HONG KONG, CHINA. Strong interest in the forthcoming third China International Consumer Products Expo (Hainan Expo) was shown in Hong Kong earlier this month during a fascinating presentation led by the Hainan Provincial Bureau of International Economic Development (IEDB) and iClick Group with support from The Moodie Davitt Report.
Representatives from Richemont Group, Pernod Ricard Travel Retail, Dufry and Pola Orbis Holdings were among those who attended.
Hainan IEDB Global Media Officer Ruslan Tulenov outlined plans for this year’s Hainan Expo (to be held in Haikou City on 11-15 April) while outlining the business cooperation opportunities between Hainan and Hong Kong.
Tulenov also provided a detailed interpretation of Hainan Free Trade Port’s (FTP) key policies and investment opportunities. He said the FTP development is in full swing, noting that Hainan has set up major industrial parks, and offers relevant tax incentives and development opportunities to promote business development.
Hainan IEDB intends to grow the Hainan Expo considerably this year by attracting more international and Chinese brands/
During informal discussions after the presentation, representatives from several companies expressed their optimism about the prospects for Hainan Free Trade Port’s development.
The meeting was also expertly addressed by iClick Interactive Asia VP, International Business Cody Chan how to better communicate with the Chinese travelling consumer through various media platforms before, during and post-trip.
The Moodie Davitt Report Founder & Chairman Martin Moodie wrapped up proceeding with an upbeat summary of Hainan offshore duty free’s prospects now that Chinese outbound travel has opened up.
“I don’t share the school of thought that says what’s good for the world in terms of Chinese outbound travel returning is bad for Hainan,” he said. “Although I don’t think a single pundit or industry commentator believed that Chinese outbound travel would return this early, I don’t believe this is going to be to the detriment of Hainan’s offshore duty free industry in terms of cannibalisation.
“Consider the passport statistics for a start. If some 10-13% of China’s 1.4 billion population have up to date passports, that leaves an awful lot of people who can only travel domestically.
“It’s also clear that the long-term repatriation trend for luxury spending is great news for Chinese retailer and Hainan province will certainly be a key beneficiary.
“Also, when it comes to Chinese travel and spending, a global return to pre-pandemic numbers is going to take time — especially considering the cloud that dynamic zero-Covid policies cast on consumer confidence. Flights are scarce and expensive and a significant number of citizens now hold expired passports and visas after such a lengthy suspension of issuances and renewals.
“Hainan’s attractions aren’t going away. Throw in Hainan’s natural and man-made attractions; its 100,000 CNY allowance; its proximity and price accessibility; its fast-improving tourism infrastructure; and the habit of domestic duty free shopping that has formed since 2011 and accelerated through the pandemic.
“Then look at what is happening on the operational side. CDFG’s mega development in Haikou – extraordinary in vision, in investment, in scale, in engagement, in brand range and quality, extraordinary in every sense.
“It’s not just CDFG. You’ve got Wangfujing Duty Free opening Wangfujing International Duty Free Harbour City in Wanning, the fifth newcomer over the past three years. And obviously more investment and developments to come with GDF Plaza, Times DF, CNSC and HTDF. Collectively that’s a lot of investment and therefore a lot of confidence in the future of Hainan. Collectively, all this means Hainan’s future is very bright indeed.” ✈
