Lagardère Travel Retail has partnered with Hainan Tourism Investment Development (HTID) to open the second large-scale downtown duty free store in Sanya, on the Chinese tropical island of Hainan today (30 December).
The French travel retailer is joined on the island by The China National Service Corporation for Chinese Personnel Working Abroad, which officially opened the first phase of its new Sanya International Duty Free Plaza today (30 December).
Speaking during the recent Tax Free World Association China Reborn online event, Eudes Fabre, CEO North Asia, Lagardère Travel Retail, said the retailer had received tremendous feedback and support from brand partners, which helped complete the project in a record 120 days.
A 2,000-strong team of China-based travel retail professionals also played an important role in ensuring the project was a success.
The opening in Hainan enables Lagardère to continue capitalising on booming Chinese consumer demand and further strengthens its Asian presence.
STRONG LOCAL PARTNERS
Building on its track record of partnership with strong local players, Lagardère Travel Retail has partnered with HTID, a Chinese state-owned enterprise for this project.
Under a strategic supply and service agreement with HTID, Lagardère Travel Retail has brought 278 brands to Hainan for today’s opening.
Product categories including perfumes & cosmetics, fashion and accessories, watches and Jewellery, wine & spirits, confectionery & fine food and toys are spread across more than 30,000sq m over five floors.
Lagardère Travel Retail says it is bringing the best of its portfolio of brand partners to Hainan, in addition to its global duty free expertise and experience in developing large-scale, high-end travel retail concessions.
The portfolio comprises key western and Asian beauty brands and a range of luxury fashion, high-end watches and fine liquor labels. More than 12 of these brands are new to Hainan.
New and exclusive brands include Dyptique, Byredo, Gucci Makeup, Victoria’s Secret, Blancpain, Hublot, Fred, MaxMara Weekend and Lanvin.
Following the opening of the store Fabre said: “We are very excited to play a leading role in Sanya’s world-class new duty free project.
“Working in close partnership with Hainan Tourism Investment Development, we made this large-scale opening happen in record time.
“It is a very ambitious project in terms of scale and timing and I’m very proud of how our teams, locally and globally, came together to rise to the challenge of delivering a comprehensive and enchanting duty free shopping experience in downtown Sanya.”
DOMESTIC CONSUMPTION BOOM
He added: “Chinese consumers spending at home has boomed as a result of the global pandemic and local government policies to stimulate domestic consumption. This creates a great potential for Lagardère Travel Retail to continue its growth in China.
“We also hope the phenomenal growth of Hainan is a responsible, sustainable one. Besides sales, we are very focused on delivering unrivalled customer experience and building brand image.”
In line with the improvement of the sanitary situation in China, Hainan has been free of the Coronavirus for over six months. It is becoming an increasingly attractive tourism and leisure destination for Chinese consumers.
According to Lagardère, the opening of large-scale duty free facilities in Hainan is testament to China’s efforts to rebalance its economy from an export-driven model towards domestic consumption.
The pandemic and closure of most international borders have further accelerated the re-shoring of Chinese consumer spending. Reshored consumption could be as high as $165 billion in 2020 (Source: Morgan Stanley).
Lagardère Travel Retail started operating in China in 2007. It has over 400 stores in 26 airports and recently opened several new luxury fashion and beauty stores, including Chanel, Cartier, Burberry, Dior and Sandro in domestic airports.
Stay close to TRBusiness.com for further reaction to the opening in Hainan from Eudes Fabre, CEO North Asia, Lagardère Travel Retail.
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