Introduction: No media professional understands the Hainan offshore duty free market as well as Lu Tianqin, Chief TV Host of Hinews.cn Media and Head of the Duty Free Channel at Hainan Hinews Media Co, The Moodie Davitt Report’s strategic partner in Hainan.
In this exclusive interview originally published in the two companies’ acclaimed joint publication dedicated to the recently opened cdf Haikou International Duty Free Shopping Complex, Tianqin chatted with The Moodie Davitt Report Founder & Chairman Martin Moodie about the new shopping-to-entertainment emporium. She also talks about her role as a media professional focused on Hainan’s burgeoning duty free sector.
Tianqin, you are an experienced media professional with a great understanding of the duty free retail business. What is your impression of the new cdf Haikou International Duty Free Shopping Complex?
As Asia’s largest standalone duty free store, the cdf Haikou International Duty Free Shopping Complex has attracted a lot of attention since the beginning of its construction. After a long wait, I had the pleasure to visit it on its opening day and report on it for our audience.
My first impression of cdf Haikou was of its grandeur. I was astonished by its size and design, and the incredible visuals of the AURA Edge of the Sky Atrium. It is a shopping complex where futuristic technology and a romantic ambience seamlessly blend together.
Every visitor that we interviewed told us that they were struck by just how grand and upscale it was. Perhaps because of its sheer size, the complex needs to provide clearer signage for shoppers to find the stores they’re looking for. I look forward to seeing more international brands set up stores in cdf Haikou, giving customers more retail options.
Hainan Hinews from The Moodie Davitt Report on Vimeo.
What were the highlights for you?
For me, the biggest highlight is how cdf Haikou breaks the conventional concept of what a mall is. It isn’t just a store where you ‘buy things’, it’s a shopping complex that offers retail, entertainment and F&B experiences.
In terms of dining options, here you’ll find fine dining, fast food, and everything in between, so everyone can get what they want. I also saw a lot of husbands who would go to a café, just sit down and relax with a drink while their spouses shopped, so you could say that all the F&B outlets are a godsend to non-shoppers!
Another feature of cdf Haikou is the wide range of exhibitions and cultural happenings that take place here. For example, there are two exhibitions going on at the moment: Meet Dunhuang and Watches & Wonders.
Activities like these have the power to transform a store into an experiential space of art, culture and craftsmanship. And that’s part of what makes cdf Haikou a multi-faceted destination that encompasses F&B, entertainment, attractions and retail opportunities.
How important do you think this development is in terms of the Hainan Free Trade Port development?
Since the introduction of the offshore duty free policies, the percentage of offshore duty free sales to Hainan’s total tourism revenue has been continuously increasing. The duty free sector has become a major component of Hainan’s tourism industry, retail industry and the overall economy.
The development of the cdf Haikou International Duty Free Shopping Complex further elevates the appeal of Hainan as a tourism and consumption hotspot. It helps attract more high-end brands to enter the offshore duty free market, enhance the island’s overall tourism carrying capacity, and provides better retail options and experiences to consumers.
In addition, with the newly completed cdf Haikou complex and the existing cdf Sanya store sitting respectively on the north and south coasts of the Hainan Island, the two mega stores reinforce the two cities’ status as leading duty free shopping hubs, while anchoring a balanced layout of duty free consumption.
The opening of cdf Haikou holds great meaning for the optimisation of Hainan’s offshore duty free market, and will boost the utilisation of duty free policies and the release of domestic demand.
An open Hainan will draw visitors from across the globe. I hope to see more high-quality homegrown brands being introduced into Hainan’s offshore duty free market, making this island a window for foreign travelers to learn more about what China has to offer.
I have no doubt that cdf Haikou will be instrumental in Hainan’s development as an international tourism consumption centre, and facilitate the repatriation of overseas consumption and the construction of the Hainan Free Trade Port
Tianqin, speaking as a consumer, what do you think of the mix of experience + art + entertainment + food etc that cdf Haikou International Duty Free Shopping Complex offers?
As a consumer, I’m very drawn to cdf Haikou’s overall environment and aesthetic, as well as its wide range of offerings from luxury retail and trendy brands to dining outlets, art exhibitions and entertainment activities.
However, through our reporting, we discovered that many consumers have frustrations about their Hainan offshore duty free shopping experience, from the lack of brands and new products, to certain products being constantly out of stock. This goes to show that the Hainan offshore duty free supply chain is not yet operating at the level that completely satisfies consumer expectations, and there’s untapped potential.
