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Alibaba Launches New Cargo Route to Satisfy Chinese Luxury Demand

Employees work in a Cainiao warehouse  in Wuxi, China's eastern Jiangsu province, ahead of Singles' Day 2020. Getty Images.
Employees pack boxes in a Cainiao warehouse in Wuxi, China's eastern Jiangsu province, ahead of Singles' Day 2020. Getty Images. (HECTOR RETAMAL)

The Chinese tech and retail giant’s logistics arm Cainiao plans to launch direct freight flights between Singapore and Hainan Island to shuttle duty free beauty products, handbags and watches to the mainland, general manager James Zhao told Bloomberg.

Analysts forecast a slow return to global travel and with $53.5 billion in luxury spending happening in China last year alone, according to Bain & Co. estimates, brands and retailers are working harder than ever to bring their global offerings to the market.

Cainiao will run seven return flights per week between the islands and is also looking to launch freight routes between Hainan and other destinations popular with Chinese tourists, such as Japan and South Korea. Zhao added that flights to Europe will also be considered in the future.

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