CHINA. The third China International Consumer Products Expo (Hainan Expo), hosted by Hainan Provincial Bureau of International Economic Development (IEDB), takes place this week from 11 to 15 April (preceded by an official Opening Ceremony on 10 April).
The event brings together a huge array of international and local brands across multiple categories, including wines & spirits, beauty, and luxury. The island’s duty free retailers are out in force too, featuring some spectacular exhibition stands.
The Moodie Davitt Report Founder & Chairman Martin Moodie is in Haikou for the event to bring you rolling coverage throughout the week.
UPDATE – 14 APRIL
Martin Moodie continues to tour a packed Hainan Expo as consumers pour into the event.
(Not) far from the Madding Crowd at the Hainan Expo.
Martin Moodie visits the impressive exhibition space offered by two of the island’s duty free retailers and key brands.
In this video Martin Moodie, always on the look out for a good scoop, lands a delicious one, courtesy of Diageo and Baileys Irish Cream.
UPDATE – 13 APRIL
It has been a busy day – and week – for The Moodie Davitt Report as we continue our exclusive coverage of this week’s Hainan Expo.
Today we spent several hours with our colleagues at Hainan Hinews Media Co, shooting footage on various stands, including China Tourism Group Duty Free Corporation, parent company of China Duty Free Group, and The Estée Lauder Companies.
Powerhouse alliance
China Duty Free Group (CDFG), the world’s largest travel retailer, has joined hands with Richemont Group to create a 600sq m exhibition space to showcase new trends in international consumer goods.
The space enjoys prime positioning at the main entrance of Hall 5. It has been built in line with CDFG’s commitment to focusing on green and environmental protection and implementing its ESG policy.
The design features parent company China Travel Group’s centennial logo, celebrating the historic landmark and signalling a new stage of development.
As an integral part of 2023 being designated as the ‘Year of boosting consumption’, CDFG is focusing on green and fashionable consumption. It is presenting a wide range of products, including watches, fragrances, imported and domestic liquor, fine accessories and electronic products.
CDFG is also showcasing the company’s long history and has integrated the main highlights of its acclaimed Hainan shops into the area design, displaying the highlights by unit. This allows consumers to directly experience the key shops’ brand culture and charm, CDFG noted.
It has been a big week for China Tourism Group (CTG) and China Duty Free Group. At he opening conference themed ‘Leading New Global Consumption, Sharing a Better New Life’, CTG Chairman Chen Yin delivered a powerful speech, noting that CTG and CDFG have been able to effectively overcome the severe impact of the COVID-9 crisis by insisting on operating with integrity and offering quality services to attract consumers.
CDFG has leveraged the advantages of China’s large market and placed increasing emphasis on the fundamental role of consumption in driving economic development, he said.
Sanya International Duty Free City has became the world’s largest single duty free shop in terms of sales volume while cdf Haikou International Duty Free Shopping was successfully opened {on 28 October} and became the world’s largest single duty free shop, Chen said.
The group was successfully listed on the Hong Kong H-share market last year and maintained its position as the world’s number one travel retailer for two consecutive years {based on The Moodie Davitt Report’s annual benchmark ratings}.
As China’s largest tourism central enterprise, CTG’s performance offers a microcosm of China’s strong economic resilience and high potential, with the group characterised by its vitality and long-term positivity, Chen added.
Later in the conference, CDFG Executive Vice General Manager Chang Chujun (Luke Chang) – pictured left below – hosted a panel discussion on ‘Duty Free + Cultural Tourism’.
Chang said that the offshore duty free sector has become a “golden key” for the transformation and upgrading of consumption. The channel is of enormous significance in accelerating a consumption revival and upgrading, he noted.
We will bring you a full report in the May edition of The Moodie Davitt Magazine.
UPDATE – 12 APRIL
UPDATE – 11 APRIL
In this short video below, Martin Moodie visits the extraordinary Hainan Holdings/Global Duty Free (GDF) Plaza stand.
Moodie is also left both shaken and stirred by a dazzling experience from The Macallan (below).
UPDATE – 10 APRIL
The third China International Consumer Products Expo (Hainan Expo) got underway this morning with the official Opening Ceremony attended by international and Chinese VIPS.
The ceremony began with video remarks from The Estée Lauder Companies President and Chief Executive Officer Fabrizio Freda, underlining the American beauty house’s enormous commitment to (and success in) Hainan.
“We consider China to be our second home,” Freda said. “Our long term commitment to the country remains steadfast and strong.
“We are excited about the continued growth opportunities in Hainan and we will continue with investment opportunities to further support the development of commerce in one of the most popular travel destinations.
“Hainan has provided exciting opportunities for the development of our brands within the travel retail channel. We recently opened our new travel retail office in Haikou, and we are committed to growing our presence and investment in this important province.
“China is one of the most dynamic markets in the world for prestige beauty, with the most sophisticated and discerning consumers and Hainan is a critical market to help drive the next generation of growth. We look forward to continue to deliver our superior products and high-class services and experiences to the Chinese consumers as well as investing in the market and support the needs of the local community.”
In a riveting address, H.E. He Lifeng, Vice President of The State Council of The People’s Republic of China, emphasised the critical focus Beijing places on boosting Chinese consumption – good news for Hainan’s offshore duty free sector.
“President Xi Jinping pays close attention to the China International Consumer Products Expo,” he said. “The first two Expos have been outstanding successes. The Expo has become bigger and more influential, featuring more famous brands.”
In the prevailing theme of a powerful speech, He said the government is introducing a series of policies to boost consumption. “Consumption sustains economic growth and we are paying more attention to its role. Our economy is evolving into a market driven jointly by consumption and investment,” he said, before adding, “In Hainan we will adopt a strategy to upgrade domestic consumption.”
But not consumption at any cost. “We will encourage sustainable and environmentally friendly consumption,” He continued.
“China needs the world for its development and the world needs China for its development,” He concluded.
9 APRIL
BACKGROUND TO THE HAINAN EXPO
This year’s Hainan Expo covers 100,000sq m of exhibition space, 80% of it dedicated to international products with the balance presented by Chinese companies.
Hainan IEDB said the third Hainan Expo “is conducive to the world sharing the opportunities of the Chinese market and global economic recovery and growth”.
The Bureau said the exhibition will “create opportunities for global enterprises to share the Chinese market and Chinese enterprises to go global”.
New exhibitors this year include the Hugo Boss fashion group and fellow German companies the Volkswagen Group (Lamborghini, Bentley, Porsche, Audi, Ducati, Volkswagen) and Kahl (consumer technology).
They are joined by Singapore Raffles Medical Group and a wide range of beauty, wines & spirits, fashion, food & confectionery, electronics and watches and jewellery houses.
Italy is this year’s Guest of Honour, while other countries including France, Germany, the USA, Japan, South Korea, Spain and Poland are bringing a wide array of exhibitors to the Hainan Expo platform to help develop the Chinese market.
The domestic side of the Expo will be more upscale this year. For the third consecutive year, all China’s provinces, municipalities and autonomous regions will participate. Many local brands across the beauty, fashion watches, food, wine & spirits, jewellery, diamonds and other categories will be on display, helping to position Hainan as a globally fashionable location.
Emerging consumer categories are also to the fore, including water sports, camping and several others. ✈
