The vast Hainan International Convention And Exhibition Center welcomed big crowds on each day of the Expo

The four-day China International Consumer Products Expo (Hainan Expo) finished on a triumphant note yesterday, with an estimated 100,000 guests (including 50,000 consumers) in attendance.

The Moodie Davitt Report has provided daily coverage of the event  in this dedicated column. We have worked closely with our strategic partner in Hainan, Hainan Hinews Media Co, whose dedicated, dynamic and highly professional team were on site throughout the Expo providing reports, pictures and videos.

As reported, The Moodie Davitt Report and Hainan Hinews Media Co have struck a far-reaching win/win strategic cooperation agreement to boost mutual coverage of Hainan’s booming offshore duty free sector and the Free Trade Port development.

TUESDAY 11 MAY

“We were very strong. We believed. We were ambitious.”

Speaking to The Moodie Davitt Report just after the official closing ceremony, Hainan Provincial Bureau of International Economic Development (Hainan IEDB) Global Media Officer & Supervisor Ruslan Tulenov said: “I’m very excited and so motivated with the achievements that we had for this Expo. I cannot wait to see the second China International Consumer Products Expo next year.”

No dates have yet been decided by Hainan IEDB for the 2022 follow-up but Tulenov said the positive reaction of exhibitors and visitors alike made a follow-up a certainty.

“I am so happy that many, many brands immediately confirmed to us that they will be participating in the second Expo,” he said. “When the exhibitors are happy people and saying that this Expo has been a success, I truly think that it is a success.”

Tulenov said that visitor numbers had risen each day. On day one, some 47,000 guests attended; rising to 65,000 on day two; and almost 70,000 on day three. The fourth and final day was open to some consumers, attracting a sell-out audience of 50,000 consumers, bringing the total audience to around 100,000 based on preliminary figures.

Exhibitor numbers too were a vindication of the Expo’s success, Tulenov said. “The Expo not only had international companies join us, which meant around 1,300 brands, but also we were joined by the domestic consuming brands and products – around 1,200. So overall we had 2,500 brands bringing their best products to showcase at our Expo.”

[‘Time now for a Macallan’Tireless show organiser Ruslan Tulenov, Global Media Officer & Supervisor at Hainan Provincial Bureau of International Economic Development, looks back on the Hainan Expo in this Podcast with Martin Moodie]

Acknowledging the hurdles that had to be overcome in organising such an ambitious physical exhibition during a global pandemic, Tulenov said: “When we had the early phone calls, people were saying that maybe a physical Expo will be difficult. When we began the recruitment [of exhibitors], which started a year ago, we travelled to so many places in China. We also had video conferences with so many countries and so many companies promoting the Hainan Free Trade Port but also inviting them to participate in the Expo.

“Our team were strong on our positioning… our team of only 37 people achieved such a massive success. You know, with just 37 people, that is a pretty big pressure on our shoulders, but we were very strong. We believed. We were ambitious and we not only showed to the world but we also showed to ourselves that there is nothing impossible. Everything can be done if you think big and act fast and long term.”

Picture courtesy of Hainan IEDB

MONDAY 10 MAY

Now the carnival is over…

The inaugural China International Consumer Products Expo has now closed. This short video captures the amazing energy and buzz of the event. 

Timely conclusion

With an Official Timekeeper of the calibre of Swiss watchmaker Baume & Mercier, of course the Expo finished on time. Pictured here giving a well-deserved thumbs-up to an event that ran like clockwork are (from left) Hainan Provincial Bureau of International Economic Development Global Media Officer & Supervisor Ruslan Tulenov; Baume & Mercier China Brand Director Vincent Feng; Hainan Provincial Bureau of International Economic Development Director Han Shengjian; and Baume & Mercier APAC Managing Director Frank Lam.

Wangfujing Duty Free pledges to bring “a brand new shopping experience to the Hainan market”

Wangfujing Group Vice President Qun Zeng (曾群) shared her insights on the future for Wangfujing Duty Free and its aim to create a new duty free retail experience, in conversation with our colleague Lu Tian Qin from Hainan Hinews Media Company, as part of the Hainan Expo Talks series.

As reported, Beijing-based department store operator Wangfujing Group was granted a duty free licence by China’s Ministry of Tourism in June last year and created a dedicated duty free company one month later.

Zeng underlined the Expo’s role in introducing high-end local brands to an international audience and its “extraordinary significance” for the development of domestic and international collaborations. She outlined Wangfujing Group’s diversity and strength in department store, shopping mall and supermarket management, its standing in cosmetics and other luxury categories and its online operation, which boasts over 30 million users.

“With these advantages, Wangfujing Duty Free will bring the most considerate and professional services to the Hainan market,” she said.

Zeng said opportunity and competition coexist to “create a different tax free retail experience”.

“With the construction of the Hainan Free Trade Port, and the introduction of a series of preferential policies, many tax free business entities have seen the huge potential of the tax free market,” she said.

The increase in the number of retailers in Hainan will “inevitably intensify market competition”, Zeng added.

Wangfujing Group was both exhibitor and buyer at the Hainan Expo [Photos by Li Hao, Hainan Hinews Media Company]

She said Wangfujing, as a newcomer to the duty free sector, would “actively learn from the advanced experience of its peers”.

“Wangfujing will continue to combine its 66 years of experience in the retail field, and give full play to the bargaining advantages of the group’s large-scale operations… and present a different Wangfujing Duty Free to the market and consumers,” Zeng said.

Asked what style of travel retail Hainan needed, Zeng commented: “It is not just a store, nor a commodity; it should be more of a life scene, created for the Hainan market and for consumers, and it should provide an innovative lifestyle.”

She said the advantages of Wangfujing’s travel retail products are reflected in the group’s development strategy, product services, and in its collaborations with brand partners. New innovations and developments are in the pipeline, Zeng added.

