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What do you suggest after reading this monthly report card?

At the beginning of July, Nanjing Lukou International Airport resumed full operation of its outbound and inbound duty-free stores. Not only was the duty-free commercial area greatly expanded, which was the largest in the country, but the environment and facilities were also refreshed, and the variety of duty-free commodities was even more abundant.

○ Duty-free business is a non-aviation business of airports, relying on the "natural flow pool" formed by inbound and outbound travelers for development and operation. With the steady rise of regional economic operation, rapid recovery of civil aviation industry and significant rebound of passenger flow, duty-free sales are becoming an important engine to stimulate the potential of domestic demand and activate the consumer market. It has been a full month since the airport duty-free store was re-launched, and the results of the monthly examination show that some categories have exceeded the average level of 2019, and the travel goods are gradually getting better and better.

○ Terminal building in the "flow pool", why so full? Open Nanjing, and how to focus on building a two-way open hub to promote a high level of opening up?01Outbound duty-free commercial area ranks high in the country

○ Located in the International Departure Hall of Nanjing Airport's Terminal T2, Nanjing Outbound Duty Free Shop is the first airport duty free store of China Expatriate Services Limited (CDFG) in Jiangsu Province and the largest airport duty free store that has been opened under CDFG.

○ The departing duty-free stores are divided into six separate stores, covering a wide range of duty-free products such as tobacco, alcohol, cosmetics, skincare, food, bags, sunglasses, and many other categories.Many people's first impression of Nanjing Outbound Duty Free Shop is "oversized". 6 stores are located next to boarding gates 6-10, and although the stores are right next to each other, you can't see the end of them at a glance when you stand in front of the door of No.1 store. It is worth mentioning that all the stores' facades are decorated with plum blossoms, which show the elegance and interest. Inside the store, the environment is bright and spacious, with clear division of areas and a wide variety of products.

○ Since last year, CDFG has been preparing for the re-launch of the outbound duty-free stores. Since March this year, two stores have been unveiled one after another, and by the beginning of July, all six stores were opened.The commercial area of CDFG's outbound duty-free store is about 1,500 square meters, which is an increase of more than 50% compared with the original outbound store, and the commercial area is ranked top among the duty-free stores in airports nationwide.

○ In addition to the standard categories of duty-free stores such as cigarettes, alcohol, cosmetics, etc., the outbound duty-free store at Nanjing Airport has also added a lot of new travel products, accessories and hangings, etc., in order to meet the consumption needs of consumers traveling in different scenarios.In terms of brand configuration, the outbound duty-free store gathers high-end brands from all over the world, with more than 150 brands and the number of SKUs (stock quantity units) reaching nearly 1,000.

○ Nanjing Airport Duty Free Shop is one of the first 11 airport port duty free stores approved by the State Council, with a total business area of 600 square meters. Currently, it operates as a "dual store", with Shop 1 located next to the baggage carousel in the International Arrivals Hall, and Shop 2 located on the International Arrivals Walkway, which is perfectly suited to travelers' routes of movement.

○ In February last year, Import Duty Free Store No. 1 opened first, and this time, it is Store No. 2 that has been upgraded.In May this year, Shop 2 began to renovate, officially opened on July 5, with a business area of 68 square meters, dominated by domestic cigarettes, imported cigarettes, white wine, red wine and other duty-free merchandise categories.02Some categories exceed the 2019 average

○ What kind of monthly report card did the airport duty free store deliver when it was re-launched?

character used in Taiwan as a substitute for a real name (like "X" in English) The outbound duty-free store opened in line with expectations overall, with some categories even exceeding the 2019 average by traffic standards. For the month of July, the average daily sales at the end of the month increased by fifty to sixty percent compared to the beginning of the month.

○ Relying on tourism development, the consumer groups of Nanjing Airport Duty Free Shop are mainly tourists and business people. Although common duty-free commodities such as high-grade cigarettes and alcohol, cosmetics, imported food and big brand sunglasses are the main consumer goods in the stores, with the increasing diversification, personalization and youthfulness of consumer demand, the sales of luggage, ultra-soft and comfortable neck pillows and other travel commodities in the duty-free stores are also getting better and better.

