CHINA. China Duty Free Group (CDFG) has hailed the changes to the offshore duty free shopping allowances and rules, which will be introduced on Hainan Island from 1 February. We reported on the key changes last week.
In a press statement shared with The Moodie Report, CDFG said the law changes were the third adjustment to the rules in the past five years, noting that these would “further facilitate travel shopping and meet the needs of different consumers”.
The move lifts the restriction on shopping periods for non-Hainan residents, and lifts the duty free shopping allowance from CNY8,000 (US$1,217) to CNY16,000 (US$2,433) per traveller. It also approves the introduction of online sales by duty free stores, meaning that offshore travellers can shop duty free and then pick up their purchases with identity cards and boarding passes at collection points airside at the airport.
CDFG said it would launch an online platform through the Sanya International Duty Free Shopping Complex at Haitang Bay.
CDFG said: “The new policy is just like a “˜red envelope’ to Hainan travellers. As the optimum entity for piloting the offshore duty free policy, China Duty Free Group has the world’s largest single duty free store, which is prepared to guarantee the smooth implementation of the policy and to ensure first-class services and a cheerful shopping experience for all customers.”
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(Above and below) The CDF Mall at Haitang Bay has proved a major draw for Chinese travellers |
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(Above and below) Spacious central zones offer relief from the consumer frenzy within the boutiques |
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CDFG added in a statement: “Under the overall planning of the Hainan Provincial Government, Sanya International Duty Free Shopping Complex has been exploring a new business mode of “Internet + tourism + duty free shopping”, based on in-depth research on the duty free policy system.
“After three years of planning on the construction of an e-commerce platform, it has completed all channel research and development for a shopping mall system, through which all travellers can shop at any time anywhere. The online sales platform has almost covered all duty free products in all categories, and will gradually expand to over 300 international brands.
“An integrated high-quality customer service system has been established to offer all customers with professional after-sales services. The “˜click online and collect at airport’ [system] will further enrich and satisfy travellers’ offshore duty free shopping choices and demands. Travellers will be able to choose products anytime and anywhere and enjoy a better shopping experience.”
CDFG said it has formulated detailed schemes to ensure the policy is implemented, made preparations including adequate stock and logistics distribution, updated its systems and prepared to ensure the supply is available well in advance.
In a powerful and well-received speech at The Trinity Forum in Hong Kong last September, CDFG Chairman Peng Hui flagged the company’s intent to drive forward with its e-commerce plans.
He said the group would standardise the cross-border e-commerce market and offer “authentic but price-competitive” imported products to Chinese consumers. Its vision is to create an “authoritative platform for introducing international brands to China”.
Before the policy adjustment, CDFG noted that Sanya International Duty Free Shopping Complex had “optimised and updated its brand [offer] according to market demand, introduced international brands including Bottega Veneta, Kerastase and Jo Malone, opened a “home and lifestyle” shop with electrical appliance brands, and enriched every category”.
On 20 April 2011, the offshore duty free policy was piloted in China at CDFG’s Sanya Duty Free Store, making Hainan Island the latest island at the time to implement the policy after Okinawa, Jeju Island, Matsu and Jinmen.
CDFG noted: “It has a profound impact on China’s high-end retail and duty free industry, and also greatly attracted people from the Mainland. With the development for near five years, the offshore duty free policy has exerted a significant effect. The proportion of shopping expenditure [among visitors to Hainan] soared from 13.8% to 27.6%. Sanya International Duty Free Shopping Complex has achieved a prominent business performance, with an increase in both the number of travellers and the sales amount year by year. The number of travellers has had an average annual growth of over +9%, while the sales amount rising over +20% per year.”
Sanya International Duty Free Shopping Complex was opened on 1 September 2014. Covering 120,000sq m, it has become a key drawcard for Hainan tourism.
Many brands have used Sanya International Duty Free Shopping Complex as a launch pad for new products, offering Chinese visitors access to them at the same time or ahead of other consumers.
CDFG concluded: “The current adjustment to the offshore duty free policy will combine with the traditional peak season for Hainan tourism. [It will] further stimulate the shopping demand and purchasing power of consumers, and get part of consumption overseas back to domestic China.
“In addition, establishing online sales windows by duty free stores will facilitate online duty free shopping. Chinese consumers will benefit simultaneously from genuine goods at low prices, which have been two contradictory elements in the e-commerce industry until now, and this will greatly drive the development of the industry in the future.”
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The CDFG-managed complex is being expanded and the range of brands widened even further |