Wangfujing revealed the vision behind its Hai Ken Plaza project, located in the centre of the Haikou International Trade CBD, during the Hainan Expo.

The development, which will offer a multi-category retail experience to combine shopping, entertainment and leisure services, is expected to open at the end of the year and “bring a brand new shopping experience to the Hainan market”.

Zeng said Wangfujing has a vision to create a “different Wangfujing”; to offer a new travel retail experience not just for Hainan, but for all Chinese consumers. The company aims to offer a “more high-quality, convenient, rich and diversified international shopping experience” and to contribute to the future development of the retail industry.

Dynamic and disruptive: Diageo presence delights Expo visitors

Diageo Global Travel has underlined the importance it places on the Hainan offshore duty free sector and the wider China market with an expansive and elegant presence at the inaugural China International Consumer Products Expo (Hainan Expo), which concludes today.

The UK drinks group showcased its rare and limited-edition Johnnie Walker Scotch whiskies, with a special focus on super-premium expression Johnnie Walker Blue Label. Other brands profiled include The Singleton single malt Scotch whisky, Baileys Irish Cream and Shui Jing Fan.

We bring you new images straight from Diageo’s presence at the Hainan Expo, courtesy of Hainan Hinews Media Company Reporter XinCai Wu

The Diageo exhibition space at the Hainan Expo offers an immersive and engaging showcase of key brands and expressions in the portfolio

Taking great strides in China: Johnnie Walker continues to anchor Diageo’s local market and duty free strategy

Photos by XinCai Wu, Hainan Hinews Media Company

Read Martin Moodie’s full interview with Diageo Global Travel Retail Manager Eduardo Barp here.

Interactive and digital: Maximising visitor engagement at the Hainan Expo

Exhibitors at the Hainan Expo maximised O2O engagement opportunities by delighting visitors with plenty of interactive elements at their respective areas and zones.

Alibaba’s membership-based ecommerce platform Koala Shopping invited shoppers to pick up ‘Koala passports’ and interact with various touchpoints to collect Koala stamps and receive a special gift box. During the expo, the company announced that it will be opening new offline locations in Hainan this year.

Visitors were encouraged to interact with various areas in the Koala Shopping zone to secure stamps for their Koala passports

Luxury fashion and leather goods company Coach offered guests personalised luggage tags where they can engrave their own names as souvenirs of the event. Meanwhile, Shiseido took visitors on a phygital journey through their presence by inviting them to scan a QR code and digitally interact with four different brand areas. Customers who completed the journey received a small gift from Shiseido.

Kao Corporation-owned luxury skincare brand Sensai offered customers a relaxing Sensai cleansing hand massage ritual, accompanied by free samples, while Secoo offered free limited-edition shopping bags.

Coach’s colourful personalised luggage tags were a hit at the Expo

At Shiseido’s area, customers scanned a QR Code and were encouraged to visit four different brand zones to receive a special prize

 A visitor takes a snap with one of Secoo’s limited-edition tote bags

L’Oréal China’s Wang Biqing on ‘reimagining the beauty of tomorrow’ in Hainan and beyond  

L’Oréal China Director of Communications and Public Affairs Wang Biqing was interviewed by Russian Host Hong Yun about China’s growing demand for beauty products.

The interview was broadcast as part of Hainan International Communication Centre and Hainan International Communication Network’s ‘Views from the Consumer Expo: Hong Yun Face to Face’ interview series.

L’Oréal China Director of Communications and Public Affairs Wang Biqing discussed the beauty giant’s sustainability commitments and China strategy

Biqing discussed changing consumption habits in China and the growing importance of digital and ecommerce to L’Oréal’s business today. She also underscored the company’s commitment to sustainability and how this is celebrated through its Expo presence.

As reported, L’Oréal’s purpose-driven 500sq m space was constructed with ecologically-certified materials that can be repurposed for end-of-life recycling.  At the Expo, the beauty giant presented 16 beauty brands from luxury to consumer goods, haircare to active cosmetics. It also debuted the Valentino and Urban Decay brands for the first time in Hainan travel retail.

Read our full story on L’Oréal’s Hainan Expo presence here and click here for our exclusive interview with L’Oréal Travel Retail Asia Pacific Managing Director Emmanuel Goulin

Open day brings huge crowds

The China International Consumer Products Expo (Hainan Expo) concludes today on what promises to be an interesting note as the event is opened to consumers. All 50,000 tickets have been sold out. As reported, a special incremental duty free allowance has been implemented for visitors buying items from the show. We we will bring you reports throughout the day.

These images, courtesy of Star Brands Travel Retail CEO Rob Robertson, capture the spectacular final day scenes at the Expo, as 50,000 consumers joined the event on top of the trade audience.

Heating up in Hainan

Hainan in May can get very hot and today outside the Hainan International Convention and Exhibition Center in Haikou it’s around 35 degrees celsius. Things are hotting up inside too with some 50,000 consumers expected to attend the open day.

Pictures from an exhibition

(Above and below) The DFS Group exhibiton space is proving a popular draw. As reported, the retailer has curated a stunning display, which takes visitors on an interactive journey that showcases the retailer’s global store network and expertise in luxury through a series of bold and experiential spaces.

Play misty for me

State media CCTV posted this report on the Expo, including a fascinating interview with Chen Hao, Director of Marketing Strategy at Water God Liquid Disinfectant Want Want Group, which is showcasing its disinfection robots to spray large public areas such as the Expo arena.

“To ensure the safety of this big gathering against the shadow of the epidemic, one of the exhibitors brought with its disinfection robots to spray disinfectants around the venue,” the report says.

“The mist coming out of its head is slightly acidic electrolyzed water which is a safe alternative to traditional chlorine treatment.”

Chen said that an event of this scale requires a huge amount of disinfection. “Traditional treatments can only be applied when people aren’t present. But our product has been tested as safe to inhale or even consumed by mouth.”

The company told CCTV that sales for its products increased tenfold last year, driven by COVID-19 demands. The brand has been looking overseas for more opportunities.