○Same as buying, different interests. Generally speaking, Chinese people who go abroad for business negotiations or to meet friends like to bring a few bottles of special wines from different places. A glass of wine from their hometown can not only comfort local Chinese people's nostalgia, but also let more overseas friends try it. At the same time, people outside China prefer brands with deep cultural heritage and outstanding overseas marketing.

character used in Taiwan as a substitute for a real name (like "X" in English) As of the end of July, the sales of inbound duty-free stores in dual stores have achieved at least 30% year-on-year growth, with domestically produced cigarettes and alcohol, imported cigarettes and alcohol, and skincare products being welcomed by inbound travelers.

03Civil Aviation Industry Recovers Quickly, Passenger Traffic Recovers Significantly

○ As soon as the Nanjing Entry-Exit Duty Free Shop was refreshed in July, it welcomed the surging traffic after the launch of summer transportation.

○ Nanjing Lukou International Airport is Jiangsu's first gateway to the outside world. Currently, along with the steady rise in the regional economy and the accelerated recovery of the global tourism industry, the airport's international passenger scale is showing a vigorous recovery.Up to now, Nanjing Airport Port is flying 38 international routes, a year-on-year increase of 1,53%.Intercontinental routes to Milan, Sydney and Melbourne have been opened, with full coverage of major destinations in Hong Kong, Macao, Taiwan, Japan, Korea and Southeast Asia.

character used in Taiwan as a substitute for a real name (like "X" in English) According to Nanjing Lukou Airport Customs statistics, from July 1-29, Nanjing Lukou International Airport averaged 60 flights in and out per day, up 71.43% year-on-year, with an average of 8,566 passengers per day, up 70.87% year-on-year.The rapid recovery of the civil aviation industry and the significant rebound in passenger traffic have provided fundamental support for the recovery of the airport duty-free business.

○ Competitiveness, also from the efforts of the main business. In addition to guarding a "traffic pool", airport duty-free operators are also actively making moves.In the future, Nanjing Outbound Duty Free Shop will introduce more brands, categories and new formats, with special counters for color cosmetics and fragrances entering one after another, and it is proposed to launch consumption scenes such as color cosmetics experience and special wine mixing.According to China CDFG's plan, it will provide travelers with a full chain of services before, during and after the trip. On the one hand, CDFG will broaden the commodity boundary, as some national fashion beauty, health and lifestyle and sports brands are recognized by young consumers and their sales are growing rapidly, the company will increase the introduction of locally produced high-quality commodities and national fashion brands to improve the product richness, so as to meet the shopping needs of more travelers. On the other hand, the Company will expand its regional boundaries, focusing on the consumer market of Chinese people and taking Asia-Pacific and other overseas travel destinations of Chinese people as the main layout direction.

04Finding the right position to act better

○ The market is strong and the policy is also helpful. Since the preparations for the construction of the store, the local airport customs have given full guidance and support in many aspects, such as the allocation of goods, storage and shelving, and sales and write-offs, which has made the opening of the airport duty-free store and its daily operation smoother.

○ Relying on the duty-free store supervision system, the Customs and Excise Department has followed up the import declaration and customs transfer business operation, adopted the online audit method to reduce the time for enterprises to handle the business, and supervised and ensured that the first batch of 38,943 pieces of duty-free goods were smoothly put into the warehouse on the eve of the opening of the outbound duty-free store. 1,150 pieces of documents were audited and approved online from July 1 to 29 by the Customs and Excise Department for the duty-free store.

character used in Taiwan as a substitute for a real name (like "X" in English) At present, Nanjing is comprehensively promoting the comprehensive pilot project of expanding and opening up of the service industry as an opportunity to accelerate the cultivation and construction of the international consumption center city of near and far, the host and the guest share, enhance the duty-free stores, free trade zones, comprehensive insurance zones, cross-border e-commerce integrated test area and other open platform functions, focus on the development of the duty-free economy, the first store economy, the brand economy, to expand the consumption of the new scene, the new industry, the new space is exactly the key to break the problem.

○With airport inbound and outbound duty-free as the double-wing drive, continuing to promote the specialization and differentiation of airport duty-free operation, further enhancing the international operation standard of airport business, strengthening the function of a platform for connecting with the global consumer market and attracting global consumers, the duty-free economy of airports has great potential.

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