Landmark Day: Hainan Tourism Duty Free Shopping Complex celebrates first anniversary in Sanya

Hainan Tourism Duty Free Shopping Complex is celebrating its first anniversary with a week-long promotion on its WeChat Official Account
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CHINA. One year ago a new player entered the booming Hainan offshore duty free market. On 30 December 2020, Hainan Tourism Duty Free Shopping Complex (HTDF), operated by licence holder Hainan Tourism Investment Duty Free Co, opened its doors to an expectant public after a formal inauguration ceremony that morning.

The Moodie Davitt Report was on hand (represented by Sansha Satellite TV presenter Summer Wang) to bring same-day coverage of the opening and we have presented regular updates on the retailer’s progress since on this website, in our regular eZines and on our WeChat Official account.

On opening, the 95,000sq m gross surface complex included a 2,500sq m bonded warehouse, a small supermarket, and a food court. The initial 30,000sq m of retail space over five floors featured 278 brands spanning perfumes & cosmetics, fashion & accessories, watches & jewellery, wines & spirits, confectionery & fine food and toys.

Over a dozen of these brands were new to Hainan, including Dyptique, Byredo, Gucci Makeup, Victoria’s Secret, Blancpain, Hublot, Fred, MaxMara Weekend and Lanvin.

Assisted strongly by support partner Lagardère Travel Retail, HTDF has expanded the offer significantly throughout the year as the photos below reveal.

Here is a curated selection of highlights from a momentous year.

30 DECEMBER 2020

{Above and below} Celebratory scenes from the opening ceremony hosted by renowned Sansha Satellite TV presenter Summer Wang {Photos: Summer Wang}

Extraordinary scenes as big crowds pour into the newly opened store

FEBRUARY

We reported how Hainan Tourism Investment Duty Free Co had joined forces with China’s largest independent digital agency Hylink in a wide-ranging promotional partnership. Hylink said that the partnership will drive continued consumer demand through travel retail brand partnerships. The alliance will also develop more potential business models and retail partners within the burgeoning duty free and travel retail sector; and plan ahead of the development of the Hainan Free Trade Port in 2025 and beyond.

Established in 1994, Hylink has annual revenues of around US$2.2 billion and employs 2,400 people across 21 offices worldwide
Hainan’s offshore duty free sales doubled year-on-year during the crucial Chinese New Year Spring Festival holiday period and HTDF was a prime beneficiary with large crowds filling the Sanya shopping complex

APRIL

Japanese consumer goods company Kao Corporation introduced its prestige cosmetics brands Sensai and est to the duty free market in China, with an opening ceremony on 1 April for its debut store in Hainan Tourism Duty Free Shopping Complex.

Est’s Biomimesis Veil series, which has resonated strongly with Chinese consumers, was also introduced on the day.

据介绍,此次花王落户在三亚海旅免税城的高端化妆品销售专区面积约为40平方米,销售旗下主力高端品牌“Sensai丝光溢彩”和“Est嫒色”。同时,专区还设置“嫒色蓓优密美丝膜”柜台,介绍花王最先进的技术。

Kao Corporation initially launched its prestige brands Sensai and est with a 40sq m placement. The offer features a discovery counter of est’s Biomimesis Veil, introducing the latest advanced technology from Kao Corporation.

SENSAI丝光溢彩的灵感,是源于极其稀有的小石丸蚕丝的高贵之美。是一个以独特的日式美学和先端科技为基础,运用而生的品牌;嫒色是源于“生态美容构思”的日本品牌。

Parisian chic: Supported by close partner Lagardère Travel Retail, HTDF has introduced many brands to the Hainan market for the first time, including French fashion labels Maje and Sandro, launched in April 

MAY

10 May was a red-letter day for HTDF and Lagardère Travel Retail as they celebrated the official opening of 14 L’Oréal brand zones, including Lancôme, Kiehl’s, Helena Rubinstein, Yves Saint Laurent and Shu Uemura, at Hainan Tourism Duty Free Shopping Complex (海旅免税城).

The celebratory event, which coincided with the inaugural China International Consumer Products Expo in Hainan, was held on the third floor of the new store.

