CHINA. The Estée Lauder Companies President Commercial, Travel Retail Worldwide Javier Simon has hailed the Hainan opportunity in an exclusive video interview with The Moodie Davitt Report strategic partner Hainan Hinews Media Co during the recent China International Consumer Products Expo (CICPE/Hainan Expo) in Haikou.
The programme also featured The Estée Lauder Companies Vice President/General Manager, Travel Retail China Maggie Wu, who spoke about the key principles underpinning the US beauty group’s Expo presence (see both interviews in the video below).
Simon spoke with Lu Tianqin, Chief TV Host of Hinews.cn Media and Head of the Duty Free Channel at Hainan Hinews Media Co, discussing the establishment of an office in Hainan, his company’s support for the Hainan Expo and the prospects for the island province’s duty free market. Hinews is The Moodie Davitt Report’s strategic partner in Hainan province.
As reported, in a move that underlines its belief in the future of the Hainan offshore duty free market, The Estée Lauder Companies registered and established Estée Lauder Travel Retail Service (Hainan) Co in the Haikou Comprehensive Bonded Zone earlier this year.
Lu Tianqin asked if this strategic move is reflective of The Estée Lauder Companies’ commitment to Hainan. Simon replied: “Yes, definitely. It makes sense to be closer, to have talent on the ground in this very important market. We had the visit of our CEO and President, and top management coming from New York. Their first port of entry was Haikou.
“So we are very happy that they did that [facilitated the establishment of the Hainan office]. It was also a very pragmatic choice because of the location of Hainan [in the Chinese market].”
On prospects for the Hainan duty free sector, Simon said: “We have in China an emerging middle class. I think in the years to come, there will be more and more consumers being able to travel, and being able to purchase prestige and luxury products. So I think in general the future of travel retail in China is very bright.
“The future of travel retail in Hainan is even brighter because Hainan is building in a sustainable manner a very strong competitive advantage with any other [travel retail] venue across the world. So, I think it is very easy to predict a great future for travel retail in China and in Hainan for sure.”
Simon also hailed the impact of the Hainan Expo, noting: “This is a great opportunity to see people face to face. Being close to our consumers, being close to retailers, the partners, including the government is very important.”
Speaking of the group’s approach to this year’s Expo, Maggie Wu said: “We are here to confirm the support that we have towards China, towards Hainan, and towards travel retail. And we are super excited about the opportunities here.”
She said The Estée Lauder Companies stand featured three key compoments. Firstly, green and environmental protection. Secondly, the integration of Hainan local elements. And thirdly, art inspiration. “The design also highlights the company’s openness and inclusion, and this urban sculpture garden-like pavilion demonstrates our vision to create a future of ultimate beauty for travellers all around the world,” Wu added.
