High-end Consumer Goods Retail Project
Haikou City, Sanya City, Lingshui Qingshui Bay, Wanning Shimei Bay, Danzhou Haihua Island, etc.
The Tertiary Industry
Building an international tourism and consumption center, a global fashion trend information dissemination center, and a new landmark of global fashion consumption.
2 Targeted Investors
(1) Set up high-end luxury boutiques to attract local residents and consumers from other regions of China to return to the domestic market from overseas luxury markets, promoting consumption growth in Hainan province.
(2) Use the offshore duty-free policy to attract internationally known duty-free groups to invest in Hainan and actively guide them to cooperate with domestic duty-free business operators, establish high-quality supply channels for duty-free goods, and enrich the number of Hainan duty-free goods brands.
(3) Use the free trade port policy to attract international luxury brands, independent designer brands, international master studios, art research institutions, fashion marketing agencies and high-end retail department stores to open flagship stores and regional headquarters in Haikou, Sanya and other cities in Hainan.
(4) Organize a global press conference for new products, international fashion week (SS/AW), and open showrooms in conjunction with fashion week shows to provide global buyers and retailers with new channels and platforms for purchasing and ordering fashion goods.
3 Project Planning and Supporting Facilities
Hainan will invest in the new generation of information technology such as the Internet of Things, cloud computing, big data, and artificial intelligence in order to optimize technical standards for e-commerce transactions, payments, logistics, foreign exchange settlement and sales; simplify customs clearance business processes and supervision models; and help high-end brands build a "smart business circle" that integrates physical retail and online retail and further expands their sales channels.
4 Analysis of Strengths
(1) Policy Advantages
The Central Document No. 12 issued in 2018 pledged to focus on the strategic positioning of "three districts and one center"; clearly support Hainan's construction of an international tourism and consumption center; vigorously promote the opening up of the tourism and consumption industry; and actively cultivate tourism and consumption hot spots, improving service quality and internationalization, and creating an international tourism and consumption destination with rich business formats, brand clustering, a comfortable environment and distinctive features.
On April 13, 2018, General Secretary Xi Jinping announced that the central government supports Hainan in gradually exploring and steadily promoting the construction of a free trade port with Chinese characteristics. In order to implement the requirements of the “Overall Plan for the Construction of Hainan Free Trade Port” promulgated by the Central Committee of the Communist Party of China and the State Council on June 1, 2020, the recently released “Announcement on the Tax-Free Shopping Policy for Hainan Outlying Islands Tourists” clearly states the relevant policies and regulations: the tax-free shopping quota is 100,000 yuan per person, an unlimited number of times; seven types of consumer products including electronics have been added to duty-free product categories; only the single purchase of cosmetics, mobile phones and alcohol products are restricted in quantity. The offshore duty-free policy has received further strong support from the central government. The policy effects have been continuously assessed, and the operating efficiency continues to grow. In addition, import duties, import value-added tax and consumption tax are exempted for imported goods for personal use by local residents. According to the overall strategic positioning of the Hainan Free Trade Port International Tourism and Consumption Center, within the next five years, Hainan will build a world-class fashion shopping center. With Haikou and Sanya as its key areas, a large-scale business circle with international influence, a high-grade pedestrian street and a high-end commodity bonded exhibition and trading center will be built to provide brands with the best operating sites.
(2) Market Advantages
Hainan Province is the only province in China where people can enjoy duty-free shopping without going abroad. Since the implementation of the offshore duty-free policy, Hainan has been developing its high-end consumer goods market, and has an absolute advantage with far lower prices and abundant products when compared with the domestic retail market.
By the end of 2019, the offshore duty-free policy had been implemented for more than eight years. Duty-free sales increased from 2.367 billion yuan in 2012 to 13.492 billion yuan in 2019. In 2019, the number of shoppers reached 3.762 million, sales and number of shoppers increased by 34 percent and 31 percent respectively compared with the previous year, and duty-free sales continued to maintain strong growth.
(3) Unique Geographical Advantage
With a land area of 35,400 square kilometers, Hainan Province is China’s second largest island with a population of approximately 9.3 million. It has an advantageous geographical location and is the geometric intersection center of the South China Economic Circle, the Beibu Gulf Economic Circle, the ASEAN Economic Circle, and the Southeast Asian Economic Circle. It is a regional shipping hub connecting the southeast coast, ASEAN and Southeast Asia. It is also China’s important open gateway to the Pacific and Indian Oceans. In addition, the entire Chinese inland market will become its economic hinterland.
5 Project Planning and Supporting Facilities
Hainan will invest in the new generation of information technology such as the Internet of Things, cloud computing, big data, and artificial intelligence in order to optimize technical standards for e-commerce transactions, payments, logistics, foreign exchange settlement and sales; simplify customs clearance business processes and supervision models; and help high-end brands build a "smart business circle" that integrates physical retail and online retail, and further expands their sales channels.
Hainan Provincial Bureau of International Economic Development