Duty-free goods on outlying islands have become "Hainan specialties".
Last Spring Festival, the duty-free shops on Hainan Outlying Islands sold more than 700 million yuan in 4 days, and the sales on Valentine's Day exceeded 280 million yuan. This Spring Festival, although the epidemic has become the common choice of most people, there are still more than 300,000 people spending on duty-free shops on Hainan outlying islands, and the total sales of 10 outlying island duty-free shops in Hainan reached 2.131 billion yuan, of which the single-day sales on February 3 alone reached 371 million yuan, and the data has exceeded 300 million yuan per day since February.
Haikong Global Boutique (Haikou) Duty Free City
According to data from the Department of Commerce of Hainan Province, as of February 13, the total sales of 10 outlying island duty-free shops in Hainan in 2022 have exceeded 9.954 billion yuan, an increase of 70% year-on-year. Among them, duty-free sales were 9.199 billion yuan, an increase of 74% year-on-year; the number of duty-free shoppers was 1.6058 million, an increase of 68% year-on-year; and the number of duty-free purchases was 9.5992 million, an increase of 89% year-on-year.
Behind the nearly 3-fold data growth in one year is the success of Sanya and Haikou as the center, the entire Hainan Province to take advantage of the time and place, and to rapidly promote the development of the tax-free economy, which is the most inspiring regional economic twin cities in China's current retail market.
In Hainan, a hot land of duty-free retail, there are haikou and Sanya by prefecture-level administrative regions, as well as Sansha in the south-central part of Hainan and Danzhou in the northwest. Sanya and Haikou, the former is a famous and developed tourist city, there are Sanya Phoenix Airport Duty Free Shop, Sanya Hai travel duty free city, as well as China Service Sanya International Duty Free Park and other independent duty free shops, China's duty free leading among them, forming a unique tax-free climate in the country; the latter is the provincial capital of Hainan Island, there are Haikou Meilan Airport Duty Free Shop, Haikou Sun Moon Square Duty Free Shop, Haikong Global Boutique Haikou Duty Free City, Shenzhen Haikou Mission Hills Duty Free City, although it is not as good as Sanya at the cultural and tourism level, but because of the blessing of the provincial capital, Its latecomers may be more eye-catching.
Under the continuous expansion of the tax-free scene and internationalization, the scale effect spilled over, Sanya became the forerunner of Hainan, and Haikou became the action reference of free trade ports and duty-free cities scattered throughout China.
Sanya International Duty Free City
Three years ago, Haikou's tax-free income was much lower than that of Sanya. In terms of person-time penetration rate, the two are similar, respectively, Sanya 8%, Haikou 7%, but in terms of customer unit price, the gap is larger, Sanya per capita consumption of 4760 yuan, while Haikou is only 1741 yuan. However, from the perspective of customer base, although the absolute value of overnight tourists in Haikou is about 79% of Sanya, the growth rate has been significantly higher than that of Sanya, indicating greater market potential. Therefore, there is marginal room for improvement in both, of which There is more room for improvement in Haikou duty-free sales.
Today, three years later, many internationally renowned brands have launched new products and opened new stores in Hainan, and have deeply cultivated the market with new products, theme activities, preferential promotions and other means. At this time, Sanya's duty-free city has continuously adjusted the category to improve the gross profit margin to drive profit margins, coupled with favorable policies and the support of consumption return, showing particularly outstanding results. And Haikou, in addition to continuously expanding categories and brands, is also attacking in multiple directions to enhance the attractiveness of consumers - during the Spring Festival just past, Haikou issued a large number of consumption coupons, striving to make up for shortcomings while striving to achieve sufficient goods and varieties.
Lancome held the "Lancome Duty Free New Year Celebration" at Haikou Sun And Moon Square
It is not difficult to see that although Haikou, as the capital city, lags slightly behind Sanya as a famous tourist and holiday destination in the development of the cultural tourism industry, under the trend of sharing national policy empowerment and tourism economic potential across Hainan Island, Haikou has found ways and means to cooperate with Sanya in competition and strive to become a "twin star" in China's duty-free market with the latter.
In the tax-free scene, Haikou, the "late-generation" Haikou, has an international duty-free city as a key project in the construction of Hainan Free Trade Port, and the business area of the duty-free commercial part is twice that of Sanya Duty Free City, which is the largest duty-free shopping mall in Asia.
