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Workshop: China Watch Yesterday’s China Watch Workshop provided a fascinating exploration of where China stands today, including the latest airport developments, macro trends shaping the market in downtown duty free, duty paid and new opportunities in Hainan. It also looked at the latest digital trends and consumption behaviour of today’s Chinese travelling consumer. Delegates heard from Ma Yan, General Manager of Sino- Singapore Chongqing Airport Commercial Management Co. Ltd. (SSCACM); Matt Liao, Senior Vice President of Brand, Marketing and Public Relations for China Duty Free Group; and Keith Chen, Director of Global Travel Retail, Luxury Jewelry, and Fashion Accessories Business Group for Xiaohongshu. The session was moderated by TFWA’s Chief China Representative Hannah Gao. ChinaWatchWorkshop Main Partner: Unlocking new opportunities in China’s travel retail market M att Liao, Senior Vice President, Marketing, Branding and Public Relations, China Duty Free Group, engaged with participants in exploring new trends in travel retail consumption. He focused on three key areas: a more relaxed environment, China Duty Free Group’s (CDFG) stable development and strong confidence, and the evolving needs and experiences of consumers. “By examining these factors, we aim to enhance digital capabilities to elevate the customer experience, unlock new opportunities in China’s travel retail market, and collaborate towards propelling the global duty free and travel retail industry to a thriving future,” said Liao. According to Generation Research’s November 2023 forecast data, airports remain the primary global duty free and travel retail channel, accounting for 50.8% of total global sales in 2023. “Data from the Civil Aviation Administration of China (CAAC) indicates a steady recovery in China’s international scheduled passenger flights, with flights to 22 countries, including Singapore, Australia, the UK, and Italy, surpassing pre-pandemic levels,” said Liao. “As inbound and outbound tourism rapidly resumes, CDFG has further strengthened its airport channel layout to adapt to these evolving trends.” In the realm of physical retail channels, CDFG is continually refining its business portfolio by spearheading initiatives that seamlessly blend entertainment, leisure, and art into immersive retail experiences. “At cdf Haikou International Duty Free Shopping Complex, visitors are transported to a fantastical Hainan paradise through the uniquely captivating ‘Aura: The Forest at the Edge of the Sky’ atrium installation, an exclusive creation of CDFG,” Liao shared. “In terms of online business, CDFG is continuously promoting the integration of online business and new retail innovation, leveraging digital means to elevate the consumer shopping experience.” According to data from Haikou Customs, Hainan’s offshore duty free shopping surged by 25.4% year-on-year in 2023, reaching 43.76 billion yuan, with the number of shoppers soaring by 59.9% to 6.756 million. “We continue to strengthen our commitment to Hainan,” said Liao. “CDFG now has six offshore duty free stores across Hainan, including the world’s largest and second-largest duty free shopping complexes – cdf Haikou International Duty Free Shopping Complex and cdf Sanya International Duty Free Shopping Complex. We have continuously enhanced our overall operational capabilities and customer service through measures such as strengthening market appeal, improving service availability, expanding brand presence, implementing standardised service protocols, and upgrading online services.” Matt Liao, Senior Vice President, Marketing, Branding and Public Relations, China Duty Free Group: “We aim to enhance digital capabilities to elevate the customer experience, unlock new opportunities in China’s travel retail market, and collaborate towards propelling the global duty free and travel retail industry to a thriving future.” Wednesday 1 5 May 2024 6 T F W A D A I L Y