The huge success of Hainan province’s offshore duty free sector is set to spawn similar zones elsewhere in China, according to a report in respected state-controlled media China Daily.
China Daily said today that Qingdao, in China’s eastern Shandong province, is planning to set up more duty free stores.
The Qingdao Jiaodong Airport Economic Demonstration Zone is planning a duty free mall for high-end international products, open to local residents to shop.
“Chinese consumers are expected to shop for more overseas high-end products at domestic duty free stores, thanks to the growing demand for such products and the ongoing restrictions on outbound travel, experts said,” reported China Daily.
“Indications that the duty free shopping sector in the country is ready to ride the trend are evident from the duty free outlet plans of various provinces and cities.”
Many analysts believe that China will aggressively step up the development of its ‘offshore’ duty free sector, both in Hainan province and in selected economic zones, to stimulate local consumption and economies and to repatriate overseas spending.
Quoting a recent Bain & Co and Tmall Luxury Division report, China Daily said that Chinese consumers are most likely to remain cautious about international travel even after the pandemic ends.
As a result, most luxury brands believe that domestic growth will likely continue in 2021 at about 30%, it said. The luxury market on the mainland grew by 48% to around RMB 346 billion last year, according to Bain & Co.
Read original article
