July 11, 2017，China International Travel Service (601888.SH)’s subsidiary China Duty Free United Sunshine announced that it won the bid for the 188bet mobile login of Capital Airport。Previously，May 6，Baiyun Airport (600004.SH) announced that China Duty Free Company won the bid for the Baiyun Airport duty-free project and signed an entry duty-free project operation cooperation agreement with it。And earlier，China Duty Free and Lagdale announced on April 5 that they had won the bid for the tobacco and alcoholic products business license of Hong Kong International Airport，And will gradually receive the original operator’s stores in late November。

To this point，With the Capital Airport bidding coming to an end，China International Travel Service’s 188bet mobile login has covered Sanya Haitang Bay、Capital Airport、Hong Kong Airport (Liquor and Tobacco)、Baiyun Airport and many other top-ranking duty-free shops in China。China Free Shipping is backed by CITS，With background of central enterprise，Both Rishang and Lagdale have strong purchase channel advantages，Obviously both in terms of resources and channels，China International Travel Service is the biggest winner，And cooperation with Rishang，It also provides a solid model for the Shanghai Airport Duty Free Shop bidding in 2018。

In addition，According to a series of analysis reports from Guosen Securities，China’s 188bet mobile login market pattern，Sunshine and China Duty Free account for approximately 78% of the domestic duty free market，In an absolute monopoly position。

But，China International Travel Service has chosen to vigorously deploy the airport 188bet mobile login at this moment，Part of the reason is that China National Travel Service’s growth in tourism service business has been weak in recent years，But in the merchandise sales business，In particular, the sales growth rate and gross profit margin growth rate of duty-free products have increased。With the other three major domestic listed travel agencies, CYTS (600138.SH）、Zhongxin Travel (002707.SZ）、Caesar Travel (000796.SZ) Comparison，CITS travel agency business is relatively fragmented。At the same time，With the end of the online traffic bonus period，The competition between traditional travel business and OTA in terms of channels is undoubtedly at a disadvantage。

Also，According to the "Global Luxury Goods Market Research Report" released by Bain, a global strategy consulting firm，Chinese consumers showed an upward trend in domestic luxury goods consumption in 2016 for the first time since 2013，Total value up to 17 billion euros，Accounts for 23% of the total luxury goods purchased by Chinese consumers。188bet mobile login is currently the main channel for domestic luxury goods consumption，At the same time，With the continuous relaxation of domestic tax-free policies、The increase in tourist consumption levels and the booming development of outbound tourism，These comprehensive factors will undoubtedly become a major driving force for the growth of China’s 188bet mobile login market。

February 19, 2016，Ministry of Finance、The Ministry of Commerce and other five departments jointly issued the "Interim Measures for the Management of Port Entry 188bet mobile login"，Encourage the return of consumption at the policy level。China International Travel Service serves as the spokesperson and executor for the country to recover the lost overseas purchasing power，Can you take on such important tasks and responsibilities？Can we create an era of new tourism retail in terms of “tourism + duty-free”？

一、How much foreign exchange 188bet mobile login lost when traveling overseas？

In recent years，188bet mobile login’s Spring Festival has gradually become the global “Golden Week”。This Spring Festival，188bet mobile login’s total number of outbound tourists reached 6.15 million in half a month，If travel expenses plus destination shopping consumption per capita are 1.50,000 yuan calculation，Chinese tourists spend a total of 100 billion yuan abroad during the Spring Festival，Nearly 14.5 billion U.S. dollars (according to the exchange rate of 1 U.S. dollar on February 12 to 6.calculated in RMB 88)。You must know that Wanda’s total overseas investment in the past three years has only exceeded 100 billion yuan，Only equivalent to half a month’s overseas spending by Chinese people。Such a huge outbound travel overseas expenditure is very likely to cause a large tourism trade deficit。

The "188bet mobile login's Foreign Trade Situation Report" (2014-Spring 2016) issued by the Ministry of Commerce pointed out，188bet mobile login’s service trade deficit from 2014 to 2016 was 1599 respectively.USD 300 million、1366.0 million and 2532.US.7 billion，Among them, the tourism trade deficit is 1078.USD 900 million、1237.0 million and 2365.USD 6.6 billion，The tourism trade deficit has become the largest source of service trade deficit，And has been in a state of sharply increasing deficit。(Note: In 2016, 1 USD = 6.calculated in RMB 75)

The calibers of the National Tourism Administration, the Ministry of Commerce and the State Administration of Foreign Exchange are very different，Mainly because the National Tourism Administration believes that the purchase of "luxury goods" by outbound tourists is not considered tourism expenditure，Expenses belonging to "trade of goods"；Think of “study abroad、Beauty and wellness treatments are not considered tourist activities”，However, it is recognized by the international tourism industry that any period not exceeding 12 months is considered tourism expenditure；In addition, the statistical caliber of travel and tourism are also very different，No strict distinction is made。But one thing is undeniable，The scale of 188bet mobile login’s foreign exchange losses caused by outbound travel and related consumption in travel/tourism cannot be underestimated。

