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.
Duty free retail sales in Hainan reached 8.32 billion yuan ($1.27 billion) throughout the months of January and February, with over one million people buying more than 10 million products, according to Haikou customs’ data.
This means retail sales grew 319.7 percent over the same period last year, when many duty free stores in Hainan were closed due to China’s initial response to its Covid-19 outbreak in the early months of 2020.
The tropical island in Southern China has set an annual target for duty-free sales of 60 billion yuan ($9.18 billion). Haikou, the capital of Hainan province, will host the first China International Consumer Products Expo in May as part of this drive to boost sales even further.
With consumers tightening their belts in China, the battle between global fast fashion brands and local high street giants has intensified.
Investors are bracing for a steep slowdown in luxury sales when luxury companies report their first quarter results, reflecting lacklustre Chinese demand.
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.