CHINA. China Duty Free (CDF) on Monday celebrated the Grand Opening of CDF Mall, the centrepiece of the much-anticipated CITS Haitang Bay Duty Free Shopping Complex.
The Moodie Report Chairman Martin Moodie has been in Haitang Bay – the only industry media representative present – and talks of extraordinary scenes after the shops (the world’s biggest duty free complex) opened for business. He’ll bring you a full report later in the week and in the next issue of The Moodie Report Print Edition.
“In 27 years of covering this industry, I have never seen anything like it,” Moodie said. “It’s not just about the sheer scale of the project but the extraordinary vision and determination that underpins it. The building is magnificent, the range of brands and stores dazzling, the execution consistently excellent and the level of consumer excitement unprecedented in travel retail history. Quite simply it is a redefining of Chinese travel retail as we know it.
“September is relatively low season for CDF but you wouldn’t know it by the huge crowds that have poured into the new complex, prompting the need to introduce queuing systems in many of the key boutiques. By common consensus among the brand companies represented at the Grand Opening, CDF has achieved something remarkable here and I look forward to telling the full story.”
One CDF insider said Monday’s bonanza shopping spree had exceeded all expectations with the possibility that projected day one sales of RMB10 million (US$1.63 million) could easily double.
The CDF Mall opening was celebrated with a grand ceremony attended by the retailer’s senior management and invited VIPs |
China Duty Free Chairman Peng Hui welcomes VIPs and guests to the Grand Opening |
The Moodie Report Chairman Martin Moodie (left) and CDF Vice President Charles Chen |
These images of the complex illustrate the scale and grandeur of the new facility |
(Above and below) CDF Chairman Peng Hui and The Moodie Report Chairman Martin Moodie discuss today’s landmark opening for the Chinese travel retail powerhouse |
CDF opened 90% of its retail offer today; the remaining space – hosting big names such as Louis Vuitton and Prada – will be opened during the 2015 Spring Festival (19-25 February). The facility boasts the world’s largest duty free shopping centre (70,000sq m), supported by a strong duty paid, food & beverage and entertainment offer.
The store features almost 300 international top brands and more than 100,000 fashion items. It includes 8,000sq m of space for beauty products alone as well as a wide array of the world’s leading luxury brands.
(Above and below) These panoramic shots show customers pouring into CDF Mall |
(Above and below) Spacious central zones offer relief from the consumer frenzy within the boutiques |
Architecturally the commercial complex was inspired by the form of a blooming Begonia flower, creating an imposing structure certain to become a major tourism landmark in its own right.
Visitors to the complex will be able to use a dedicated platform on the high-speed railway from Haikou to Sanya, while free shuttle buses will carry tourists between the retail complex and popular hotels.
Floral tributes from CDF’s brand partners honour a red-letter day in Chinese travel retail history |
The retailer said that its downtown duty free store in Dadonghai, Sanya would close after the opening. It added that in the three years since Hainan’s offshore duty free policy was implemented, the proportion of tourist expenditure represented by shopping has jumped from 13.8% to 27.6%.
In a statement CDF said: “Haitang Bay Duty Free Shopping Complex will push offshore duty free shopping into a new stage where the six components of tourism – food, accommodation, transport, tourism, shopping and entertainment – are further integrated.
“The opening marks a new level of development for the Chinese duty free industry, and provides a new platform for Chinese consumers to experience world-class duty free shopping within China.”
More to follow, including an interview with China Duty Free Group President Peng Hui and many more pictures from a day that changed the face of Chinese travel retail.
CDF’s much-respected Director Beauty & Fashion Department Luke Chang was one of the proudest men in China as the retailer’s dream finally came true. The tremendous commitment of the CDF team was a pivotal factor in getting such a vast project completed against huge challenges. |
The huge crowds that poured into the new complex on opening day prompted the need to introduce queuing systems outside many of the boutiques |
By mid-afternoon, out of peak season, the Chanel (above) and Coach (below) boutiques were packed with expectant customers |
An extensive upscale watches offer is designed to appeal to discerning timepiece buyers |
Korean skincare brands such as Laneige, which are hugely popular with Chinese travellers, form a key part of the cosmetics offer |
Well located in the beauty zone, the elegant H20 offer looks set for success |
Several more brands will enter the scene in coming months, including Italian house Paul & Shark, which CDF believes will be a big hit because of the popularity of sailing among Chinese visitors to Hainan |
(Above and below) CDF Mall boasts stand-alone boutiques from many of the biggest names in the luxury business |
Before the madding crowd: As CDF Mall got set to open all was quiet. Within minutes the scene would be very different. |
Korean favourite Sulwhasoo proved a shopping magnet on day one |
Swatch Group brand Tissot, very popular with the Chinese, was packed with customers throughout the first day of trading |
Sparkling sales: Austrian crystal brand Swarovski, another perennial Chinese favourite |
The Clinique boutique drew big crowds throughout the first day of trading |
In a big coup for CDF, Rolex makes its Chinese duty free debut at Haitang Bay |
Generic eyewear store Sunglasses World was generating incredible levels of business |
(Left) Polo Ralph Lauren and (right) Bvlgari |
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(Above and below) Happy Bazaar features a strikingly original approach to the confectionery category |
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Eiko Okura and Masahiro Horita of Japanese brand house Kose Corporation |
(Above and below) Nescafé Dolce Gusto, the Swiss giant’s single-cup coffee machine, drew intense interest from intrigued Chinese coffee lovers |
The quality of the boutiques’ execution (pictured are YSL and Sisley) met with widespread acclaim from CDF’s brand partners |
(Above and below) The beautifully executed Polo Ralph Lauren boutique |
Fashion and mid-priced watches feature in the Time Avenue store |
Swatch and Folli Follie both reported tremendous opening day sales |
(Above and below) Swatch Group is delighted with its powerful presence, reflecting the Swiss group’s long-standing commitment to China. From top: Rado, Tissot, Omega and Longines |
Eyewear is a big winner with the Chinese traveller, as evidenced by the popularity of Sunglasses World, which features slick technology (below) that allows shoppers to test styles and colours virtually |
Over 80% of the retail offer at CDF Mall was opened today, with big names such as Louis Vuitton and Prada to follow early next year |
A panorama of Haitang Bay from the Westin Hotels & Resorts, next to the new complex |
Buses packed with shoppers line up outside Hainan Island’s newest tourist attraction |
While the majority of CDF Mall’s business will be group tourists, the retailer is also projecting a strong FIT business |
A stunning picture of CDF Mall at night as the most memorable day in Chinese travel retail history drew to a close |
Extensive food & beverage facilities are offered to ensure maximum dwell time in the shopping complex |