The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The duty-free sector fears the resulting impact of a continuing outbreak of Covid-19 cases across different parts of China will impact trade in Hainan during next month’s Golden Week holiday and beyond.
All three downtown duty free stores in Sanya — the CNSC, Hainan Tourism Duty Free Shopping Complex and the CDF Mall — have been closed temporarily as of Saturday, according to the Moodie Davitt Report, with no guidance on when they might re-open. Stores in Haikou currently remain open.
On Saturday, 24 people in Hainan tested positive for Covid-19 and the stores were closed in line with local epidemic prevention and control strategies.
Jason Cao of the Chinese-language site DutyFree Expert (DFE) predicted that, based on the high infectiousness of the Omicron variant, as well as the rising trend of Covid cases in various provinces (including Hainan) and China’s pandemic control policies, the industry would face “serious challenges” for at least the next month.
“It is unlikely that the passenger flow during the May 1 Golden Week will return to the level of the same period last year,” he said.
On Mar. 3, Haitang Bay retail operations were closed after a family was diagnosed with Covid-19 in Sanya. Stores reopened five days later after the entire shopping mall was disinfected and sterilised.
Learn more:
How to Tap Luxury’s Hainan Opportunity
Even after China’s borders reopen to international travel, holiday-makers will continue flocking to the luxury resorts on this tropical island renowned for duty-free shopping and golden sand beaches.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.
While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.
Local fashion designers experimenting with puffers and other down clothing have scored collaborations with outerwear companies like Moncler and attracted the attention of prominent international retailers like H.Lorenzo.