CHINA. HNDF Haikou Meilan Airport Duty Free Shop today celebrated its fifth anniversary (to the exact day) with a rich and stirring ceremony in the afternoon, followed by a select Gala Dinner in the evening.
The retailer, a provincial government and private partnership between Hainan Provincial Duty Free Company Limited and HNA Group, began its offshore duty free shopping business at Haikou Meilan Airport on 21 December 2011.
The Moodie Davitt Report was the sole media company at today’s event, which was also attended by senior management, provincial government officials, other VIPs, selected suppliers and partners (including supply and shop management associate DFS Group).
Hainan Provincial Duty Free Company Limited & HNDF Haikou Meilan Airport Duty Free Shop President Peijun Liu and Haikou Meilan Airport Duty Free Shop Company General Manager Sun Yong both spoke proudly of the enormous progress the enterprise has made over the past years, and outlined some exciting plans ahead (see below). [*We’ll bring you a full report on their comments soon and a detailed feature on the company.]
In a short speech, The Moodie Davitt Report Founder & Chairman Martin Moodie said: “Globally there have been many travel retail industry challenges over the past five years. But the news from Hainan has only been positive and, undoubtedly, the amazing evolution of the Hainan off-shore duty free business has been one of the worldwide highlights of this sector.
“The off-shore policy needed great vision from national and provincial governments. It was a far-sighted policy that has paid rich dividends. It has benefited the crucial tourism industry in Hainan, helping to create jobs and to boost awareness of this beautiful island. It has helped to fund aviation infrastructure. And most of all it has benefited Chinese consumers.”
“The company’s sales growth from start-up to major player has been remarkable. And it has not just been about revenue – what is equally impressive is the high quality of the shops you have created, certainly among the best in the airport retail world. You have come a long, long way in a very short time. But in many ways your journey has just begun.”
The company announced that 2016 sales will exceed CNY1.6 billion (US$230 million) probably reaching CNY1.65 billion (US$237 million) after a year-end flourish. Compound average growth has reached around +45% since the start-up and is likely to exceed +30% next year.
HNDF Haikou Meilan Airport Duty Free Shop also underlined its commitment to corporate social responsibility today, revealing a long-term plan to support rural education in Hainan – particularly the Rulin elementary school in Yunlong, which has suffered from a lack of resources and teachers (the sole remaining teacher made a surprise and poignant appearance at today’s gathering).
Senior management revealed further details of the previously announced 18,000sq m of additional retail space that will come with the opening of the Haikou Aviation Tourism Plaza adjacent to the airport in early 2017. As reported, the Plaza is one of three major projects aimed at enhancing the tourism appeal and shopping facilities on Hainan Island.
The 72,000sq m Haikou Aviation Tourism Plaza will mainly house duty paid goods but will have 8,000sq m of duty free space. This will intersect with the airport’s own retail zone at basement and first floor level, which in turn is being expanded.
Tomorrow The Moodie Davitt Report will visit the HNA MOVA Square city project, an ambitious blend of retail showcase, leisure, entertainment, theatres and museums. The 500,000sq m building is situated opposite local government buildings in the central business district. It will also open in 2017.
As previously reported, the third project is the 180,000sq m Sanya Aviation Tourism Duty Free Plaza, located in front of the Sanya Airport Domestic Terminal building. The commercial complex will feature a shopping showcase, hotel, restaurants and a duty paid retail business. It has been designed as a city landmark with a theme inspired by China’s seaside culture.
*NOTE: Look out for a full report on HNDF Haikou Meilan Airport Duty Free Shop in the next issue of The Moodie Davitt Report Print Edition, out in early 2017. This issue will have bonus distribution at TFWA’s China Century conference in Guangzhou on 7-9 March. It will also contain a comprehensive South Korean market report written by Martin Moodie.
