Hainan offshore duty free categories expanded amid sales boom

CHINA.. In a further boost to Hainan Island’s booming offshore duty free sector, the number of categories able to be sold duty free was increased last week from 17 to 38.

Hainan Duty Free Deputy General Manager Sun Yong told The Moodie Report during an interview in Shanghai last week: “The increase from 17 to 38 from 2011 to 2015 covers especially the new items that are very popular for Chinese consumers, such as milk powder, coffee, baby diapers. These will help meet the demand of Chinese consumers in our duty free shop.”

Hainan Duty Free (assisted by support partner DFS Group) operate Hainan’s only offshore duty free airport store at Haikou Meilan Airport, where sales rose +47% last year to RMB930 million (US$151 million).

This year the company is budgeting RMB1.3 billion (US$211 million) but after a great Chinese New Year it is confident of hitting RMB1.5 billion (US$244 million), Sun Yong said.

Hainan Duty Free Deputy General Manager Sun Yong (second from left) speaks to Martin Moodie during TFWA’s China’s Century conference in Shanghai last week during a meeting with the retailer’s team (below)

The latest move is part of a concerted Chinese government attempt to encourage travelling nationals to spend at home rather than abroad in the wake of an extraordinary outbound travel and travel-shopping boom (a subject covered in-depth in this week’s edition of The Moodie Report e-Zine)

Look out for an extensive report on Hainan Duty Free and an interview with Sun Yong soon.

Watches, cosmetics and bags account for a combined 70% of sales

BACKGROUND ON HAINAN DUTY FREE

本年度营业额的显著增长主要得益于今年海口美兰机场免税区的大规模升级改造以及品牌结构调整。2014年伊始,历时半年紧张筹备的美妆香氛馆隆重开业,主要经营香水和化妆品。海蓝之谜(La Mer)、乔治•阿玛尼(Giorgio Armani)、雪花秀(Sulwhasoo)、赫莲娜(Helena Rubinstein)、科颜氏(Kiehl`s)、贝玲妃(Benefit)、芭比波朗(Bobbi Brown)、植村秀(Shu Uemura)等品牌全面入驻海口美兰机场免税店。美妆香氛馆开业以来,化妆品、香水类商品销量较去年同比增长40%。

The sharp revenue increase is 2014 sales was the result of a major shop upgrading. The new-look Hailou Meilan Airport Duty Free has been expanded to nearly 5,000sq m of commercial space with over 200 brands.

At the beginning of 2014, a new Beauty and Fragrance Pavilion opened following a six-month project. This has helped drive fragrances & cosmetics sales by +40% in the first 11 months compared to the previous year, and included the introduction of a more diverse range of international brands including La Mer, Giorgio Armani, Sulwhasoo, Helena Rubinstein, Kiehl’s, Benefit, Bobbi Brown and Shu Uemura.

Many categories benefited from expansion and upgrades last year

2014年8月,随着韩流热潮的风靡,海口美兰机场免税店应势而动为广大消费者倾力打造了集美妆箱包、生活家居为一体的韩流馆。馆内汇聚了瑞克朵丝(Louis Quatorze)、哈吉斯(Hazzys)、婵真(Charmzone)、谜尚(Missha)、美迪惠尔(L&P)、托尼魅力(Tony Moly)、谜之芬(Mizon)、福库(Cuckoo)以及Happycall等一众韩国风尚名品,让消费者能亲身体验和感受独特亲和的韩流文化。

A Korean Pavilion opened in August 2014, taking advantage of the popularity of Korean culture in China. This offers a Korean cultural experience and a range that include cosmetics, bags and home furniture from brands including Louis Quatorzel, Hazzys, Charmzone, Missha, L&P, Tony Moly, Mizon, Cuckoo and Happycall.

2014年11月,海口美兰机场免税店生活馆完成升级改造,引进了飞利浦(Philips)、博朗(Braun)等全球尖端科技品牌,以全新形象与机场旅客见面。11月末,备受瞩目的时尚休闲馆正式投入运营,涵盖了卡地亚(Cartier)、 赛琳(Celine)、 缪缪(Miu Miu)、迈克•高仕(Michael Kors)、芙拉(Furla)、法国鳄鱼(Lacoste)、卡尔文•克莱恩(Calvin Klein Jeans)、新秀丽(Samsonite)、潘多拉(Pandora)等国际知名品牌。至此,海口美兰机场免税店共设缤纷生活馆、时尚休闲馆、奢表精品馆、美妆香氛馆、饰品鞋履馆五个区域,营业面积近5000平方米,经营品牌已超过200个。

In November 2014, an upgraded Lifestyle Pavilion revealed a new image to airport travellers with technology brands including Philips and Braun. This was followed by the opening of a Fashion Pavilion in late November, which houses Cartier, Celine, Miu Miu, Michael Kors, Furla, Lacoste, Calvin Klein Jeans, Samsonite and Pandora.

作为中国首家机场离岛免税店,海口美兰机场免税店自2011年12月开业至2014年前三季度销售收入总额已突破18亿元。

As China’s first offshore airport duty free shop, Haikou Meilan Airport Duty Free sales reached CNY1.8 billion (US$291 million) in the period from its opening in December 2011 until the end of Q3 2014.

The airport houses a strong fashion & accessories boutique offer
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