HAINAN, CHINA. China Duty Free Group’s (CDFG) cdf Haikou International Duty Free Shopping Complex has reported a sharp rise in footfall and spending in the six months following the implementation of the Hainan Free Trade Port regime.
The complex welcomed 3.38 million visitors during the period, a +46% year-on-year increase. Average transaction values also rose, with overall consumption showing a positive trend in both volume and quality.
The Hainan Free Trade Port system has also broadened the shopper base, with gains driven by both international travellers and domestic consumers. The introduction of ‘buy now, collect immediately’ services has also helped unlock local demand, the retailer said.
According to the company, more than 20,000 Hainan residents have benefited from the enhanced duty-free shopping policy over the past six months, with the number of local shoppers increasing +30.7% year-on-year.
The shift signals a notable evolution in the offshore duty-free model, traditionally centred on outbound travellers, towards a complementary everyday retail proposition for local residents.
To strengthen engagement with locals, CDFG has introduced a ‘Pioneer Islander Card’, attracting over 5,000 members to date. The programme offers integrated benefits across retail, dining and services, boosting dwell time and repeat visits.
Diversifying to address lifestyle demand
cdf Haikou International Duty Free Shopping Complex has expanded its offer to align with more diverse purchasing behaviours. New categories include portable musical instruments, pet products, small household appliances and mini drones.
The retailer has also introduced six categories of domestic products, including apparel, scarves, coffee and tea, reflecting a broader push to meet lifestyle-driven demand.
The roll-out of the ‘zero-tariff’ policy for certain inbound goods has further supported this shift, the retailer said.
Shoppers at cdf Haikou International Duty Free Shopping Complex can now access a wide selection of imported food, toys and baby formula, benefitting from exemptions on import duty, VAT and consumption tax.
Experiential strategy underpins footfall growth
The rise in visitor numbers has been supported by ongoing investment in service and experiential retail. Multilingual support tools, including translation devices and Q&A handbooks in multiple languages, have been introduced to improve accessibility for international travellers.
At the same time, cdf Haikou International Duty Free City has expanded its ‘duty free + culture and tourism’ proposition through a series of themed activations which ran over the past six months. These include pet socialising, NPC-led murder mystery games, the ‘Five Gods of Wealth Treasure Hunt’ and the spring ‘Secret Realm of Time’ role-play experiences.
The strategy reflects a wider trend in travel retail towards immersive, experience-led environments aimed at driving conversion and differentiating the physical store.
May Day campaign to drive incremental spend
In addition CDFG is launching several initiatives to capture peak seasonal demand during the key May Day holiday period (1-5 May).
Three new stores will open, including first-in-Haikou locations for Sanrio and L’Occitane en Provence.
A programme of in-store activities, spanning live music, parades, family educational workshops and skincare salons, will accompany the openings.
A China Duty Free Group representative commented, “We have also prepared a wealth of festive offers, including discounts of up to -50% off on beauty and skincare products, up to -40% off on fashion and luxury goods, and up to -50% off on beauty devices and homeware.
“There are also spend-and-save promotions, gift-with-purchase offers and bonus loyalty points. Furthermore, customers paying with selected bank cards can enjoy discounts of up to RMB1,888 (US$276).”
The retailer has also partnered with food & beverage operators and a 180-degree dome-flight cinema attraction to deliver exclusive ‘May Day’ bundles and discounts further integrating retail with leisure experiences.
China Duty Free Group said it will continue to enhance the cdf Haikou International Duty Free Shopping Complex’s retail proposition.
It will focus on strengthening service standards, enriching the consumer journey and supporting Hainan’s ambition to become a globally influential tourism and consumption hub. 🏝️