Huge crowds are pouring into the Hainan International Convention and Exhibition Center today as the Hainan Expo opens its doors to consumers on the final day. Our images capture the buzz of the moment.

Star Brands Travel Retail seeks to help brands unlock Hainan potential

Star Brands Travel Retail CEO Rob Robertson was interviewed by Lu Tian Qin, our colleague at Hainan Hinews Media Company this morning.

As reported last month, in a major development for Hainan’s burgeoning offshore duty free channel, Star Brands Asia and Bluebell Group have launched Star Brands Travel Retail to unlock the potential for global brands entering Asia travel retail’s modern-day hotspot.

Star turn: Rob Robertson answers the questions from Lu Tian Qin, our dynamic colleague from Hainan Hinews Media Company [Photo: QingFang Li]

Star Brands Asia was established in 2009 with a mission to become China’s beauty expert partner for global brands. Through Star Brands Travel Retail, it will work closely with Bluebell Group, which describes itself as Asia’s leading omni brand curator, to offer a range of brand operation and management services for brands already present or seeking to enter Hainan’s travel retail market.

Star Brands Asia has been Bluebell Group’s strategic partner in China for the beauty sector since 2018.

Diageo showcases its diverse portfolio

Drinks giant Diageo is showcasing its powerful range of spirits in style within an expansive and elegant exhibition space.

In an interview with The Moodie Davitt Report to be published later today, Diageo Global Travel Managing Director Eduardo Barp says: “We are incredibly excited by the potential in Hainan and the opportunity we have to reach both local residents and a high number of travellers visiting the island.

“With the infrastructure continuously improving and steps being put in place to make the island duty free by 2025, we are confident that visitor numbers will continue to grow.

“The potential has always been clear, but it has been fantastic to see how Chinese shoppers are increasingly embracing luxurious, international-style spirits – particularly Scotch whisky, which is proving especially popular with younger consumers.

“We also continue to see robust performance in Baijiu though Shui Jing Fang and believe there is a huge amount of headroom for our business.”

SUNDAY 9 MAY

The China International Consumer Products Expo (Hainan Expo) swings into its third day and the organisers are delighted with reaction to date. Once again we’ll be providing extensive coverage today, with our colleagues at Hainan Hinews Media Company on the ground and Martin Moodie in Hong Kong all on duty.

Lara Netherlands and Polina Silicheva from the Hainan Hinews Media Company team are on location today to bring live coverage from the Expo. The Moodie Davitt Report Chairman Martin Moodie appeared on  ‘Lara’s Expo Talks’ programme yesterday.

Foreo to the fore

Swedish beauty tech and wellness brand Foreo is the official Beauty Devices Provider for the first China International Consumer Products Expo. Global Travel Retail Director Gary Leong was on hand at Friday’s opening ceremony, co-hosted by the Ministry of Commerce of the People’s Republic of China and the Hainan Provincial Government. He was one of 1,000 VIP guests invited for the event, where Foreo added a special welcome gift for guests.

Drinks companies out in force

With wines & spirits having  been added to the offshore duty free categories last July, there’s an understandably strong presence from the drinks sector at the show. Here, via our colleagues on the ground, we present some images taken this morning.

Photo by XinCai Wu, Hainan Hinews Media Company

Photo by XinCai Wu, Hainan Hinews Media Company

Photo by XinCai Wu, Hainan Hinews Media Company

Photo by XinCai Wu, Hainan Hinews Media Company

Call in the DutyFreeExpert

Jason Cao is well-known in travel retail circles for his DutyFreeExpert B2B information service. But the company is also building its brand representation services and is introducing several new lines at the show. DutyFreeExpert (DFE) now has a thriving operation in Hainan, advising brands on a range of disciplines from staff training to merchandising. As the photo below shows, he is also in great demand as an interviewee.

Photo by XinCai Wu, Hainan Hinews Media Company

SATURDAY 8 MAY

Martin Moodie: Hainan’s duty free sales in 2020 are “astonishing”

The Moodie Davitt Report Founder & Chairman Martin Moodie spoke today at a high-power conference organised by Hainan Hinews Media Company, at which a White Paper on the future of Hainans offshore duty free industry produced by KPMG and The Moodie Davitt Report was released.

Moodie talked about the “astonishing” performance of the sector in 2020 and also made a series of recommendations on how the business in Hainan could accelerate even faster.

Commenting on the +127% offshore duty free sales growth in 2020 to around US$5 billion, Moodie said: “While many of the world media headlines suggest this extraordinary top-line growth was driven only by the fact that Chinese could not travel abroad during the pandemic, that is only part of the reality. The other more critical element is the fact that offshore duty free represents the most enlightened government policy relating to the sector that the world has ever seen.

“So make no mistake, Hainan is no temporary El Dorado for the travel retail and duty free world. It is here to stay.”

Moodie identified the key challenges for Hainan’s duty free business as follows.

  • Brand support: “The challenge for all the new duty free retailers in Hainan is to convince luxury brands to support them. Some brand companies are adopting a wait and see attitude before committing to the new stores. Standards of merchandising and staff service are critical to brand image.”
  • Recruitment and staff training: “Chinese consumers deserve the best and much effort must be poured into proper staff training to ensure world-class standards. The world’s great brands nurture their image closely and want to have fully-educated staff on hand who understand the products and can communicate about them well.”
  • Pricing: “Overly aggressive discounting will disrupt the market and cause concern among brand partners. Protection of brand image through disciplined price control and high-class visual merchandising is crucial. Value yes, excessive discounting no.”
  • Improvements to the supply chain: “Out of stock situations are bad for business and consumer perception. The recent announcement that Cainiao Smart Logistics Network, Alibaba’s logistics arm, is launching direct cargo flights between Singapore and Hainan seven days a week to bolster supply is welcome in that respect. As is the new Paris-Hainan cargo connection from Hainan Airlines.”
  • Digital excellence: “Digital communication is integral to Hainan offshore duty free, which has taken giant steps in this regard. The power of digital gives retailers and brands the power to reach a vast audience beyond that in the store. This should remain an absolute priority into the future. Similarly, the continued evolution of contactless in-store technology will help reassure consumers in an acutely health-conscious age.”
  • Chinese brands: “While offering great international brands is fundamental to the success of Hainan’s offshore duty free sector, the proud heritage and craftsmanship of Chinese products should also occupy centre stage. Retailers must be committed to developing a ‘Sense of Place’, both in terms of Hainan specifically and China in general.”
  • Corporate Social Responsibility: “We live in an age of extreme environmental concern and awareness. Consumers expect much from retailers and brands in terms of commitment to sustainability, the environment and society. This is particularly relevant to Hainan which offers such a pristine environment and eco-conscious society. Retailers must lead from the front in displaying their commitment to the planet and its people.”

