Moodie Davitt WeChat stories underscore scale of investment in China’s travel retail market

A powerful sextet of brands from the US beauty house, including Estée Lauder, La Mer, Clinique, Jo Malone London, Origins and Dr.Jart+ add lustre to the CNSC offer at its new store in downtown Hainan

CHINA. The Moodie Davitt Report’s weekly WeChat Official Account continues to go from strength to strength, building its presence in the China travel retail market.

The title, published every Monday, is published under the direction of Penelope Zhou, our Hong Kong-based Chinese Editor and company Founder & Chairman Martin Moodie, also based in Hong Kong.

The Moodie Davitt Report is the only international travel retail media title to offer a WeChat platform.

For editorial or native content enquiries please contact Publisher Irene Revilla at Irene@MoodieDavittReport.com.

Here are some highlights of the past two editions.

The Estée Lauder Companies debut six brands with CNSC at Sanya International Duty Free Plaza

There were beauty breakthroughs aplenty in the Hainan offshore duty free market over recent weeks. One of our major stories featured The Estée Lauder Companies and CNSC, which introduced six leading beauty brands from the ELC portfolio at the Sanya International Duty Free Plaza in Hainan province.

The brands on offer are Estée Lauder, La Mer, Clinique, Jo Malone London, Origins and Dr.Jart+, offering a combination of skincare, fragrance and other products. Brand consultants offer professional skin personality analysis, seasonal skincare tips and more to give consumers confidence in the beauty shopping experience.

VIPs in attendance at the opening ceremony included Deputy Secretary of the Party Committee of Sinopharm International Jun Yang; CNSC Executive Deputy General Manager Jason Chang; CNSC Deputy General Managers Xiaojie Liu, Ken Chu, Evita Qu; and Estée Lauder Group Travel Retail China Vice President/General Manager Maggie Wu and several brand managers.

“The splendid unveiling of these six major brands from The Estée Lauder Companies will add more allure to the CNSC Sanya International Duty Free Plaza,” said Jun Yang. “Both parties will work together to create the most beautiful and elegant experience for consumers.”

(Middle) Coty-owned Lancaster described its new concept as a unique, seamless consumer experience (right) Biotherm issues a call-to-action at its newest eco-friendly pop-up in Hainan

Hainan Tourism Duty Free Shopping Complex celebrates worldwide travel retail premiere of Lancaster Skin Repair Clinic

Meanwhile, Hainan Tourism Duty Free Shopping Complex celebrated the recent world-exclusive opening of Lancaster’s first Skin Repair Clinic retail concept pop-up store in Sanya. The pop-up ran from 16 to 27 June.

The store showcased Lancaster’s range and delivered an array of innovative consumer experiences. The pop-up’s focus was the Skin Repair Clinic, complete with a large skincare bar dedicated to product trial and discovery, where consumers developed their own highly personalised skincare routine from cleansing to anti-aging and sun protection. It also highlighted the Lancaster 365 Skin Repair Youth Renewal transversal serum and Sun Perfect line.

Tapping into consumer demand for outstanding experiences and shareable content, the pop-up store included a livestreaming installation that enabled shoppers to broadcast their experiences to friends and followers. Customers also registered to receive the brand’s latest news and targeted promotional offerings through scanning a QR code.

Biotherm & Coco Capitán launch eco-friendly pop-up to protecting earth’s ‘blue lung’

Another big beauty story was the launch of a Biotherm x Coco Capitán pop-up as the L’Oréal-owned skincare brand partnered with acclaimed multi-media artist Coco Capitán to host a sustainable pop-up at the Sanya International Duty Free Shopping Complex in Haitang Bay.

Launched in collaboration with China Duty Free Group, it ran through June. The ecologically-designed activation aimed to raise awareness of the devastating effects of climate change and pollution to phytoplankton species in the ocean.

(Left) IEDB Director Han Shengjian: “By 2050 Hainan FTP will be one of the most developed Free Trade Ports in the world” (right) Charles Chen: “We hope we can create the Hainan market together”

Leading Hainan offshore duty free retailers reveal vision for growth and project plans

A powerful line-up of speakers from the Hainan offshore duty free market outlined their progress and vision for the channel during the recent TFWA Asia Pacific Hainan Special Edition conference.

They included Hainan International Economic Development Bureau (IEDB) Director Han Shengjian, Shenzhen Duty Free Group Chairman You Jiangwei, Hainan Tourism Investment Duty Free Chairman and General Manager Xie Zhiyong, CNSC Sanya Duty Free Co Ltd. Chief Operations Officer Ken Zhu and Zhuhai Duty Free Group General Manager Chen Hui.

Hainan IEDB Director Han Shengjian spoke on behalf of the group responsible for developing Hainan Free Trade Port’s commercial potential. He explained the background to the Free Trade Port (FTP) concept and assessed the potential for luxury goods in the channel.

“With China opening up, the government decided to build Hainan’s position in this new era. On 10 June the government passed the law of Hainan FTP, allowing Hainan to become the most open place in the world for taxes and other aspects of FTPs,” Han said.

“Every year Chinese people spend RMB1 trillion outside China. If 10% of this overseas consumption returns to Hainan, each year that means RMB100 billion (US$15.4 billion) in duty free sales, which offers big opportunities for all participants.”

Travel retailer CEOs talk customers, collaboration and creativity at TFWA Hainan Special Edition

Chief Executives from five of the world’s leading travel retailers also graced the TFWA Asia Pacific Hainan Special Edition virtual event, outlining their views in a high-power panel discussion.

