China Duty Free Group teams up with King Power

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Worldwide exclusive: By Martin Moodie

Powerful Chinese retailer China Duty Free Group has appointed King Power Group as its project manager for the country's largest downtown duty-free shop, soon to be opened in Shanghai.

Hong Kong-based King Power will source merchandise, design the store layout, handle staff training and implement an overseas marketing and promotion plan.

The deal, between two highly-respected players, represents one of the most powerful retail alliances ever struck in Asia. It is especially important given the tremendous potential for Chinese duty-free. China Duty Free Group is forecasting first-year sales of $25m to $30m, much higher than the number originally forecast in Duty-Free News International's exclusive in-depth coverage of the story. The company and its local partners have set a target of 160,000 to 240,000 visitors in year one.

"Apart from the international expertise and contacts, we also hope to bring in additional expertise to strengthen the structure as much as possible," King Power managing director Antares Cheng said.  For full details see Duty-Free News International March 15 issue.