The Moodie Davitt Report, KPMG China and Hainan Hinews Media Company sign a tripartite collaboration agreement today. The parties will work together to provide high-quality ongoing information relating to the Hainan offshore duty free market.

In pictures: Rémy Cointreau’s powerful brand showcase

Rémy Cointreau is showcasing its brand portfolio at the Hainan Expo with a stunning experiential space (pictured below). Rémy Cointreau CEO Greater China Nicolas Beckers said in a LinkedIn post that the event represents “a great opportunity to further develop our brands in both travel retail and home markets in China”.

Adding a personal touch: Swatch reveals extension to Swatch x Y series

Underlining its commitment to creating a “world-renowned wrist art museum”, the Swiss watchmaker is offering Expo guests the opportunity to customise their watches with new Swatch x Y designs.

Swatch China Brand Marketing Manager Cai Runlin said: “For this Expo, we invited three artists in China and Switzerland to carefully design six canvases. We hope that through the different interpretations of culture, cooperation and friendship by Chinese and Western artists, we will enhance the exchanges between the two countries.”

Visitors can choose their favourite styles; the Swatch digital printers do the rest.

World premiere: Fabergé reveals ‘100 Years of Prosperity’ golden Easter egg

The Hainan Expo is the stage for the world premiere of Fabergé’s latest golden Easter egg. Marking ‘100 years of Prosperity’, the 10kg, 18-carat gold egg commemorates the 100th anniversary of the death of Russian jeweller, and brand founder, Peter Carl Fabergé.

Inspired by the first egg created by Fabergé for the Russian royal family in 1887, the masterpiece is decorated with diamonds, rubies and emeralds.

Fabergé Global Sales and Business Development Director Josina von dem Bussche Kessell said Fabergé is thrilled to showcase this extraordinary work at the Expo in a tribute to the goldsmith’s life and history.

Secoo announces expansion plans and enters strategic agreement with Hainan Traffic Management Holding and Hainan Expressway

Online platform Secoo has announced a strategic agreement with Hainan Traffic Management and Hainan Expressway. And Secoo intends to open shopping and leisure centres throughout Hainan within the next two years.

The partners will cooperate in consumer finance, supply chain, bonded product sales and staff training to provide global consumers with “more comprehensive and more professional” luxury services.

As reported, Secoo, which claims to be Asia’s largest online integrated luxury products and services platform, has a 10% stake in CNSC’s Nanjing downtown post-arrivals duty free store.

The Secoo platform boasts over 36.5 million registered users worldwide. Its categories include clothing, shoes, bags, watches, jewellery and accessories.

Last month, Secco opened a 4,000sq m warehouse in the Hainan Yangpu Free Trade Zone to offer services for cross-border companies on the island. Supporting customer experiences will include retail and dining.

According to the company’s plan, Secoo’s high-end intelligent manufacturing industrial park, covering an area of ​​20,000sq m, will be completed and operational early next year.

With an eye to improving shopping experiences for Hainan’s residents and tourists, Secoo plans to set up shopping and leisure centres in Haikou, Sanya, Danzhou and other regions in the next two years.

Through a ‘touch and buy’ model, Secoo said it provides customers with a combined online and offline experience.

DFS and Shenzhen Duty Free cement strategic partnership

DFS Group and its longtime business partner Shenzhen Duty Free Group today signed a strategic agreement to cement their collaboration in Hainan. The agreement paves the way for further mutually beneficial opportunities.

The ceremony took place at the Haikou International Convention and Exhibition Center (click here for our full story) and was attended by representatives from both DFS and Shenzhen Duty Free as well as from DFS’ majority shareholder LVMH Group.

DFS Group and Shenzhen Duty Free Group executives sign the strategic agreement to cement their collaboration in Hainan

FRIDAY 7 MAY

Shiseido unveils BAUM and THE GINZA at Skin Live Beauty Studio Booth

The Shiseido Skin Beauty Live Studio  blends together the Group’s strong foundations in quality, technology and innovation

Shiseido is debuting prestige skincare brands BAUM and THE GINZA in the Chinese domestic market at the Hainan Expo.

BAUM is a sustainable offering from Shiseido Group that supports healthy skin by harnessing “the power of trees” with a focus on water storage, growth and environmental defense.

BAUM contains no parabens, silicones or synthetic colorants, is packaged in upcycled fine-quality oak from the Tohoku and Hokkaido regions, and participates in forest conservation activities across Japan. Based on the Japanese concept of coexistence with nature, the brand aims to realise a sustainable society that fully embraces the blessings of trees and preserves them for the future.

Sustainable, prestige skincare brand BAUM’s presentation space at the Shiseido Skin Live Studio

Meanwhile, THE GINZA combines cutting-edge technology with high-quality ingredients to deliver tailormade solutions, based on skin physiology, for all skin types and problems.

Originating in 2002 from a high-end boutique, THE GINZA infuses the sophisticated aesthetics of fashion with Shiseido science and technology to elevate bare skin through exclusive formulas and high-performance products. The brand is woven with the DNA of Ginza – the birthplace of Shiseido.

