CDFG plots 4-track play for travel retail’s future

China Duty Free Group (CDFG) has outlined a four-track growth strategy — spanning duty-free, integrated airport and downtown travel retail, online quality retail, and international expansion — as Hainan's Free Trade Port reported offshore duty-free sales of 15.62 billion RMB ($2.26 billion) in the first 100 days of special customs operations, a 27.64% year-on-year increase. The figures were shared at CDFG's 2026 Global Partners Meeting in Shanghai on March 27, which drew more than 350 brands and 1,000 guests. Fan Yunjun, chairman of CDFG and president of parent company China Tourism Group, said the group’s goal is to become a "world-class digital-intelligent travel retail operator," with China's 15th Five-Year Plan period framed as a critical phase for high-quality growth. The Hainan data points to broader structural momentum. The province registered 7,503 new foreign trade enterprises in the same period — up 65.7% year on year — while the proportion of zero-tariff commodity categories expanded from 21% to 74%, according to Chen Wanxin, deputy secretary-general of Hainan's provincial government. CDFG president Luke Chang framed the wider market shift in pointed terms, arguing that travel retail is undergoing a fundamental restructuring rather than a mere recovery. Chinese consumers, he said, are evolving from shoppers focused on function and price into lifestyle-oriented buyers who prioritise holistic experiences, emotional value, instant response, and self-identity. Jing Daily global editor-in-chief Enrique Menendez, speaking at the event, forecast that Chinese consumers will account for around 40% of global luxury spending by 2030, with demand shifting from products toward experiences, wellness, and travel. The meeting also saw CDFG and global brand partners launch the "Doing Business in Good Faith and Providing Quality Services" Shanghai Initiative — a collective pledge to prioritise product authenticity and consumer trust across the travel retail sector.

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CDFG plots 4-track play for travel retail’s future