CHINA. DFS Group and Shenya Group this week held a signing ceremony to mark the official commencement of the DFS Yalong Bay project, described as the first world-class, seven-star luxury retail and entertainment destination in Sanya, Hainan Province. The Moodie Davitt Report was on hand to report a seminal moment in the island’s retail and tourism history.
The event, held on Tuesday 9 April and witnessed by the Sanya Municipal Government, came ahead of the island’s ‘seal-off’ for the development of Hainan Free Trade Port by the end of 2025. At that point Hainan province will become a fully tax- and duty-free province.
The DFS Yalong Bay project will bring together many of the world’s top-tier brands; deliver “exquisite and unforgettable shopping experiences” and provide unparalleled personalised services for visitors, DFS pledged.
DFS said the development reflects the confidence it and the company’s majority shareholder LVMH Group have in the development of the Hainan Free Trade Port and China’s tourism industry and luxury retail market – and their joint commitment to it.
DFS China President Nancy Liu and Shenya Group Executive Director Li Yingjun signed and sealed a specially commissioned Chinese calligraphy scroll inscribed by renowned Chinese calligrapher Tian Zhenyu which reads ‘Together to Create a Prosperous and Bright Future’.
The ceremony was graced by several high-ranking Chinese government officials. They included Sanya CPC Deputy Chief and Sanya Mayor Chen Xi; Sanya Vice Mayor Yin Chengling; Shanghai Municipality Changning District CPC Chief Zhang Wei; and Vice Chief of Shanghai Changning District Zhai Lei.
LVMH Group Greater China President Andrew Wu and Shenya Group Chairman and President Li Zhong also attended the event alongside other senior executives, partners, as well as Chinese and international media representatives, including The Moodie Davitt Report Chief China Representative Zhang Yimei and Moodie Davitt China Travel Retail Express Editor Dachang Wang.
DFS Yalong Bay, the only luxury retail property within Yalong Bay, is slated to become Sanya’s premier destination for luxury shopping, world-class accommodation, dining, and entertainment, DFS said.
DFS Yalong Bay will feature a legion of luxury brands, including those from LVMH Group, to serve domestic and international high-end consumers, with “elevated, immersive” concepts across multiple categories such as fashion, watches & jewellery, and beauty, the company added.
“Leveraging LVMH’s brand advantages and DFS’ unique expertise and experience in operations, DFS Yalong Bay will support Hainan in becoming one of the fastest-growing luxury markets in the world, maximising both domestic and international consumption,” DFS commented.
“This will also enable Hainan to continue leading the growth of luxury retail and command a larger market share worldwide.”
The 128,000-sq m property will feature DFS Group’s largest beauty store globally (9,000sq m); a deluxe, 650sq m DFS CIRCLE members’ lounge; and the largest indoor children’s playground in Yalong Bay.
The project is expected to attract 16-18 million visitors per year by 2030 and create sizable economic opportunities within Yalong Bay.
Chris de Lapuente, a member of the Executive Committee and Chairman and Chief Executive Officer of the Selective Retailing Division of LVMH (which DFS is part of), sent his regards from the Group’s Paris headquarters to guests at the grand ceremony.
He said: “This alliance between DFS and Shenya redefines luxury-integrated retailing in Sanya and drives regional prosperity. Together, we aspire to set new industry benchmarks in providing unparalleled experiences to visitors through exceptional product offerings, services and spectacular retail-tainment.”
On behalf of LVMH Group, Chris de Lapuente affirmed an unwavering commitment to Sanya and Hainan, and expressed the company’s gratitude towards the Sanya government for its “unrelenting” support of the DFS Yalong Bay project.
“Our heartfelt appreciation also extends to Shenya Group, our esteemed partner with over three decades of experience in Hainan. Together, we aim to transform Sanya into a globally renowned destination for travel and shopping, establishing a legacy of sustainable luxury and excellence which has lasting significance for Sanya, China and the world.”
Andrew Wu said, “As one of the representatives of LVMH, the world’s premier luxury group, I believe the attention on Hainan and the DFS Yalong Bay project comes not just from our group but the entire international luxury industry.
“The industry is highly focused on and expects great developments from Hainan. What we hope to see is the refinement of retail. The true value of new retail lies in how we can better serve Chinese consumers.
“We anticipate and believe Hainan will attract more high-quality Chinese consumers, making the island even more vibrant in the future.”
In her remarks, Nancy Liu thanked the Sanya government. “DFS is the world’s leading luxury travel retailer and luxury retail artist under LVMH,” told guests.
“Established 60 years ago, DFS offers our customers a carefully curated selection of exceptional products and services, consistently bringing them a pleasant shopping experience.
“We are honoured to partner with Shenya Group on DFS Yalong Bay and collaborate closely with the Sanya Government to elevate Yalong Bay into a modern global destination where customers enjoy an exquisite and unforgettable shopping experience while appreciating the natural beauty of the location.”
She continued, “Hainan plans to start the island seal-off in 2025 and establish a Free Trade Port system with a focus on trade and investment facilitation. This represents a historic leap towards Hainan Free Trade Port becoming a prominent symbol of China’s new era and a crucial gateway in opening up to the world.
“DFS is a pioneer in shaping and modernising luxury retail, and this pioneering spirit is a catalyst for redefining landmarks into a world-class luxury retail destination.
{Click on the YouTube icon to watch DFS Group Chairman & CEO Benjamin Vuchot talking about the Yalong Bay project to our colleague Lu Tianqin, Head of the Duty Free TV Channel at Hainan Hinews, The Moodie Davitt Report’s content partner in Hainan province. The interview was conducted during. last October’s Trinity Forum in Hong Kong}
“In raising the commercial value of Sanya, DFS Yalong Bay is committed to actively contributing to the community by creating local job opportunities, fostering local brands, and continuously showcasing Chinese culture to the world.
“The project will help Sanya set a benchmark in the Hainan Free Trade Port; further strengthening the global reputation of Yalong Bay and boosting the local tourism industry.”
Shenya Group Chairman Li Zhong commented: “Today marks an important historic milestone for Shenya Group. This significant step allows us to embrace the world and strengthen our global connections.
“With support from LVMH, Shenya Group and DFS Group have jointly seized opportunities through cooperation built on trust and a shared vision for Hainan’s promising economic future. We are united in our goal of reinvigorating Yalong Bay through this premier development.”
“This world-class project will greatly boost Sanya’s urban vibrancy while making Hainan China’s fastest growing tourism and luxury market. The development will also spur more renowned European and American companies to increase investment in China, while strengthening the confidence among countries worldwide in China’s continued robust development.
“Overall, DFS Yalong Bay will comprehensively assist Sanya in accelerating the creation of a core international tourism consumption zone and serve as a benchmark for Free Trade Port construction and transformative growth.” ✈
