Promotional blitz and strong footfall prompt +93.8% surge in New Year’s Day Hainan offshore duty-free sales

CHINA. Hainan’s offshore duty-free retail sector generated sales of RMB251 million (US$26.6 million) on 1 January, the first day of the New Year’s Day holiday, up +93.8% year-on-year.

The Haikou Customs figures reveal that approximately 148,000 items were purchased, up +30% year-on-year. The number of shoppers increased +45.8% over 1 January 2025 to 32,000.

Since the holiday period began, Hainan’s travel retailers have hosted a wide array of brand launches and promotions across multiple categories, led by cosmetics and consumer technology, Haikou Customs noted.

Through commercial performances, exhibitions, and cultural and sports events, retailers have introduced a range of customised activities to maximise revenues and consumer satisfaction.

Hainan Tourism Investment Duty Free laid on a flurry of activities and incentives to honour its fifth anniversary on 30 December. Key among the attractions is a 3.5 metre tall figurine (pictured below right) inspired by the hugely popular singer Angela Zhang, which is proving to be a social media magnet.

These include exclusive discounts, gifts with purchases exceeding a certain amount, and – critically – the deep integration of ‘culture and sports + duty-free’ and ‘sports events + business travel’.

Haikou Customs also noted how the recent optimisation of the offshore duty-free policy has improved Hainan residents’ experience of duty-free shopping. The policy explicitly removed the limit on the number of times Hainan-based consumers could purchase and pick up immediately, stimulating their appetite for shopping, enhancing the experience, injecting new momentum into the market and driving a surge in footfall on the New Year’s Day holiday.

Haikou Customs said it is continuously establishing and improving a comprehensive regulatory service system adapted to the development of the Hainan Free Trade Port.

In particular, it is improving supply chain management from warehousing to stores in an attempt to accelerate restocking.

A Haikou Customs Port Supervision Department spokesperson said the organisation will closely follow the new regulatory requirements that underpin the Hainan Free Trade Port’s official opening on 18 December.

The organisation pledged to continuously improve the integration of retail innovation and appropriate supervision, while optimising management of the entire duty-free supply chain.

Haikou Customs plans to launch more targeted service and support measures, boosting the collaboration between duty-free retailers and local cultural and tourism activities to fully leverage the shopping policy’s attractions and stimulate consumption. 🏝️

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