CHINA. The Moodie Davitt Report Founder & Chairman Martin Moodie today delivered a speech at the opening conference of the inaugural China International Consumer Products Expo (Hainan Expo).
His message was part of a dual presentation with KPMG China as the two parties released a joint White Paper entitled ‘The Travel Retail Market in Hainan’s Free Trade Port –Towards A Golden Future.’
Here is an edited version of his address.
“It is my great honour to deliver this short address to mark the opening of the inaugural China International Consumer Products Expo.
“The Expo is a key landmark in the ambitious development of the Hainan Free Trade Port, a project of critical national and regional importance. The astounding growth of the offshore duty free sector in Hainan province since 2011 has played a key role in Hainan’s growing status as a world-class international tourism consumption centre.
“I congratulate the Hainan Provincial Bureau of International Economic Development (Hainan IEDB) and all parties in Hainan that are involved in the creation of this event. The China International Consumer Products Expo has attracted extraordinary support, especially given that it is happening against the backdrop of a global pandemic, testament to how well Hainan and China have handled the crisis.
“I have tracked the evolution of Hainan’s offshore duty free industry since its earliest days. I visited the first shop in downtown Sanya when it opened in 2011; and eight years ago I visited China Duty Free Group’s Sanya International Duty Free Shopping Complex in Hainan Bay when it was just a construction site. I have seen it bloom like the begonia flower it is modelled on and flourish as one of the world’s great duty free shops.
“I have witnessed the regular improvement to the offshore duty free shopping regulations, including of course the major enhancement to the policy in July 2020. This was a game changer for the duty free and travel retail industry not only in Hainan but for the world.
“In 2020 Hainan became the epicentre of the international duty free industry, a global lighthouse in a sector otherwise plunged into darkness.
“While traditional sector hotspots saw their sales plummet, Hainan’s duty free revenues soared like an eagle, rising +127% to around US$5 billion. China Duty Free Group went from number four travel retailer in the world, according to The Moodie Davitt Report annual rankings ,to number one, spurred by Hainan. And now, several new retailers have entered the scene, adding welcome competition and more choice for the consumer.
“To honour this Expo and to underline Hainan’s emergence as the heartbeat of the global duty free and travel retail industry, The Moodie Davitt Report is delighted to have partnered with KPMG China to publish a White Paper dedicated to assessing Hainan’s role within the context of the global duty free industry.
“It’s an important study that underlines the triumph of government policy – a pro-business, pro-consumer, pro-Hainan policy that has succeeded beyond all expectations. At current growth rates, the report concludes that Hainan could become the world’s biggest duty free market – a hugely impressive achievement.
“The White Paper also underlines key areas of improvement that will help the duty free industry here in Hainan to deliver on its growth projections. Quality must be integral to development – quality of design, merchandising, staff, service and of digital execution.
“In just ten years Hainan has taken giant strides from start-up to a US$5 billion business. The next giant leap is not just monetary. Hainan duty free must not simply aim to be the biggest but the best. I believe Hainan can achieve that aim and march forward to a golden future
“Distinguished guests, Ladies and Gentlemen, thank you for your time and I wish you glorious success with your Expo.”
