CHINA. China Duty Free Group (CDFG) this weekend announced that it had brought forward the opening schedule for its extraordinary Haitang Bay International Shopping Complex on Hainan Island – the world’s largest duty free shopping centre.
Speaking at the CDFG Vendors’ Conference in Sanya on Saturday attended by many of its leading suppliers and The Moodie Report from the travel retail media, CDFG Vice President Charles Chen said that the phase one trial opening would now take place this December, followed by a Grand Opening of the initial phase in January 2014. The Grand Opening of the whole development is set for August 2014.
Chen previewed the store at the conference, outlining the breath-taking scale, ambition and quality of the project in pictures and video, as well as showing statistics that underlined Hainan’s huge tourism potential.
The advent of the offshore duty free shopping policy for Chinese visitors to Hainan in 2011 had generated tremendous returns, he said, promising that the new store would ease pressure on existing facilities as well as providing a world-class experience for top-end consumers.
 |
CITS Group Corporation President Wang Weimin pledged “the most distinctive travel retail outlet in China and even in the Asia Pacific region” |
CDFG’s parent company CITS Group Corporation is investing CY5 billion in building the vast, multi-dimensional tourism facility, which will include 70,000sq m of duty free space run by CDFG. The complex will include hotels, food & beverage, entertainment and leisure services as well as the shopping centre.
In a powerful address, CITS President Wang Weimin promised that Haitang Bay would be “the most distinctive travel retail outlet in China and even in the Asia Pacific region”.
CDFG Chairman of the Board Peng Hui underlined CDFG’s commitment to excellence and said the new complex represented a landmark in the organisation’s history and major step forward for Hainan’s tourism industry.
“The Haitang Bay International Shopping Complex is a milestone project with great significance to the development history of CDFG and for China’s travel retail industry,” he said. “It will help Haitang Bay become the retail travel destination of China.”
Wu Zhongbin, Deputy Director of Sanya Haitang Bay Management Committee, emphasised the rapid growth of Hainan’s tourism industry and the crucial role of the new development within it. “Haitang Bay serves as a window for Hainan to build itself as an international tourism destination,” he said.
 |
(Above and below) China Duty Free Group Vice President Charles Chen delivered an upbeat and ebullient presentation that outlined the revised opening schedule and illustrated the scale and qualitative ambitions of the project |
 |
Chen’s presentation underlined both the vision and the phenomenal scale of the development. It will include 8,000sq m of beauty products space alone as well as a dazzling array of the world’s leading luxury brands.
Architecturally, the commercial complex was inspired by the form of a blooming Begonia flower, creating an imposing structure that promises to become a major tourism landmark in its own right.
The new facility will take pressure off CDFG’s existing Sanya duty free store on Hainan Island, which has experienced phenomenal success since offshore duty free shopping began there in April 2011.
 |
In a nice ceremonial flourish, leading suppliers were invited on stage to sign a memorandum of understanding to co-operate on the landmark project. Here they and their hosts toast the success of the development. |
After the conference yesterday, delegates visited the Haitang Bay construction site, followed by a visit to Sanya store, witnessing first-hand the incredible levels of business being done there (see pictures). The Vendors’ Conference concluded in style last night with a memorable Gala dinner.
A full report will follow soon.
 |
The Moodie Report Chairman Martin Moodie chats with China Duty Free Group Chairman Peng Hui after the event |
COMMENT: Prepare to be amazed. In both physical and business terms, the CITS and CDFG development will transform China’s and Asia’s travel retail landscape. The sheer ambition behind the project, and CDFG’s determination to deliver it ahead of the original schedule, are deeply impressive.
No-one who has attended the Vendors’ Conference doubts its ability to succeed. As the images on this page show, the Sanya store is struggling to cope with its phenomenal levels of business. Haitang Bay will not only alleviate that pressure but also elevate the shopping experience to a much higher level.
The Moodie Report spoke to many of the brand houses present at the Vendors’ Conference, who consistently expressed both amazement and respect for what is being created. It promises to be quite some store and quite some story.
 |
Charles Chen: “It’s not only the largest duty free development but also one of the most beautiful” |
 |
NOTE: Recognising the significance of the CDFG Haitang Bay International Shopping Complex, The Moodie Report will be tracking the project in unprecedented fashion in coming months leading up to the Grand Opening.
This week’s edition of The Moodie Report e-Zine will feature video coverage of the complex, together with a detailed report on the project and the Vendors’ Conference. The next issue of The Moodie Report Print Edition will include a dedicated section on Haitang Bay, including reaction from suppliers. And the forthcoming edition of The Moodie Report China e-Zine, will present bi-lingual audio, visual and written coverage.
 |
(Above and below) China Duty Free Group Vice President Charles Chen signs co-operation MOUs with leading suppliers, including (from top) Jonathan Holland, Jonathan Holland & Associations; Eva Yu, L’Oréal Luxe Travel Retail Asia & Pacific; Ian McLernon, Christian Dior Parfums; Tonya Tan, SDL Group of Companies; and Johnnie Voutsas, Folli Follie |
 |
 |
 |
 |
 |
Charles Chen also emphasised the rapid growth of Hainan’s tourism industry and infrastructure |
 |
*备注：全方位报道中国旅游零售行业重要新闻，呈现全球旅游零售商在赢得中国旅客方面所取得的商业成果，详见中英双语、电子版半月刊《穆迪报道•中国》。首年免费订阅，请发送邮件至Sinead.Moodie@TheMoodieReport.com
*NOTE: All the key stories on China’s travel retail industry – and on international travel retailers selling to Chinese travellers – are covered in The Moodie Report China, published in bi-lingual, e-Zine format every two months. To receive your free first-year subscription, please e-mail Sinead.Moodie@TheMoodieReport.com
 |
Delegates from the Vendors’ conference visit the construction site to see the rapid progress that is being made on the world’s largest duty free store |
 |
This panoramic vista captures the scale of the Haitang Bay complex. The two buildings will be linked by a roof shaped like a begonia flower. |
 |
Delegates to the Vendors’ Conference visited China Duty Free Group’s Sanya downtown duty free store, seeing first hand the extraordinary levels of business being generated there. Incredibly, these images of the perfumes & cosmetics department were taken at an off-peak time and not on one of the retailer’s busiest days. |
 |
 |
 |
 |
China Duty Free Group Chairman of the Board Peng Hui welcomes guests to the closing Gala Dinner. “The International Shopping Complex wll help Haitang Bay become the retail travel destination of China,” he pledged. |
 |
Toasting success (left to right): Wang Weimin, President, CITS Group Corporation; Eva Yu, Director, L’Oréal Luxe Travel Retail Asia & Pacific; Martin Moodie, Chairman, The Moodie Report; Charles Chen (background), Vice President, China Duty Free Group; Erik Juul-Mortensen, President, Tax Free World Association; Sarah Branquinho, President, ETRC |
 |
A superb Gala Dinner was capped with a series of memorable musical performances |
 |
 |