China Duty Free Group President Charles Chen, DFS Group Chairman & CEO Benjamin Vuchot, Dufry Group CEO Julián Díaz, Gebr Heinemann CEO Max Heinemann and Lagardère Travel Retail Chairman and CEO Dag Rasmussen assessed the recovery and future of the channel, the China opportunity and the need for more meaningful partnerships.

On the future in Hainan, Chen said: “We are very fortunate to have the preferential policies for Hainan Island. We hope we can create the Hainan market together. The whole province is a Free Trade Port, which is not seen elsewhere. The government wants to take consumption back to China and it plans to build Hainan as a place where people enjoy shopping.”

(Left) The concept features digital screens that display multi-brand and single brand content which can be updated and animated in real-time (right) Duty Free Americas gives a welcome travel retail debut to the influential makeup artist’s fast-growing cosmetics line

Kering unveils new Digital Retail Concept

In a game-changing move in the eyewear industry, Kering Eyewear revealed its new Digital Retail Concept, a fully immersive retail environment leveraged by ‘the power of digital’.

The new concept features dedicated digital screens that showcase brand videos, which can be updated and animated in real time. The screens can change the entire look of a store with one click, offering bespoke multi-brand and single brand content.

Kering Eyewear introduced the concept to its multi-brand travel retail stores globally, beginning with China Duty Free Group’s Sanya International Duty Free Shopping Complex in Haitang Bay.

The concept has also been rolled out to Hainan Tourism Investment Duty Free’s Hainan Tourism Duty Free Shopping Complex (where Lagardère Travel Retail is a support partner); and Shenzhen Duty Free and DFS Group’s Haikou Mission Free Shopping Complex at the Times DF x DFS ‘World in a Day’ experiential store.

It has also launched at Nanjing Lukou International Airport Terminal 1; T Galleria by DFS Macau; T Galleria by DFS City of Dreams; and the Atlantis Bahamas Resort. The Digital Retail Concept is also being rolled out in selected luxury domestic market locations worldwide.

Pat McGrath Cosmetics makes global travel retail debut with Duty Free Americas in Macau

Elsewhere in China, Duty Free Americas (DFA) has become the first travel retailer in the world to launch Pat McGrath Cosmetics. The official launch was celebrated on 17 June at DFA’s flagship 11,500sq ft store in the Venetian Macau Resort Hotel.

DFA described Pat McGrath as one of the world’s most influential and sought-after makeup artists. In addition to developing luxury cosmetics, she has created many runways shows and breakthrough advertising campaigns.

Spanning seven levels and multiple buildings, Samaritaine Paris Pont-Neuf by DFS welcomes visitors into an exceptional world of retail, culture, cuisine and relaxation

DFS unveils Samaritaine Paris Pont-Neuf

Meanwhile in Europe, we saw one of the travel retail openings of the year. On 23 June, DFS Group unveiled the most spectacular store in its 60-year history, Samaritaine Paris Pont-Neuf by DFS.

During a press conference, La Samaritaine owner LVMH (which owns DFS alongside co-founder Robert Miller) outlined the grand renovation of this magnificent Parisian landmark, which also includes a 5-star Cheval Blanc hotel.

Spanning over 20,000sq m across seven levels and multiple buildings, Samaritaine Paris Pont-Neuf by DFS welcomes visitors into an exceptional world of retail, culture, cuisine and relaxation. It features over 600 brands, 12 restaurants, a boutique spa, an artistic collective, a lifestyle boutique dedicated to locally made and exclusive products, and the largest beauty hall in Europe.

“For over 60 years, DFS has provided global travellers with luxurious, inspiring and exciting retail experiences in some of the most iconic locations around the world,” said DFS Group Chairman and CEO Benjamin Vuchot.

“Here in Paris, we are delighted to create a new retail destination in the vibrant heart of the city, combining luxury and contemporary merchandise, exceptional customer service and a wealth of opportunities to explore and discover the true French art de vivre.”

Interview: Benjamin Vuchot on DFS as ‘A destination within a destination’

In this fascinating interview with The Moodie Davitt Report Founder & Chairman Martin Moodie, DFS Group Chairman & CEO Benjamin Vuchot also painted an optimistic picture of the company’s duty free prospects.

Vuchot discussed the DFS approach to retail and luxury, its momentum in Macau, emerging from the crisis and taking the high ground in Hainan. He also talked about the significance of the opening of La Samaritaine Pont Neuf by DFS to the retailer’s rich history. Click here to read the full interview.

“Expect things to heat up even further” as travel retailers shift focus from Chinese travellers to China itself, Martin Moodie says

The Moodie View

In his latest The Moodie View column, Martin Moodie explores how international travel retailers are shifting focus from Chinese travellers to China itself.

Commenting on his exclusive interview with DFS Group Chairman & CEO Benjamin Vuchot (above), Moodie underlined how the world’s biggest travel retailers are all seeking a slice of China’s growing travel retail pie.

“While China Duty Free Group is certain to remain the overwhelmingly dominant player in Hainan — reinforced by the June 2022 opening of the spectacular Haikou International Duty Free Shopping Complex — the newcomers are all optimistic of solid growth in the years ahead,” Moodie said.

“For its part, DFS plans to do things differently from its competitors. Partnering with its long-time ally, Shenzhen Duty Free, DFS is focusing on its luxury credentials rather than going out and out for volume.”

“Travel retailers all over the world have benefitted from Chinese shopping abroad in recent years,” Moodie added.

“While the global pandemic rages, however, the focus for brands and retailers alike, switches to China itself. Expect things to heat up even further.”

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