CHINA. In a major boost for this year’s China International Consumer Products Expo (7-10 May), organiser Hainan Provincial Bureau of International Economic Development (Hainan IEDB) has announced that premium Japanese beauty brand Shiseido is the first beauty house to confirm its attendance at the much-anticipated event.

The news – reported by Chinese state news agency xinhua.net – is a further stimulus for the Expo, which is to be staged in Haikou, Hainan island. Shiseido follows the likes of Fancl, Rémy Cointreau, Pernod Ricard, Asiaeuro International Beverage China (AIB is a subsidiary of SGX listed Thaibev Group), Blackmores (a leading Australian health supplements company), Red Bull Thailand, and Kirin to confirm their presence at the showpiece event.

Numerous other luxury, fashion, beauty and liquor houses are understood by The Moodie Davitt Report to have also committed to the Expo, with Hainan IEDB expected to reveal details soon.

“It is clear that Hainan is going to be a massive game changer for global travel retail with strong government support and a highly committed Hainan IEDB driving this development” – Asiaeuro International Beverage China CEO Jonathan Chow 

According to xinhua.net, Shiseido China CEO Kentaro Fujiwara says that his company “is very optimistic about this new opportunity” and that the Expo will create a global platform for international investors to display and trade consumer products.

He added: “The company has deeply felt the advantages brought about by China’s economic development. The success in epidemic prevention and control in China has made us more confident of developing in the country.”

Asiaeuro International Beverage China CEO Jonathan Chow said: “It is clear that Hainan is going to be a massive game changer for global travel retail with strong government support and a highly committed Hainan IEDB driving this development.

“We have been privileged to be amongst the first foreign companies to confirm our support and participation in this exciting inaugural Hainan Expo. We look forward to showcasing our exciting product range in Hainan soon.”

The Expo’s planned exhibition area is about 100,000sq m, approximately 80% of which has been reserved for overseas companies, Hainan IEDB noted.

A rich variety of products will be featured, including watches & jewellery, cosmetics & perfumes, alcohol beverages, garments, gems, food and health products, automobiles, as well as electronic and cultural goods.

“Taking advantage of Hainan’s duty free policy, the new Expo will act as a platform for global consumer product brands to get access to China’s huge consumer market” – Hainan IEDB Global Media Officer Ruslan Tulenov 

The China International Consumer Products Expo – which, as reported, is being promoted by the hugely popular livestreaming celebrity Viya – features a full events programme, Hainan IEDB Director General Han Shengjian said. He added: “We will also try livestreaming and other trendy promotions at the Expo.”

This landmark event is a key supporting element to the establishment of the Hainan Free Trade Port, for which a masterplan was published by the Chinese government in June. As part of that masterplan, on 1 July 2020, Hainan increased its annual tax-free shopping quota from RMB30,000 (US$4,632) to RMB100,000 (US$15,440) per person.

The tax free boost has cemented Hainan’s reputation as a shopping paradise, where offshore duty free shops pulled in a remarkable RMB32 billion (US$4.94 billion) in sales in 2020. The stores received around 10.83 million visitors, with some 3.4 million customers purchasing 19.06 million items, according to Hainan IEDB.

The emergence of the Free Trade Port project has generated widespread interest among renowned international brands from the luxury, FMCG and other sectors. Underlining that interest, several leading executives including Hermès Greater China CEO Luc Hennard, Rémy Cointreau Group CEO in Greater China Nicolas Beckers, and Blackmores China General Manager Liu Jialin have visited Hainan recently for positive discussions with the Hainan IEDB.

In addition, during December, Hainan IEDB and Richemont Group CEO Jerome Lambert held a video conference to discuss Richemont Group sharing new opportunities in the Hainan Free Trade Port and to discuss participation in the first Expo.

As an important part of the Hainan Free Trade Port strategy, the China International Consumer Products Expo will be a recurring annual fixture, Hainan IEDB said.

Hainan IEDB Global Media Officer Ruslan Tulenov said: “Taking advantage of Hainan’s duty free policy, the new Expo will act as a platform for global consumer product brands to get access to China’s huge consumer market and thus help promote China’s new development paradigm of ‘dual circulation’.”

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.

海南：旅游零售业的全球焦点

穆迪戴维特报告（Moodie Davitt Report）将于2021年2月随The Magazine的中文版发表《海南特别报道》。该篇由马丁·穆迪（Martin Moodie）和德莫特·戴维特（Dermot Davitt）撰写，将探讨中国的离岸免税业务是如何变得对跨类别的各大全球领先品牌至关重要。

报告将覆盖以下内容：

• 评论与分析自2020年7月1日起，海南新离岸免税政策所引起的重大影响

• 从美妆个护到时尚、钟表，从葡萄酒、烈酒到消费类电子产品的跨类别离岸免税额的潜力

• 中免集团，中服免税店，DFS集团，Dufry, Hainan Development Holdings, 海南旅游投资发展公司，海南省国际经济发展局（Hanain IEDB），拉加代尔旅游零售等集团的重要访谈和简介，尤其着眼于颇具潜力的海南免税店贸易港项目

• 除海南外，我们还将考察中国国内市场的反弹情况，评估中国机场的前景，并希望终有一天能够恢复国际旅游通行，拥有来自内地，澳门和香港市场的领先旅游零售商的输入

• 电商驱动力：评估旅游零售业的长期市场领导者Dufry与数字巨头阿里巴巴；以及CDFG和其他主要参与者，是否具备达成合作伙伴关系的潜力

• 顶级旅行分析师ForwardKeys的专业意见

• 在内容合作伙伴Globuy，iClick，Jing Daily，Jessica’s Secret和DutyFree Expert的帮助下，分析有关中国消费者和免税市场的趋势

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, DFS Group, Dufry, Hainan Development Holdings, Hainan Tourism Investment Development Co, Hainan Provincial Bureau of International Economic Development (Hanain IEDB), Lagardère Travel Retail, 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

• Expert input from top travel analyst ForwardKeys

• With contributions from our content partners Globuy, iClick, Jing Daily, 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.