Pictured above is the display area for minimalist, prestige skincare brand THE GINZA

Shiseido’s presence also serves as a platform for live events, interactive digital touchpoints, and virtual shopping experiences. The ‘Live Studio’ concept features a livestreaming room, hosting beauty consultations, product demonstrations and brand launches. It also features a cross-border ecommerce zone.

The beauty giant’s ‘Skin Beauty Live Studio’ booth also commemorates the company’s 40th anniversary in the China domestic market through a special Corporate Zone.

The opening ceremony & strategy presentation at the Shiseido Skin Beauty Live Studio was presented by Shiseido China President & CEO Kentaro Fujiwara. The event was held in front of an audience of key Chinese trade delegates, government leaders and media stakeholders. To mark the occasion, Mr. Fujiwara took part in a souvenir gift exchange ceremony with Hainan Provincial People’s Congress Deputy Director of the Standing Committee Guan Jinping.

Hainan Provincial People’s Congress Deputy Director of the Standing Committee Guan Jinping (left) and Shiseido China President and CEO Kentaro Fujiwara and take part in a souvenir gift exchange at the opening ceremony

Shiseido China President & CEO Kentaro Fujiwara addresses a packed room

A special Corporate Zone commemorates the 40th anniversary of Shiseido entering the Chinese domestic market and showcases key products from 13 brands in the beauty house’s diverse portfolio

Click here for the full story

DFS reveals spectacular interactive journey

DFS Group today revealed a stunning display exhibition for attendees at the inaugural China International Consumer Products Expo (Hainan Expo) that runs from May 7-10 in Haikou, Hainan province. The display takes visitors on an interactive journey that showcases DFS’ renowned global store network and world-leading expertise in luxury through a series of bold and highly experiential spaces.

Zones include ‘The World of DFS’, a ‘DFS Timeline’, ‘Exclusive Brands and Products’, ‘The Masters Room’ and ‘VIP Service Lounge’, each offering an insight into the luxury retail experiences offered by DFS across its network.

Click here for the full story.

TMall International holds 2021 global partner signing event at Hainan Expo

TMall International signed 100 global partners during the signing and investment ceremony

Chinese ecommerce giant TMall hosted its 2021 global partner signing and investment ceremony on Day 1 of the Hainan Expo. The strategic cooperation covers more than 100 leading companies including Shiseido, Dr. City and Dashanxing. It aims to help international brands maximise online opportunities in China.

TMall plans to accelerate its globalisation during the TMall International Consumer Expo, set for 2022.

TMall International Head of Global Investment Operations Li Lei said, “Over the past year, outbound travel has stalled during the global pandemic and import consumption has accelerated online. The Chinese market has recovered from the crisis and has become the main market for overseas brands to actively seek growth.”

TMall International currently sells over 29,000 overseas brands from 87 countries, with 80% of those brands entering China for the first time.

Swiss National Pavilion shines the light of Swiss watchmaking craftsmanship

Switzerland is the country of honour for the first Hainan Expo and the Swiss National Pavilion highlights the latest products and innovation from 26 leading Swiss companies and brands.

The 1,000sq m pavilion was officially opened by Swiss Confederation President Guy Parmelin, who underscored the importance of Switzerland’s bilateral relationship with China during his opening speech.

The three major partners for the Swiss National Pavilion are the Swatch group Swiss National Tourism Administration and Swiss National Image Committee.

One of the highlights is the ‘Swiss Cross Cube,’ a platform for events and networking during the Expo.

Martin Moodie addresses Hainan Expo

The Moodie Davitt Report Founder & Chairman Martin Moodie today delivered a speech at the opening conference of the 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.’

Moodie said: “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.

The address by Martin Moodie was viewed by the large audience attending the opening day of the hugely impressive Hainan Expo

“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.

“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.

“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.”

Click here for the full story.

China Duty Free Group launches ‘exclusive benefits’ for Hainan Expo visitors

China Duty Free Group has released several exclusive benefits and perks for Expo visitors across multiple locations in Hainan from 7 – 10 May.

China Duty Free Group’s Haikou Riyue Square Duty Free and Haikou Meilan Duty Free shops are offering a -15% single item discount and -20% discount on three items. The retailer is also offering single product flash sales with discounts up to -40% and releasing RMB1000 vouchers on its WeChat official account.

In addition, the Riyue Square Duty Free Shopping Mall has extended its operating hours and launched its own Consumer Fair with free shuttle bus services to the Hainan International Convention and Exhibition Centre, where the Hainan Expo is being held.

Thousands of RMB100 vouchers are redeemable at five different China Duty Free Group locations in Hainan

China Duty Free Group has also released no-threshold RMB100 consumer vouchers, redeemable at five different CDFG locations in Hainan and in terminals outside of the island. According to Hinews, the move reinforces the retailer’s commitment to the local government’s ‘New Consumption Model, Beautiful and New Hainan’ programme and aims to boost domestic dual-cycle consumption.

South Korea is the country with the most participating brands with 124 exhibitors. France follows with 99 exhibitors, then Japan with 89

Hainan Expo welcomes almost 10,000 exhibitors

As reported by Hinews, the Hainan Expo welcomes almost 10,000 domestic and international exhibitors and expects to host more than 200,000 visitors. This includes nearly 1,000 journalists from both domestic and foreign media.

The Hainan Expo serves as a showcase for 600 international exhibiting companies and 1,365 brands from 69 different countries in the international exhibition zone (60,000sq m)

Some of the high-profile international exhibitors from the luxury, fashion, jewellery, beauty, automobile, food and beverage and lifestyle categories include: LVMH Group, Kering Group, L’Oréal Group, Richemont Group, Nestlé, Shiseido Group, Martell, and Jaguar among many others.

