Beijing Duty Free expands with fashion brands

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Eight branded fashion and accessories boutiques, including a Hermes boutique are in the process of opening at Beijing Duty Free (BDF) this summer

The initiative is part of a big expansion plan in the run-up to the 2008 Olympic Games, which will add further new stores and an additional terminal.

The fashion stores will add a total 360sq m (3,875sq ft) to the existing 2,100sq m (22,605sq ft) of retail space at the airport, taking BDF's tally of stores to 15.

The high-end approach is one advocated by Beijing Duty Free's consultancy partner Aéroports de Paris Management (ADPM). Beijing Duty Free is a division of Beijing Capital International Airport Co, in which ADPM holds a 9.99% stake.

Speaking to Travel Retailer International this month, BDF deputy purchasing manager Foster Fu commented: "The reason we are going to open these boutiques is that we need to show customers there is something special for them and to improve the overall image of our stores.

"If the eight boutiques were not to open, Japanese and South Korean passengers in particular would just not be impressed by what we have to offer."

In addition to the new boutiques, BDF will refurbish its anchor duty-free store in the next few months. The 1,200sq m (12,915sq ft) outlet, which generates 80% of the retailer's turnover, will be rebuilt to allow the introduction of more free-standing gondolas to improve in-store visibility. More space will be made available for three growth categories in particular: branded fashion, skincare and personal electronics.

Beijing Duty Free also described its relationship with national supply company China Duty Free Group (CDFG) as "good" but said it had declined to work on the CDFG Beijing downtown store, without giving details.

• For the full interview with Beijing Duty Free see the May issue of Travel Retailer International.