DFS Group has taken a 22% stake in Shenzhen Duty Free Ecommerce Co, which is majority-owned by Shenzhen Duty Free Group.
WHO: Founded in Hong Kong in 1960, the DFS Group is a global luxury travel retailer with an assortment of products from over 700 brands through 885 boutiques on four continents. The network consists of duty-free stores in 11 major global airports and 21 downtown T Galleria locations as well as affiliate and resort locations. The company is jointly owned by French luxury group LVMH and co-founder Robert Miller.
Shenzhen Duty Free Group was founded in 1980 as the first duty-free store in China and is one of the six state-owned enterprises approved by the State Council to operate duty-free products in China. It has a retail network in many major cities across the country. The other players in the market include China Duty Free Group, Zhuhai Duty Free Group, China Expatriate Services Ltd., China Hong Kong and China Travel Asset Management Co. Ltd. and Wangfujing Group.
WHY: The investment builds on an existing relationship between DFS and Shenzhen Duty Free. Since 2018, DFS has supplied merchandise and advised on store upgrades across Shenzhen Duty Free’s network. By leveraging the online portal of Shenzhen Duty Free Ecommerce Co and the domestic duty-free capabilities of Shenzhen Duty Free, DFS will be able to supply customers in China.
IN THEIR OWN WORDS: A DFS spokesperson said, “Our future is highly digital, and very focused on China. Our customers associate shopping at DFS with a truly experiential level of luxury, and we are excited to mirror that experience for them digitally—pre-trip, in-market, in-store, and once they return home. The opportunities are endless.”
Shenzhen Duty Free said the investment will help the company to “further complement and improve its non-tobacco supply chain system, enrich its product categories, reduce procurement costs, improve its operational capabilities, significantly enhance its core competitiveness and brand awareness.”
DETAILS:
