CHINA. Cainiao Smart Logistics Network, Alibaba’s logistics arm, is launching direct cargo flights between Singapore and Hainan to bolster the supply of beauty products and luxury goods for the island’s booming offshore duty free industry.

The news, first reported by Bloomberg and subsequently confirmed with Cainiao by The Moodie Davitt Report today (look out for our follow-up coverage next week), is an important boost for the business in Hainan amid soaring demand and rising pressure on the supply chain.

Bloomberg reported that Cainiao plans to run seven return flights a week between Singapore and Hainan.

Cainiao Network is living up to its parent company Alibaba’s motto by making it easier to do business in Hainan

In a speech to the French Chamber of Commerce & Industry in Hong Kong’s Luxury Symposium this week, The Moodie Davitt Report Founder & Chairman Martin Moodie noted that China was stepping up its efforts on all fronts to maximise domestic consumption and repatriate overseas spending by Chinese travelling shoppers.

Hainan is the “golden light” of China’s efforts to repatriate overseas spending and maximise domestic consumption, The Moodie Davitt Report Chairman Martin Moodie told the French Chamber of Commerce & Industry in Hong Kong’s (FCCIHK) Luxury Symposium this week. Photo by Ike Li/Ike Images, provided to The Moodie Davitt Report by the FCCIHK.

“Beijing’s priority, fundamental to the ‘dual cycle’ concept, is to ensure that Chinese spending (as well as production and distribution) benefits Chinese hands,” he told delegates to the event which was broadcast worldwide. “Expect more pro-business, pro-consumer policies, not just in Hainan but on the Mainland too.

“The mantra is clear: capture that spend pre-departure, on- and post-arrival, and in domestic locations. The thinking is highly coordinated, long-term and strategic. And Hainan is its golden light.”

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About Cainiao Network

Established in 2013, Cainiao Network is dedicated to meeting Alibaba Group’s logistics vision of fulfilling consumer orders within 24 hours in China and within 72 hours anywhere else in the world.

To realise this vision, Cainiao Network continues to build and operates a global fulfillment network together with logistics partners.

It offers domestic and international one-stop-shop logistics services and supply chain management solutions, addressing various logistics needs of merchants and consumers at scale.

Footnote: Every fortnight The Moodie Davitt Report publishes Hainan Curated, in association with Foreo, a selection of all recent stories from the offshore duty free sector in Hainan province.

Click here to view all back issues. Please email Sinead@MoodieDavittReport.com to subscribe.

Click to open our recent special edition of The Moodie Davitt Magazine dedicated to Hainan. Sina Retail & Image is profiled and Founder Xavier van Gaver interviewed on page 134.