Taking Haikou Sun And Moon Plaza as an example, its duty-free city is divided into two districts, the western district has the Haikou Sun and Moon Plaza duty-free shop under the China Exemption Group, and the eastern district has the global boutique (Haikou) duty-free city operated by Hainan Development Holdings Co., Ltd. The east and west districts are distributed according to the names of each constellation, forming a new pattern of Sun Moon International Duty Free City, and are working together to create a high-quality brand gathering, distinctive regional characteristics, and convenient shopping experience in the city's outlying islands duty-free shops.
Haikou Sun Moon Plaza
In terms of catering and entertainment facilities, Haikou Sun Moon Plaza Duty Free City has more than Sanya Haitang Bay Duty Free City, corresponding to the international brand of duty free shops the former is less than the latter. Affordable clothing brands represented by Zara, Uniqlo, H&M and Muji have all opened stores in the Sun Moon Plaza Duty Free Shop. At the same time, in Haikou Sun and Moon Field Duty Free City, beauty, skin care, perfume, electronic products and other brands have the most stores, and there is no difference between the brand category and Sanya, but the brand type is limited to the brand that is well known to the public, and it is not as good as Sanya such as Creed, which is the first duty-free shop in China.
In terms of luxury brands, Italian luxury brand Prada officially announced on October 1, 2020 that it will enter the first floor of Gemini in Haikou Sun Moon Plaza, which complements international luxury brands such as Loewe, Burberry and Versace. According to WWD's field research in Haikou, at present, the number of luxury brands in Riyue Square Duty Free Shop is relatively small compared to Sanya Haitang Bay Duty Free City, especially the head hard luxury brands are relatively few, Prada, Chloe two brands are in the form of pop-up in the Sun Moon Square Duty Free City stores, not as Sanya is the first choice for most head hard luxury brands to settle in Hainan - Sanya's unique tourism resources, and the earlier development of duty-free retail climate determines its current dominant position. As a result, Van Cleef & Arpels' first duty-free shop in China settled in Sanya instead of Haikou.
For consumers, Haikou Sun Moon Plaza is more suitable for purchasing cosmetics and picking up leaks to varying degrees under the reward activities, while Sanya Haitang Bay International Duty Free Shop is more suitable for the purchase of luxury goods, hard luxury, bags, new luxury goods, popular styles and luxury goods. But for the brand, it is precisely because of the current stage of development of Haikou, although the number of brands is not enough, but with the local service industry to provide (such as the discount provided by the hotel) additional benefits, as well as the city's hardware facilities and planning is good, Haikou may become a new blue ocean of duty-free retail together with the brand and the city.
Today's Hainan tourism has no so-called off-peak season, in 2021 Hainan outlying islands duty-free shop total sales exceeded 60 billion yuan, this year's target is to reach 100 billion yuan. What will Haikou achieve in this predictable feast?
On February 21, the 2nd China International Consumer Goods Fair (CICGE), which will be held in Haikou from April 12 to 16 this year, entered the 50-day countdown to the opening. It is reported that at present, all preparatory work has been carried out in an orderly manner, and the exhibition work has basically ended. The exhibition area of the second CICGF will be expanded from 80,000 square meters last year to 100,000 square meters, and the new area will be fully used for the international exhibition area. At that time, visitors will see at the scene: a number of international brands, including Estée Lauder, Gaosi, etc., have newly joined the CICGF; a large number of head brands that have participated in the first CICGF have expanded their participation scale - such as L'Oréal Group's participation area has increased to 625 square meters, Richemont's participation area has increased to 600 square meters and new brands such as IWC and Montblanc have been added; the participation of key countries and regions has been higher - the total area of brands from France, the guest country of the second CICGF, has participated in the total area of 2500 square meters. With the exhibition area of Japanese brands increasing to 3,000 square meters, Singapore will debut as a national pavilion for the first time, and Thailand, Indonesia, Malaysia, Vietnam and other countries will also participate in the exhibition with high-quality specialty products.
De Beers' eternal mark was at the inaugural China International Consumer Goods Fair
Showcase the Diamond collection
According to the People's Daily, the first CICGF attended more than 30,000 buyers and professional visitors, and more than 240,000 visitors entered the expo, and it is expected that the two figures of the second CICGF will exceed the first one.
Boosted by such a grand event, Haikou's tax-free economy will inevitably be able to take advantage of the momentum to obtain greater development space. The next thing that is most worthy of attention is how Haikou, as a rising star, will take advantage of the surging duty-free market and exert more momentum. This may provide more valuable targets for future "spoilers". WWD
Written by Li Jun
Investigate Nion
Edited Ma Xiao Thorn, yalta
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