The traditional ribbon-cutting ceremony was graced by (left to right) Lagardère Travel Retail CEO North Asia Eudes Fabre; Xie Zhiyong, Chairman and General Manager of Hainan Tourism Investment Duty Free Co Ltd; L’Oréal Travel Retail APAC Luxe Managing Director Zhang Tao; and L’Oréal Travel Retail Asia Pacific Division Business Development Director (China) Don Huang, together with other senior figures

On 1 May, pioneering anti-ageing brand FAQ — owned by Swedish beauty tech and wellness house Foreo — unveiled a new counter on the third floor of the Hainan Tourism Duty Free Shopping Complex to coincide with the Labour Day Holiday Weekend. To celebrate the opening, FAQ also launched a pop-up store.

JUNE

13 June was one of the biggest days yet for HTDF as the travel retailer formally opened the TimeVallée luxury watch boutique concept at its Sanya store, featuring eight leading luxury watch brands. The opening was a critical affirmation of the retailer’s luxury credentials.

当TIMEVALLÉE时光天地遇上浪漫的鹿城会是一种怎样的体验?6月13日,时光天地携手Baume & Mercier名士、IWC万国、Jaeger-LeCoultre积家、Montblanc万宝龙、Panerai沛纳海、Piaget伯爵、Roger Dubuis罗杰杜彼、Vacheron Constantin江诗丹顿等8大顶级腕表世家,带着高级制表的悠久历史和珍贵文化在三亚海旅免税城一楼精彩亮相。当天,海南旅投免税品有限公司董事长、总经理谢智勇,百利建国际董事总经理陈正欣,名士品牌代表李敬达等领导出席开业剪彩仪式。

Richemont-owned TimeVallée is an innovative multi-brand concept offered to all luxury watch brands and operated by external independent partners. TimeVallée boutiques introduce fine timepieces through an upscale and engaging store experience designed to go beyond traditional retail norms.

JULY

Another big moment for HTDF as LVMH beauty brand Fresh unveiled its debut counter. The striking counter offers all Fresh’s best-selling natural beauty products in a central location within the shopping complex

An unmissable 3D display on the exterior of the Hainan Tourism Duty Free Shopping Complex invites travellers to discover the new Fresh boutique

10 July was a particularly auspicious day for HTDF as Gucci Beauty inaugurated its first flagship store in Hainan. Hainan Tourism Investment Duty Free Co Chairman and General Manager Xie Zhiyong, and Coty Sales & Digital Senior Director, Travel Retail Asia Pacific Tracy Chen attended the celebrations together with other VIPs.

They were joined by nine leading influencers, including internet star @原是西门大姐 and celebrity make-up artist Yuan Dashuai (@袁大帅) who created a celebrity makeup look for fans on the spot.

Also in July, Diageo Global Travel unveiled two shop-in-shops for leading Scotch brands Johnnie Walker and The Singleton at HTDF.

The permanent brand spaces extend the footprint for luxury Scotch in the Hainan offshore duty free market, noted the brand owner. Wines & spirits were added to the Hainan offshore duty free mix in July 2020 and the category is seen to have rich growth potential.

On 21 July a key sector development took place as Hainan Tourism Investment Duty Free Co and South Korea’s Hotel Shilla Co – parent company of The Shilla Duty Free – signed a far-reaching strategic cooperation agreement.

During the online event, HTDF Chairman and General Manager Xie Zhiyong and Hotel Shilla President Han Ing-yu signed the Memorandum of Understanding (MOU) on behalf of the two travel retail companies.

According to the agreement, HTDF and Shilla will use their respective advantages to carry out a “comprehensive and multi-level strategic cooperation” across several areas including product development and sourcing, brand incubation, human resources & staff training. The companies will deeply integrate their activities, develop synergies, and jointly develop Hainan and overseas duty free markets, they said.

HTDF Chairman and General Manager Xie Zhiyong signs the strategic agreement

AUGUST

In another key development,  Hainan Laox Supply Chain Management Co – a new subsidiary of Hainan Tourism Investment Duty Free Co Ltd (HTDF) – was inaugurated at a signing ceremony on 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.