Switzerland is the country of honour for the first Hainan Expo and the Swiss National Pavilion highlights the latest products and innovation from 26 leading Swiss companies and brands.

The Hainan Expo is also highlighting the power of Chinese brands. The domestic exhibition zone (20,000 sq m) welcomes 800 Chinese companies and 1,263 local brands.

They come from 31 provinces, autonomous regions and municipalities under the Beijing Central Government, Xinjiang Production and Construction Corporations. This includes two separate groups from Xiamen and Dalian.

Some of the top-quality Chinese brands featured include Huawei, Gree, Haikang, iFlytek, FAW Hongqi, Kweichow Moutai, Wuliangye, Tongrentang and Pien Tze Huang among many others.

The domestic exhibition zone also features the Hainan pavilion which covers 810sq m and highlights Hainan’s best retail stores and brands.

Hainan in a new light

An amazing light show, featuring 1111 drones flying over the Atlantis Sanya, was hosted by Hainan Hinews Media Company and Hainan Technology Company last night to celebrate the opening of the Hainan Expo.

Opening ceremony dazzles

Courtesy of Expo organiser Hainan Provincial Bureau of International Economic Development (Hainan IEDB), we bring you these spectacular images of yesterday’s official opening ceremony and of the magnificent Hainan International Convention and Exhibition Center.

Meet The Moodie Davitt Report’s Hainan colleague

The Moodie Davitt Report’s colleagues at our strategic local partner, Hainan Hinews Media Company, are providing comprehensive coverage of the Expo, including live broadcasts. Hinews anchor and reporter Lu Tian Qin, who is working closely with The Moodie Davitt Report Chairman Martin Moodie on the collaborative coverage of the event, is pictured on the right.

Super celebrity Viya to make guest appearance

Hugely popular livestreaming celebrity Viya (薇娅) will make a special guest appearance at the Hainan Expo,  reports Zhong Yuanyuan of Hinews.com (part of The Moodie Davitt Report’s strategic partner, Hainan Hinews Media Company).

As reported, Expo organiser, the Hainan Provincial Bureau of International Economic Development (Hainan IEDB) signed Viya late last year to promote the event. Viya announced during an online media conference yesterday that she will take consumers on a tour of the Expo in a livstream this evening (7 May).

“We are looking forward to seeing new, unique and high-quality products during this trip to the Consumer Expo,” she said.

Viya said that live broadcasting will allow a vast consumer audience to quickly learn about new brands and products showcased at the Expo. “Hopefully, through the opportunity of the Expo, Chinese consumers can learn about new products, while foreign brands can better understand the needs of Chinese consumers,” she said.

Unlike her usual format, shown from a broadcast room, Viya will host the livestream from the Expo hall. Viya has a close relationship with Hainan. Besides her ambassador role with the Expo she is also the public welfare promotion ambassador of the Hainan Free Trade Port Global Investment Service Hotline.

“The development of the Free Trade Port will bring new development opportunities to ecommerce live broadcasts,” she told journalists, adding that she hopes that in the future through livestreaming, viewers can buy top products from all over the world in Hainan.

In a recent profile, SupChina described Viya’s livestreaming popularity as “staggering”. Indeed it is, Bloomberg reported that she can draw more viewers – 37 million this May — than the finales of Game of ThronesBreaking Bad, and the latest season of The Bachelor.

“She’s made more profit in one day (Single’s Day 2019, US$385 million) than Aston Martin does in one year. She’s sold everything — car fresheners and GM rice, noodles and houses, razors and rockets (designed to launch satellites into orbit),” the title notes.

Her popularity has soared during the COVID-19 crisis. Viewing figures for her evening show – Taobao’s most-watched ecommerce livestream — doubled during China’s COVID-19 lockdown.

Jing Daily reported that Viya will not feature a product in her live stream unless it has been rigorously tested by her and her team. Every day, prior to her streams, she spends around four hours testing and reviewing products to be featured, and only with her final permission can a product be added to the line-up, the title reported. On 10 October 2019, she broke her own sales record once again, generating revenues of around US$49.7 million in a single day.

Pictures of an Exhibition

A packed Hainan Expo has got off to a spectacular start today. At a time when the Meetings, Incentive, Conferences & Exhibitions (MICE) sector is on its knees worldwide, the Hainan Expo is being attended by 630 overseas companies with over 1,200 brands from 69 countries, a result that underlines the growing importance of Hainan to a wide range of business sectors, including travel retail and luxury.

“So far, everybody is super happy,” Hainan IEDB Global Media Officer Ruslan Tulenov told The Moodie Davitt Report. “There are many people exhibiting — so very many.”

Besides a power-packed presence from many of the world’s most famous brands, over 1,200 top Chinese brands are taking part.

The Expo features a 20,000sq m domestic exhibition area with delegations from across the nation, as well as two delegations from Xiamen City and Dalian City.

Hainan Expo to become annual event

In big breaking news, we can reveal that the China International Consumer Products Expo (Hainan Expo) is to become an annual event. Dates for next year’s event are still to be finalised but the spectacular success of the 2020 edition, a triumph despite the global pandemic, has assured the Expo’s future, The Moodie Davitt Report has learned.

Lara’s Expo Talks

South African national, Lara Netherlands, an anchor with Hainan International Communication Network (HICN) – Hainan’s largest multi-lingual web portal in Hainan and part of The Moodie Davitt Report’s local strategic partner Hainan Hinews Media Company – is hosting a series of Expo-related interviews this week called Lara’s Expo Talks with leading industry figures.

Here we feature her interview with DFS Group Vice President of Strategy and Business Development, Keith Tam. We’ll feature Lara’s interview with The Moodie Davitt Report Chairman Martin Moodie soon.

“We have big plans for Hainan,” Tam says. “We are working with our partners Shenzhen Duty Free on their stores in Mission Hills in Haikou. So we are adding brands at the property. At the same time, we are eyeing more locations across Hainan to build a flagship store.”

