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.
Over the seven-day Chinese New Year public holiday period, which ran February 11 to 17, duty free stores on Hainan Island saw sales exceed 1.5 billion yuan ($231.2 million), according to data from the Hainan Provincial Department of Commerce. This is double the amount recorded in the same period for 2019 (prior to China’s 2020 outbreak of Covid-19 which impacted travel and spending over that Spring Festival holiday).
Despite authorities also discouraging wide-spread travel over this holiday period, more than 200,000 shoppers visited Hainan’s duty free stores, which have risen in number from four to nine outlets in recent months - a sign of the investment that is currently being poured into the sector from retailers and developers keen to gain a slice of Hainan’s growing duty free retail pie.
Cosmetics and perfumes were the top two most popular categories with Spring Festival shoppers and many outlets offered vouchers and significant discounts in order to encourage purchasing, some categories, such as watches and jewellery, saw discounts of up to 25 percent.
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.