (for many beauty houses it is the number one travel retail door worldwide), the acclaimed retail complex is a symbol of China’s modern-day duty free industry. As Charles Chen rightly notes, the reopening sends out important signals to the Chinese people – signals of safety, of confidence and of reassurance that normality will return.
The road ahead for duty free in China will remain challenging but an important turn has been navigated today.
