China’s duty-free giant joins bid to operate at Incheon Airport

Competition for operational rights for lucrative duty-free shops at Incheon Airport is heating up, with China Duty Free Group, one of the largest duty-free retailers globally, joining the race. According to industry sources on Monday, CDFG offered its bid to join the heated race after participating in a tender briefing session last month. Competing head-on with Korean rivals such as Lotte, Shinsegae and Hotel Shilla, the Chinese duty-free giant aims to win as many as two business licenses to operate dozens of duty-free shops at the nation’s largest airport. Industry insiders say CDFG, if selected, will lure away Chinese customers, who account for almost 90% of local duty-free sales. “We are doing everything we can to be the largest business operator in Incheon Airport, but the Chinese company has stronger cash flow than us,” said a local duty-free shop official on condition of anonymity. “Of the total 100 points, 40 points will go to those willing to pay the highest rent to the airport.” Evaluation criteria that measures future business plans accounts for 60 points. However, this hardly gives an upper hand to local duty-free shops because it does not take their past business experience in the airport into consideration, the official said.<br/>