CHINA. Haikou Customs has revealed that offshore duty free sales in Hainan province reached CNY40.7 billion (US$5.8 billion) in the first 11 months, a +26.1% increase year-on-year.
The number of duty free shoppers rose to 6.23 million, up by +59.6%, indicating a softening of spend per customer, while some 47.99 million duty free items were purchased, a +4.5% increase.
Sales have been boosted by a flurry of promotional activity, including duty free shopping vouchers issued by the Haikou and Sanya authorities to boost consumption and drive market growth.
The vouchers cover a variety of poplar categories including supermarkets and other retail, dining, smartphones, and new energy vehicles, aiming to promote cross-category consumption synergy and boost tourist spending.
Talking to Hainan Hinews*, The Moodie Davitt Report’s partner on the island, Miss Cao from Hubei Province shared her satisfaction, saying she had benefited from substantial discounts during her shopping experience in Hainan.
“Before coming to Hainan I did my homework through social media,” she said. “I saved nearly 60% on the Helena Rubinstein face cream set and CNY1,000 (US$14.40) on a new smartphone. Even gold jewellery was nearly CNY100 (US$14.40) cheaper per gram. My journey from Haikou to Sanya was worthwhile due to the incredible discounts at duty free stores.”
In response to consumer and business demands, Haikou Customs has implemented a series of reforms to centralise the review and approval process.
As reported, these include a range of convenient delivery methods including mail delivery, pick-up upon return, instant pick up after purchase, and guaranteed instant pickup.
Sanya also rolled out pilot projects that extend offshore duty free shopping privileges to business jet and cruise passengers on domestic routes.
Customs are also supporting duty free companies in a variety of ways designed to streamline logistics, efficiency while reducing warehousing and transfer costs for duty free retailers.
Anti-daigou drive
In a reference to this year’s drive to restrict daigou reselling into the Mainland to ensure a thriving legitimate offshore duty free market, Haikou Customs said it remains committed to cracking down on smuggling via mail delivery and “proxy purchases.”
Educational seminars on proxy purchases have been conducted at duty free retailers and higher education institutions to fortify what Customs called the stable and sustainable implementation of offshore duty free policies.
Yang Gang, Head of Offshore Duty Free and Express Delivery and Mail Management Section at the Port Supervision Department of Haikou Customs, emphasised ongoing reforms as the duty free market heats up.
He highlighted plans for automated customs review and clearance, “one-time filing for island-wide verification” of duty free goods, and other streamlined processes.
These initiatives aim to elevate regulatory efficiency and robustness, propelling Hainan’s evolution into an international tourism and shopping hub, he said.
*Note: The Moodie Davitt Report and Hainan Hinews Media Co share content, insights and resources on the global and Hainanese travel retail markets. Together the two companies provide a unique combination of best-in-class B2B and B2C coverage to bring Hainan to the world and the world to Hainan.
