Retail in Asia


Hainan offshore duty free sales rise 25.4 percent in 2023 to USD6.13 billion

Offshore duty free sales in Hainan province increased +25.4 percent year-on-year in 2023 to CNY43.76 billion (USD6.13 billion), according to newly released figures from Haikou Customs.

The number of shoppers rose +59.9 percent to 6.756 million, suggesting a general softening of spend. Per capita consumption reached CNY6,478 (USD945) and the number of items purchased grew +3.8 percent year-on-year to 51.3 million.

SEE ALSO: Plotting the rise of Hainan as a duty-free destination

Commenting on the performance, New Hainan (part of Hinews, The Moodie Davitt Report’s content partner in Hainan) said the new duty free ‘purchase and pick up’ and ‘guarantee and pick up’ delivery methods introduced on 1 April had helped drive consumption.

Source: Shutterstock

With cross-provincial tourism having recovered strongly post-Covid, the Hainan authorities and travel retailers have encouraged spending via a range of promotional activities, the report said.

“The Hainan offshore duty free market is showing a recovery trend,” it concluded.

Hainan has six offshore duty free retail companies operating a total of 12 shops.

SEE ALSO: ‘C Beauty, See Life’ pledges China Duty Free Group amid landmark Block C and Global Beauty Plaza openings in Haitang Bay

Consumer choice has been boosted significantly by China Duty Free Group’s 28 December opening of Block C at cdf Sanya International Duty Free Shopping Complex in Haitang Bay, anchored by the Global Beauty Plaza.

An official from the Port Supervision Office of Haikou Customs told New Hainan that his office would intensify efforts to crack down on illegal activities such as smuggling to fully protect the offshore duty free system.