Duty-free advances in Hainan and Shenzhen
Offshore duty-free sales on China’s Hainan island surged to a record $736 million in February, up from $568.5 million in January, according to The Moodie Davitt Report.
Lunar New Year (or “Chinese New Year”) spending boosted the numbers significantly, as duty-free sales reached $216.5 million during the peak shopping period, February 11-17. China’s General Administration of Customs said that total sales (inclusive of tax paid purchases) reached $231.9 million over the seven-day holiday.
Average spend per shopper was $889 for the month, up 59% year on year, rising to $1075 for February 11-17.
Meanwhile in Shenzhen, the megacity’s Luohu district recently announced plans to create a high-end duty-free shopping hub, in addition to a Guangdong-Hong Kong-Macau Greater Bay Area duty-free shopping area. (Two other Shenzhenese districts, Yantian and Qianhai, have also previously signed agreements with Shenzhen Duty Free Group.)
While planning awaits government approval, local media have pointed to how China’s 14th five-year plan proposes to expand duty-free areas to Shenzhen (as well as to Beijing, Shanghai, Guangzhou and Chengdu), in a move to repatriate consumption, as reason for optimism.
