(Focus on Consumer Expo) Consumer Expo White Paper: Hainan tourism retail industry will blossom everywhere
China News Service, Haikou, July 27 (Reporter Wang Xiaobin) The 2022 China International Consumer Goods Expo (hereinafter referred to as the "Consumer Expo") was held in Haikou. A white paper released at the theme forum on the 26th pointed out that with the "regional comprehensive With the conclusion of the Economic Partnership Agreement (RCEP) and the recovery of domestic tourism consumption in China, the competition in Hainan's tourism retail industry will become more diversified and gradually show a trend of blooming everywhere.
The white paper recommends that brands seize the opportunity of Hainan's 2025 island-wide customs closure, set up commercial entities in the Hainan Free Trade Port, and make reasonable use of Hainan's policy dividends.
The 2nd Global Consumer Innovation and Duty Free and Travel Retail Conference was held at the Consumer Expo venue on the 26th.
At the conference, KPMG and Moody's Davitt report jointly released the "White Paper on Hainan Free Trade Port Tourism Retail Market 2022" (hereinafter referred to as the "White Paper"), stating that in the post-epidemic era, with limited overseas travel options, China has Tourism and consumption have returned to China on a large scale.
Hainan has built up an attractive new image of tourism consumption in the hearts of many consumers.
According to the "White Paper", in 2020 and 2021, the sales of duty-free shopping in the outlying islands of Hainan will increase by 127% and 84% respectively over the previous year.
Despite the ups and downs in the first half of 2022, after the regional epidemic was effectively controlled, the number of Chinese tourists and consumption surged in June, and Hainan was the main beneficiary.
The White Paper notes that there are growing signs that domestic Chinese consumers have included Hainan in their list of future travel destinations.
In a KPMG survey, Chinese consumers were asked which cities at home and abroad would they prefer to travel after the opening of overseas travel?
Hainan ranks third, behind Tokyo and Paris.
The "White Paper" believes that the implementation of RCEP and the island-wide customs closure in 2025 will profoundly affect Hainan's tourism retail market.
Among them, RCEP will have a certain impact on the current price advantage of some cosmetics in tourism retail, and will promote the competition and transformation and upgrading of Hainan's duty-free industry.
The "White Paper" specifically pointed out that so far, the biggest variable in Hainan's retail market will come from the 2025 customs closure plan.
Due to changes in the tax system, both duty-free operators and brands will receive different benefits.
Tax-free operators need to be repositioned to form a flexible organizational structure and operating model.
For brands, they have the opportunity to operate direct-operated or consignment-style stores at prices closer to duty-free stores.
This will appeal to companies looking to better manage their own brands in the market.
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