CDFG has set a development path for cdf Haikou that combines duty free shopping and cultural tourism, making retail an integral part of travel. This not only serves to boost consumption, but also create momentum for the development of ‘all-for-one tourism’ in Hainan.
During our reporting trips to cdf Haikou, we met a lot of family travellers. Educational activities such as the Meet Dunhuang exhibition are very popular with this demographic – families can turn a shopping trip into an opportunity to bond and spend quality time together. Just as I mentioned earlier about husbands waiting for their wives in cafés, there’s something for everyone to enjoy.
cdf Haikou is a multi-purpose complex that includes duty free and other retail, premium office spaces, high-end hotels and talent hubs, making it an ideal destination for shopping, leisure, entertainment, business and holiday-making. Thanks to its comprehensive business formats and offerings, it will help boost Hainan’s tourism market and overall market confidence, and ultimately bring more energy and momentum to Hainan’s development as an international tourism consumption centre.
Sum up please the importance of duty free shopping in Hainan to Chinese people.
The development of the Hainan Free Trade Port is anchored by the development of ‘Three Zones and One Centre’, with ‘One Centre’ referring to ‘international tourism consumption centre’.
Offshore duty free shopping has become a major attraction of the Hainan Free Trade Port. Since the introduction of new duty free policies, offshore duty free sales have seen a rapid increase, driving the growth of employment, imports, consumption and many other aspects of the Hainan economy.
In addition, Hainan’s offshore duty free industry is bringing together retailers, brands, tourism enterprises and consumers through duty free shopping, while providing a space where dining, accommodation, travel, retail and entertainment are all connected in an organic manner.
Despite the impact of COVID outbreaks late last year, Hainan still saw considerable traffic in terms of tourists, goods and capital brought by the duty free sector.
Hainan’s offshore duty free sector has become a powerhouse within the domestic duty free industry, and will continue to serve its rapid expansion. The opening of cdf Haikou, along with other duty free businesses, carries great significance for the optimisation of Hainan’s offshore duty free industry, and to the better utilisation of duty free policies and release of domestic demand.
I look forward to seeing Hainan become a new benchmark and a future leader of the global travel retail industry. I believe that offshore duty free will be an integral part of Hainan’s development as an international tourism consumption centre and the repatriation of overseas consumption.
And finally, tell our readers, what’s it like having your own TV show dedicated to duty free – the only one in the world.
Thank you for giving me the opportunity to talk about our channel and programmes. Our duty free channel is featured on New Hainan and Hinews, which is a mainstream media outlet in Hainan. And like you said, it is the only one of its kind in the world.
Our mission is to facilitate the development of brands in the China market, and to help them reach more Chinese consumers. We also offer customised marketing and publicity strategies for brands. The New Hainan app has 2.6 million downloads, while our Weibo, WeChat and Douyin accounts have a combined number of 20 million followers, making us a great partner for those wishing to foray into the China duty free market.
The duty free channel’s features include our flagship programme, Duty Free Livestream, which features livestreams about duty free information and brand activities. It’s a great tool for consumers to plan their shopping trips.
We also have our popular weekly programme, Weekly Store Visit. Every week, we visit duty free stores in various parts of Hainan, scouting for the latest information. By covering the most talked-about stores, pop-ups, and creative activations, we invite the audience to experience them virtually through our video reporting.
We also have Duty Free Rankings which lists of the most popular duty free products and brands and Best Duty Free Buys which offers recommendations of high-quality duty free products based on big data.
Travel Retail Outlook is a platform for international collaboration co-developed by the Investment Promotion Agency of the Ministry of Commerce, New Hainan, Hinews and the Nanguo Metropolis Daily, with the purpose of exploring new directions and possibilities for the development of the duty free industry.
The Hainan Free Trade Port Brand Care Center: New Hainan, the Hainan International Media Center, Hainan Daily, Hinews and the Nanguo Metropolis Daily all provide companies and brands entering Hainan with one-stop salutations that help them raise brand awareness and promote their products, both online and offline. The services cover areas such as product launches, expositions, advertising and marketing.
Finally, I want to thank you for this interview – The Moodie Davitt Report has been an amazing partner for us. I want to use this opportunity to share with fellow duty free industry professionals and consumers the unique advantages and opportunities that Hainan offers. It is a wonderful island with sunny beaches, blue skies and stunning ocean views, as well as a booming travel retail industry that has become much bigger than itself.
Today, Hainan’s offshore duty free sector carries the mission of facilitating the development of the Hainan Free Trade Port, the repatriation of overseas consumption, as well as the national ‘Dual Circulation’ development strategy. We look forward to seeing you in beautiful Hainan! ✈