Under the situation of tourism trade deficit，The scale of its deficit is proportional to the country’s exchange loss。Because the price of foreign exchange purchased by outbound tourists from the country is lower than the country’s actual foreign exchange cost，Therefore, more and more outbound tourists，The more national interests are damaged。In addition，Outbound tourists can also enjoy the departure tax exemption policy when shopping abroad，This will further increase the country’s exchange losses。In this context，CITS’ layout in 188bet mobile login actually has a major mission。

二、Can CITS, which is responsible for the “national will”, take on this important task in building a “tourism + 188bet mobile login” business?？

Currently，There are only 6 companies operating tax-free business in China，China Duty Free is the only state-owned company authorized by the State Council to operate 188bet mobile login nationwide，In accordance with the "four unifications" management policy (unified management) entrusted by the state、Unified purchase、Uniformly set retail prices、Uniform management regulations) Implement unified management of the national duty-free industry。China Free Trade Zone has considerable advantages in franchising，Compared with the other five domestic duty-free companies, it also has obvious advantages in operating licenses and store numbers。

Since the strategic reorganization of China Duty Free Group and China International Travel Service with the approval of the State Council in 2004，Founded in 1984, China Duty Free Group has not only become a wholly-owned subsidiary of China International Travel Service，It has also become the only central enterprise affiliated to the State-owned Assets Supervision and Administration Commission of the State Council with tourism and tax exemption as its main business。After 33 years of development，China Duty Free Group has established long-term cooperative relationships with more than 300 of the world's top luxury brands，To inbound and outbound passengers、International Seafarers、Provide duty-free shopping services covering more than 20 categories and thousands of varieties for diplomats and tourists from Hainan Islands，In 30 provinces across the country、City、Autonomous Region (including Hong Kong、Macau and Taiwan) have been established to cover airports、On board、Border、Passenger Terminal、Train Station、Foreign ship supply、Diplomat、Cruise ships and more than 200 188bet mobile login in nine categories in the city，has developed into the world’s most complete range of 188bet mobile login、The duty-free operator with the most retail outlets in a single country。

According to China International Travel Service 2016 Annual Report，In 2016, CITS commercial sales business achieved operating income of 93.7.9 billion yuan，Year-on-year growth of 8.81%，Gross profit margin is 45.02%，Increased by 1 over the same period last year.25 percentage points；Among them, the sales of 188bet mobile login goods achieved operating income of 87.8 billion yuan，YoY growth 8.97%，Gross profit margin is 46.59%，1 year-on-year increase.41 percentage points。In addition，Achieve operating income from sales of taxable goods 5.9.8 billion yuan，An increase of 6 year-on-year.53%，Gross profit margin is 21.95%，Decreased by 1 year-on-year.58 percentage points。

2011，China Duty Free Group’s Hainan island 188bet mobile login was successfully launched，Opened a new chapter in China’s duty-free industry。China Duty Free Group’s duty-free store in Sanya is the first duty-free store on an outlying island in China，has become a new business card of Sanya tourism。Haitang Bay Duty Free Shopping Center is the largest duty free commercial complex in the world，With "Online Shopping，New model of airport pickup，further enriches and satisfies tourists’ choices and needs for duty-free shopping on outlying islands，Becoming a new pioneering point in China’s “tourism + duty-free” business。During the 2016 reporting period，Sanya Haitang Bay Duty Free Shopping Center achieves operating income of 47.0.5 billion yuan，10 year-on-year increase.80%，Among them, tax-free goods sales revenue 45.8.2 billion yuan，10 year-on-year increase.72%；4.51 million customers received throughout the year，970,000 shoppers。

But，With the booming outbound travel market and the departure tax-free policy for overseas shopping，The proportion of Chinese people shopping overseas is gradually increasing，Purchasing agents and cross-border e-commerce have also become new shopping choices for many people。In comparison，The 188bet mobile login store business will undoubtedly face a new round of challenges in terms of price and user purchasing experience。

三、Future，Where is the new focus of China International Travel Service’s “tourism + 188bet mobile login” business？

1.Airport Duty 188bet mobile login Shop，will become a new retail traffic entrance to activate the demand for B-side and C-side

“188bet mobile login is not the most advantageous company in terms of price，Its greater advantage is that it has the largest travel agency and the largest network system and membership system”，And “188bet mobile login’s greatest core competitiveness lies in its resources and customer understanding。”Previously，The relevant person in charge of 188bet mobile login Group said when accepting the agency survey。

Under the current tide of consumption upgrading，With the end of Internet traffic dividend，The cost of obtaining traffic offline is already lower than online，The integration of online and offline has been very obvious。China National Travel Service has more than 1,000 stores in the offline travel agency business segment，The merchandise sales business has about 200 stores，Accumulated a certain number of traffic customers，However, in the online part, CITS Online and China Duty Free Mall do not have an advantage in user accumulation。Relying solely on offline service outlets and 188bet mobile login is not enough to support the new tourism retail pattern in the future。With domestic OTA and product sales Internet companies (JD.com)、Alibaba, etc.) compared to，CITS actually lacks sufficient understanding of online users，There are many shortcomings in the Internet gene，Even lacks the ability to learn from and imitate the above enterprises。

