Author: Huang Qiong
At 8:10 p.m. on July 27th, on the second floor of CDF Haikou Riyue Plaza Duty Free City, many consumers gathered in the store of domestic brand Beichuan who were experiencing, consulting and purchasing products, including head massagers and cervical spine massagers. popular.
When it comes to "tax-free", everyone's first impression is of imported brands, and there are few domestic brands in the duty-free city.
However, in recent years, the entry of domestic products into the duty-free channel has gradually been paid attention to.
At the 2nd China International Consumer Goods Expo (hereinafter referred to as the "Consumer Expo"), a reporter from China Business News found that many domestic brands are actively seeking opportunities to enter duty-free channels, and some brands have indicated that they are already in contact.
The duty-free channel will play an important role for Chinese brands to enter the international market.
Data show that in 2021, the total sales of the 10 duty-free shops in Hainan's outlying islands will be 60.173 billion yuan, a year-on-year increase of 84%.
Among them, tax-free sales were 50.49 billion yuan, an increase of 83% year-on-year.
After the outbreak of the epidemic in 2020, China's duty-free market went against the trend, with the global share increasing from 14% in 2019 to 23.5% and 28.8% in 2020 and 2021, respectively.
High traffic, high exposure, high yield
Pingyao Tangdu Tuiguang Lacquerware Co., Ltd. brought a batch of exquisite lacquerware tea sets and vases to the site of the 2nd Consumer Expo and exhibited them in the Shanxi Pavilion.
Qin Dan, the company's sales manager, told the First Financial Reporter that the company has always wanted to introduce these products with Chinese characteristics to the country and create an international reputation.
This time I came to Hainan to participate in the exhibition, and I also had a special understanding of tax-free channels.
Through the introduction of past cooperative customers, the company is currently negotiating with some tax-free channels for related entry business.
The relevant person in charge of Hainan Holdings told the first financial reporter that the domestic consumer market has diversified channels, and duty-free shops are not the traditional sales channels of domestic brands. Domestic brands need a process of development and familiarity to enter the duty-free shop channel, which has been delayed to a certain extent. The pace of domestic products entering duty-free shops.
In recent years, existing policies have successively mentioned that a certain area of domestic product sales areas should be set up in duty-free shops to support local Chinese brands to take advantage of duty-free distribution channels to go international. One of the ways of commodity richness and differentiated competition.
In an interview with a reporter from China Business News, Zhang Tianbing, Deloitte Asia Pacific Consumer Products and Retail Industry Leader, also said that the duty-free industry can play a key role in the promotion of local brands. On the one hand, the presence of boutique domestic brands in duty-free stores is an affirmation of brand value. Most of the duty-free shop products are high-end boutiques. The presence of domestic brands can effectively enhance the brand image and facilitate the high-end transformation of brands. On the other hand, duty-free channels have the characteristics of high traffic, high exposure, and high yield, and domestic brands enter duty-free shops. It can also attract foreign tourists to buy domestic brands, which has a significant boosting effect on the globalization.
It has been put on the agenda for domestic products to enter my country's duty-free distribution channels.
In March 2020, the "Implementation Opinions on Promoting Consumption Expansion and Quality Improvement and Accelerating the Formation of a Strong Domestic Market" issued by the National Development and Reform Commission mentioned that a certain area of domestic commodity sales areas will be set up in duty-free shops to guide relevant enterprises to develop special supply products. High-quality and characteristic domestic products from duty-free channels.
In April this year, the General Office of the State Council issued the "Opinions on Further Unleashing Consumption Potential and Promoting Continued Recovery of Consumption", which proposed to improve the city's duty-free shop policy and plan to build a number of city duty-free shops with Chinese characteristics.
Beijing already has policies to support airport duty-free shops to sell high-quality domestic products, and Shanghai has also proposed to support duty-free goods business enterprises to add duty-free shops in the city, and set up a certain area of domestic goods sales areas in duty-free shops.
Rui Xunyuan, associate professor of economics at Tongling University, told Yicai.com that the internationalization of domestic brands is a long and complicated process, which includes various factors such as national import and export policies, multilateral trade environment, international political situation and differences in consumer preferences.
For the maturity and internationalization of a brand, it will take some time for domestic brands, but we have seen a good trend of internationalization of domestic brands.
"It is necessary for domestic products to enter duty-free channels, which is a direct means of brand internationalization. Domestic products need such an opportunity to go global." Rui Xunyuan said.
How to enter the tax-free channel
In the Jiangxi Pavilion of the Consumer Expo, the Jingdezhen ceramics exhibition stand attracted many visitors.
Cheng Lihua, chairman of Jingdezhen Huayuxuan Ceramics Co., Ltd., said in an interview with reporters that the company's products are high-end ceramics, and they hope to have the opportunity to spread the brand internationally, but in terms of tax-free channels, they have not yet contacted relevant channels.
Domestic brands are relatively unfamiliar with international duty-free distribution channels, and have not yet established their own channels; domestic brands have a weak global influence; due to low prices and profits, global duty-free shops have insufficient sales momentum... It is still domestic brands entering duty-free The major problems faced by the channel.
"At present, Beijing, Shanghai, Hainan and other places are introducing corresponding policies to promote the entry of domestic products into duty-free shops, so as to expand the international market." Zhang Tianbing said, referring to the experience of South Korea and Thailand, regulations or encouragement of domestic duty-free operators will be more More business areas are provided to domestic boutiques and even small and medium-sized brands, promoting Chinese products to go abroad.
At the same time, when domestic brands enter duty-free shops, they should consider adjusting their sales strategies, launch competitive products that are differentiated from foreign brands, or launch products in the form of souvenirs and travel packs for duty-free shop consumers to better satisfy consumption user needs.
At present, the GDF duty-free city under Hainan Holdings has introduced famous domestic liquor, which is displayed and sold in the store in the form of tax payment. Fiyta watches are also a famous domestic brand in the duty-free store.
What's more characteristic of Haikong is that GDF duty-free city also displayed and sold old salt products of Yinshan brand of Yingge Haiyan Salt Field under Hainan Holdings.
Hainan Holdings said that compared with the domestic market, duty-free channels have certain policies and market advantages, so categories with higher relevant tax rates, such as fragrance and alcohol, have a greater chance of entering duty-free shops.
Hainan Outlying Islands Duty Free is already the single largest duty-free sales area in the world. It is believed that Hainan Outlying Islands Duty Free will become a fertile ground for cultivating Chinese domestic brands.
A reporter from China Business News learned from Zhuhai Duty Free that the group has established cooperation with more than 100 domestic famous brands across the country, and has IP cultural brand authorization for national business cards and landmark buildings such as the Hong Kong-Zhuhai-Macao Bridge, and some of them have achieved cooperation with domestic famous brands. Industry chain, supply chain, brand chain full-chain cooperation.
In this Consumer Expo, Hainan attaches great importance to domestic products and high-quality domestic products. It not only actively encourages and guides duty-free shops in outlying islands to speed up the introduction of domestically produced high-quality goods and national trendy brands, but also adds a new set of products in the exhibition hall of this Consumer Expo. The 6,000-square-meter domestic boutique hall provides an independent display platform for domestic consumer boutiques and time-honored brands.