Sealing the deal: Hainan Tourism Investment Duty Free Co Chairman and General Manager Xie Zhiyong (centre) with Director of Laox West Japan Division Li Jinwen and Hylink Digital Solutions Co Chairman Su Tong at the ceremony in Sanya
The giant LED screen outside the Hainan Tourism Duty Free Shopping Complex announces a powerful new partnership in Hainan

In late August, The Moodie Davitt Report marked a landmark month for Hainan Tourism Duty Free Shopping Complex, which saw the introduction of a wide array of fashion and high-end brand stores and the addition of 59 brands to the cosmetics and fragrance zone. In this interview, a senior HTDF spokesman outlined the latest developments and also discussed progress since the 30 December 2021 opening.

One of our stories of the year featured the partnership pictured below between L’Oréal Travel Retail Asia Pacific, HTDF and Lagardère Travel Retail China to host a digitally-driven multi-brand ‘Summer Beauty Duty Free Party’ at the Sanya store.

The activation ran throughout August and featured a bold takeover of the giant 842sq m LED screen at the shopping complex. This displayed a series of hyper-realistic 3D visuals from Kiehl’s, Biotherm and Helena Rubinstein. The striking visuals invited travellers to visit the Summer Beauty Duty Free Party pop-up space on Level 4.

The animation space showcased several augmented reality-powered beauty tech innovations and services. It also featured a suite of retailtainment elements to immerse shoppers in the worlds of Kiehl’s, Biotherm and Helena Rubinstein.
An unmissable takeover: Helena Rubinstein, Biotherm and Kiehl’s each had their time to shine on the giant 842sq m LED screen 
Digitally-driven: A diagnosis tool offers skincare analysis and recommendations on shoppers’ mobiles in just two minutes

SEPTEMBER

LVMH-owned fashion and beauty house Kenzo opened a dazzling Kenzoki Skincare pop-up at HTDF on 15 September. The activation was the brand’s first pop-up on the island. Located on the 4th floor Beauty Island, it remains open until the end of February 2022.

The activation highlights the relaunched Kenzoki Skincare line which now features a minimum of 90% natural origin ingredients.

The lotus flower is the core ingredient of the Kenzoki skincare line, which also serves as the inspiration for the design of the pop-up. The Kenzoki Skincare activation was designed to offer a ‘relaxing oasis’ within the busy Hainan Tourism Duty Free Shopping Complex. It combines interactive O2O elements, sensorial experiences and leading-edge beauty tech features to immerse travellers in the Kenzoki universe.

The pop-up, the brand’s first and largest in Hainan, showcases the reformulated Kenzoki skincare line

Now here’s a novel way to raise awareness of the duty free shopping offer. “You don’t need to stand in a line or purchase a ticket – as long as you want to sing, you’re welcome to join in,” said HTDF as it invited tourists and Hainan residents to participate in a unique singing contest promotion to highlight awareness of the Hainan Tourism Duty Free Shopping Complex.

The local firefighters proved an audience hit as they brought unexpected vocal capabilities to the karaoke competition

HTDF showed its promotional acumen by hosting a major promotional campaign from 15 September until 15 October. The campaign celebrated the Mid-Autumn Festival, National Day holidays and the retailer’s own newly created HTDF 919 Shopping Festival.

During the ‘three festivals’ promotional period, shoppers received a CNY500 (US$77) cash voucher for every CNY1,000 (US$154) spent on beauty or fragrance products. They could also enjoy up to -70% off on other duty free items. The offers were available both online and offline.

There was more beauty action in September as Shu Uemura Travel Retail Asia Pacific showcased its bold makeup box pop-up in partnership with HTDF and Lagardère Travel Retail China.

The box is inspired by Shu Uemura’s Hollywood makeup box in bold black and red, offering Hainan travellers an immersive experience “infused with innovation and brand heritage” said the brand owner. Travellers could “step into Mr. Shu Uemura’s makeup box to explore, play, create and master their own beauty”.