For 188bet mobile login Service，Must have stronger Internet thinking，Acquire the past through technical means、Basic data of current and future users，Building user portraits，According to the different needs of different users，Form multiple levels、Multi-gradient product architecture，Provide the products users need in the shortest time，Thus breaking the separation between B-side and C-side，Improve efficiency。

But from an omni-channel perspective，Whether it is an offline physical store or an online website，Moving from standardized goods to non-standardized services，There is a greater need for offline physical stores as the carrier of e-commerce，High-traffic airport 188bet mobile login have become the entrance to new offline retail traffic。

2.Based on the airport 188bet mobile login shop，Building a regional tourism destination brand

Looking at the development history of the duty-free industry in China and South Korea，China and South Korea have many similarities in the development of duty-free industry，But obviously South Korea’s 188bet mobile login operation model is more mature。Korean Customs Service data display，The total sales revenue of Korean duty-free shops in 2016 increased by 33% compared with 2015.5%，reached 689.300 million yuan。As the third largest duty-free airport in the world, Incheon Airport，In 2014, duty-free shop sales once reached the first place in the world，Breakthrough 11.3 billion yuan，Beyond the highest level of airport duty-free shops in Dubai Airport and large airport duty-free shops in Europe and the United States。Some analysts believe that the number of passengers in duty-free shops at Incheon Airport is less than that at Dubai Airport and Heathrow Airport，But thoughtful service、Good shopping environment and professional operation team，Let Incheon Airport rank first。In addition，JDC is the only duty-free shop on Jeju Island that benefits from the outlying island duty-free policy for Koreans，The first year after opening in 2002，JDC Duty Free Store achieved sales of US million，Penetration rate 21%，Over 98% of users are Korean tourists。The duty-free shops established by China National Travel Service at the airport are mainly targeted at returnees，Neglected efforts to attract local residents and tourists，Judging from China International Travel Service’s revenue and impact on 188bet mobile login this year，The tax-free business is still in the sales stage，Lack of awareness of creating a tourist destination，Lack of concept of building a destination tourism ecological chain。

188bet mobile login is an important part of travel retail，Their revenue capacity is closely related to the number of tourists in the tourist destination。When duty-free shops become a local tourist destination，Can attract tourists to the store to a great extent。For example，China Duty Free Company’s international duty-free store in Haitang Bay, Sanya，Has become one of Hainan’s tourist destinations。Lotte and Shilla Duty Free Shops owned by South Korea，The emphasis is on overall consistency，Highlight branding，This has good reference significance for domestic airports and duty-free shops on outlying islands。The current domestic 188bet mobile login is still relatively scattered，But as China International Travel Service continues to win bids for major domestic airports，188bet mobile login has shown a trend of concentration。

3.Benchmarking international tourism 188bet mobile login retail giants，Take on the important task of regaining the purchasing power lost overseas

Based on benchmarking with the International Tourism Duty Free Group，Dufry Group is the world’s largest travel retailer and 188bet mobile login group，As of the end of 2016，Dufry has a 24% market share in the global airport retail industry。From the analysis of Dufry Group’s 2016 financial report，Airport channel is the main source of Dufry’s sales revenue，91% of its sales come from airports，4% comes from railway，3% from national borders、Hotel、188bet mobile login shop in the city，Another 2% comes from cruise ships and ports。To summarize Dufry’s history of operating 188bet mobile login retail industry in the past few years，The reason for the continued growth of Dufry Group’s gross profit margin is nothing more than the following three points: the improvement of procurement bargaining power brought about by the scale effect；Optimization of product category structure；Cooperate with suppliers at the marketing level to obtain purchasing discounts。

In addition，The reason why Dufry has grown so fast，Except related to endogenous force，More is the ability to expand outwards。According to relevant data，In the 11 years since Dufry was launched in Europe，The average annual revenue growth rate brought by external mergers and acquisitions is as high as 20.57%，The average annual growth rate of revenue brought about by organic growth is only 6.04%。Similarly，188bet mobile login won the bid for Capital Airport and also took a controlling stake in Sunrise，Continuously expand the scope of investment and mergers and acquisitions，Attract overseas consumption back。

But if CITS wants to truly shoulder the important task of “recovering the purchasing power lost overseas”，Changing the dilemma of the continuously expanding 188bet mobile login trade deficit，Relying solely on the understanding of user needs accumulated through previous offline channels is far from enough，We must also strengthen our strength in product and channel innovation，Play the new retail card at the offline traffic entrance，Keeping wealth for the country。

*The author of this article: 188bet mobile login analyst Liang Guoqing (WeChat: liangzi2015)，Editor: Qiu Wei。