From July 25th to 30th, the 2nd China International Consumer Goods Expo (hereinafter referred to as “Consumer Expo”) co-hosted by the Ministry of Commerce and the Hainan Provincial People’s Government was held in Haikou. China Tourism Group and its subsidiary CDFG deeply participated in the Expo, carefully built a 1,100-square-meter corporate booth, and worked with domestic and foreign participants to draw a new blueprint for the development of the duty-free and travel retail industry in the context of global consumption innovation.
Share new opportunities for consumption upgrades and talk about the new future of industry development
On the afternoon of July 26, the 2nd Global Consumption Innovation and Duty Free and Tourism Retail Conference, jointly organized by Hainan International Economic Development Bureau and CDFG, kicked off. Sheng Qiuping, Vice Minister of Commerce, Shen Danyang, Member of the Standing Committee of Hainan Provincial Party Committee and Executive Vice Governor, Liu Jin, President of Bank of China, Hao Cheng, Vice President of Bank of Communications, Wang Haimin, Director and General Manager of China Tourism Group Co., Ltd. Matthew Margulis, Senior Vice President of the Committee, Erik Juul-Mortensen, Chairman of the World Duty Free Association, and other important guests attended and delivered speeches. Ni Qiang, Vice Governor of Hainan Provincial Government and Director of the Provincial Free Trade Port Working Committee Office, presided over the meeting.
(Wang Haimin, Director and General Manager of China Tourism Group Co., Ltd. was invited to give a speech)
In his speech, Wang Haimin, director and general manager of China Tourism Group Co., Ltd., analyzed and interpreted the vigor and vitality of the Chinese consumer market, especially the Hainan consumer market, from different dimensions. He pointed out that China is one of the largest and most promising consumer markets in the world. According to forecasts, in the next ten years, China’s consumption growth will account for more than 25% of the global consumption growth, continuing to play the role of the engine of global consumption growth. Affected by the epidemic in the past two years, the size of the global travel retail market has shrunk, but the Chinese travel retail market grew by 38% year-on-year last year. What is even more surprising is that in 2021, the personal luxury goods market in China will exceed 470 billion yuan, a year-on-year increase of 36%, more than double the level before the epidemic. It is estimated that by 2025, China will become the world’s largest consumer market for personal luxury goods, accounting for more than 25% of the world’s total.
General Manager Wang Haimin said that Hainan is one of the most advantageous and dynamic open markets in China. In terms of resources and positioning, Hainan is China’s largest pilot zone for comprehensively deepening reform and opening up, and the only free trade port with Chinese characteristics. A wealth of open-door policy toolkits that are first-of-its-kind and have unique island resources and marine culture are widely and strongly attractive to global talents, capital, technology and tourists; from the perspective of the duty-free market for outlying islands, Hainan’s total 2021 The total sales of the provincial island duty-free shops exceeded 60 billion yuan, a year-on-year increase of 84%. Hainan has become a bright spot in the consumption map of China and the world. In the future, with the further development of the free trade port construction, the supporting software and hardware conditions will be improved. Further optimization, Hainan’s market potential is even more immeasurable.
General Manager Wang Haimin emphasized that China Tourism Group and CDFG have full confidence in Hainan’s consumer market and will work with brand owners to provide consumers with a high-quality shopping experience. As the first central enterprise to relocate its domestic headquarters to Hainan, China Tourism The Group continues to increase investment and development in Hainan, and actively participates in the construction of Hainan International Tourism Island and International Tourism Consumption Center. By the end of 2021, the Group has 30 enterprises in Hainan, with a total of more than 8,500 employees and total assets of more than 103 billion yuan. With an annual revenue of 67.2 billion yuan, CDFG has been honored as the world’s largest travel retailer for consecutive years.
He said that China Tourism Group has long been optimistic about China’s opportunities, Hainan’s opportunities, and consumption opportunities, and will take this Consumer Expo as an opportunity to adhere to “integrity management, high-quality service” to attract consumers to meet people’s desire for a better life. Responsibility, fully implement the development strategy of “deep cultivation in Hainan”, and better serve and integrate into the new development pattern.
