King Power and China Duty Free turn on the power as blockbuster alliance is formed

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By Martin Moodie

Asia's duty-free landscape has been transformed by the creation of a joint venture company between Hong Kong King Power Group and China Duty Free Group.

The new force, to be known as China Power Duty Free Group, will assume full purchasing responsibilities for both China Duty Free and King Power. It brings together two of the region's leading retailers in an alliance that will effectively control the vital Chinese duty-free market.

Additionally the venture will provide consultancy services to China Duty Free and King Power covering the sourcing of merchandising; store design and layout; staff training and related overseas marketing and promotion.

In a statement, China Power said: "The joint venture...will further strengthen and accelerate the development of duty-free business in the Asian region, particularly China, and also maximise the opportunities of individual brands. "We sincerely trust that the company will be entitled to the usual preferential treatment afforded by vendors to major duty-free operators."

The joint venture follows the news, exclusively revealed by trw.com sister publication Duty-Free News International, that the two companies had joined forces at China's largest downtown duty-free shop, soon to be opened in Shanghai. This is likely to be a beacon for top luxury brands in China.

Following the announcement, China Duty Free Group chairman Gai Zhixin has agreed to speak about the joint venture and about the huge potential of the Chinese market at the first-ever Global Travel Retail Summit on June 21-22 being hosted by DFNI publisher Raven Fox and sister title Travel Retailer International.

In coming weeks, DFNI will present exclusive interviews with both Gai Zhixin and Antares Cheng as part of a special analysis of the deal. An exclusive supplement "China Power Duty Free Group?Asia's blockbuster alliance" will be published at the Singapore show in May and distributed at the Global Travel Retail Summit in June where Cheng and Gai will be discussing the new company with suppliers.