Asked what benefits exhibiting at the Hainan Expo will bring DFS, Tam replies: “We are known more so outside of China. I’m sure a lot of Chinese consumers when they travel outside, internationally, would find our stores one way or another.

“Unfortunately, our presence in China is actually very limited. So we would like to use this opportunity to tell the consumer in China who we are; what are the stores that we have around the world; what are our specialties; and the type of elevated environment that we create for retail. So we want to use this opportunity to tell the people in China and in Hainan what DFS is all about and our story.”

While the Hainan Expo is targeted at a wide range of business sectors, duty free & travel retail forms an integral element of the event with all of China’s leading retailers visiting and several exhibiting. Many of the sector’s leading brands, too, are exhibiting, making the event the biggest travel retail happening of 2021. It is taking place, of course, in travel retail’s hottest market, underlining why we are devoting such comprehensive coverage over the next few days.

The Moodie Davitt Report’s local partner in Hainan, Hainan Hinews Media Co, is presenting live coverage from the Expo. We will bring you highlights of their coverage over the next four days.

Shenzhen Media Group is devoting live coverage to the event. The publishing house interviewed The Moodie Davitt Report Chairman Martin Moodie on the eve of the Expo yesterday. The interview will be broadcast this morning.

 

 

President Xi Jinping sends best wishes

The China International Consumer Products Expo is an event of both regional and national importance, the latter borne out by a message of goodwill sent by President Xi Jinping on the eve of the show.

08.25: In five minutes the doors to the inaugural China International Consumer Products Expo will swing open, an historic moment for Hainan and for China. We are bringing you news as it happens from the event.

Ready for take-off: Visitors wait expectantly outside the doors of the magnificent Hainan International Convention and Exhibition Center

THURSDAY 6 MAY

Magic moment nears as Expo gets set for opening

There are just hours to go before the inaugural China International Consumer Products Expo (Hainan Expo) begins in Haikou at the magnificent Hainan International Convention And Exhibition Center. Look out for our coverage from the event tomorrow.

 

‘Hainan Island, a new watchmaking El Dorado’

Click on the image to read the full story from Le Temps

‘Hainan Island, a new watchmaking El Dorado’ runs the headline in Le Temps, one of Switzerland’s leading media titles, which devotes major coverage to the Hainan Expo today.

“This tropical Chinese island has become a haven for watch sales battered by the pandemic,” wrote reporter Julie Zaugg

Switzerland is the official Guest Country of Honour at the Expo and Baume & Mercier the Official Timekeeper.

The article included an interview with The Moodie Davitt Report Chairman Martin Moodie who said that Hainan’s offshore duty free success (sales reached around US$5 billion last year and are expected to climb by at least +80% this year) was vindication of the Chinese government’s push to maximise domestic consumption and repatriate Chinese shopping spending from abroad.

Moodie said that the enhanced duty free shopping policy introduced last July had given tremendous impetus to the sector at a time when the global travel retail channel found itself in deep turmoil due to the pandemic.

TUESDAY 4 MAY

Foliday Chairman Qian Jiannong on the Hainan opportunity

Hinews anchor and reporter Lu Tian Qin will be reporting live from the Hainan Expo for the various digital titles under the Hainan Hinews Media Company banner and also providing regular coverage for The Moodie Davitt Report.

In this interview Tian Qin talks to Qian Jiannong, Chairman of Fosun-owned Foliday.

As reported, Hong Kong Stock Exchange-listed Fosun Group is bringing a cluster of world-renowned consumer brands to participate in the Hainan Expo. Fosun operates three business lines across Health, Happiness and Wealth, where it enjoys a powerful multi-sector presence in Hainan and China generally.

Qian Jiannong (left) discusses the prospects for Foliday in Hainan with Tian Qin

During his interview, Qian Jiannong revealed that Fosun Group plans to develop a second resort project across from its renowned Sanya Atlantis resort, which opened in 2018. The two resorts will combine to become known as a new brand, Foliday Town.

Foliday Town will be promoted alongside other Foliday leisure and holiday brands at the China International Consumer Products Expo, including ClubMed, Atlantis and scenic attraction management brand, Albion.

Speaking about Foliday Town, Qian Jiannong talked of it playing a part in “a brighter, higher quality life [which] reflects the upgrade in Chinese consumers’ demands”.

He said: “So the question is how to meet rapidly changing consumer demands in the future. As a result, we need to keep upgrading our products. What Foliday values the most about Hainan’s market is that it will not be limited to [being] a single tourism destination for leisure and vacations in the future but will be a broader trading platform.”

Of the duty free industry, he said that it “had a great effect on the development of Hainan’s economy, which includes a significant growth of tourism and spending”.

Qian Jiannong added that Foliday has started to cooperate with some of the licensed duty free companies. He said: “I believe that more and more duty free licenses [will be] granted and more enterprises enter market competition, especially after 2025 when the whole island is duty free. The entire province of Hainan may become another shopping paradise for the Chinese people.”

Looking forward to the Expo, Qian Jiannong said: “The China International Consumer Products Expo is not only an important way for China to develop Hainan into an international tourism and shopping centre but also provides an international platform for the vast number of enterprises in Hainan.

“On the basis of Hainan’s current industry distribution, Fosun Group will continue to work to promote both more spending and an improved industry structure.”

Voucher offer to underline duty free attraction

As part of a sector-wide promotion of the Expo, Hainan’s nine duty free shops will collectively offer one million consumption vouchers worth some RMB50 million (US$7.73 million) from 1-31 May, the Hainan Provincial Bureau of International Economic Development (Hainan IEDB) reported.

The vouchers will be distributed in sets worth RM865 (US$134). Each can be used to purchase a wide range of goods from the island’s offshore duty free retailers, including perfumes & cosmetics, liquor, jewellery and watches, consumer technology, toys, fashion and accessories.

