Major foreign luxury and consumer goods companies are committed to increasing their investment in the Hainan Free Trade Port, driven by the immense potential of the Chinese market and the desire to enhance their global brands. Company executives expressed this sentiment during the third China International Consumer Products Expo held in Haikou, Hainan province. They noted the growth of China’s consumption market in recent years and expressed confidence in the data-supported growth projections for the sector.
Chinese consumers have a strong appetite for high-quality, fashionable, and eco-friendly products. The expo has witnessed the resilience and significant growth potential of China’s consumer market, despite the COVID-19 pandemic’s challenges. Sheng Qiuping, the Vice Minister of Commerce, highlighted this point during his video address at the expo.
Luxury brands like Burberry and Tapestry see great potential in the Chinese market, and they plan to establish their travel retail headquarters for the China market in Hainan. These brands aim to explore digital transformation, strengthen their social media marketing efforts, and introduce new high-quality products in Hainan to contribute to the growth of the Hainan FTP.
The duty-free market in Hainan has brought new opportunities to the global tourism retail industry, as seen in the innovations introduced by on-site retailers for consumers. The number of visitors and duty-free sales revenue for China Duty Free Group in the first quarter of this year exceeded the pre-pandemic level in 2019.
According to the Boston Consulting Group, China’s fashion market sales are expected to grow steadily over the next ten years, primarily driven by Chinese consumers’ pursuit of premium products with extra features. US skin care group Estee Lauder is confident in the China market and recognizes the importance of the duty-free shopping market in Hainan. The group plans to seek more cooperation with Chinese partners to contribute to the growth of the Hainan FTP.
In recent years, Hainan has been a focal point for China’s efforts to boost domestic consumption, attract foreign investment, and expand its global influence. The Chinese government has rolled out a series of policies and incentives to support the development of the Hainan FTP, including the establishment of the world’s largest duty-free shopping center, an expanded visa-free policy, and preferential tax rates for companies operating in the port.
These policies have helped to drive growth in the Hainan FTP and attract an increasing number of international companies to the region. As a result, Hainan has become a key battleground for luxury brands seeking to gain a foothold in the Chinese market.
With the Hainan FTP poised for further growth, it is likely that more international companies will invest in the region in the coming years. This will not only benefit the companies themselves but also contribute to China’s overall economic development and strengthen the country’s position as a global economic powerhouse.