In the special discussion session on “The Road to Brand Strategy Innovation”, Chen Guoqiang, general manager of CDFG, expounded the new trends in the development of China’s consumer market, and shared the positive measures that CDFG has taken with major brands to continuously carry out strategic innovations to meet the diverse needs of consumers . He pointed out that the current Chinese consumer market is showing a younger and more personalized development trend. Generation Z, represented by the post-95s generation, has become an emerging force that cannot be ignored. Digitalization and omni-channel will also be the future direction.
(From left: Chen Guoqiang, General Manager of CDFG, Wu Yue, President of LVMH Greater China, Fan Jiayu, Member of the Global Management Committee of Estée Lauder Group, President and CEO of China, President of L’Oreal North Asia and CEO of China Faber Rui, Richemont China CEO Gu Jialin, Burberry China President Zhang Yunxin, Kose Cosmetics Sales (China) Co., Ltd. Chairman Miyata Yasuhiro, Tapestry Asia Pacific President, Coach China President and CEO Yang Baoyan)
Bain’s research report on China’s luxury market, which mentions four major engines: consumption return, the rise of new generation consumers, digital development, and duty-free shopping in Hainan’s outlying islands will continue to support the growth of China’s luxury market. It is predicted that by 2025 China is poised to become the world’s largest luxury market.
General Manager Chen Guoqiang said that more and more luxury brands now value the Chinese market and the Hainan market, which is why CDFG has been deeply involved in the overall layout of the Hainan market for more than ten years. “In the first half of this year alone, our Hainan store welcomed more than 10 new brands, and cooperated with more than 30 well-known brands to launch CDFG exclusive products, which shows that many brands attach great importance to the Hainan market and regard Hainan as an entry point for travel retail in China. An important stop in the market.”
General Manager Chen Guoqiang emphasized that although there are different ways and means, the key way for enterprises to innovate their brand strategy is to get closer to consumers and focus on consumers. “As long as we focus on consumers and develop innovative businesses, we will be able to do a better job in duty-free business and better help the development of Hainan Free Trade Port.”
The Spillover Effect of the Consumer Expo is Remarkable, CDF Helps Hainan Outlying Island Duty Free
With the theme of “Sharing Open Opportunities and Creating a Better Life”, the second Consumer Expo will continue to adhere to the “boutique line” positioning, focus more on global consumer boutiques and debut new products, gather global leading brands and professional buyers, and exhibit The total area has increased from 80,000 square meters in the first session to 100,000 square meters, attracting more than 2,800 brands from more than 60 countries and regions to participate in the exhibition, and more than 600 global new products will debut during the exhibition.
A series of dazzling figures show that the Consumer Expo has become an important window for displaying the Hainan Free Trade Port’s perfect policy system, expanding the consumer market, and improving the business environment, providing domestic and foreign enterprises with a good connection with the Hainan Free Trade Port industrial system. platform.
General Manager Chen Guoqiang said in an interview with the media during the Consumer Expo that the second Consumer Expo was successfully held under the influence of the epidemic, showing the confidence of various brands in the Chinese market. In the future, with the continuous improvement of Hainan’s infrastructure, the national level Given favorable policies for Hainan, more people will travel and shop in Hainan.
He pointed out that Hainan has become a new hot spot for global investment and consumption, and the exhibition effect of the Consumer Expo has attracted more attention from consumer boutique brands and investors. “During the Expo, we will show the world the style of Chinese travel retail enterprises with a new look through exhibiting and participating in the Expo. At the same time, we will have in-depth exchanges with global partners to achieve win-win cooperation and strive to introduce more brands and brands into the Chinese market. commodity.”
As an important participant in the duty-free format of the outlying islands of Hainan, with the support of the parent company China Tourism Group, CDFG has formed a number of businesses in Hainan, including Sanya International Duty Free City, Sanya Phoenix Airport Duty Free Shop, Haikou Riyue Plaza Duty Free Shop, Haikou Meilan Airport The multi-dimensional layout covering the whole island, including duty-free shops and Qionghai Boao duty-free shops, has continuously injected new vitality into the development of duty-free business in outlying islands.
General Manager Chen Guoqiang said that the duty-free of outlying islands in Hainan has driven the release of demand and has become an important support for the recovery and development of Hainan’s cultural and tourism industry. With the introduction of more brands, the tourism retail industry will surely develop more vigorously, helping Hainan to build a world influence. A powerful international tourism consumption center.
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