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World’s largest duty-free shop set to open in Haikou

After three years of construction, the world’s largest duty-free store located in Hainan’s capital city, Haikou International Duty Free City, is ready for its grand opening on October 28.

The entire development covers a total area of 930,000 square metres consisting of tax-free business, high-end offices, a high-end hotel, as well as art and tourism spaces. About 280,000 square metres will be devoted to duty-free retail where 800 Chinese and foreign brands have confirmed their presence so far.

SEE ALSO: Hainan COVID outbreak prompts temporary Haikou store closures as Sanya remains in lockdown

Among the luxury brands included in the complex will be Balenciaga, Prada, Ferragamo, and Versace. CDFG will also offer makeup classes as well as fragrance sales in an area of approximately 30,000 square metres.

As CDFG attempts to recover from pandemic-related setbacks, the move to Haikou comes as the industry suffers a 22.17 percent year-on-year revenue drop of RMB 27.7 billion (USD 3.89 billion) in 2022 due to strict lockdown conditions. CDFG sped up the construction of Haikou’s duty-free shopping center to curb any further negative impacts caused by the lockdowns.

In a province whose duty-free market is becoming increasingly saturated, CDFG might be able to find new growth opportunities by opening a center in Haikou. However, the development faces fierce competition. Currently, other luxury retailers such as Shenzhen Duty Free Group and DFS are competing for a spot in duty-free Haikou.

SEE ALSO: Haikou Global Premium Duty Free Plaza sales soar in second quarter

By 2050, China Duty Free Group intends to transform Hainan into a world-class free trade zone by introducing more brands to malls, and expanding its sales channels at home and abroad. Despite the challenges that may lie ahead, China Duty Free Group remains focused on its objectives.