CDF and TTX jointly explore digital innovation under new consumer habits

China Tourism Group CDF Corporation Limited (hereinafter referred to as "CDF") has partnered with TTX to implement TTX solutions in its Hainan duty-free e-commerce business, Guangzhou Airport duty-free business, and e-commerce business. Some aspects of this project have already been launched, with the remainder progressing steadily.

China Tourism Group CDF Corporation Limited (CDF), established in 1984 with authorization from the State Council to operate duty-free business nationwide, is a state-owned enterprise. After more than 30 years of rapid development, CDF has established long-term and stable partnerships with over 1,000 globally renowned brands. It operates more than 240 duty-free stores across over 30 provinces, municipalities, autonomous regions (including Hong Kong, Macau, Taiwan), and Cambodia. Its sales channels cover major domestic hubs such as Beijing, Shanghai, Guangzhou, and Hangzhou airports, as well as international airports like Hong Kong, Macau, and Sanya International Duty-Free City, serving nearly 200 million domestic and international tourists annually with duty-free goods and services.

CDF's business scope includes investment and management of tourism-related projects, development, renovation, and operation of tourism service facilities, and tourism industry research and consulting services.

In recent years, CDF has actively explored digital innovation under new consumer habits, adjusting its business development model and vigorously expanding its online presence to create a digital CDF. To integrate online and offline channels and optimize the overall logistics supply chain, CDF has chosen to collaborate with logistics and supply chain solution expert TTX. Together, they aim to provide comprehensive services to consumers throughout their travel journey—pre-departure, during travel, and post-travel.

Hainan Duty-Free E-commerce Business

Due to an increase in duty-free allowances in Hainan, it has attracted a large number of tourists to visit the island. Sanya International Duty-Free City continues to explore a new business model of "Internet + tourism + duty-free shopping," developing a comprehensive mall system across all channels. This initiative aims to further enrich and meet the choices and demands of tourists for duty-free shopping when leaving the island. Currently, its product range covers almost all duty-free categories available offline and will gradually expand to include over 300 international brands. This enables tourists to browse and place orders anytime and anywhere, supported by a 7*12-hour high-quality customer service system, ensuring professional after-sales service for all customers.

The "order via mobile, pick up at airport/train station" model reduces the stress of shopping for tourists, enhancing their shopping experience. Consequently, the volume of duty-free e-commerce orders has surged, characterized by the following business features:

Increased diversity in each order: The variety of duty-free goods for island departure has expanded from 38 to 45 categories, including electronic consumer products like smartphones, and eliminates the previous limit of 8,000 RMB per item.
Personal quota review: Starting July 1st, the annual duty-free shopping quota for Hainan island departure has increased from 30,000 RMB per person to 100,000 RMB, with no restrictions on the number of transactions.
Customs verification of personal information: Orders require verification of island departure flight information, dates, and ID information.

In response to these characteristics, TTX provides a WMS solution: integrating with AGVs for outbound operations, achieving unmanned handling within parts of the warehouse, significantly improving picking efficiency; optimizing the processing flow of urgent orders for rapid outbound operations; implementing FIFO management for various types of goods; planning warehouse layouts to greatly enhance inventory storage rates and enable visualized warehouse inventory management.

Guangzhou Airport Duty-Free Business and E-commerce Business

The duty-free shops at Guangzhou Airport represent a crucial flagship for CDF's airport duty-free channel. CDF has initiated a WMS system construction project specifically for the duty-free and e-commerce warehouses at Guangzhou Airport. Notably, in the Guangzhou Airport duty-free business, goods need to be distributed to various outlets within the airport. TTX's WMS integrates with their EOP system to swiftly process orders, accurately completing a series of tasks from appointment for warehousing, documentation, verification, confirmation of quantity received, to warehouse entry quality inspection. Since the deployment of TTX's WMS solution, it effortlessly handles the increasing volume of e-commerce orders, significantly enhancing order processing and warehouse operations efficiency. This system has also effectively enhanced the precision of warehouse management for airport retail operations, thereby improving inventory accuracy.

In its collaboration with CDF, TTX has delivered solutions perfectly aligned with the diverse business needs of the group. Tackling challenges such as interaction between duty-free and taxable operations, integration with various enterprise and customs systems, and training of warehouse personnel, TTX's experienced team has systematically overcome each hurdle. Following the launch of the project, CDF has highly praised TTX for their professionalism and looks forward to continued collaboration.

To date, CDF has established itself among the ranks of major international duty-free operators, leveraging strong tourism resources from its parent company, China Tourism Group. CDF remains committed to strengthening, optimizing, and expanding the Chinese duty-free industry. By fully integrating resources, CDF aims to become a world-class tourism retail operator with global competitiveness.

TTX, on the other hand, will continue to deepen its expertise in logistics and supply chain digitization, supporting enterprises in achieving digital and intelligent upgrades across their supply chains.

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CDF and TTX jointly explore digital innovation under new consumer habits

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