Shopping boost for Expo visitors

The Chinese authorities have unveiled a tax-exempt programme for several categories of imported goods that will be presented at the first China International Consumer Products Expo, reports the Hainan Provincial Bureau of International Economic Development (Hainan IEDB).

During the event, some imported goods categories that will be sold at the Expo are exempt from import customs duties, value added tax and sales tax. Duty free policy will apply to furniture, garments, leathergoods, fur and faux fur, travel goods, bags and containers, optical equipment, photographic equipment, natural and cultured pearls, precious and semiprecious stones, precious metals and products made from them, as well as watches.

The main goal of the duty free policy is to enhance Hainan’s openness to the world, improve the image of the island, and promote the construction of Hainan’s Free Trade Port

The regime will not apply to endangered animals and plants, as well as products made from them, tobacco, alcohol and cars. Exhibitors selling duty free goods will be subject to quotas set for each specific product category.

MONDAY 3 MAY

Chinese brands to the fore

Over 1,200 top Chinese brands have confirmed their participation in the upcoming China International Consumer Products Expo (Hainan Expo), Hainan International Media Center* reports.

The Expo will provide an excellent opportunity for these top-quality brands to reach a wider audience. The first Hainan Expo will feature a 20,000sq m domestic exhibition area with delegations from across the nation, as well as two delegations from Xiamen City and Dalian City. As the host province, Hainan will be showcasing the bounty of the island, with agarwood, rosewood, Li brocades, and many more high-end agricultural and hi-tech products.

*Part of Hainan Hinews Media Co

Inside the magnificent Hainan International Convention And Exhibition Center, work is going on around the clock to ensure the Hainan Expo is ready for opening day [Photo: Hainan International Media Center]

SUNDAY 2 MAY

“Massive growth” forecast for Hainan fragrances market

Hinews anchor and report Lu Tian Qin will be reporting live from the Hainan Expo for the various digital titles under the Hainan Hinews Media Company banner and also providing regular coverage for The Moodie Davitt Report.

In this interview she talks to Eternal Optical & Perfumery (Far East) Travel Retail Director Lucy Song. The Hong Kong company is a leading omnichannel brand management and distribution in China, specialised in the beauty & eyewear categories across Hong Kong, Macau and Mainland China.

Lu Tian Qin (above) is one of Hainan’s top media personalities. She will be providing regular coverage for both Hinews and The Moodie Davitt Report during the Expo.

Eternal Optical & Perfumery will participate in the Expo and showcase fragrance brands such as Anna Sui, Chopard, Moschino, MCM and 4711.

Chinese readers can view the programme on WeChat here: https://mp.weixin.qq.com/s/4Mq2vtop76CgFsSAVHkHjg

To view on YouTube click on the image below.

“As the spending power of Chinese people has risen, the Chinese fragrance market has grown stronger and stronger,” says Song. “At the same time it has developed its own characteristics.

“People are really drawn to beauty. No matter if it is in a classic box or in a perfume bottle, design is of vital importance. The scent isn’t necessarily the top reason to choose. When people use a fragrance it can help them remember happy experiences, especially for young consumers who use social media. Social media has a huge influence. And it’s a way to cultivate consumers.

“Perfumes in China have multiplied incredibly quickly. It is not only traditional fragrances but also a lot of niche perfumes and salon fragrances are beginning to gain widespread popularity.”

Speaking about the Hainan offshore duty free market, Song said: “Everyone knows the duty free world looks to China. We hope that there will be even more duty free sales channels in the Free Trade Port in the future and that with Hainan’s new policies we can further develop the channel.

“There have been quite a number of Hainan Free Trade Port policies passed, which are bringing more and more talented people to Hainan. So no matter if you’re talking about the duty free market or the consumer [domestic] market, we believe that in the future there will be massive growth.”

Fosun launches new division

Hong Kong Stock Exchange-listed Fosun Group is bringing a cluster of world-renowned consumer brands to participate in the Hainan Expo. Fosun operates three business lines across Health, Happiness and Wealth, where it enjoys a powerful multi-sector presence in Hainan and China generally.

The Hainan Expo will see the debut of the Fosun Travel & Culture Retail division.

Fosun International Chairman Guo Guangchang underlined the group’s commitment to Hainan and the island’s Free Trade Port programme. “For the future, Fosun will… further enlarge its ecological links between health, happiness, wealth, and smart manufacturing, and use our advantages in the global supply chain system to continuously expand and deepen cooperation with Hainan in multi-industry fields,” he said.

The group will also highlight its Sanya Tourism 3.0 benchmark project, Atlantis Sanya, opened in 2018.

Shiseido presents a grand showcase

Shiseido Company Limited will be showcasing new brands, lines and technologies with its expansive presence at the inaugural China International Consumer Products Expo (Hainan Expo) from 7 to 10 May.

As the demand for prestige products and domestic travel continues to rise, Shiseido has enhanced cross-border collaboration between its China and travel retail businesses.

Shiseido said that its participation at the pioneering consumer event reinforces along-term commitment to China and particularly to the travel retail hotspot of Hainan.

The ‘Shiseido Skin Beauty Live Studio’ is a dedicated 500sq m space that will highlight the company’s latest product innovations and technologies from the 13 brands in its portfolio. It also commemorates the 40th anniversary of the beauty giant’s entrance into the Chinese domestic market and showcases the group’s latest sustainability initiatives.

Shiseido is also debuting two new prestige skincare brands for the first time in the Chinese domestic market, Baum and The Ginza, which will be showcased in dedicated display areas.

For the full Shiseido Hainan Expo story, click here.

LVMH brands make a strong showing

French luxury goods powerhouse LVMH Moët Hennessy Louis Vuitton (LVMH) is making a powerful statement about its commitment to Hainan and China with an extensive presence at the China International Consumer Products Expo (Hainan Expo) which runs from 7 to 10 May.

LVMH houses DFS Group, Hublot and Moët Hennessy have curated spectacular stands for the pioneering event. See full story here.

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