The ‘Shu Makeup Box’: An immersive experience across four beauty checkpoints

OCTOBER

In a global exclusive, Hainan Tourism Investment Duty Free Co Chairman of the Board Xie Zhiyong, one of the most influential figures in Hainan’s tourism and travel
retail sectors, talked to The Moodie Davitt Report Chairman Martin Moodie about the company’s record to date at the Hainan Tourism Duty Free Shopping Complex and its plans for the future. This wide-ranging interview was shown in Chinese and English across our WeChat Official Account and our mainstream media titles.

Click on the image to read the interview with Chairman Xie Zhiyong

Click on the image to read the interview with Chairman on The Moodie Davitt Report’s WeChat Official Account

In the run-up to the National Holiday, HTDF introduced a wide array of new brands at the Hainan Tourism Duty Free Shopping Complex, including the first Hainan offshore duty free boutique for Italian fashion brand Diesel.

Other newcomers included athletic apparel label Lululemon; Parisian jewellery house Korloff and Danish sportswear brand Hummel. They were joined by high-end Belgian jewellery brand Derain By Wolfers and the globally popular Swiss gift, fashion and accessories label Victorinox.

Celebration time as Hummel opens for business

The next big opening saw Austrian crystal and jewellery house Swarovski partner with HTDF and Lagardère Travel Retail to open two new immersive concept stores in Sanya.

The doors follow Swarovski’s Crystal Studio Concept which offers an upgraded environment that takes customers on an immersive and innovative retail journey. It features physical touchpoints that encourage customers to touch, feel and try on the products and get creative with Swarovski’s latest collections.

Lancôme Travel Retail Asia Pacific celebrated its refreshed L’Absolu Rouge lipstick with an expansive outdoor plaza takeover backed by a range of vibrant digital innovations and services at Hainan Tourism Duty Free Shopping Complex through October.

In collaboration with licence holder Hainan Tourism Investment Duty Free Co and Lagardère Travel Retail China, a grand inauguration ceremony for the pop-up was held on 11 October attended by key opinion leaders.

The project marked Lancôme’s first makeup event in Hainan. It was supported by a dazzling array of digital and interactive touchpoints to drive consumer engagement throughout Golden Week.
The outdoor takeover was complemented by in-mall wrapping and a secondary pop-up kiosk

NOVEMBER

In an early celebration of its first anniversary on 30 December, HTDF added several heavyweight brands such as Bvlgari, Fred and Jimmy Choo to its offer, bringing consumers a more diverse and rewarding shopping experience.

HTDF now boasts a strong roll-call of world-renowned brands including Hublot, TAG Heuer, Gucci Beauty, Sensai, Lancôme, La Mer and many others. Recent new boutique additions include Dior, FitChan, MLB, Jimmy Choo and other leading international brands, providing tourists and Hainan citizens with more choices for winter shopping.

The Moodie Davitt Report devoted exclusive coverage to the story on WeChat and our English language website. Click on the image to read the Chinese version.

Kiehl’s Travel Retail Asia Pacific partnered with HTDF and Lagardère Travel Retail China to launch the Anti-Aging Fitness pop-up in Sanya.

The fitness-themed pop-up, which ran throughout November, underscored Kiehl’s scientific heritage and featured a range of interactive online and offline experiences. The activation was designed with striking clear glass doors and purple columns, that commanded attention at the entry to HTDF.

Super-sized digital communication at the entry to the Hainan Tourism Duty Free Shopping Complex 
The playful pop-up invited travellers to literally fight the signs of skin-ageing and discover the brand’s potent Multi-Corrective Cream

DECEMBER

Over recent weeks HTDF has introduced several new big-name brands, including Furla, Tory Burch and Chow Tai Fook. Here are some pictorial highlights.

Hong Kong jewellery house Chow Tai Fook is showcased with trademark elegance

American fashion brand Tory Burch is a notable addition to HTDF’s high-end line-up

Italian fashion brand Furla has also opened a classy standalone boutique

OTB Group-owned Milanese luxury fashion label Marni brings its renowned vibrancy and strongly visual language to play

Famed French luxury fashion house Chloé is another notable addition to the Sanya assortment

Note: 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.

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