CHINA. DFS Group today revealed plans to open what it called the first world-class, seven-star luxury retail and entertainment destination in Yalong Bay, Sanya on Hainan island by 2026.
DFS Yalong Bay involves an “unprecedented” investment into a 128,000sq m site, attracting over 1,000 luxury brands including “iconic” maisons from the retailer’s majority owner LVMH Group once fully operational.
DFS Yalong Bay will become Sanya’s premier destination for luxury shopping, world-class accommodation, dining, and entertainment, serving international and domestic tourists with innovative, renowned luxury brands and experiences, the company pledged.
“DFS Yalong Bay is an incredibly exciting development for DFS, and I believe for the Chinese travel industry,” said DFS Chairman and CEO, Benjamin Vuchot* in Cannes, France today where he is attending the annual TFWA World Exhibition.
“Think the glamour and experience of Shanghai, Macau, Dubai, and Las Vegas: now add Sanya to these dream destinations. Yalong Bay represents a key entry point to Hainan which the China Government plans to turn into the world’s largest free-trade port.
“In addition to this strong policy, Hainan also offers luxurious resorts, beautiful sandy white beaches and high-end medical facilities. Hence, we believe that Hainan is well-poised to become one of the fastest-growing luxury markets in the world maximising both domestic and international consumption.”
Vuchot added, “With Hainan on course to become one of the world’s largest luxury retail markets in the next five years, DFS Yalong Bay will be a critical addition to DFS’ global portfolio.
“We expect tourism to grow significantly as investments in passenger airport capacity, high-speed roads and port capacity will also boost tourism potential in Hainan.
“DFS Yalong Bay will be the only luxury retail property within Yalong Bay. We have tremendous excitement and optimism about this project.”
DFS said its objective is to lead and grow luxury’s market share in Hainan across fashion, beauty and fragrances, watches and jewellery by developing a seven-star world-class luxury retail and entertainment destination in Yalong Bay.
DFS China President China Nancy Liu confirmed the DFS Yalong Bay development represents a core component of the company’s long-term expansion and investment strategy in the China market.
“DFS Yalong Bay is the latest in a series of commitments we are making in China,” she said. “Yalong Bay area is undoubtedly the most developed luxury natural cove in Sanya, where DFS will provide unparalleled personalised services to our patrons.
“This truly represents a substantial stride in DFS’ global strategy to expand in the China market through a multi-format, multichannel expansion in the luxury travel retail sector.”
Vuchot added, “This DFS announcement today is the clearest commitment we can make to the long-term development of Sanya and Hainan and the entire Chinese tourism market.
“Upon completion of DFS Yalong Bay, DFS will not only play a positive role in elevating Yalong Bay, but we will also secure Sanya as a top-tier luxury destination on the global stage with the brand partners we bring, leveraging our DNA in luxury travel retail.
“Looking forward, we are committed to forging new retail legends in Hainan and throughout China with our strategic partners bringing unforgettable experiences to all domestic and international travellers.
“We are also proud of the contribution we will make to the local economy of Hainan. We expect DFS Yalong Bay to attract over 16 million visitors per year by 2030 and create sizeable economic opportunities within Yalong Bay.” ✈
*Benjamin Vuchot will be addressing The Trinity Forum in Hong Kong (25-26 October) in what promises to be a seminal presentation themed ‘Exploring Luxury Travel Retail in 2030: A Glimpse into the Future’
