CHINA. China Duty Free Group (CDFG) has reinforced its island-wide operations one month after the Hainan customs closure, with operational upgrades, logistics innovations and enhanced shopping experiences across its six stores.
CDFG said the initiatives have delivered concrete results, highlighting its role in implementing Hainan’s offshore duty-free policy and supporting the island’s development as an international tourism and consumption hub.
Enhanced services drive premium shopping experience
Since the customs closure, CDFG has sharpened its focus on core consumer needs, using improved systems and innovative models across its Hainan stores.
These include cdf Haikou International Duty Free Shopping Complex, cdf Sanya Duty Free Shopping Complex, cdf Sanya Phoenix Airport Duty Free Store, cdf Haikou Mova Mall Duty Free Store, cdf Haikou Meilan Airport Duty Free Store, and cdf Qionghai Bo’ao Duty Free Store.
Responding to stronger local spending and increasingly diverse tourist demands after the closure, the stores have refined service standards to make duty-free shopping more personalised and efficient, CDFG said.
cdf Sanya Duty Free Shopping Complex, with its eight service support systems and 98 service standards, combines targeted marketing with quality service to boost both footfall and retention.
The location has become the country’s first AAAA-level tourist attraction centered around duty-free retail, with cumulative sales exceeding CNY100 billion (US$14.3 billion) since its opening.
Meanwhile, cdf Haikou has implemented an end-to-end service mechanism spanning pre-sale, in-store and after-sale stages. This ensures a rapid 30-second initial response and a 15-minute follow-up, forming an efficient service loop that has significantly increased customer satisfaction.
In addition, to address the demand of local residents all CDFG Hainan stores have fully implemented the updated duty-free policy, which came into effect on 1 November 2025.
This means Hainan residents with a departure record within the calendar year can now buy 15 categories of ‘buy-and-pick-up’ items all year with no purchase limits, integrating duty-free shopping into everyday life.
On New Year’s Day alone, CDFG recorded sales of over CNY3 billion (US$430.5 million) across its Hainan omnichannel platform, while sales on the first day of the customs closure (18 December 2025) exceeded CNY2.5 billion (US$358.7 million), up +90% year-on-year.
CDFG attributed the consistent growth to the combined impact of service improvements and effective policy implementation.
Efficient logistics solution
The retailer underscores the importance of logistics efficiency as a key pillar for the high-quality development of the offshore duty-free industry.
An industry leader in logistics innovation, CDFG has established a 100,000sq m advanced logistics park in the Haikou Comprehensive Bonded Zone. This brings the group’s total warehouse area across Hainan to over 170,000sq m, covering key regions including Haikou, Sanya, Chengmai and Bo’ao.
The new model further enhances operations by directly linking bonded warehouses to duty-free locations, boosting the group’s logistics efficiency by approximately 35%. This also ensures rapid movement of goods and timely replenishment.
In addition, the implementation of the ‘warehousing before declaration’ customs clearance model has shortened processing times and enhanced operational efficiency and service quality.
These improvements have effectively reduced warehousing and distribution costs, the company noted.
cdf Haikou also launched a pioneering drone route to Haikou South Port, using low-altitude logistics to transfer duty-free goods seamlessly from warehouse to port. This innovation significantly shortens customer pick-up times and reduces queues during peak holiday periods.
Innovative retail model
Following the customs closure, CDFG’s Hainan stores have further advanced their retail model centred on ‘products, scenarios and services’. This approach has deepened the integration of duty-free tourism and lifestyle, creating immersive and diversified consumer experiences, CDFG said.
In terms of retail offerings, 30 stores have recently opened, including Dior Beauty’s largest global flagship store and the first two-story Moncler boutique in Hainan featuring the brand’s latest global concept. Over 70 CDFG-exclusive items have also been introduced.
CDFG Hainan stores feature almost 1,000 well-known Chinese and international brands across multiple categories, including jewellery & watches, beauty, fashion, electronics, and dining.
In addition, the stores have launched an array of experiential retail initiatives in the past month. These include the integration of popular IP characters and themed parade performances at cdf Sanya Duty Free Shopping Complex, while upgrading its Sunset Market 2.0 to create an immersive space for sightseeing, entertainment and social media engagement.
Proactively responding to consumer trends, cdf Haikou has boosted weekend visits by local residents and maintained steady growth among international shoppers.
Complementing strong sales in beauty, jewellery & watches, and apparel, emerging categories such as electronics, portable musical instruments and pet supplies have also performed strongly across the stores.
Furthermore, the company has deployed quick-response inquiry and customer flow management systems to meet the growing consumer demand for an experiential, ‘shop-and-stroll’ duty-free experience.
CDFG Hainan stores have created a comprehensive duty-free ecosystem that spans the entire consumer journey from arrival to departure, serving diverse consumer segments with targeted offerings, while rolling out year-round promotions.
The retailer has also emphasised the importance of cross-industry partnerships with local tourist attractions, enhancing the shopping experience by blending culture, wellness and leisure.
CDFG said: “The customs closure is an exciting new starting point. With digital transformation as our core focus, we will further integrate management and business operations, continuously strengthen brand synergy, optimise service systems, and deepen cross-format integration.
“As a state-owned enterprise dedicated to building a global hub for premium consumption, we will continue to inject sustained momentum into the development of Hainan in the new era.” ✈
