Sales at Hainan’s offshore duty free shops (including tax-paid items) rose by +127% year-on-year in 2020 to around CNY32.74 billion (US$5.05 billion), according to a report in trusted Chinese state media China News.com, citing Hainan Provincial Commerce Department Deputy Director Peng Wei.
Peng was speaking during the third press conference of the province’s 13th Five-Year Plan last week. The numbers have also been confirmed to The Moodie Davitt Report by Hainan Provincial Bureau of International Economic Development (Hainan IEDB).
‘Hot duty-free sales on Hainan island boost consumption growth’ proclaims the China News headline [Pictured is the new Hainan Tourism Downtown Duty Free Shopping Complex run by Hainan Tourism Investment Duty Free Co Ltd in a strategic partnership with French travel retailer Lagardère Travel Retail.
The continued rapid evolution of sales has become a new driving force for Hainan’s consumption growth, Peng said. He paid tribute to the impact of the enhanced duty free shopping policy introduced on 1 July, 2020. This boosted the annual allowance, raised the number of categories, removed the single purchase value limit, and increased the number of cosmetics skus that could be bought. The 2020 offshore duty free revenues represented over 16% of the province’s total consumer goods retail sales.
For the period between 1 July and year-end alone, sales of cosmetics rose 1.4-fold to CNY10.53 billion (US$1.6 billion), accounting for 52% of turnover, the report said.
Watches and jewellery, boosted by the removal of the previous CNY8,000 (US$1,235) limit on a single purchase, grew 3.4-fold to CNY4.89 billion (US$754 million), accounting for 24% of sales. Fashion and leather-goods generated a 1.7-fold increase to CNY3.78 billion (US$582.8 million), or 19% of the total mix.
Newly-added categories, spirits, wine and electronics products, proved highly popular, with total sales (not broken down by individual category – again, exceeding CNY540 million (US$83.3 million) during the same period.
Hainan Downtown Duty Free Shopping
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