CHINA. In another key development for Hainan’s fast-growing offshore duty free sector, Hainan Laox Supply Chain Management Co – a new subsidiary of Hainan Tourism Investment Duty Free Co Ltd (HTDF) – was inaugurated at a signing ceremony yesterday (5 August).
Hainan Laox Supply Chain Management Co is a partnership between Hainan Tourism Investment Duty Free Co; Laox Shanghai Co – the Chinese arm of leading Japanese retailer and cross-border ecommerce operator Laox; and powerful Chinese digital full-service agency and global marketing giant Hylink Digital Solutions Co.
The three partners said that the joint venture will specialise in the import, distribution and retail business of duty free goods. The partnership is committed to being a high-quality service provider, offering consumers an expanded and more diverse range of high-quality and high-value products.
The partnership is a response to the favourable policies introduced in recent years by the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation. These have included expanding the number of duty free categories (from 38 to 45); increasing the annual offshore duty free shopping allowance to RMB100,000 (US$15,500), and extending the ways that passengers can pick up goods.
Similarly, the post-epidemic rise in the importance of ecommerce allied to evolving consumer behaviour has prompted the partners to rethink how to meet consumption needs, create more demand, and release the full potential of tourism shopping.
In their speeches at the opening ceremony the top executives of the three parties all placed high hopes on the future development of the joint venture company. Each pledged to use the partnership as an opportunity to jointly establish and consolidate a long-term, collaborative and ‘win-win’ strategic cooperation.
The joint venture will work hard to improve supply chain management in the offshore duty free and cross border ecommerce sectors; develop innovative models to enhance consumers’ online and offline shopping experience; create a five-star duty free service benchmark; and contribute to making the vision of Hainan as an international tourism consumption centre come true.
The three parties will fully leverage each of their strengths to release the potential of tourism shopping; promote the development of new forms of consumption; and take practical actions to boost the rapid take-off of Hainan’s offshore duty free market and contribute to the development of Hainan’s Free Trade Port.
HTDF is a subsidiary of Hainan Tourism Investment Development Co Ltd and is a qualified licence holder for duty free operations on Hainan island. As reported, its first store, Hainan Tourism Duty Free Shopping Complex, officially opened on 30 December 2020 with an operating area of 95,000sq m.
The business offers 45 duty free categories, over 700 internationally renowned brands, and a large tourism shopping commercial complex integrating catering and entertainment.
Hylink Digital Solutions Co is China’s largest independent digital full-service agency and a global marketing giant focused on driving growth and integrating omnichannel marketing. It has three major business sectors, including integrated information technology marketing services, new retail, and comprehensive content creation. The company is the exclusive provider of official communication agency services for the Beijing 2022 Winter Olympics and Paralympics.
As reported, Hainan Tourism Investment Duty Free Co joined forces with Hylink earlier this year in a wide-ranging promotional partnership.
Laox Shanghai Co is a wholly-owned subsidiary of Laox Corporation headquartered in Japan. Founded in 1930, Laox is a well-established electrical appliance retailer. In 2009, it transformed into a tax free retail company offering a wide range of services. It is currently Japan’s number one tax free operator with strength across procurement channels and store operations experience, and a mature management team.
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 subscribe free of charge and to view all back issues.
