THE WHAT? The DFS Group has acquired a 22 percent stake in Shenzhen Duty Free Ecommerce Co., which is majority-owned by Shenzhen Duty Free Group, according to a report by WWD.com.
THE DETAILS Having worked together since 2018, the LVMH-owned travel retail company has previously supplied Shenzhen’s merchandise and given advice on store upgrades.
Due to sharing a land border, the new deal will allow consumers to preorder online prior to travelling to Hong Kong before collecting them upon return to Shenzhen.
Shenzhen Duty Free Group plans to use the investment 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.”
THE WHY? While the bottom may have fallen out of the travel retail market due to COVID-19, the new deal is hoped to evolve the e-commerce side of duty-free retail.
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.”