Shenzhen Duty Free supported by DFS set for early 2021 opening in Mission Hills, Hainan : Moodie Davitt Report

CHINA. Shenzhen Duty Free Group, supported by DFS Group, is progressing well towards an early 2021 opening of an initial 1,000sq m duty free at Mission Hills Resort Haikou on Hainan island, we understand.

Shenzhen Duty Free Group (full name Shenzhen State-Owned Duty Free Commodity Group) is expected to announce its licence for the much-anticipated business in coming days.

DFS will be supporting Shenzhen Duty Free, having enjoyed a long and successful relationship over recent years. In 2017 the two groups aligned in an unsuccessful bid for the West Kowloon MTR Express Rail Link (XRL) duty free concession. They have partnered since 2018 with DFS supplying merchandise and advising on store upgrades across Shenzhen Duty Free’s network.

As reported in August, DFS acquired a 22% stake in Shenzhen Duty Free Ecommerce Co, which is majority-owned by Shenzhen Duty Free Group.

Initially a display store of just under 1,000sq m will be developed but a much larger shopping footprint will be developed in the future, The Moodie Davitt Report understands.

We will bring you more details as they become available.

According to Chinese state media CGTN, as of 1 August 2020 the People’s Republic of China boasted 313 duty free shops of various types across 31 provinces. As the pie chart shows, China Duty Free Group is the overwhelmingly dominant player, although it will face much greater competition in Hainan going forward.

Mission Hills Resort Haikou is one of Asia’s most spectacular integrated resorts. It features several world-class golf courses, a luxury hotel, 13 conference rooms, shopping malls, a water park, an artificial beach, natural mineral pools, and numerous other attractions.

Hainan Island: Travel retail’s global hotspot

The Moodie Davitt Report will publish a Hainan Island Special Report with the China edition of The Magazine in February 2021. Written by Martin Moodie and Dermot Davitt, it will explore how the offshore duty free business in China has become critical to the world’s leading brands across many categories.

The report will feature:

Comment & analysis on the seismic impact of the new offshore duty free policy in Hainan since 1 July
The potential of new offshore duty free allowances across categories from beauty to fashion and watches and from wines & spirits to consumer electronics
Major interviews with and profiles of China Duty Free Group, CNSC, Hailvtou Sanya Downtown, Hainan Provincial Bureau of International Economic Development and others, with a special focus on the ambitious Hainan Free Trade Port project
Beyond Hainan, we examine the rebound in the China domestic market, assess prospects for Chinese airports and hopes for an eventual return to international travel. With input from leading travel retailers in the Mainland, Macau and Hong Kong markets
The ecommerce drive: Assessing the potential of the partnership between travel retail’s long-time market leader Dufry and the digital powerhouse Alibaba; plus digital strategies at CDFG and other major players
With contributions from our content partners Globuy, iClick, Jessica’s Secret and DutyFree Expert on trends among Chinese consumers and the duty free market

Contact Irene@MoodieDavittReport.com to partner with The Moodie Davitt Report for this special edition.

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