CHINA. China Duty Free Group (CDFG) is accelerating its ‘first-store economy’ initiative in a strategic move to reinforce Hainan’s position as an international tourism and consumption hub.
In line with Hainan’s continued development, CDFG is advancing from ‘firsts’ to broader innovations – expanding beyond traditional duty-free retail into integrated development that includes culture, commerce, sports, tourism and wellness, the company said.
The strategy has created a dynamic retail landscape guided by the goal of “new stores opening monthly and hit products debuting weekly”.
Through flagship store launches, exclusive product debuts and innovative experiential formats, the initiative leverages the Hainan Free Trade Port’s duty-free policy to drive premium retail growth and boost consumer spending.
Backed by its parent company China Tourism Group, CDFG has played a leading role in implementing Hainan’s duty-free policies and has built a portfolio of more than 1,000 brand partnerships.
This year alone, 98 new brands are set to launch in Hainan’s duty-free market, spanning luxury watches, cosmetics, fashion, consumer electronics and hybrid retail-dining concepts.
Among the notable openings are Coach’s debut two-storey travel retail flagship in China, Estée Lauder’s first global two-storey flagship and Lancôme’s pioneering Domaine de la Rose concept at cdf Sanya International Duty-Free Shopping Complex.
The group also launched the country’s first immersive whisky museum, Malt & More Whisky by cdf, in Haikou, and a flagship store from high-end camera brand Leica.
Complementing CDFG’s retail innovation, Disney has also opened its first brand-operated Stitch-themed pop-up store at its Sanya shopping emporium, adding variety to the retail offer.
Further enhancing the shopping experience, the retailer has introduced exclusive product collaborations under its “weekly hit product” model.
Highlights include La Mer’s CDF-exclusive celebrity skincare sets, Diptyque’s Hainan-exclusive fragrances, Clé de Peau Beauté’s travel retail-exclusive set launched for cdf Sanya’s Lunar New Year pop-up, and Qeelin’s ruby-adorned Wulu necklace. Chow Tai Fook also debuted duty-free-exclusive designs inspired by Hainan’s local culture.
In addition, the company hosted its fifth annual cdf Watch Carnival, showcasing over 50 luxury watch brands, with more than 30 making their Hainan debut, presenting shoppers with over 7,000 carefully selected timepieces.
Retailtainment-led strategies
Emphasising the growing influence of experiential consumption, CDFG has tapped into Hainan’s thriving entertainment scene by integrating duty-free shopping with high-profile concerts.
To boost engagement, the retailer has collaborated with artists such as Mandopop superstar Jay Chou and singer Eason Chan, while government-backed shopping vouchers for concert attendees have further boosted retail traffic.
CDFG noted that the integration of live events and retail has created a vibrant “duty-free + trend” environment, boosting Hainan’s status as a lifestyle and tourism hub.
Spotlighting Chinese brands on the global stage
In addition to attracting international labels, CDFG is actively promoting Chinese brands through its “domestic trends going global” strategy.
By partnering with top Chinese brands, including Anta Sports-owned Fila, Li-Ning, Biohyalux and Florasis, CDFG has introduced dedicated retail zones at its stores in Haikou and Sanya, giving homegrown labels greater visibility among global shoppers.
Beyond enhancing Hainan’s duty-free sector, the drive to promote Chinese brands aligns with broader national goals to elevate their global presence.
Driving the next phase of retail evolution
The seventh cdf Hainan Offshore Duty Free Shopping Festival, officially launched on 4 July, reflects the continued evolution of the first-store economy, spotlighting a diverse mix of international and Chinese brands.
This year’s edition showcases 77 top-selling products, more than 100 brand partnerships and over 30 store openings, headlined by Aesop’s debut and DJI-Hasselblad’s innovative concept space.
Seasonal promotions, including a large-scale cash giveaway programme, are also driving consumer traffic. Themed activations, such as a Care Bears pop-up at the retailer’s Sanya location, and pet-friendly zones, featuring cat cafés and open pet areas at the Haikou mall, reinforce CDFG’s push for experiential and inclusive retail.
Looking ahead, CDFG noted its plans to deepen its commitment to the ‘first-store economy’ and brand innovation strategy. By integrating global IPs, exclusive brand formats and retailtainment-driven activations, the company aims to position Hainan as a world-class consumption destination and key pillar in China’s innovative development model. 🏝️
